Struggling with debt? Ask a debt adviser a question

alad6586 · 5 June 2017 at 7:49PM

Hello
We have debt on a credit cards which has gradually built up over the years. Last year we became in a situation of being unable to pay the minimum amounts due each month. Therefore, we made each creditor a repayment plan offer of £1 per month. All offers were accepted.

We were recently able to obtain a certain amount of money with the help of family and friends, an amount which equalled approx. 40% of our debts. So we therefore wrote a letter to each creditor (Halifax, Lloyds and Barclaycard) to make them a full and final settlement offer of 40% each. Both Lloyds and Halifax have accepted, and both been paid. However, Link Financial (who have bought the Barclaycard debt) will not budge and insist on nothing less than 90%. At a push we managed to raise the offer to 45% as we are desperate to clear this debt, again with more help from a relative, but we are getting no where.

We are both pensioners, so will now be impossible for us to obtain any more money than this. All our other creditors have assessed our situation and agreed to 40% except Link Financial. What can we do now, other than just repay £1 per month for the rest of our lives?

Thankyou in advance
Jas

Former_StepChange_Richard · 6 June 2017 at 9:24AM

Hi there,

Sorry to hear Debt Remedy isn't working for you. You can complete your budget over the phone instead? You'll need to call our Helpline. All our contact details are here.

Take care,

Richard

LeaPea wrote: »

Hi Linsi,

Thanks for the reply. The link to the debt remedy tool doesn't seem to work for me? Is it correct?

Thanks,

Leanne

Former_StepChange_Richard · 6 June 2017 at 9:30AM

Hi there,

Thanks for your message.

I'm afraid that this is beyond our area of expertise so I would suggest that you seek legal advice to help with this. The Citizens Advice Bureau are a good starting point.

Sorry we can't be of more help on this.

Richard

Help_needed_please wrote: »

Hi, I am after some guidance please. I am trying to recover money for a duff car from the man who sold it to me. He is 'trading as'. I have tried all ways but his story keeps changing and a friend told me to file court papers which I have done. An acknowledgement of service has been filed which is fine, but he has put his wrong date of birth, does this make any difference, it doesn't just look to be a simple mistake but done deliberately and I am perplexed. Any help would be appreciated. Thank you.

Former_StepChange_Richard · 6 June 2017 at 9:44AM

Hi Moragg

Thanks for your message and getting in touch.

Without seeing a budget for your full finanical situation I can't say whether releasing equity is the right move for you. You can build a budget with us so that we can give advice on the best way to deal with your situaiton. You can do this through our Debt Remedy tool on our website or by calling and speaking with an advisor.

You can read more about Equity Release on our website here also.

I hope this helps.

Richard

Moragg wrote: »

HI, I could really do with some advice.

I have about £25K debt, mainly on interest free credit cards. I am paying off very very slowly but surely.
I'm paying about £500 a month debt repayment and I never have any spare cash.
My house looks like students live in it and I feel frustrated.

I was wondering if it was a good idea to release equity from my mortgage to pay off debt and do my house up. My house is worth 240k and my mortgage is 130k.

I'm worried about paying lots of interest as I think this is an expensive way of paying off loans, but I'm fed up with a scruffy house and no cash.

Any advice gratefully received.

Moragg

Former_StepChange_Richard · 6 June 2017 at 9:57AM

Hi Jas

Welcome to the forum and thanks for your message.

I know it can be frustrating when trying to pay your debts back, especially when you can only afford to make very low payments, but we can help.

To give you advise on your options we'll need to complete a budget with you to see your full finanical situation. You can do this through our Debt Remedy tool on our website or by calling and speaking with an advisor. From here we'll be able to assess the best way for you to deal with your debts.

I hope this helps.

Richard

alad6586 wrote: »

Hello
We have debt on a credit cards which has gradually built up over the years. Last year we became in a situation of being unable to pay the minimum amounts due each month. Therefore, we made each creditor a repayment plan offer of £1 per month. All offers were accepted.

We were recently able to obtain a certain amount of money with the help of family and friends, an amount which equalled approx. 40% of our debts. So we therefore wrote a letter to each creditor (Halifax, Lloyds and Barclaycard) to make them a full and final settlement offer of 40% each. Both Lloyds and Halifax have accepted, and both been paid. However, Link Financial (who have bought the Barclaycard debt) will not budge and insist on nothing less than 90%. At a push we managed to raise the offer to 45% as we are desperate to clear this debt, again with more help from a relative, but we are getting no where.

We are both pensioners, so will now be impossible for us to obtain any more money than this. All our other creditors have assessed our situation and agreed to 40% except Link Financial. What can we do now, other than just repay £1 per month for the rest of our lives?

Thankyou in advance
Jas

Help_needed_please_2 · 6 June 2017 at 1:32PM

Thank you veR||y much for point|ing me in the right direction, it is much appreciated.

Missmk · 6 June 2017 at 4:22PM

Hi, I have long-term debit with (among others) M&S. A few years ago, when I was in a v bad place financially, I made an arrangement to pay the debt only, an agreed sum each month. In previous years, they've phoned and I've been able to continue with the arrangement. I opened a whole lot of backlog mail at the weekend, and I have a letter threatening legal action if I don't get in touch with them and provide financial information. I'm completely up-to-date with my payments (and know that not opening the post is a silly thing to do... old habits). Having previously been self-employed, I'm not in permanent employment. Although I'm on a decent salary now, I'm paying PAYE and self-assessment, and don't have loads spare. My question: what information do I have to give them; are they within their rights asking for details of all my finances, income/outgoings, etc? Is there any way I can renew the current arrangement (i.e. not paying interest), particularly if I offer a wee bit more each month? Sorry for such a long post and thanks for your help.

StepChange_Private_Messages · 7 June 2017 at 9:39AM

Hi

Welcome to the forum and thanks for your post.

Creditors can ask for details of your financial situation and often do, this is so they have evidence that the agreement that is in place is realistic and fair.

You aren’t legally obliged to send this information to the creditor if it’s a simple budget review, however it may be a good idea to as with this information creditors are less likely to take legal action.

Creditors are more likely to take a debt through to a county court to set a county court judgement (CCJ) against the debt if they believe they may be able to get higher payments through the court.

Once a debt goes through to a county court there is more risk of further action if the payment arrangement is missed.

If the creditor has stopped the interest with your current payment arrangement then they are unlikely to start adding it again.

If you'd like further help you can build a financial budget through our Debt Remedy tool online and at the end you’ll receive advice and recommendations based on your financial situation.

Thanks
Rachael

Missmk wrote: »

Hi, I have long-term debit with (among others) M&S. A few years ago, when I was in a v bad place financially, I made an arrangement to pay the debt only, an agreed sum each month. In previous years, they've phoned and I've been able to continue with the arrangement. I opened a whole lot of backlog mail at the weekend, and I have a letter threatening legal action if I don't get in touch with them and provide financial information. I'm completely up-to-date with my payments (and know that not opening the post is a silly thing to do... old habits). Having previously been self-employed, I'm not in permanent employment. Although I'm on a decent salary now, I'm paying PAYE and self-assessment, and don't have loads spare. My question: what information do I have to give them; are they within their rights asking for details of all my finances, income/outgoings, etc? Is there any way I can renew the current arrangement (i.e. not paying interest), particularly if I offer a wee bit more each month? Sorry for such a long post and thanks for your help.

Rochdale_Guy · 7 June 2017 at 9:19PM

Hi.

My annual review is now due, but my partner has now moved in and we have a baby. My partner is unwaged and not on benefits so has no income as a stay at home mum. When I fill in my review, do I have to put "number of adults" as 2 as she now lives with me? Is this "number of adults" about how many are in the home, not about how many have the debt, as the debt is mine and not her responsibility. And does the Child Benefit have to be listed in my income total, as that is paid to my partner. I receive some Child Tax Credit, so does that have to be listed too? There seems to not be much on the review to include all the spends on baby things (only including it under food or clothes), does it come under "other", and will StepChange be accepting of all the massive things you have to constantly buy for a child (stair gates, high chair, push chair, cot, cot bed, mattress, bedding, baby monitors, developmental toys, etc).

Thank you.

Former_StepChange_Richard · 8 June 2017 at 9:48AM

Hi there,

Thanks for your message and getting in touch.

It sounds like you've had some big changes recently (and exciting ones, congratulations) so I would suggest calling for a review of your budget rather than doing it online. That way the advisors here can discuss your situaiton and make sure you able to look after the family first whilst paying for all the things you need. All our contact details are here if you need them.

The number of adults is to represent the number of adults who are financially dependant on your income. If your partner is reliant on you to provide things for her then she should be included as a dependent adult. If she has her own income and is not reliant on your income then you would not include her.

You would only need to list incomes that you recieve. If you made a joint applicaiton for tax credits and you receive some of the money you would include this as an income. If you don't receive the money, its not an income for you.

I hope this helps,

Richard

Rochdale_Guy wrote: »

Hi.

My annual review is now due, but my partner has now moved in and we have a baby. My partner is unwaged and not on benefits so has no income as a stay at home mum. When I fill in my review, do I have to put "number of adults" as 2 as she now lives with me? Is this "number of adults" about how many are in the home, not about how many have the debt, as the debt is mine and not her responsibility. And does the Child Benefit have to be listed in my income total, as that is paid to my partner. I receive some Child Tax Credit, so does that have to be listed too? There seems to not be much on the review to include all the spends on baby things (only including it under food or clothes), does it come under "other", and will StepChange be accepting of all the massive things you have to constantly buy for a child (stair gates, high chair, push chair, cot, cot bed, mattress, bedding, baby monitors, developmental toys, etc).

Thank you.

Struggling with debt? Ask a debt adviser a question

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