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By Ledbury
Hi there, can you give me any advice? I was on a debt management plan with the CCCS for 3 years and during that time I have paid off nearly £10k of debt. However more recently I have suffered reductions in my wages and have had to reduce the monthly payments. Also stupidly I started to borrow from payday loans companies to make ends meet. This gradually got worse and worse until I decided that I had to tell the CCCS about the payday loans to see if they could help. They were no help at all and even though I have never missed a payment with them they cancelled my DMP on the spot saying that I have broken the agreement. Now I am not sure what to do. I still owe £30k in total with the payday loans. Can the CCCS do this?
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By Geraldine
Hello Ledbury and welcome to the forum

This seems very unreasonable of the CCCS. You will not be the first or I suspect the last person to borrow more while you are on a debt management plan. I would have thought that they would have simply been able to change your DMP to include the new debts. I am sure you will be able to start a new debt management plan with a different debt management company if you want. On the other hand, if you still owe £30,000 are you sure that a DMP is the right solution for you? How much can you afford to pay each month? Have you considered the possibility of an IVA which might help you pay off your debt quicker?
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By Philip Corfield
Hi Ledbury.

Like Geraldine I would suggest that now might be a good opportunity to take a fresh look at which options will be best to deal with your debts.

A debt management plan may remain appropriate but a reduced capacity to make monthly payments may mean other options have become increasingly worthy of consideration.
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By Hayden
Hello ledbury, what on earth are the CCCS doing? It would be perfectly simply for them to include the new debts into your debt management plan and simply re do the payment figures. I would have thought they would have given you better treatment after you have already paid back £10000 of your debt. Afterall there is no law against you borrowing more money if you are on a debt management plan.

You can ceetainly start a new DMP with someone else but I agree that you should take this as an opportunity to review all of your circumstances. If you have already paid £10k but still owe c£30 this would mean that your total debts when you started with the CCCS were c£40k yes? Was the option of an IVA or even bankruptcy ever discussed with you at that time? I suggest you speak to one of the debt experts who post on this forum and discuss your situation and options with them.
By Ledbury
Hi again. Thanks for your help.

I did speak to the CCCS about an IVA origionally but they said I could not do this as there is too much equity in my house so that is why i started the IVA. I must tell you that I took Hayden's advice and have spoken to James at beat my debt. He has been great. He also explained to me that even though there is c£80k of equity in my property my wife has claim to half. As such my equity is £40k but with debt of £30k I can still do an IVA and include the payday loans. We are making the application now. I just wish i had found this site and your helpful advice earlier....
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By James Falla
Hi there Ledbury

It has been a pleasure to be able to help. Please keep posting about your experience on the forum as it will really help other readers.
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By Hayden
Great news Ledbury. Good luck with your IVA. You are in good hands if you are working with James to get it done. Let us know how you get on :)
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By Steve Jackson
I am very pleased that we have been able to help you Ledbury and that things look as though they are finally working out. I am constantly surprised that the CCCS are not more flexible. At least you are on the right track now. The IVA sounds exactly the right solution for you.