Struggling with debt? Ask a debt advisor a question

StepChange_Jen · 19 August 2015 at 4:53PM

facingthefuture wrote: »

I have amassed cc debt and frankly cannot pay it. It was done over years and the bulk of it is crazy interest and charges. My work/self employment has taken a nosedive (main customers went under). To say we are struggling is an understatement. I have lost 3 family members in 4 months and apart from sitting in graveyards, finding it hard to function. Anyway, sibling suggested they pony up some funds and get debts paid off though would have to be a partial payment (sibling hasn't much but is concerned about my wellbeing). This seems better than bankruptcy, least I could offer cc something. Sibling got in touch with local finance co who said dont deal with stepchange since they are paid for by cc companies and if they make a partial payment arrangement they are not legally binding. The cc companies could come after me at a later stage. Is this true? From what I understand only single payment iva's are legally binding and stepchange doesn't offer them. Is this true, if stepchange did a f &f would I be able to be chased later. Also what are the lowest percentages that would be achievable? I have lots of defaults and own nothing. My earnings are awful.
Barclays 1649.39
Bank of Ireland 4701.55
Co op 3912.07
Halifax 5587.85
sainsburys 1082.72
Do you think they would take 30%?

Hi there,

Thanks for posting and sorry for the delay in our response.

I’m sorry to hear you’ve been having a tough time recently.

It’s good that you’re starting to look at ways you can deal with your debt. However it’d be hard for us to suggest a debt solution to you without knowing more about your income, budget and debts.

From what you’ve said I think you’d really benefit from getting in touch with our Helpline for some free debt advice.

As a charity, we offer a range of free debt solutions and we’d be more than happy to talk with you about your options and what your next steps should be if you decide to go forward with a solution. If you give us a call one of our advisors will let you know which solutions are suited to you based on your income, budget and debts.

You can find out how to get in touch with us here:

http://www.stepchange.org/Contactus.aspx

Our advisors will be able to answer any questions you have about your debt solution.

You mentioned that you were worried about creditors chasing you for debts you’d paid off with a settlement offer. With settlement offers, we’d always advise you to get confirmation in writing from your creditor to confirm they’ve accepted your offer. This way, if they do get in touch in the future you’ll be able to provide them with evidence of their acceptance. If you’d like to offer a creditor a settlement offer, we have a team that’ll be able to help you do this.

I hope this helps,

Jen

Josh_Milner · 23 August 2015 at 8:19PM

Hello,
Here's a laugh for you, I met my partner back in 2009 after she went though a divorce which left her with her house, car and other things being repossessed but back then she did the usual what everyone does in these circumstances she avoided it like the plaque, now 6 years on settled down with myself with 3 children and in a position to buy a second property (I own the one we live in) its time for her to face these debts get back on track and get on the mortgages with me but obviously not while shes ''in'' debt.

Our problem is how do we find the debt she owes ?All that she remembers is having a loan around £15000 (with rbs) and the car fiance around £2000 she doesn't remember who her old mortgage was with or nothing. Originally when she was being chased for this money she offered to pay RBS a sum affordable to her at the time so she did it all official by sending them a letter etc but never herd anything since, the mortgage company never chased her for a penny nor did they ring to say how much the property sold for and the only company who has ever attempted to reclaim there money is the car fiance including they sent a letter out to our new address around a month ago.

At first she could only get a bare basic bank account etc but within the last year shes got a better bank account, a catalog with a £1000 available to her with them and a EE contract so obviously her credit report is getting better. We've got a copy of that report which shows nothing to do with any debt on it.

So how could we find out who shes in debt with ? As were frightened if she goes on any mortgage of mine they could be that knock on the door demanding money or repossessing this house for the money she owes and also they would take me into consideration.

Thanks
Josh

Former_StepChange_Rory · 24 August 2015 at 10:53AM

Josh_Milner wrote: »

Hello,
Here's a laugh for you, I met my partner back in 2009 after she went though a divorce which left her with her house, car and other things being repossessed but back then she did the usual what everyone does in these circumstances she avoided it like the plaque, now 6 years on settled down with myself with 3 children and in a position to buy a second property (I own the one we live in) its time for her to face these debts get back on track and get on the mortgages with me but obviously not while shes ''in'' debt.

Our problem is how do we find the debt she owes ?All that she remembers is having a loan around £15000 (with rbs) and the car fiance around £2000 she doesn't remember who her old mortgage was with or nothing. Originally when she was being chased for this money she offered to pay RBS a sum affordable to her at the time so she did it all official by sending them a letter etc but never herd anything since, the mortgage company never chased her for a penny nor did they ring to say how much the property sold for and the only company who has ever attempted to reclaim there money is the car fiance including they sent a letter out to our new address around a month ago.

At first she could only get a bare basic bank account etc but within the last year shes got a better bank account, a catalog with a £1000 available to her with them and a EE contract so obviously her credit report is getting better. We've got a copy of that report which shows nothing to do with any debt on it.

So how could we find out who shes in debt with ? As were frightened if she goes on any mortgage of mine they could be that knock on the door demanding money or repossessing this house for the money she owes and also they would take me into consideration.

Thanks
Josh

Hi Josh,

Thanks for posting.

Tracking down debts that don't already appear on your partner's credit report can be tricky, particularly if the debts have changed hands or she doesn't remember who the original debts were with. A credit report is a good place to start, but it might not show everything, as items on credit reports are removed after 6 years so you can only do your best to find out more in these situations.

Also, most consumer debts such as unsecured loans, credit cards, and catalogues become 'statute barred' 6 years from the date of the last payment, or written acknowledgment of the debt.

This means that if your partner hasn't made payments or acknowledged the debts for 6 years or more, the debt can't be enforced through the courts, and most creditors won't ask her to make payments towards the debt.

I'd suggest reading our article on Statute barred debts on our MoneyAware blog here: http://moneyaware.co.uk/2013/10/statute-barred-debt/

You've also mentioned there was a mortgage shortfall, and the rules around when these debts become statute barred is different. The limitation period for mortgage lenders to recover shortfalls is 12 years for the capital and 6 years for the interest, so there could still be liability to repay the debt in this case. Hopefully you and your partner can find out more about this debt, possibly by speaking to the original mortgage lender directly.

If any of debts aren't statute barred (and you've been able to find out more information about them) then you can start looking at how to deal with them. By doing this, it can help prevent any further action from creditors.

You can read more about what creditors can and can't do, and how other people's debt affects you on our blog:

http://moneyaware.co.uk/2011/08/you%E2%80%99re-in-debt-but-what-can-your-creditors-actually-do/

http://moneyaware.co.uk/2011/10/how-do-other-peoples-debts-affect-me/

I hope this helps,

Rory

facingthefuture · 24 August 2015 at 5:41PM

May I just ask, people on here seem to be getting partial settlements when they do it themselves in certain circumstances of 30% but stephange seems to be going in at 50/60%. I know stepchange is funded by the cc companies - do you think citizens advice would go in lower. I can get hold of 35% but its my max. It is the difference between being able to give the cc cards something or nowt.

StepChange_Jen · 26 August 2015 at 11:58AM

facingthefuture wrote: »

May I just ask, people on here seem to be getting partial settlements when they do it themselves in certain circumstances of 30% but stephange seems to be going in at 50/60%. I know stepchange is funded by the cc companies - do you think citizens advice would go in lower. I can get hold of 35% but its my max. It is the difference between being able to give the cc cards something or nowt.

Hi there,

Thanks for posting.

When we help with full and final settlements it’s based on individual cases so it can vary.

We’re unable to comment on how other companies may deal with settlement offers however our general aim is usually to make sure the offers are fair for all parties concerned.

We may also look at different debt solutions that could be available.

If you’d like to read more about settlement offers, there’s a page on our website about it here:

http://www.stepchange.org/Debtinformationandadvice/Debtsolutions/Settlementoffers.aspx

If you’ve got any more questions please let us know.

Jen

ConanTwo · 28 August 2015 at 8:15AM

Can you give me any suggestions welcomed HSBC loans? How can they be fair, how I can get out of one, they kill me, did not help!

Former_StepChange_Rachel · 28 August 2015 at 9:52AM

ConanTwo wrote: »

Can you give me any suggestions welcomed HSBC loans? How can they be fair, how I can get out of one, they kill me, did not help!

Hi there, thanks for getting in touch.

If you’re struggling with debt, we can help you. We’re a free and confidential debt advice charity and we can look into how you can bring these loans and any other debts you’re dealing with under control.

Will you please get in touch with us so we can have a look at your budget and see how we can help? Our online advice tool Debt Remedy can help you put together a personal action plan in around 20 minutes: http://www.stepchange.org/debtremedy.aspx

Alternatively you can call our Helpline (free form landlines and mobiles) on 0800 138 1111. Our opening hours are Mon – Fri 8am to 8pm and sat 8am to 4pm.

In regards to what you mentioned about not getting help from HSBC, could you please write to our StepChange Private Messages inbox with a little more detail?

Kind regards

Rachel

kessik · 30 August 2015 at 9:43PM

Hi,
My husband and I tried to remortgage our property so we can lend our daughter the deposit to buy a house. I checked our Experian credit reports and we were turned down because he has a CCJ (a personal guarantee against a business we had that folded - it is six years old next December); I have two defaults - one for £525 from Lloyds Bank which was an account I opened in 2010, used the overdraft of £450, didn't pay any money in, and because of charges it's now at £525...the second is for £900 to Southern Water for last year's and this year's metered bill. I am willing to pay both back, though it will be a struggle but I want to pay and get the defaults removed. I can't remember the DCA name (Westcott sounds familiar but I've not heard from them for ages and the credit file says that the creditor is Lloyds) for the Lloyds debt so I wonder whether I could just pay the £525 into the account (still have the details though the account is closed) then throw myself on the mercy of the bank and ask them to please remove the default. Or might they refuse to deal with me and put me on to the debt collectors? I am prepared to pay the outstanding monies because I know I owe them and I want to make things right. The debt collectors for Southern Water are writing to us and I wonder if I contact them and say that I can pay the £500 owing from last year, might they remove the default as a condition of me repaying it? All I want to do is get the money for my daughter's deposit and I'm trying to find the best way to do it. Any help is greatly appreciated.

doorstep54 · 1 September 2015 at 1:37PM

Just wanted to ask I was on a token payment plan which was a god send now the 12 months is up am back at square one I was trying to save money to go bankrupt but haven't been able to save it, now i feel I have been left alone to deal with this, I did phone step change I was of work for over 10 weeks. so can't go on money plan one as I have 13 creditors I can't afford to pay them all £5 as not earning enough money, now step change have told me I need to pay them from my bank myself and contact them which I can bring myself to talk to them as scared, now getting all bills again I just don't know where to turn to now I feel so alone in this

Former_StepChange_Laura · 1 September 2015 at 3:10PM

kessik wrote: »

Hi,
My husband and I tried to remortgage our property so we can lend our daughter the deposit to buy a house. I checked our Experian credit reports and we were turned down because he has a CCJ (a personal guarantee against a business we had that folded - it is six years old next December); I have two defaults - one for £525 from Lloyds Bank which was an account I opened in 2010, used the overdraft of £450, didn't pay any money in, and because of charges it's now at £525...the second is for £900 to Southern Water for last year's and this year's metered bill. I am willing to pay both back, though it will be a struggle but I want to pay and get the defaults removed. I can't remember the DCA name (Westcott sounds familiar but I've not heard from them for ages and the credit file says that the creditor is Lloyds) for the Lloyds debt so I wonder whether I could just pay the £525 into the account (still have the details though the account is closed) then throw myself on the mercy of the bank and ask them to please remove the default. Or might they refuse to deal with me and put me on to the debt collectors? I am prepared to pay the outstanding monies because I know I owe them and I want to make things right. The debt collectors for Southern Water are writing to us and I wonder if I contact them and say that I can pay the £500 owing from last year, might they remove the default as a condition of me repaying it? All I want to do is get the money for my daughter's deposit and I'm trying to find the best way to do it. Any help is greatly appreciated.

Hi Kessik,

Thanks for your message and I’m sorry to hear about your situation.

You mention your husband has a CCJ listed on his credit file, which will be six years old next December. It’s important to be aware that the Limitation Act 1980 doesn’t apply to CCJs, and so it cannot become statute barred. This means your husband will continue to be liable for this debt, even if he’s not being chased for payments at the moment. A CCJ is what we would class as a priority debt, because if it’s not paid then the consequences can be quite serious, for example his creditor could apply for an attachment of earnings so that payments come out of his wage or benefits at source. I’d suggest your husband contacts the court that issued the CCJ, finds out more information about it, and makes an offer of payment towards the debt.

With regards to the debts that are in your name, it’s common practice for creditors to put default markers on a credit file if someone hasn’t made the contractual payments towards their debts. A default will usually remain on your credit file for six years. Although you could ask the creditor to remove the default on your credit file if you pay the debt back, in our experience this isn’t something they would generally agree to.

Generally we suggest people deal with their debts first and then look to build their credit file, so it’s good to hear that you’d like to make payments towards the debts. However you mention this would be a struggle. While it’s important that you deal with the debt, it should be in a way which is sustainable for you. This is something we would be able to help with. We offer free and impartial debt advice and a range of debt solutions which you can read about here: http://www.stepchange.org/Howwecanhelpyou.aspx

I’d suggest you give us a call and have a chat with one of our advisors about your financial situation in more depth. They’ll be able to advise you how best to deal with the debt. As you mention you’re looking to re-mortgage, this is something you’d be able to talk to the advisor in more detail about. You can find out how to contact us here: http://www.stepchange.org/Contactus.aspx

I hope this helps.

Kind regards,
Laura

Struggling with debt? Ask a debt advisor a question

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