Hi John, welcome to the forum - Only today, have I just gone through a budget with a client who had used the CCCS budget planner online and the differences were huge. she was relieved as she didn't believe she could manage on what the online planner was suggesting.
Regardless of who you speak with, getting the income and expenditure right is key otherwise you will be back to square 1 and struggling again. You also want to be confident that in whoever you choose to help you has an excelent reputation for client service and working with their clients throughout the whole of the IVA, as lots can happen over 5 years. There are highly recommended companies on here and lots of people to support you both along the way.
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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All other considerations apart, my feelings are that it is far better to go with one of the smaller companies, who tend to see you as a person, rather than a number. Definitely on your "speak to list" should be Melanie Giles, McCambridge Duffy and Sam Hawkins.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Guidelines are only guidelines at the end of the day - and the most important thing for any IP advising a client is to understand exactluy how much they need to spend on particular areas as higher expenditure is allowed so long as it can be justified. The one size fits all definately does not lend itself to many families - and creditors really do understand this in my experience.
lots of fantastic advice from you all.
Just an update from CCCS. Different chap on the phone today, not so understanding or sympathetic as the person i spoke to Saturday. I provided extra information on my outgoings and contributions via cccs would now be 1200 a month over 5.4yrs. The chap on the phone will not put me through to an IVA as he said a DMP would be in my best interest and basically why would i want an IVA when the best solution would be a DMP. Very confused and worried that 1200 is still too high a contribution to my creditors.
Forgot to mention that the chap said,the allowances were realistic which i disagreed with. He said they are set at realistic allowances which creditors will usually accept. if not, they will not freeze interest.
Why is he saying that any solution would be in your best interest? Even an insolvency practitioner should not be telling you that - our role is to give you advice about all of the options available to you, thus allowing you to determine what is actually in your best interest. If a monthly payment feels unaffordable now - trust me, it will be when it comes to paying it for five or more years in a DMP.
Why not ask to speak directly to the IP at CCCSVA to see what she advises?
That's the first time I have heard that creditors will only freeze interest if the allowances are strictly within CCCS guidelines. Andy/Size 5 - are you familiar with this policy in your own DMP portfolios?
Sorry,he said less likely to freeze interest. The impression I am getting so far is cccs see dmp as the way forward, iva is not an option according to them.. The debt I know is my fault but there is no way I can pay such a huge amount without being in serious trouble a year or 2 into the agreement. I have a meeting arranged friday with an independant specialist.
It is so important that you do not be influenced by the person advising you - apart from listening and clearly understanding the advice given. No-one apart from you can tell what is the best route for you and your family, and I am interested to understand what is driving the people who have already been advising you. I can understand that it may be preferable to avoid formal insolvency proceedings, however you do need to live through this especially if you have a young family with greater demands on your income.
I have never heard of interest not being frozen just because your expenditure is outside guidelines.
It would pay you to speak with a commercial company or two and see what they advise when they look at your figures, it will cost you nothing and may be very beneficial
I too nearly became a DMP victim thanks to CCCS. If I'd followed their advice, (after seeking help on another high-profile money saving site), I would have had to sell my flat (second property - my pension basically), be £4,000 per year worse off in lost rental income, and it would have taken 10-14 years to repay my debt on their suggested DMP.
Instead, I agreed to enter an IVA, where I get to keep my assests, and there is a fair possibility that a lot of the original debt will be written-off after 5-6 Years.
My advice: Find yourself a decent IP, arrange an IVA (or whatever arrangement suits you best), then phone CCCS, and tell them to take a hike. I did, it was very satisfying!!!
My opinions are just that: Based on my experience and being a self-employed IVA customer.
Bear in mind that the CCCS are funded by the banks and receive commission for collecting the debts. They also receive thousands of calls each month [referred from the banks] but have only one insolvency practitioner to give advice. If you are self employed they do not even do IVAs although I do not know whether they will not or cannot do them. Perhaps a DMP is more profitable for them and their paymasters but until you get another opinion you will not know.
As everyone has been saying you should get away from them and get some professional advice from the independent sector rather than relying on a bank funded 'charity'. Very few firms charge up front fees but will give you proper advice. If a DMP is the correct way forward this will be explained but so will all the options.
