Struggling with debt? Ask a debt adviser a question

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  • StepChange_Kirsty
    StepChange_Kirsty Posts: 180 Organisation Representative
    Hi Darren,

    Thanks for getting in touch.

    It sounds like what your friend is referring to is statute barred debt. Whilst the debt is not written off, if you’ve not paid anything towards the debt or acknowledged the debt in the last 6 years then creditor loses the chance to enforce the debt. This means the creditor can no longer take court action to recover the debt. There is more information about statute barred debt and a template letter you can use here on our website.

    If the creditor has already obtained a county court judgement (CCJ) then the debt is not statute barred and therefore the creditor could continue legal action against you. In this situation I would recommend you seek further debt advice on dealing with the judgment.

    I hope this makes sense.

    Kirsty
    Darren66 wrote: »
    Hi in 2004 I had a dept of £2327.91 I moved away from the area and forgot about it now I'm getting letters from a Mortimer Clarke solicitors saying that I've got to pay them I've been told by a friend that after a certain amount of years the dept would be wiped the company Mortimer tryed to contact me last year but I never replyed where do I stand with this thank you
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • StepChange_Kirsty
    StepChange_Kirsty Posts: 180 Organisation Representative
    Hi,

    Thanks for your post.

    Any debt solution which involves paying less than the minimum contractual payment each month will cause an impact on your credit file.

    If you’re struggling with payments to your creditors at the moment I would recommend you obtain full debt advice in order to work out what your best options are. At StepChange we offer free, impartial and confidential advice which is tailored to your individual situation. The easiest and quickest way to see what your options are is to use our online Debt Remedy tool. Debt Remedy takes you through the process of putting a budget together and at the end you will be able to read through a personal action plan which gives you advice about what to do next.

    Based on your level of debt you would not be eligible for a debt relief order (DRO).

    I understand your main concern is the finance on your vehicle. If your credit file is affected then it may be harder to get a new finance deal but it would depend on your debt solution as to how difficult this might be. You might want to look into other options with the vehicle, for example is there an option to keep your vehicle once the finance is paid or could you try to buy a used vehicle to keep you on the road?

    I hope this helps.

    Kirsty

    jonjon123 wrote: »
    Hi, hoping someone can answer my questions and help me out and steer me in the right direction.......

    I earn approximately 24k a year and my total debt level is approximately 23k.

    After paying out living expenses, rent, bills, loans, credit cards and HP which are currently up to date I find myself left with next to nothing every month, so wandered what my options are please?

    I have spoken to someone in the past and they have advised DRO, but dont think i qualify for this because my debt level is too high, so would like some advice please.

    The main issue i have is my car on finance. It's halfway through the term and obviously want to trade it in, in a few months for a newer vehicle, but am worried if i go down some sort of ''help'' route my credit file will be severly damaged and won't be accepted for another car in the future?

    Things are up to date as i say, but it is making me struggle and swallowing me up every month, so what are my options please?

    Stay as i am and pay them, or go down some form of debt route and potentially damage my credit for the next 6 years?

    Any help greatly appreciated.
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • StepChange_Kirsty
    StepChange_Kirsty Posts: 180 Organisation Representative
    Hello,

    As far as I’m aware, if you were to settle the debts as partial settlement then as well as the mark on your credit file the outstanding balance of the debt would also show. Record of the debt would then be removed from your credit file 6 years from the date of the settlement.

    You might want to confirm this with the credit reference agencies. There are three main agencies: Call Credit, Equifax and Experian.

    I hope this helps.

    Kirsty
    Legend4uk wrote: »
    Morning
    Just a quick question I have a few defaults on credit cards if I settle the debt as partial settlement in the future creditors when they check my credit file does the partial settlement show as a figure on my credit file of what I payed and what I didn't or does it just get marked as a simple "Partial settlement" with no outstanding numbers

    Thanks for any information.
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • StepChange_Kirsty
    StepChange_Kirsty Posts: 180 Organisation Representative
    Hi,

    Thanks for your post and for taking the time to explain your situation.

    Based on your circumstances I would highly recommend you seek debt advice in order to work out the best way forward. Obtaining debt advice doesn’t cause an impact on your credit rating itself but if you decide to follow the advice this is when you could see an effect. Your debt advisor will be able to explain the likely impact of your chosen solution.

    Because you’re self-employed I would recommend contacting Business Debtline who are specialists in offering free, impartial and confidential advice for those in self-employment. You can find their contact details here.

    All the best.

    Kirsty

    Hjr2611 wrote: »
    Hi

    I am a single Mum of 2 teenagers with my own home which has a mortgage of £226k and around the same amount of equity. I currently only pay the interest part of the mortgage on SVR and have nothing in place to pay off the mortgage, which ends in around 12 years.

    I am self employed, my profits last year (and probably slightly less this year) are approx £21k.

    I receive tax credits of around £300 per month and Maintenance (not through the CSA) of £200 per month. I also receive child benefit of circa £126 per month.

    I have circa £30k of debts on a Tesco Loan, MBNA & Halifax credit cards, some of the debt is still on a promotional rate but most is now earning interest. I'm due to pay another HMRC tax bill of around £2k in July and have no means to pay it... Im also beginning to find it difficult to meet the monthly loan/credit card payments each month.

    I have an excellent credit rating as I've never missed a payment for anything but I'm beginning to struggle and this month is particularly tight, times where I've struggled to have money to buy food. I'm really worried this situation will only get worse and can't see any way of solving it.

    I've attempted to get help from my bank (my mortgage is also with them) but they are unable to increase my mortgage and won't consolidate my debt in to any other loan. To be honest I'm loathe to do this latter anyway. I doubt anyone else would consider me for a mortgage as my income is so low and being self employed.

    One option that could be a possibility is to sell my home and buy something cheaper elsewhere but this would need to be within proximity of my children's school (they are mid GCSE's). I don't know if someone would give me a mortgage for this though or who I could go to to help me work out my options.

    The other option is to get help with the debts.. to be honest I'm not worried so much about my credit rating at this stage, it's no use to me currently anyway and I want to get out of debt rather than take on more. I don't know what the best thing is to do with this though, and would like some advice on who would be the best contact at this stage and what my possible options would be?

    If someone could take the time to offer me some advice I would really appreciate it. I'm running round in circles with it all in my head and I'm getting nowhere other than more anxious and down about it.

    Thanks
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • Hi
    Just a very quick question, if my husband goes with SC, is it payslips you would need or would bank statements be sufficient? He doesn't get given the payslips, they are all kept on the computers where he works and it's not that easy to get access to them, without having to explain. He wouldn't want them to think he was looking for another job, as the job situation there is not good at present, so it could be a bit awkward.

    Many thanks,
  • Hi

    Thanks for your post.

    Your husband may need to send in proof of his income depending of the solution we recommend.

    Proof of income can be a recent payslip or bank statement, so if a bank statement is easier to send in that would be more than sufficient for us.

    I hope this helps.

    Linsi
    Hi
    Just a very quick question, if my husband goes with SC, is it payslips you would need or would bank statements be sufficient? He doesn't get given the payslips, they are all kept on the computers where he works and it's not that easy to get access to them, without having to explain. He wouldn't want them to think he was looking for another job, as the job situation there is not good at present, so it could be a bit awkward.

    Many thanks,
  • HI, im just starting out on my dmp journey and i have been advised to delay the start date as i currently have zero funds and i should be building an emergency fund. Do i just write to my creditors and give them a date that i am hoping to start my dmp (ideally jul/aug to get some funds saved). I have received my ref number from sc. I have 2 dependents and i am nervous if something crops up ill not be able to sort it. 3/4 months of saving would leave me with approx £500 and i would be much more confident going into the plan with some funds behind me.
    learning to live again, slowly but determined £30k in debt, but dealing with it and proud
  • StepChange_Allen
    StepChange_Allen Posts: 352
    First Anniversary First Post
    Organisation Representative
    edited 16 March 2018 at 4:43PM
    HI, im just starting out on my dmp journey and i have been advised to delay the start date as i currently have zero funds and i should be building an emergency fund. Do i just write to my creditors and give them a date that i am hoping to start my dmp (ideally jul/aug to get some funds saved). I have received my ref number from sc. I have 2 dependents and i am nervous if something crops up ill not be able to sort it. 3/4 months of saving would leave me with approx £500 and i would be much more confident going into the plan with some funds behind me.


    Hi there

    Thanks for posting.

    Generally a debt management plan would start on the next available date - usually next month or the month after. I can't guarantee that creditors will wait 3-4 months for you to save up a pot of money. The budget you've created with us should hopefully contain contingency money; for example some/all of: repairs/maintenance to property, vehicle spares/servicing, sundries/emergencies, as well as other spending areas like clothing, entertainment and hairdressing which aren't fixed costs.

    There is flexibility in a DMP so if you have a major unexpected expense during it we'll be able to work things out so don't worry.

    You won't be paying your debts the normal payments at the end of this month, so that will be money you can save for starters. If you feel you need to delay the plan further, please give us a call on the latest number you have for us in your paperwork.

    I hope this makes sense and we look forward to helping you.

    Allen
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • Hi there

    Thanks for posting.

    Generally a debt management plan would start on the next available date - usually next month or the month after. I can't guarantee that creditors will wait 3-4 months for you to save up a pot of money. The budget you've created with us should hopefully contain contingency money; for example some/all of: repairs/maintenance to property, vehicle spares/servicing, sundries/emergencies, as well as other spending areas like clothing, entertainment and hairdressing which aren't fixed costs.

    There is flexibility in a DMP so if you have a major unexpected expense during it we'll be able to work things out so don't worry.

    You won't be paying your debts the normal payments at the end of this month, so that will be money you can save your starters. If you feel you need to delay the plan further, please give us a call on the latest number you have for us in your paperwork.

    I hope this makes sense and we look forward to helping you.

    Allen

    Thank you Allen, Ive sent an email through to SC as i'm currently in work.
    learning to live again, slowly but determined £30k in debt, but dealing with it and proud
  • Hi I'm looking for help for my daughter from a debt advisor she is in roughly just under 7000 of debt from credit cards and a pay day loan and has been looking at an IVA I have no knowledge of these at all is it normal to have to pay fees for this?
    Also they said she can over pay if she has extra money is this true? Thanks
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