Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • MSE Andrea
    • By MSE Andrea 18th Nov 16, 1:05 PM
    • 8,371Posts
    • 20,461Thanks
    MSE Andrea
    Struggling with debt? Ask a debt advisor a question
    • #1
    • 18th Nov 16, 1:05 PM
    Struggling with debt? Ask a debt advisor a question 18th Nov 16 at 1:05 PM
    If you need help with your debts, this is the thread for you.

    Trained advisors from StepChange Debt Charity (formerly CCCS) are here and waiting to answer your debt questions. Theyíre a friendly bunch so please donít be shy!

    There are three ways to get in touch:

    1 - Simply post your question below and Richard, Allen, Rachael, Linsi or Kirsty will reply. If your question is about bankruptcy, then pop over to the Bankruptcy board.

    2 - If you would prefer to ask a question in private, feel free to send a message to StepChange Private Messages.

    3 Ė StepChange Debt Remedy is a free and confidential online debt advice tool. You can put a budget together at your pace, and you can also talk it over with an advisor through online chat.

    If you're a StepChange Debt Charity client already, please contact its Aftercare team rather than posting in this thread (their contact details are in your Welcome Pack).

    This is discussion thread part four, see parts one, two and three.

    Finally, follow @MSE_Forum on twitter for debate and discussion on all things MoneySaving and more.

    If you havenít already, join the forum to reply!
    This Forum tip was included in MoneySavingExpert.com's weekly email!

    Follow MSE on other Social Media:
    MSE Facebook, MSE Twitter, MSE Deals Facebook, MSE Deals Twitter, Forum Twitter, Instagram, Pinterest
    Join the MSE Forum
    Get the Free MoneySavingExpert Money Tips E-mail
    Report inappropriate posts: click the report button
    Point out a rate/product change
    Flag a news story: news@moneysavingexpert.com
Page 3
    • Toolman2001
    • By Toolman2001 6th Dec 16, 3:34 PM
    • 2 Posts
    • 0 Thanks
    Toolman2001
    Debt advice needed for single parent.
    Hi
    My friend has a debt from her Ex husband. She took out several loans to try and bail the family out of debt and now having separated from her husband is left with the debts in her sole name.
    She has a total of £20k debts all with 5 creditors.
    She had been offered three solutions from Stepchange.
    1, Debt management plan £140 over 13 yrs 2 months
    2, Iva
    3, Bankruptcy


    She is in rented accommodation and her only asset is a car £3000.
    Her concern about Bankruptcy is being made homeless should she need to move to another rent property and also any effect this might have on her profession as a nurse.


    My initial thinking is to try and make individual arrangements with each creditor, with the out come being to freeze interest and other charges. To enable her to pay the debts without and need for IVA or Bankruptcy.


    Any advice is very welcome.
    Thank you in advance.
    T
    • Dory35
    • By Dory35 7th Dec 16, 6:54 AM
    • 10 Posts
    • 2 Thanks
    Dory35
    'm wondering if you can help? I'm on a DMP with Stepchange but had some car problems and took out an emergency loan with provident. As they are doorstep collectors I'm worried as do I add them to my DMP? I'm struggling financially and just a bit worried.
  • StepChange_Rachael
    Hi

    Thanks for your post.

    I can see this was also sent to us as a private message which Iíve replied to this morning.

    Please see your private messages for my response and let me know if youíve any further queries.

    Thanks
    Rachael



    'm wondering if you can help? I'm on a DMP with Stepchange but had some car problems and took out an emergency loan with provident. As they are doorstep collectors I'm worried as do I add them to my DMP? I'm struggling financially and just a bit worried.
    Originally posted by Dory35
    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.
  • StepChange_Rachael
    Hi

    Iím sorry to hear that your friend is struggling and has been through what I imagine has been a very difficult time.

    Iím glad that your friend was able to contact us to discuss her options. Iíd suggest your friend getting back in contact to discuss the concerns she has and for further advice.

    Her job might be affected by a type of insolvency and Iíd suggest that she checks her contract, her employer or Union. As sheís a Nurse this should be quite easy to find out through the Nurses Union.

    Your friend can check in her rental agreement to see if Insolvency would affect her contract. Even if a clause is in there which means Insolvency would breach the contract it doesnít always mean the landlord would act on the clause especially if the rent is up to date and she's on good terms with the landlord.

    The Insolvency clause is less likely to be written in to Council or Housing Association rented properties.

    Assets are taken into account in Insolvency and IVAs offer more protection for assets.

    In Bankruptcy most assets would be taken into account especially vehicles worth over £1000.

    What youíve mentioned about making an individual agreement to the creditors to make a reduced payment is basically what a Debt Management Plan (DMP) is, but instead of your friend doing it herself, itíd be supported through us.

    As we donít charge any fees for the service so the creditors are receiving what is affordable based on your friendís financial situation to pay back the debt.

    Weíd give an estimated time frame thatís based on creditors stopping the interest and charges, so Iíd assume the 13 years 2 months is based on that calculation.

    Certain debt solutions may be perfect for some and not for others and vice versa. Iíd certainly advise your friend to call in to discuss these concerns with us further.

    You can find our contact details here.

    Thanks
    Rachael




    Hi
    My friend has a debt from her Ex husband. She took out several loans to try and bail the family out of debt and now having separated from her husband is left with the debts in her sole name.
    She has a total of £20k debts all with 5 creditors.
    She had been offered three solutions from Stepchange.
    1, Debt management plan £140 over 13 yrs 2 months
    2, Iva
    3, Bankruptcy


    She is in rented accommodation and her only asset is a car £3000.
    Her concern about Bankruptcy is being made homeless should she need to move to another rent property and also any effect this might have on her profession as a nurse.


    My initial thinking is to try and make individual arrangements with each creditor, with the out come being to freeze interest and other charges. To enable her to pay the debts without and need for IVA or Bankruptcy.


    Any advice is very welcome.
    Thank you in advance.
    T
    Originally posted by Toolman2001
    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.
    • XJM
    • By XJM 8th Dec 16, 1:12 AM
    • 4 Posts
    • 0 Thanks
    XJM
    I've been working as a contractor for a couple of years now and just had my first full year tax bill, which was much larger than expected since I had never heard of tax on account! I also misjudged when i would need to pay and have moved recently, so I think I need to take out a loan to pay it (I know I can speak to HMRC but I doubt I can pay fast enough on my own, certainly not without preventing myself paying next year.

    I'm reviewing my spending and am confident I can make this work, especially if I get my taxes down by operating as a limited company from now on. But if it's to be a loan, I need to think about my other obligations, namely some credit card debt and a career development loan I'm paying off.

    I was planning on being a credit card tart and switching the card debt to a new one with an interest free period, but obviously thats another payment each month. I suspect that would be better than increasing the loan to collect it together right? I might pay a bit more each month, but not a lot, and will save myself interest on that amount.

    Im on schedule to pay off the career development loan around September I think, and I suspect that it might be worthwhile to increase the loan and pay that off, to keep things manageable?
  • StepChange_Allen
    I've been working as a contractor for a couple of years now and just had my first full year tax bill, which was much larger than expected since I had never heard of tax on account! I also misjudged when i would need to pay and have moved recently, so I think I need to take out a loan to pay it (I know I can speak to HMRC but I doubt I can pay fast enough on my own, certainly not without preventing myself paying next year.

    I'm reviewing my spending and am confident I can make this work, especially if I get my taxes down by operating as a limited company from now on. But if it's to be a loan, I need to think about my other obligations, namely some credit card debt and a career development loan I'm paying off.

    I was planning on being a credit card tart and switching the card debt to a new one with an interest free period, but obviously thats another payment each month. I suspect that would be better than increasing the loan to collect it together right? I might pay a bit more each month, but not a lot, and will save myself interest on that amount.

    Im on schedule to pay off the career development loan around September I think, and I suspect that it might be worthwhile to increase the loan and pay that off, to keep things manageable?
    Originally posted by XJM
    Hi there

    Thanks for your post.

    I know that tax can be a tricky subject and quite a lot of self-employed people get into difficulty with it. In our experience borrowing money to pay off other debt can cause its own problems (often more debt) so we never recommend it. That doesn't mean it's always a bad idea, but we wouldn't advise say a loan over a credit card or vice-versa. Any advice would also depend on your overall financial situation and exactly what deals are out there.

    To be honest the information on low cost borrowing on the MSE site itself is probably about as useful information about this sort of thing as there is out there. If you're looking for advice on paying off any debt that's related to the business, you could contact Business Debtline. They may also be able to advise on any tax questions you have.

    I hope this makes sense. I wish you all the best with getting all this under control.

    Allen
    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.
    • Madhava
    • By Madhava 9th Dec 16, 2:11 PM
    • 1 Posts
    • 0 Thanks
    Madhava
    Debt Advice
    Hello,

    Long story short I got myself into debt and I have really bad credit. I have 4 credit accounts that have all defaulted. Now my financial situation has improved and I am looking at both paying off all my debts and improving my credit rating.

    So after signing up with Equifax I noticed I have only got £1624 to pay. I currently have two options I to pay £150 a month and be debt free in 11 months (I have enough disposable income that I could pay more) or I can pay it all off now in one go. If I pay the monthly amount I can also put money aside to save for the deposit on buy a house, which is why I need to have good credit rating.

    What I was wondering is which one would be better to improve my credit rating? If I stick to it and be debt free by 2018 will I have a good chance at getting a deal on a mortgage? Or is there a third option that I have missed?

    Any advice you could give me would be great appreciated

    Thank you
    Last edited by Madhava; 09-12-2016 at 2:17 PM. Reason: Spelling
    • iamkingy
    • By iamkingy 10th Dec 16, 6:00 PM
    • 4 Posts
    • 1 Thanks
    iamkingy
    Hi all.

    From the day I turned 18 I have had a terrible relationship with spending and money. At the age of 27 I'm now desperately wanting to get married, have a mortgage and a baby. But none of those things come cheap!

    I have a wide variety of debts now, old and new, amounting to approx £10,000. My credit score is absolutely appalling from missed payments and all sorts. I have two defaults, no CCJs as I've never let it get that far.

    I am now on a reasonable income for my age, around £1,800 a month depending on overtime/enhancements. If I was able to consolidate my debts into one, I'd be able to get it all paid off in no time. Unfortunately I have a number of lenders with large minimum payments, which has lead to me using all sorts of dreaded payday loans, and as you all know it's a slippery slope.

    I'm desperate to get one consolidation loan so I can put it into one affordable payment, whilst getting onto of my credit rating. But my credit score is too bad to qualify for even the most basic of lenders. I am considering a DMP but I'm worried this may effect my credit score further as it's not all of my accounts that I'm struggling with. As terrible as it sounds I would also like to be able to hold on to one credit card for absolute emergencies, as I do not have anything at all to fall back on.

    All advice welcome. Happy to give more details if needed!

    Thanks so much
  • StepChange_Rachael
    Hi

    Thanks for your post and welcome to the forum.

    Iím glad to hear your financial situation has improved enough to be able to pay back the debt in full or instalments, I know it can be a worrying time when youíre struggling to keep up with your general living costs and payments to creditors.

    With regards to your credit file, the main thing that will have impacted it is the defaults that the creditors have added to your credit file. Theyíll drop off after 6 years from the date the default was first issued. This period wonít change even if you pay the debt off sooner.

    Once youíve paid the debts off, creditors will note this on your credit file and the debt will show as paid in full and settled. This will have a positive impact on your credit file because it shows even though the debt had defaulted youíve now paid the debt back and that itís no longer outstanding.

    By paying the debt back in full it also stops the creditor being able to take any further action to collect for the debt. A creditor could take a defaulted debt through a County Court and set a County Court Judgement (CCJ). Having a CCJ on your credit file will have a negative impact on your file.

    By paying the creditorsí affordable monthly payments that theyíll accept its likely this will show on your credit file that youíre paying the debt back which is positive. It will however, take longer to eventually come off your credit file as the debt will stop showing on your credit file 6 years from the last time it was updated by the creditor.

    Mortgage providers will use information of your income, current financial situation including your credit file to decide if theyíll agree to an offer as well as a deposit.

    Credit files can be affected by many different things so you could also look at other ways to improve your credit file.

    Here is a link for further help and information on credit files.

    I hope this is helpful.

    Thanks
    Rachael



    Hello,

    Long story short I got myself into debt and I have really bad credit. I have 4 credit accounts that have all defaulted. Now my financial situation has improved and I am looking at both paying off all my debts and improving my credit rating.

    So after signing up with Equifax I noticed I have only got £1624 to pay. I currently have two options I to pay £150 a month and be debt free in 11 months (I have enough disposable income that I could pay more) or I can pay it all off now in one go. If I pay the monthly amount I can also put money aside to save for the deposit on buy a house, which is why I need to have good credit rating.

    What I was wondering is which one would be better to improve my credit rating? If I stick to it and be debt free by 2018 will I have a good chance at getting a deal on a mortgage? Or is there a third option that I have missed?

    Any advice you could give me would be great appreciated

    Thank you
    Originally posted by Madhava
    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.
  • StepChange_Rachael
    Hi

    Thanks for posting.

    I can understand youíd want to get on top of your finances and get things back on track and that itís important to find a way that is suitable for you and your situation.

    I know youíve mentioned youíve been unable to get a consolidation loan but I wouldnít suggest further borrowing as a solution in any case as this rarely solves the problem of interest and high monthly payments.

    Iíd suggest looking into other options to becoming debt free. There are many different solutions depending on your situation some may be more suitable than others.

    A Debt Management Plan (DMP) is one debt solution which is likely to have less of an impact on your credit file than other forms. This is because a DMP is paying back the full amount of the debt but with affordable payments so that you can maintain your priorities such as mortgage payment and other priority household bills.

    If you have debts that have already defaulted and the creditor has issued a default, then a DMP is unlikely to have further negative impact. This is because it will show on your credit file that youíre making regular repayments. The defaults will fall off your credit file 6 years after the first date they were issued.

    In a debt solution youíd need to include all your unsecured non priority debts as this shows the creditors youíre not giving any preferential treatment.

    Creditors may check your credit file and will see if youíre making contractual payments to some creditors and are paying them a reduced amount in a DMP. Itís much more likely the creditors in the DMP will take the debt through a court to set a Count Court Judgement (CCJ) against the debt to try and get a higher payment through the court.

    Itís important to budget for all your expenditure including setting an amount aside for sundries and emergencies for unexpected or irregular expenses. This should stop any need for further borrowing when in a debt solution.

    If youíd like to look further into what debt solutions would be suitable for your situation you can use our anonymous online Debt Remedy tool, once completed youíll be able to access and read through our advice and recommendations.

    Take care,

    Rachael



    Hi all.

    From the day I turned 18 I have had a terrible relationship with spending and money. At the age of 27 I'm now desperately wanting to get married, have a mortgage and a baby. But none of those things come cheap!

    I have a wide variety of debts now, old and new, amounting to approx £10,000. My credit score is absolutely appalling from missed payments and all sorts. I have two defaults, no CCJs as I've never let it get that far.

    I am now on a reasonable income for my age, around £1,800 a month depending on overtime/enhancements. If I was able to consolidate my debts into one, I'd be able to get it all paid off in no time. Unfortunately I have a number of lenders with large minimum payments, which has lead to me using all sorts of dreaded payday loans, and as you all know it's a slippery slope.

    I'm desperate to get one consolidation loan so I can put it into one affordable payment, whilst getting onto of my credit rating. But my credit score is too bad to qualify for even the most basic of lenders. I am considering a DMP but I'm worried this may effect my credit score further as it's not all of my accounts that I'm struggling with. As terrible as it sounds I would also like to be able to hold on to one credit card for absolute emergencies, as I do not have anything at all to fall back on.

    All advice welcome. Happy to give more details if needed!

    Thanks so much
    Originally posted by iamkingy
    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.
    • chiram2015
    • By chiram2015 14th Dec 16, 10:06 AM
    • 25 Posts
    • 61 Thanks
    chiram2015
    Hi all

    I need some guidance as to what to do with my son's debts.

    The total debt is around 4K with 5 providers and arose 2 years ago. As I had bailed him out previously, I decided not to do so for these debts to try and make him more responsible with his money

    Instead of bailing him out we sat down together and arranged DMPs with the 5 providers but in 2015 he lost his job and unknown to me he stopped the DMP payments and they have never been reinstated (I only found this out last week).

    He is now doing well in a new job and earns 24K p.a.

    My big Q is

    1. I could clear all the debts in full and arrange a payment plan to me from my son - this will clear his debt record quicker but my concern is that I am just going back to what I did years ago

    or

    2. We re-contact the providers and try and reinstate the DMPs

    Any guidance would be very helpful.

    Thanks
  • StepChange_Kirsty
    Hi Chiram,

    Thanks for your post.

    Itís great to hear your son is doing well in his new job and that heís now able to make payments to his creditors.

    I think paying these debts to help your son is a really nice gesture, but the reasons you gave for not paying his debts a second time are also very valid points. Ultimately youíre the only one who can make this decision but before you do, there is a third option you and your son could consider.

    Your son can create a budget online with us (and you can help him do this). Weíll then be able to help and support your son to repay his debts in a way thatís manageable for him. Hereís the link to our free online Debt Remedy tool.

    I hope this is helpful.

    All the best,

    Kirsty

    Hi all

    I need some guidance as to what to do with my son's debts.

    The total debt is around 4K with 5 providers and arose 2 years ago. As I had bailed him out previously, I decided not to do so for these debts to try and make him more responsible with his money

    Instead of bailing him out we sat down together and arranged DMPs with the 5 providers but in 2015 he lost his job and unknown to me he stopped the DMP payments and they have never been reinstated (I only found this out last week).

    He is now doing well in a new job and earns 24K p.a.

    My big Q is

    1. I could clear all the debts in full and arrange a payment plan to me from my son - this will clear his debt record quicker but my concern is that I am just going back to what I did years ago

    or

    2. We re-contact the providers and try and reinstate the DMPs

    Any guidance would be very helpful.

    Thanks
    Originally posted by chiram2015
    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.
    • lbahrani
    • By lbahrani 16th Dec 16, 4:43 AM
    • 10 Posts
    • 7 Thanks
    lbahrani
    Looking for sound rational advice & help!
    Good Morning, as title suggest im looking for some advice on how quickly to reduce debt and whether debt is managable or shall i sell a car that i need to reduce debt faster and make potential savings greater?

    I'll try and be as clear as possible (but please ask if confused)

    One Account Debt = £-12415.47 (Facility is £40,000) based against valuation of home at £165k.. Home is paid for through the legacy of my Dad.

    Option A - KEEP CAR

    Period: 16 Dec 16 - 16 Apr 21

    Debt repayment @£257.59 p/month
    53 payments @£257.59 = £13,652.27 (Interest = £1,236.80)

    Savings generated in Period (if keep car) = 53 x £627.84 = £33,275.52


    Option B. - SELL CAR

    Sell Car (have 2 cars in household required for both my partner and i to get to work) valued at £11,000 and reduce debt by £6000 and use £5000 to buy an alternative car.

    Debt repayment @£257.59 p/month
    27 payments @£257.59 = £6,954.93 (Interest = £539.46)

    Savings generated in Period (16 Dec 16 - 16 Apr 21)

    = 53 payments x £490.24 = £25.982.72 (A)
    PLUS
    27 payments x £137.60 (whilst debt period is in effect) = £3715.20 (B)
    26 payments x £395.19 (£490.24 - £137.60) (once debt is reduced to nil) = £10,274.94 (C)
    53 payments x £490.24 (money available for savings) = £25,982.72 (C)

    Savings generated in period (if sell car)
    (A) + (B) + (C) = 25,982.72 + £3715.20 + £10,274.94 = £39,972.86

    To conclude the difference in savings generated is i keep the car is :-

    £39,972.86 - £33,275.52 = £6,697.34 missed savings potential if i keep the car.

    Some help and advice would be greatly appreciated, please ask ANY questions for clarification,

    thanks

    L
    • krazykaz64
    • By krazykaz64 16th Dec 16, 10:22 AM
    • 10 Posts
    • 1 Thanks
    krazykaz64
    Dmp
    hi, I am currently on a DMP and due to an inheritance I am in a position to clear my debt (yay!)

    my question is... is it better to let the company (Payplan) negotiate a settlement figure on my behalf or for me to contact my creditors directly?

    It seems I have 2 choices ... pay in full or offer a lump sum

    Thanks
  • StepChange_Kirsty
    Hi Ibrahani,

    Thanks for your post.

    It sounds as though you are in a good position at the moment as youíre able to meet the contractual payments to your debt and pay a contribution into savings.

    Iím a little bit confused by the figures in option B but based on your summary it suggests that you would be able to save £6,697.34 more if you sell the car.

    It all really depends what you are saving for and if the extra savings will make a difference to your overall plans. It certainly doesnít look like it is essential for you to sell your car in order to be able to manage your debt but it would make you debt free more quickly.

    A third option, if you want to clear the debts quicker, is to pay a little more each month to the debt and a little less into your savings. Again this really depends on what your future plans are.

    Overall, as we specialise in problem debt, I think it might be better for you to speak to an Independent Financial Advisor who will be able to look at your situation in more detail. The Money Advice Service can help with you choose a Financial Advisor who would suit your situation.

    Best wishes

    Kirsty

    Good Morning, as title suggest im looking for some advice on how quickly to reduce debt and whether debt is managable or shall i sell a car that i need to reduce debt faster and make potential savings greater?

    I'll try and be as clear as possible (but please ask if confused)

    One Account Debt = £-12415.47 (Facility is £40,000) based against valuation of home at £165k.. Home is paid for through the legacy of my Dad.

    Option A - KEEP CAR

    Period: 16 Dec 16 - 16 Apr 21

    Debt repayment @£257.59 p/month
    53 payments @£257.59 = £13,652.27 (Interest = £1,236.80)

    Savings generated in Period (if keep car) = 53 x £627.84 = £33,275.52


    Option B. - SELL CAR

    Sell Car (have 2 cars in household required for both my partner and i to get to work) valued at £11,000 and reduce debt by £6000 and use £5000 to buy an alternative car.

    Debt repayment @£257.59 p/month
    27 payments @£257.59 = £6,954.93 (Interest = £539.46)

    Savings generated in Period (16 Dec 16 - 16 Apr 21)

    = 53 payments x £490.24 = £25.982.72 (A)
    PLUS
    27 payments x £137.60 (whilst debt period is in effect) = £3715.20 (B)
    26 payments x £395.19 (£490.24 - £137.60) (once debt is reduced to nil) = £10,274.94 (C)
    53 payments x £490.24 (money available for savings) = £25,982.72 (C)

    Savings generated in period (if sell car)
    (A) + (B) + (C) = 25,982.72 + £3715.20 + £10,274.94 = £39,972.86

    To conclude the difference in savings generated is i keep the car is :-

    £39,972.86 - £33,275.52 = £6,697.34 missed savings potential if i keep the car.

    Some help and advice would be greatly appreciated, please ask ANY questions for clarification,

    thanks

    L
    Originally posted by lbahrani
    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.
  • StepChange_Kirsty
    Hi

    Thanks for your post.

    I can see this was also sent to us as a private message which Iíve replied to seperately.

    Please see your private messages for my response and let me know if youíve any further queries.

    Thanks

    Kirsty

    hi, I am currently on a DMP and due to an inheritance I am in a position to clear my debt (yay!)

    my question is... is it better to let the company (Payplan) negotiate a settlement figure on my behalf or for me to contact my creditors directly?

    It seems I have 2 choices ... pay in full or offer a lump sum

    Thanks
    Originally posted by krazykaz64
    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.
    • lbahrani
    • By lbahrani 17th Dec 16, 6:21 AM
    • 10 Posts
    • 7 Thanks
    lbahrani
    Hi Ibrahani,

    Thanks for your post.

    It sounds as though you are in a good position at the moment as youíre able to meet the contractual payments to your debt and pay a contribution into savings.

    Iím a little bit confused by the figures in option B but based on your summary it suggests that you would be able to save £6,697.34 more if you sell the car.

    It all really depends what you are saving for and if the extra savings will make a difference to your overall plans. It certainly doesnít look like it is essential for you to sell your car in order to be able to manage your debt but it would make you debt free more quickly.

    A third option, if you want to clear the debts quicker, is to pay a little more each month to the debt and a little less into your savings. Again this really depends on what your future plans are.

    Overall, as we specialise in problem debt, I think it might be better for you to speak to an Independent Financial Advisor who will be able to look at your situation in more detail. The can help with you choose a Financial Advisor who would suit your situation.

    Best wishes

    Kirsty
    Originally posted by StepChange_Kirsty
    Hi Kirsty,

    Thanks for your reply. Really helpful. You're correct, effectively i'd be able to save approximately £7k more if i were to sell the car. This said, i'd have to source a cheaper car than at present, perhaps not as reliable as current car and go through the hassles of selling my current car for market value. Could actually do without that hassle having had time to reflect on your reply.

    Saving, not particularly saving for anything specifically, just thinking about the future of our children, now 7 and 5. Would like to be able to take them on nice holidays and be able to afford nice things for them, but hey 'you cut your own coat....'

    Which brings me onto my next question, if i may, how much should we save as a family? is there a general rule of thumb? what percentage of our our net income and other credits should we put aside for a rainy day? unplanned expenditure? the future? This is where i have trouble in making accurate decisions.

    Currently, my salary pays for Living plue ALL bills over a 4 weekly rolling period. My wife's salary and other benefits goes to reducing our debt and into savings as mentioned above.

    Your further suggestions and advice would be greatly appreciated and again, thank you for your reply to my original post.

    regards

    L
  • StepChange_Kirsty
    Hi,

    Thanks for your response; Iím glad you found my last post helpful.

    Itís difficult to say exactly how much you should be saving each month as it all depends what is affordable for you and your family based on your income and what your living costs are each month. It might be useful for you to create a budget showing your income and expenses to see what you have left over each month that you might be able to set aside for whatever you choose to use it for in the future.

    The main Money Saving Expert site has an article about savings and it also includes a savings calculator which you may find very useful.

    It seems the main decision you need to make is whether to overpay your current account mortgage or to put the money into savings. This article provides a very useful guide about overpaying your mortgage v savings.

    Both of these articles are general guides. You still might find it better to speak to an Independent Financial Adviser who can provide advice which is more specific to your circumstances.

    Hope this is helpful.

    Kirsty

    Hi Kirsty,

    Thanks for your reply. Really helpful. You're correct, effectively i'd be able to save approximately £7k more if i were to sell the car. This said, i'd have to source a cheaper car than at present, perhaps not as reliable as current car and go through the hassles of selling my current car for market value. Could actually do without that hassle having had time to reflect on your reply.

    Saving, not particularly saving for anything specifically, just thinking about the future of our children, now 7 and 5. Would like to be able to take them on nice holidays and be able to afford nice things for them, but hey 'you cut your own coat....'

    Which brings me onto my next question, if i may, how much should we save as a family? is there a general rule of thumb? what percentage of our our net income and other credits should we put aside for a rainy day? unplanned expenditure? the future? This is where i have trouble in making accurate decisions.

    Currently, my salary pays for Living plue ALL bills over a 4 weekly rolling period. My wife's salary and other benefits goes to reducing our debt and into savings as mentioned above.

    Your further suggestions and advice would be greatly appreciated and again, thank you for your reply to my original post.

    regards

    L
    Originally posted by lbahrani
    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.
    • emeyetee11
    • By emeyetee11 21st Dec 16, 5:29 PM
    • 3 Posts
    • 0 Thanks
    emeyetee11
    Debt collector brought debt no longer on my credit file
    Hello,
    I have recently been receiving letters, emails and texts from a company called Cabot who recently brought an old credit card debt i had with Tesco Finance.
    However, the old debt no longer shows on my credit file having checked my Equifax report and having recently re-mortgage, it never came up on any checks either.
    As i understand it, there is something called statute barred which means after so long the original debtor can no longer chase the debt, although it is still unpaid.
    So, where do i stand with this Cabot lot who are chasing me for the full debt, even though they clearly brought it for very little?!!!!
    • emeyetee11
    • By emeyetee11 21st Dec 16, 5:32 PM
    • 3 Posts
    • 0 Thanks
    emeyetee11
    Settlement on a CCJ???
    My wife has a CCJ set against her by Lowell, nice bunch!!!

    It is for £3,500, she tried to mediate a settlement figure but they were no interested and were happy for her to set up a £5/month direct debit!

    I may be in a position to obtain some funds and would look to try and arrange a settlement against this CCJ, is this possible and if so, who do i contact, Lowell or the Courts?

    I look forward to hearing from you soon!
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,791Posts Today

7,856Users online

Martin's Twitter