Struggling with debt? Ask a debt adviser a question

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  • StepChange_Rachael
    StepChange_Rachael Posts: 375
    First Anniversary First Post
    Organisation Representative
    Hi

    Thanks for your post.

    One of the benefits of an individual voluntary arrangement (IVA) is that there's more protection over assets. However, all assets would have to be declared in the proposal including savings.

    If there’s any money in savings or accounts like PayPal where you need the funds for general living costs then you can ask for them to be exempt from the IVA.

    The terms of the IVA would then be set once the proposal is put forward.

    The insolvency practitioner will look into your full financial situation. If assets aren’t declared it can be seen as fraudulent activity and can have severe consequences.

    Hope this helps clear things up.

    Rachael


    rixy74 wrote: »
    Hi I'm starting a IVA but have been selling a lot of stuff on ebay is this still aloud and can you have money in paypal and how do the banks etc know if there is money on paypal.

    i want to pay the iva asap and thought i could sell stuff and keep the money in paypal

    thanks
  • Hi, I need some advice on credit cards. I curretly have two, one is on 0% for 21 months and the other has just finished its 0% period and now the monthly repayments have shot up. On the card that has finished its 0% I have just under £4k debt and on the other I have £1000 credit left.
    I have looked at other 0% balance transfer cards but it lookks like I'll only get around £1200 limit.
    Should I move £1k from the expensive card (and lower the limit by £1k) on to my 0% and focus on paying this off quickly or apply for the new card?
    I want to address this without harming my credit score.
  • StepChange_Rachael
    StepChange_Rachael Posts: 375
    First Anniversary First Post
    Organisation Representative
    Hi

    Thanks for posting.

    We’re happy to help on the forum the best we can so please don’t feel sorry about asking for advice. I can see how the situation would be frustrating.

    On paper it sounds like equity release would be a good solution but there's certain criteria you’d need to meet for remortgaging to be a viable option.

    From what you’ve mentioned on the post I’d suggest getting some free and impartial advice to explore your options further.

    Remortgaging may still be an option for you as well as other potential solutions.

    To be able to make recommendations and advise you further I’d need to know more about your full financial situation.

    You can speak with an advisor who can discuss your options with you by contacting us, you can find our contact details here.

    Take care
    Rachael


    despatch wrote: »
    Hello
    I hope you can help or give me a little bit of advice as I seem to going
    around in circles.
    I am single and have a home with a mortgage. Over the past 10 years I have been like a lot of us been stupid and got myself in debt. Around £8,000
    Now I am fed up of paying high rates on credit cards and loans and being left with nothing at the end of each month.
    So after careful thinking of how to sort myself out, I feel that I have found an answer and yet I keep getting turned away!
    My house has a value of £150,000 - £175,000 and I have a mortgage left of £80,000. So feel that a good option for me would be to remortgage my home for £100,000. This would pay off every debt I have and give me money to refurbish my home which needs to be done. I have a very good Credit score, yet not one bank wants to know saying I can't afford it!
    Yet with a remortgage I will not be paying out the debts as they would be gone, and will have an extra £300-£400 in my pocket each month.
    Sorry to ask but I now don't know what to do. I want to get out of debt, have Equity value in my home, but no one seems to want help and seem they would rather me carrying on struggling??

    Sorry to take up your time, but would be greatful for some advice on how I can sort this out. As I am fed up at the end of each month with no money to live. And like most people get out of this situation.
  • Hi, I have just received a "Notice of Issue of Warrant of Control", this goes back to a debt from a company I had issues with approximately 6 years ago. I have tried and tried to call the Bailiff's office and am unable to get an answer. I tried emailing and got an auto-reply stating that someone would get back to me within 10 days.
    The letter states that I must pay just over £1,000 in the next 6 days, I cannot afford this, I do not get paid for another 10 days and am really worried about what might happen.
  • Hello

    Thank you for your post and welcome to the forum.

    It’s difficult to give you a definitive answer because there’s no right or wrong option here; it’s really down to your personal preference.

    Moving part of the balance from the expensive card to the interest free card would help to reduce the amount of interest you’re being charged and help you to repay the expensive card back quicker.

    With this option it’s just worth bearing in mind that the monthly minimum payment for your interest free card may increase as you’ll be increasing the outstanding balance. You’ll need to make sure this will still be affordable, because if you fall behind with payments you may lose the 0% interest rate.

    There are lots of things that could affect your credit score and applying for and having multiple lines of credit can be one of them. So whilst you can apply for another interest free credit card it may have a negative effect on your credit file.

    Also it’s probably easier to manage and budget for two card payments rather than three, so it may be better to stick with the two cards you already have.

    There’s some great advice on the MSE website about trying to reduce interest without new credit and balance transfer credit cards which you may want to have a look before making a decision.

    I hope this helps.

    Linsi


    Rm.fils wrote: »
    Hi, I need some advice on credit cards. I curretly have two, one is on 0% for 21 months and the other has just finished its 0% period and now the monthly repayments have shot up. On the card that has finished its 0% I have just under £4k debt and on the other I have £1000 credit left.
    I have looked at other 0% balance transfer cards but it lookks like I'll only get around £1200 limit.
    Should I move £1k from the expensive card (and lower the limit by £1k) on to my 0% and focus on paying this off quickly or apply for the new card?
    I want to address this without harming my credit score.
  • Hi there

    Thanks for your post.

    I’m sorry to hear about what’s happened and that you’ve been unable to get in touch with the bailiffs office.

    I can certainly understand why you’re worried but I want to reassure you there is always advice we can give to help with every situation.

    I’d recommend getting in touch so we can talk about this debt in more detail. We’ll also need to know a bit more about your financial situation to make sure you’re getting the best advice.

    Here are our contact details and in the meantime there’s lots of useful information about bailiffs and enforcement agents including their rights and powers on our website. Here’s the link.

    I hope this helps and we look forward to speaking to you soon.

    Linsi

    stueybuk wrote: »
    Hi, I have just received a "Notice of Issue of Warrant of Control", this goes back to a debt from a company I had issues with approximately 6 years ago. I have tried and tried to call the Bailiff's office and am unable to get an answer. I tried emailing and got an auto-reply stating that someone would get back to me within 10 days.
    The letter states that I must pay just over £1,000 in the next 6 days, I cannot afford this, I do not get paid for another 10 days and am really worried about what might happen.
  • hi myself and my wife got into debt some years ago(approx 8yrs) luckily i managed to obtain a debt relief order. however my wifes debt was around £16.000 and exceeded the amount to be able to do the same. we were helped with my wifes debt by the local cab who were really helpful writing and ringing certain companys in setting up repayment plans by direct debit. over the years certain recovery companys have folded or passed the debt on for others to recover. however the reason i contact you is the above has just happened recently where someone new has been given the permission to recover what is around £700.00. they posted my wife correspondence regarding incomes and outgoings.rather than filling the forms in she worked it all out on paper and spoke to them on the phone. this was a debt that being payed at £3.00per week every week. they have more or less demanded she pays £300.00 of the debt imedeatly and the rest at a more reasonable rate my wife told them we could not afford this but did offer to up the payments to £5.00 per week. the company have given her approx 28 days to come up with a sollution of payment. there have been no court orders as yet for any repayment agreements. we are both in reciept of benefits as my wife is disabled and i am her carer. question 1 does any recovery or soliciters have the right to demand you fill in these ingoing outgoing forms if not been through a court of law. question 2 how do they have the right to demand such a lump sum payment when the lay on the end of the phone was explained too all our financial affairs and that we were on benefits. the previous company that was in charge of recovering this debt were quite happy to recieve the £3.00 per week with no pressure given. thankyou
  • StepChange_Kirsty
    StepChange_Kirsty Posts: 180 Organisation Representative
    Hi there,

    Thank you for your post and welcome to the forum.

    I’m sorry to hear your wife is still struggling to deal with the debts but it’s good she’s had some useful help and advice from the CAB.

    In answer to your first question, no the company does not have the right to demand that you fill in the forms. What they want to do is understand more about your wife’s circumstances so the budget is a way of explaining why she is unable to maintain the payments they are asking for. You do not have to complete their specific form but if your wife has an up to date budget completed with the CAB I would recommend you send this to the new company with the offer of repayment.

    I know debts can be passed on from company to company many times and it can be very frustrating. When a debt passes to another company it is likely they will demand a full or higher payment when they first contact you but they will then look to come to an agreement with you. This agreement might be the same as with the previous company but it is important your wife keeps them informed of the situation anyway. The more you co-operate, the less likely they will look to take further action.

    Did you know that the debt limit for the debt relief order (DRO) has now changed to £20,000? I think your wife would benefit from speaking to us and one of our expert Debt Advisors will be able to review the best solution for her going forward. As a charity all of our help and advice is completely free of charge.

    All the best and we hope to hear from you soon.

    Kirsty
    hi myself and my wife got into debt some years ago(approx 8yrs) luckily i managed to obtain a debt relief order. however my wifes debt was around £16.000 and exceeded the amount to be able to do the same. we were helped with my wifes debt by the local cab who were really helpful writing and ringing certain companys in setting up repayment plans by direct debit. over the years certain recovery companys have folded or passed the debt on for others to recover. however the reason i contact you is the above has just happened recently where someone new has been given the permission to recover what is around £700.00. they posted my wife correspondence regarding incomes and outgoings.rather than filling the forms in she worked it all out on paper and spoke to them on the phone. this was a debt that being payed at £3.00per week every week. they have more or less demanded she pays £300.00 of the debt imedeatly and the rest at a more reasonable rate my wife told them we could not afford this but did offer to up the payments to £5.00 per week. the company have given her approx 28 days to come up with a sollution of payment. there have been no court orders as yet for any repayment agreements. we are both in reciept of benefits as my wife is disabled and i am her carer. question 1 does any recovery or soliciters have the right to demand you fill in these ingoing outgoing forms if not been through a court of law. question 2 how do they have the right to demand such a lump sum payment when the lay on the end of the phone was explained too all our financial affairs and that we were on benefits. the previous company that was in charge of recovering this debt were quite happy to recieve the £3.00 per week with no pressure given. thankyou
    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.
  • Evening!


    I am exploring my options for debt management. While my funds cover bills and repayments the progress feels terribly slow. I am trying to find if there are any further recommendations or quicker options.

    I have:

    £1000 overdraft that I end up at the bottom of every month. No savings. My pay goes into this account and tops the overdraft back up to positive, funds are used and I wind up back at -990.

    £2786 on a barclay balance
    transfer credit card. The limit was 8000 and I have gradually decreased this to £3000. The plan is to keep decreasing it. Repayment £80 pcm. Interest 18.5% currently about £15pcm

    £4837 on an mbna balance transfer credit card, still in interest free offer on balance for approx another 30 months. Interest 18.5% apr. Limit increased by mbna to 8000. Paying minimum repayment at £46 pcm.

    This was an accumulation of clearing the previous card, (balance transfer barclay to mbna) the debt built up by stupidly doing "money transfers" to my current account to get out my overdraft then not removing overdraft...falling back in again.

    My question would be would it be wiser to keep these debt seperate and maybe juggle payment amounts, or combine the debts on to the mbna credit card and chop the other limits to maybe 100, or finally (least likely) try for a loan to consolidate. I think I could afford a max of 200 pcm to try pay funds back within 3 years. I don't want to do anything that may harm a potential mortgage in the future. I had considered something like payplan but the smaller repayments worries me.

    Thank you for any thoughts or advice!
  • Hello,


    Just wondered about rights a person may have if, they have an outstanding phone bill with GIFFGAFF, which started off as £35 pounds and now has been increased up to £201, due to monthly charges of £40 going onto the account.


    This person has rang GIFFGAFF and arranged to make a payment plan but GIFFGAFF wouldn't accept anything less than the £40 a month. Are they able to do this and are they ways around them refusing a payment plan?


    Many thanks.
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