Struggling with debt? Ask a debt advisor a question

Former_StepChange_Rory · 23 January 2015 at 10:43AM

Hi there,

Thanks for posting. It's quite difficult to say with any certainty whether or not you'll risk losing your property as part of bankruptcy. If your property does get repossessed and sold, any mortgage shortfalls would normally be included in your bankruptcy.

I'd recommend getting in touch with us to see if bankruptcy is the best way to deal with your debts, we'll look at all of your options and also discuss things in much more detail with you.

Our advice is free, impartial and confidential and we'll be able to get a much better picture of your situation before explaining the best way forward.

You can visit our website at https://www.stepchange.org/contactus.aspx for more information on how to get in touch with us.

I hope this helps,

Rory

CardiffAntony wrote: »

Good evening,

I am looking for some advice re bankruptcy possibility.

I lost my job last year I might be getting it back but in case worst come to worst here is my situation

Mortgage :91000
Consolidated loan (in arrears) around 35000
Unsecured debt : 5000
House price worth approx. 110000-120000 according to zoopla

any advice if the house gets repossessed what happens ?

Many thanks

Former_StepChange_Rory · 23 January 2015 at 11:09AM

Hi there,

Thanks for your message. In terms of support agencies in Chester specifically, this is outside our area of expertise, but I’d suggest getting in touch with your cousin’s Citizens Advice Bureau who may be able to recommend local organisations. Chester CAB is part of Cheshire West CAB, and you can find more details on their website here: http://www.cwcab.org.uk/

In terms of your cousin’s financial situation, this is something we can help with at StepChange Debt Charity. The debt advice we give is professional, impartial and free, and we offer a number of solutions to help people deal with their debts which you can read more about here: http://www.stepchange.org/Howwecanhelpyou.aspx I’d suggest your cousin gets in touch with us and has a chat with one of our advisors about her financial situation in more detail, and they will be able to recommend the best course of action.

You can give our helpline a call on 0800 138 1111. It’s free to call from landlines and major mobile networks, and is open from Monday to Friday from 8am to 8pm and Saturdays from 8am to 4pm.

You mention you are concerned your cousin is confused and finding it difficult to cope. If she would prefer, she can nominate someone to speak to us on her behalf about her financial circumstances. We could also look into sending any postal correspondence to the person she chooses to nominate. This would be something an advisor would be able to discuss with you further over the phone.

I hope this helps.

Kind regards,

Rory

AlexMac wrote: »

New to this forum, and, apologies, but I'm trying to cut corners with an appeal for recommended sources of advice for vulnerable elders.

A cousin in her late 60's isn't coping after the death of her partner a year ago(who I suspect handled the money) and a period of protective hospitalisation in a mental ward last year. She's not mentally ill, just stressed and confused and not coping. She never was terribly bright, but the trauma of the last year has pushed her over the edge.

She lives in Chester in NW England. I live in London. No close relatives. Social Services are not helping (in fact, the Local Authority are adding to the problem by chasing over a grand's contribution to the care element of last summers' Deprivation of Liberty Safeguarding ). She has temporary support from the local NHS mental health community team, but they are saying the 'family' must support her.

I'm not getting a response from her local Age UK to voicemails and emails (admittedly, their recorded messages say they are busy).

Any idea who else - agencies or charities - can help her sort herself out. I plan to visit in a few days to meet her bank, and any other agencies such as the Council who might be persuaded to lay off. I'll obviosuly look at why she's slipping into debt, (she only has basic pension/pension credit) but seems to have a credit card and an uneccesarily costly Premium Bank Account) but I live 200-odd miles away, so difficult to offer sustained practical help. And in any case, everyone is in charge of their own life.

But any contacts welcome, especially in her Chester , West Cheshire area

KateLndn · 24 January 2015 at 2:23PM

Hi there, I am new to this forum and would really appreciate some advise.

I have a default with Lloyds TSB for £302 which was accrued charges for a £7 informal overdraft that I had not realised had happened. The account was not my main account and I had been using it for my student loan to be paid into and paying rent etc from it and keeping my main current account for every day spending. The statements went to my parent's address and not where I was studying so did not initially know it had happened.

During the time it happened I was ill and not working, however would have been able to pay £7 had I known. By the time I found out (3 months later) the debt had rocketed and the bank would not take off the charges. They also would not accept a payment plan and had blocked my card. I also tried to pay in branch but they would not accept anything other than the full amount and had to be done via phone. I have been trying for years to plead with them, using advice from here and from elsewhere.

I also spoke to a DCA who said it is ridiculous and I shouldn't pay it and send them a cheque for £7. I did that and they just took it off the balance and carried on applying interest. I did pay the full amount and it is now satisfied because it was after it had defaulted to £302.

My question now if how can I get them to listen to me. That was in 2008, defaulted 2009. Will drop off my file in DEC 2015 but the thought of it still angers me as it has affected my credit file as a result. I would like them to pay me back the interest or at least some compensation and to take it off my credit file or amend the default amount as £295 interest is a crazy amount.

Am I being unrealistic after so long? I really feel they should not be able to get away with this.

Thanks

Kate

eltasweeq · 25 January 2015 at 8:41PM

hi there
i need to register in debt relief program which one u will advice me

Former_StepChange_Rachel · 26 January 2015 at 10:44AM

KateLndn wrote: »

Hi there, I am new to this forum and would really appreciate some advise.

I have a default with Lloyds TSB for £302 which was accrued charges for a £7 informal overdraft that I had not realised had happened. The account was not my main account and I had been using it for my student loan to be paid into and paying rent etc from it and keeping my main current account for every day spending. The statements went to my parent's address and not where I was studying so did not initially know it had happened.

During the time it happened I was ill and not working, however would have been able to pay £7 had I known. By the time I found out (3 months later) the debt had rocketed and the bank would not take off the charges. They also would not accept a payment plan and had blocked my card. I also tried to pay in branch but they would not accept anything other than the full amount and had to be done via phone. I have been trying for years to plead with them, using advice from here and from elsewhere.

I also spoke to a DCA who said it is ridiculous and I shouldn't pay it and send them a cheque for £7. I did that and they just took it off the balance and carried on applying interest. I did pay the full amount and it is now satisfied because it was after it had defaulted to £302.

My question now if how can I get them to listen to me. That was in 2008, defaulted 2009. Will drop off my file in DEC 2015 but the thought of it still angers me as it has affected my credit file as a result. I would like them to pay me back the interest or at least some compensation and to take it off my credit file or amend the default amount as £295 interest is a crazy amount.

Am I being unrealistic after so long? I really feel they should not be able to get away with this.

Thanks

Kate

Hi there Kate, thanks for posting.

I’m sorry to hear of the difficulty you’ve been having when dealing with this debt. The default from 2009 will drop off your credit file six years after the date it was logged, which in this case is December 2009.

When it comes to the charges that were accrued, unfortunately creditors are within their rights to add charges as they’re stated up front in the terms and conditions that you sign when you agree to take out the credit. It can also be difficult to argue that the charges are unfair based on your not receiving their letters. If they only had your parent’s address on file, they would have no other choice but to attempt contact with you there, as it’s up to you to update your contact details should they change.

MoneySavingExpert does have a guide that explains how to go about claiming back bank charges - http://www.moneysavingexpert.com/reclaim/bank-charges

It might also be worth reading our guide on how to improve your credit rating over time. We wrote it specifically for people who were about to finish paying off their debt management plan but there’s advice in there that’s useful for most people whatever their circumstances: http://moneyaware.co.uk/2013/10/how-to-improve-your-credit-rating-after-a-dmp/

Hope this helps

Best regards

Rachel

StepChange_Jen · 26 January 2015 at 10:54AM

eltasweeq wrote: »

hi there
i need to register in debt relief program which one u will advice me

Hello,

Thanks for getting in touch.

Without knowing your full situation it would be hard to advise the best debt solution for you.

I’d suggest giving our helpline a call for advice or using our online Debt Remedy tool. Debt Remedy will take details of your income, budget and debts to help create a free personal action plan to deal with your debts.

You can find our Debt Remedy tool here:

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

Or if you would prefer you can find out how to call us here:

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

I hope this helps,

Jen

Hatton2506 · 26 January 2015 at 2:06PM

want to transfer £3k credit card to 0% balance to save interest. applied for 2 but will only allow to transfer £1250. Ideas? My husband also has a credit card of £1000 both with 18.9% interest. would it be better to purchase a loan with a lower interest, clear the cards and then pay that off to save the £?

Mumof2nbump · 26 January 2015 at 10:22PM

Hi

Myself and my husband have a big pile of debts in total to £14k. Most are in my name only 2 in husbands. We are both unemployed (well im a full time carer) and husband lost his job back in 2010. We have been told we need to pay the debts off by various different companies but they dont seem to be hearing us at all. I have been thinking of getting a DRO as we will never be able to pay off the debts and we are currently drowning in them. Can someone help?

bowdery7 · 27 January 2015 at 12:53AM

Hi,

I've got credit card debts of £13000 that have crept up over the last few years and an overdraft of £2000. I have decided to try and take this into hand to try and reduce debts. I have gone onto Stepchange and it has suggests a Debt Management Plan. If I was to undertake this with Step change, Can you pay more off a month if I get a payrise with my job or do I have to stick with the payments first suggested? Also, there may be a possibility that I could get some help from family but I don't want to wait, I'd like to try and tackle this now and at least commencing one monthly payments as part of the DMP should at least help me be able to monitor my outgoings. Is this a sensible thing to do?

Cant believe I have let this spiral over the last few years and panicking about not being able to ever afford money to put aside in savings or towards a mortgage. Will a DMP really affect my credit rating?

Thanks for your help.

StepChange_James · 27 January 2015 at 1:12PM

Hatton2506 wrote: »

want to transfer £3k credit card to 0% balance to save interest. applied for 2 but will only allow to transfer £1250. Ideas? My husband also has a credit card of £1000 both with 18.9% interest. would it be better to purchase a loan with a lower interest, clear the cards and then pay that off to save the £?

Hello,

Thanks for posting. It can be a tricky situation when it's not possible to get 0% deals.

Consolidating debts can occasionally help but we see a lot of people who end up with more debts and struggling more after consolidating. So I'd suggest being very cautious before taking out a loan to pay off these debts.

Obviously I don't know much about your finances, but if you're struggling then you might need debt advice. You can get in touch with us for free using the links in my signature below.

Even if you're not struggling to keep up with payments on these debts it's probably a good idea to put together a budget and trying to save money where possible. You may already have done this but it's important to try and pay as much off the debts as possible (within reason).

I'm afraid we don't offer much in the way of advice on the best deals available, which I suspect is what you're currently looking for. The pages on the main MSE site are useful for tips about offers, so I'd suggest checking them out if you're still looking for new ways to finance your debts. The only thing I'd add is that it's important to make sure any new finance is affordable before signing up to anything.

Kind regards

James

Struggling with debt? Ask a debt advisor a question

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