Struggling with debt? Ask a debt advisor a question

MaggieP4 wrote: »

Hi there, I am struggling to keep my head above water and pay my minimum credit card payment each month and was wondering if writing and asking if they would stop adding any further interest was the best option for me and if they will take my request seriously.
I have nearly £8k on a single card because I am an idiot and have previously spent above my means (there I have said it out loud for the first time), I also have an unsecured loan and my current account all with the same bank. As a stay at home Mum, my only income is a monthly payment my husband gives me for food and living expenses which would be more than enough if it wasn't for these debts (which he knows nothing about).
I so want to start getting out of debt and stop waking up worrying about how I am going to pay for things at the end of the month. I have tried to move my card debt but its a no go because although my credit score is good, on paper I am without any income so have been declined a new card with O% interest transfer deal. I have talked briefly to my bank about consolidation but they advised me that despite years as a good customer, their rules have changed and they cant do anything to help.
I feel like Im in a bit of a hole but stopping the interest would be a good start as it would mean I could actually pay off some of the debt not just the charges. I would ideally like to repay slightly less as well so I could get rid of my overdraft. Do you think they would be open to this suggestion and would I need to realistically set up a new current account too?
Thanks, its such a relief just to admit Im in debt!

Hi

Thanks for getting in touch and thank you for taking this very difficult first step to sorting your finances out. People often tell us that the hardest part of becoming debt free is acknowledging the situation to begin with.

You are well within your rights to ask your creditors to stop interest and charges and they will have to take any such request seriously and respond appropriately. Unfortunately I can't guarantee the outcome of this request as it will be up to the creditor to 'consider' this. The Lending Code confirms this in saying that creditors should:

"consider reducing or stopping interest and charges when a customer evidences that they are in financial difficulties."

From what you describe, it sounds like you are in financial difficulties. Not being able to cover expenses for food and living costs because of the debt payments certainly sounds like you are struggling financially.

In our experience, your creditors will want to see that you are taking steps to improve your financial situation or that you are seeking professional help before agreeing to requests like this. Even then, there is still no guarantee that they will stop these charges, but at least it shows you are taking steps to help pay your debts back.

Here at the charity, we offer free advice to help people in these situations. We can look at your financial situation as a whole and then create an action plan to help you pay your debts back at an affordable rate for you. If you want to take our advice, we can then speak with your creditors about the interest and charges you are incurring too.

You can begin the advice process with us through our Debt Remedy tool on our website. This will allow you to build a budget in your own time and at the end, it will show the best options to help with your debts.

I hope this helps.
Richard.

Hi, looking for some advice. A few years back I got into some serious debt when a business we ran collapsed. We came to an arrangement with our creditors, mostly banks, and have been paying ever since. One of the creditors, not business related was a catalogue named JD Williams, we owed a small amount in comparison to some of the other debts and came to an arrangement to pay £5 a month. This was in 2008. I recently received a county court summons from a solicitors in regard to this debt. The initial money owed was £180 and over the course of 5 years I paid £250 but because of charges for late payment the debt has now grown to £450 including court fees. I have seen the printout from JD Williams, showing the payments we made which amount to just over £250, but they are unable to provide me with evidence of what the £180 was for, apparently their records don't go that far back, or any credit agreement. I have recently received a letter from the court asking if I prefer to take this to mediation, apparently over the phone, and its specifically asks if I am prepared to compromise. What I need to know is would a CC judge be sympathetic to the fact that we have paid over £250 off a £180 debt and that the charges were unfair or would i do better to accept mediation and make an offer, Which I have to say I am loathe to do. Sorry for the long post but I am pretty pee'd off with JD Williams and Lowells solicitors. Neither Lowells or JD Williams seem able to provide me with any credit agreement or what the actual debt was in relation too.

elw00d wrote: »

Hi, looking for some advice. A few years back I got into some serious debt when a business we ran collapsed. We came to an arrangement with our creditors, mostly banks, and have been paying ever since. One of the creditors, not business related was a catalogue named JD Williams, we owed a small amount in comparison to some of the other debts and came to an arrangement to pay £5 a month. This was in 2008. I recently received a county court summons from a solicitors in regard to this debt. The initial money owed was £180 and over the course of 5 years I paid £250 but because of charges for late payment the debt has now grown to £450 including court fees. I have seen the printout from JD Williams, showing the payments we made which amount to just over £250, but they are unable to provide me with evidence of what the £180 was for, apparently their records don't go that far back, or any credit agreement. I have recently received a letter from the court asking if I prefer to take this to mediation, apparently over the phone, and its specifically asks if I am prepared to compromise. What I need to know is would a CC judge be sympathetic to the fact that we have paid over £250 off a £180 debt and that the charges were unfair or would i do better to accept mediation and make an offer, Which I have to say I am loathe to do. Sorry for the long post but I am pretty pee'd off with JD Williams and Lowells solicitors. Neither Lowells or JD Williams seem able to provide me with any credit agreement or what the actual debt was in relation too.

Hi there,

Welcome to the forum and thanks for your post. I'm sorry to hear about your business and the difficulties you've had. As a debt advisor at the charity, I'm not trained in contract law, but I'll do my best to fill you in where I can on this.

In answering your first question about sympathy from a judge, it's not something I can answer unfortunately. I would imagine that any judge in any case would remain impartial and only make a decision based on the facts and the evidence presented. For an answer on how mediation might work out and if you should make an offer, I would suggest speaking with a legal professional.

If you have made an official request for the agreement (CCA request) then they will have to provide you with this until the judgement can be made against you. This won't stop them from asking you to pay or write the debt off, but until they can provide you with this the judgement shouldn't go ahead.

As always, if you need any help paying debts we can help. We can give you free advice on the best way to pay the back. You can contact us here to speak with us further if you wish.

I hope this helps.
Richard.