Struggling with debt? Ask a debt adviser a question

11819212324130

Comments

  • Hello

    Thanks for getting in touch and welcome to the forum.

    I’m sorry to hear your debts have been keeping you up at night. You’ve definitely done the right thing to ask for advice and we’ll be able to help you and your husband deal with these credit cards going forward.

    There’s lots of ways to deal with debt from a DMP to using equity to refinance debts. Before we can recommend the right solution for you we’ll need to know a bit more about your financial situation.

    I’d recommend using our online Debt Remedy tool to create a budget online. To do this you’ll need information about your income, living costs and debts.

    After you’ve completed your budget you’ll be able to access your personal action plan. This will contain our tailored advice and recommended debt solution for you and your husband.

    As a charity our advice and support is free, confidential and impartial. You can also find more information about the debt solutions we recommend and the services we offer on our website.

    Hopefully you won’t feel as worried once we’ve got a plan of action in place and you’ll be able to get a better night’s sleep. If you do need any additional support though, you can always talk to your GP or the Samaritans.

    All the best,

    Linsi

    Hi , I have just joined the forum and because of worrying about debt have not slept. Husband confessed last night to hidden £53k of credit card debt that has built up over many years. We have a mortgage of £39k on a house worth sound £170000 (only 9 years to go). My question is should we ask our mortgage lender to add debt to mortgage which I have calculated we can afford easily afford, or ask for a DMP? Sorry if posted in wrong bit but so tired and confused I'm not functioning properly. Please help me as I'm trying to deal with this without worrying my husband even more.
  • Thank you Linsi,, trying to get through a working day but my head is somewhere else. I have told my manager who has been extremely helpful as well. I'll take your advice and fill in the debt remedy tool when I get home.
  • You’re very welcome and I’m glad your manager has been supportive.

    The Debt Remedy tool is available is available 24 hours a day. You can also log in and out as many times as needed, so don’t feel you have to do everything all at once.

    Take care,

    Linsi
    Thank you Linsi,, trying to get through a working day but my head is somewhere else. I have told my manager who has been extremely helpful as well. I'll take your advice and fill in the debt remedy tool when I get home.
  • Luciasc
    Luciasc Posts: 20 Forumite
    Hi, Me and my partner got in to a mass of debt when we purchased our first home 11 years ago. 100% mortgage, credit cards etc, pay day loans..... but we started a DMP with Payplan in August 2007 and its worked well to keep creditors at bay. Our mortgage has been up to date for 2 full years and we are managing well, recently clearing a £15,000 10 yr secured loan we had. However, we still have a lot of unsecured debt to clear and if we continue as we are, we'll be in a DMP until 2029! We are looking to move home but struggling to get a mortgage with a DMP in place. As all the debts are over 6 years old, they are no longer showing on our credit files. We have paid them all around a third of the original amount owed. My question is, would it be likely that any creditors (some range from £300 - £3,500) would now write off the rest of our debt??? Had we been in an IVA, they would have potentially have been written off 4 years ago!
  • StepChange_Kirsty
    StepChange_Kirsty Posts: 180 Organisation Representative
    Hi,

    Thanks for your post.

    It sounds like you’ve done very well so far in reducing the debt you have outstanding. I’m afraid I don’t think it’s very likely your creditors will agree to simply write off the remaining balance. Usually you’d need to declare yourself insolvent or you may be able to offer a lump sum in full and final settlement for the balance to be written off.

    If your expected debt free date is 2029, that means your debt management plan (DMP) term will be 22 years in total. That is a very long time to be in a DMP and there may be better options for your circumstances.

    You can find out more about the options available by using our online Debt Remedy tool where you can enter details of your income, expenditure and debts and we will provide you with further advice in the form of a personal action plan.

    Alternatively you may wish to contact us and speak directly to one of our expert Debt Advisors. You can find our contact details here.

    All the best,

    Kirsty
    Luciasc wrote: »
    Hi, Me and my partner got in to a mass of debt when we purchased our first home 11 years ago. 100% mortgage, credit cards etc, pay day loans..... but we started a DMP with Payplan in August 2007 and its worked well to keep creditors at bay. Our mortgage has been up to date for 2 full years and we are managing well, recently clearing a £15,000 10 yr secured loan we had. However, we still have a lot of unsecured debt to clear and if we continue as we are, we'll be in a DMP until 2029! We are looking to move home but struggling to get a mortgage with a DMP in place. As all the debts are over 6 years old, they are no longer showing on our credit files. We have paid them all around a third of the original amount owed. My question is, would it be likely that any creditors (some range from £300 - £3,500) would now write off the rest of our debt??? Had we been in an IVA, they would have potentially have been written off 4 years ago!
    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.
  • 5 years ago I split up with the father of my children, at the time we had in excess of 28k debt. I made payments to all parties with no help from my ex, After a number of months and working 2 jobs I approached step change and set up a DMP with them, I have now managed to get the debt down to 11k, however in February 2016 my expartner took out a DRO and included the loan we had which meant payments to the loan account were being bounced back, NatWest did not contact me I contacted them after it happened twice, they couldn't advice me why, I found out through my children that their dad had taken out a DRO, this also resulted in a DRO being added to my credit file. The moratorium period is up now, does this mean he is now free and removed from the debt? I have been gifted 3k by my parents and want to offer a settlement to NatWest as I can't continue to make regular payments, is it unreasonable to offer them 3 k off an 11k debt? can I ask for removal of the default, and can I ask that this be marked as full and final payment, the lady on the phone advised me this morning that they will mark it as partial payment and chase my ex partner but surely they can't if he has taken out a DRO
    thanks in advance
  • Im a single mum disabled and live in a rented propety and im aprox £8grand in debt I have been advised by action credit to have an IVA id be paying back £105.54 a month for five years so over a grand would be wiped is this the best thing to do.
  • Former_StepChange_Richard
    Former_StepChange_Richard Posts: 119 Organisation Representative
    5 years ago I split up with the father of my children, at the time we had in excess of 28k debt. I made payments to all parties with no help from my ex, After a number of months and working 2 jobs I approached step change and set up a DMP with them, I have now managed to get the debt down to 11k, however in February 2016 my expartner took out a DRO and included the loan we had which meant payments to the loan account were being bounced back, NatWest did not contact me I contacted them after it happened twice, they couldn't advice me why, I found out through my children that their dad had taken out a DRO, this also resulted in a DRO being added to my credit file. The moratorium period is up now, does this mean he is now free and removed from the debt? I have been gifted 3k by my parents and want to offer a settlement to NatWest as I can't continue to make regular payments, is it unreasonable to offer them 3 k off an 11k debt? can I ask for removal of the default, and can I ask that this be marked as full and final payment, the lady on the phone advised me this morning that they will mark it as partial payment and chase my ex partner but surely they can't if he has taken out a DRO
    thanks in advance

    Hi there

    Thanks for your message. Sorry to hear of your separation. We can certainly help with this.

    A DRO (Debt Releif Order) is a formal method of insolvency. If your ex-partner has completed the moratorium period and there have been no issues during this time, his liability will now be removed from the debts that he was named on and that were included in the DRO. If the two of you were jointly named on any these debts, you will now be solely liable for them.

    As you mention you are on a DMP with us, I would suggest calling us so we can discuss the settlement offers with you. In short, you are able to offer whatever amount you feel you can afford, but they are just as able to accept or refuse this. If you call and speak with our advisors we can discuss this and look at the liklihood of success.

    You can also ask for a full and final settlement and for the removal of the default notice. Again, they don't have to agree to this. If you feel that they have treated you unfairly then you would be best putting this in writing and making a formal compaint. Follow the organisations complaints process which can be found here.

    I hope this helps.

    Take care,
    Richard
    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.
  • Former_StepChange_Richard
    Former_StepChange_Richard Posts: 119 Organisation Representative
    Im a single mum disabled and live in a rented propety and im aprox £8grand in debt I have been advised by action credit to have an IVA id be paying back £105.54 a month for five years so over a grand would be wiped is this the best thing to do.

    Hi there,

    Thanks for getting in touch and welcome to the forum.

    To give you advice on your debts we need to build a budget with you first so we can see a full picture of your finances. I imagine that Action Credit will have done something similar to be able to offer you a formal, leagally binding method of insolvency such as an IVA.

    You can build a budget and get advice from us in two ways:

    Use the Debt Remedy tool on our website. This is a self-help tool that you can use in your own time. Once it is complete you will be presented with the best advice for the details you have entered.

    Alternatively you can call our Helpline and speak with an advisor who will make the budget for you. They will then arrange a debt advice session where an advisor will explain the options you have available.

    I hope this helps and we look forward to hearing from you.

    Richard.
    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
    My sister, now in her 50's, has struggled with mental illness since her teens. She has been sectioned 3 times whenever she gets over stressed due to difficulties such as debt. My parents have always been supportive and helped her and paid off her debts. Over the past year she decided to stop taking her long term antipsychotic medication and has since managed to get thousands of pounds back into debt again using 3 store cards and 5 credit cards. My mum has been helping her and so far has repaid over £5000 with still just over £4000 outstanding. My sister has promised that this time she will never get into debt again but she has said this before. Barclaycard have just written to her and now doubled her credit limit from £4000 to £8000! How can we stop her being offered 'credit' in the future so we can avoid all this mess? Shopping and gambling are part of her illness
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards