Struggling with debt? Ask a debt advisor a question

AliceBanned · 1 September 2015 at 5:48PM

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.

I didn't know this about StepChange's funding. I discussed the possibility of a DMP with them today and although I in no way felt I was being forced, I was being directly encouraged into one by StepChange despite not having defaulted. I am struggling though, but I haven't made my mind up yet though. I do think that conflict of interest seems a bit dodgy! On the other hand the DMP does not look like a cop out, it looks pretty tough going.

My unsecured debts keep increasing despite attempts to reduce them and a YNAB budget. It just gets on top of you.:(

AliceBanned · 1 September 2015 at 5:53PM

PS didn't mean to hijack a previous query but thought I'd ask now - I am thinking a DMP for a few months to get me on track and then reverting to 'normal' repayment but is that possible? I am working full time - no change of circumstances but gradual accumulation of debt has meant I am going backwards with some of them and running out of money for expenses - was about £200 down on what I need to cover everything according to today's calculations.

I am paying a lot of interest and have continued to borrow because of this, despite efforts not to.. the usual cycle. I found StepChange really helpful on the phone and it does help emotionally to get that kind of support, but it is difficult to decide and feels like more murky territory than just paying off the cards in the 'standard' way. Good to get my head out of the sand but I thought it already was, and it isn't. :eek:

StepChange_Jen · 2 September 2015 at 11:34AM

AliceBanned wrote: »

PS didn't mean to hijack a previous query but thought I'd ask now - I am thinking a DMP for a few months to get me on track and then reverting to 'normal' repayment but is that possible? I am working full time - no change of circumstances but gradual accumulation of debt has meant I am going backwards with some of them and running out of money for expenses - was about £200 down on what I need to cover everything according to today's calculations.

I am paying a lot of interest and have continued to borrow because of this, despite efforts not to.. the usual cycle. I found StepChange really helpful on the phone and it does help emotionally to get that kind of support, but it is difficult to decide and feels like more murky territory than just paying off the cards in the 'standard' way. Good to get my head out of the sand but I thought it already was, and it isn't. :eek:

Hi there,

Thanks for posting.

You can find out more about how we are funded here:

http://www.stepchange.org/Aboutus/Ourapproach.aspx

When you receive a debt advice session from us, our advisors will suggest a debt solution that’s most suited to you and will base this on information you’ve given us about your income, budget and debts.

If you enter into a DMP with us, the payments you make towards your debts will be based on how much you can afford to pay after your essential living costs and priority bills are covered. This is to make sure you still have enough money to cover things like food, travel to work and rent or mortgage payments.

You wouldn’t be tied into a contract with us, so if you wanted to you could leave at any time although we’d always encourage you to only pay what you can realistically afford to your creditors.

If you’re still feeling confused, please feel free to give our Helpline another call. Our advisors will be more than happy to answer any queries you may have. You can find out how to get in touch with us here:

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

I hope this helps,

Jen

AliceBanned · 2 September 2015 at 12:31PM

Thanks Jen. I started another thread on my DMP query and have decided to try to get on top of things without a DMP for now. Other MSEers have advised that this should be possible. I found SC really helpful and a good reality check but if I can I will do what I can myself and see how I get on over the next few months. If my circumstances were worse I would see a DMP as my best option.

kessik · 2 September 2015 at 4:55PM

StepChange_Laura wrote: »

Hi Kessik,

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.

Sorry Laura, I didn't make myself clear - as a result of the CCJ we have to pay £100 each month and have never missed a payment so it's not a case of not paying it or expecting it to be statute barred. Does that still mean that it will show up on his credit file until it's totally repaid?

StepChange_James · 3 September 2015 at 10:34AM

AliceBanned wrote: »

Thanks Jen. I started another thread on my DMP query and have decided to try to get on top of things without a DMP for now. Other MSEers have advised that this should be possible. I found SC really helpful and a good reality check but if I can I will do what I can myself and see how I get on over the next few months. If my circumstances were worse I would see a DMP as my best option.

Hi Alice,

Great to hear that you've found talking to us useful. If you can manage to repay your debts by making the full payments then that could be a better solution for you than a DMP.

The important thing is to keep on top of your what's happening with your money and make sure that you're managing to cover your essential living costs without using any further credit.

If you can do that and still pay the debts in full then that's great news.

It can be a tough decision to work out the best solution and it can sometimes be that you won't know the right move until you later down the line. Feel free to get back in touch in the future if ever you'd like to talk over your options.

Kind regards

James

StepChange_James · 3 September 2015 at 10:45AM

kessik wrote: »

StepChange_Laura wrote: »

Hi Kessik,

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.

Sorry Laura, I didn't make myself clear - as a result of the CCJ we have to pay £100 each month and have never missed a payment so it's not a case of not paying it or expecting it to be statute barred. Does that still mean that it will show up on his credit file until it's totally repaid?

Hi Kessik,

Apologies about the confusion on your question.

A CCJ is entered on to a credit file around the time it is obtained. The record of the CCJ stays on a credit file for six years, even if the debt isn't repaid when the record is removed.

However, it's quite likely that other information about this debt may continue to be entered and that can stay on there for six years. For example it may be that they're updating the payment history for this debt every time a payment is made, so that could be on there for six years from the payment.

If the debt is repaid before the six years are up the record of the CCJ stays on the credit file but it can be updated to show the debt is satisfied.

As for the default for the water bill, there's no harm in asking but I wouldn't expect the company to agree to remove a default. However they should be able to update your credit file to show the debt has been repaid, which is likely to be viewed more positively when applying for credit.

Remortgaging your property to pay for the deposit on your daughter's house sounds very generous but potentially risky too. It's none of my business so feel free to ignore me, but I'd recommend being very cautious before borrowing more on your mortgage, as it could potentially put your house more at risk.

Kind regards

James

Deonyeah · 4 September 2015 at 1:50PM

Today I received a formal demand payment of £490.20 including a £17.01 admin cost from Buchanan Clark and wells which were 'instructed' by Orange PCS LTD to recover an overdue amount of my phone bill.

For the past one and half years now I have had money difficulties being a student a university, with very little income including a small student loan that I received.

I would pay as much as I could to Orange although some months I would struggle due to very little income, from this, my overdue balance has risen to this amount of £500 odd, according to Orange.

The letter titles 'Formal demand' on it which really worries me, how could I go about this, I mean I still have no source of money to pay for this, so what are my options. Is it possible for me to ring them up and give them a payment scheme? and who would I call Orange or Buchanan Clark and wells?

Any advice/help would really help me, thank you very reading.

Former_StepChange_Rachel · 4 September 2015 at 4:14PM

Deonyeah wrote: »

Today I received a formal demand payment of £490.20 including a £17.01 admin cost from Buchanan Clark and wells which were 'instructed' by Orange PCS LTD to recover an overdue amount of my phone bill.

For the past one and half years now I have had money difficulties being a student a university, with very little income including a small student loan that I received.

I would pay as much as I could to Orange although some months I would struggle due to very little income, from this, my overdue balance has risen to this amount of £500 odd, according to Orange.

The letter titles 'Formal demand' on it which really worries me, how could I go about this, I mean I still have no source of money to pay for this, so what are my options. Is it possible for me to ring them up and give them a payment scheme? and who would I call Orange or Buchanan Clark and wells?

Any advice/help would really help me, thank you very reading.

Hi there, thank you for getting in touch with us.

I’m sorry to hear you’ve been having financial difficulties. We can certainly help you with this situation.

It’s fairly common for debts such as this to be passed to a debt collection agency. I just want to reassure you that despite the formal tone of the letter you’ve received, Buchanan Clarke and Wells are not bailiffs and don’t have any authority to come into your home to seize goods. Furthermore, the debt they’re collecting for is not as much a priority as your living expenses such as mortgage, rent, council tax and utilities. You can find out more about what creditors can actually do on our blog: http://moneyaware.co.uk/2011/08/you%E2%80%99re-in-debt-but-what-can-your-creditors-actually-do/

From what you’ve described, it sounds like you would benefit from some free and confidential debt advice from us. We can take a look at your budget and look into debt solutions for you to consider. You can call our Helpline on 0800 138 1111 (free from landlines and mobiles) we’re open Mon – Fri 8am to 8pm and Sat 8am – 4pm. Alternatively, you can use our online advice tool Debt Remedy which will help you put together a personal action plan in around 20 minutes: http://www.stepchange.org/debtremedy.aspx

Hope this helps

Kind regards

Rachel

braavosi · 5 September 2015 at 12:23PM

Hello,

Some advice would be really appreciated as I am in a serious bind.

I was out of work for several months with a serious illness from the beginning of the year up until recently. My workplace allows for four weeks worth of sick pay and aside from that I received statutory sick. To my horror, I have ended up in serious debt with a loan (£863 outstanding) and an overdraft of £950, both with Halifax, and my HSBC credit card, which I previously only used to purchase small items, is now nearly maxed out with £980 worth of debt. I owe £285 to my partner's family (I do not have a family to ask for help) and £168 to a friend (I'm paying this back at £42 per month currently)

I've never been in debt before this and my credit score has now plummeted to 506. I have absolutely no idea how to claw myself out of it. I'm back at work now and after tax I take home roughly £1130 if I'm lucky enough to not miss a day or two due to the fact that I am still sick. My partner and I secured our house on a rent to buy scheme, in which our housing agency will give us back the first year of our rent after three years so that we can get a mortgage. We are currently halfway through this arrangement and I'm terrified that my credit score is going to hold us back.

My monthly expenses are all essentials as I have cut down on pretty much everything that I don't absolutely have to pay for, aside from the gym which I feel to me is essential considering the state of my health and the benefits of weight loss. These expenses come to £780.00 per month - roughly £100 of this is medication that I am sadly no exempt from paying. That does not include my monthly payment of £40.53 to Halifax and the £33 per month they charge my for the overdraft. I doubt that I would qualify for a loan and even if I did I do not want to get one as I know I will be offered a ridiculously high APR.

Any help, support or suggestions would be greatly appreciated.

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