StepChange #debtmyths

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  • StepChange_James
    StepChange_James Posts: 861 Organisation Representative
    The myth: You can't get debt help on Christmas day #debtmyth

    The reality:

    You can! Our online advice tool Debt Remedy (https://www.stepchange.org/msehelp) will be up and running throughout the Christmas break. While you might think nobody wants to think about their finances on this day, we have hundreds of people who access Debt Remedy on Christmas Day every year.

    It usually takes about 20 minutes to complete and will give you a customised advice booklet that will explain your options to you.

    While Debt Remedy will be up and running all next week, we’re taking a break from our #debtmyths. We will however be replying to questions on our “ask a debt advisor a question” sticky at the top of the forum on Thursday and Friday next week.

    Merry Christmas from everyone at StepChange Debt Charity!
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) 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

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

  • Morning everyone!

    The off-topic posts were threatening to take away from the subject matter so we've moved them to their own thread.

    Please carry on posting your questions not relating to debt myths on this thread:

    Stepchange general questions

    Thanks and Merry Christmas! :)
    Could you do with a Money Makeover?


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  • Former_StepChange_Rachel
    Former_StepChange_Rachel Posts: 252 Organisation Representative
    The myth: You should pay for debt advice if you can afford it #debtmyths

    The reality:

    If you’ve reached a point where you can’t manage your debts then you can’t afford to pay for advice, no matter how much money you have coming in. Anyone who’s ever tried to search Google for help with their debts will know that there are profit-making companies falling over themselves to offer help, but many will only advise on solutions that will help them to make money.

    If you are facing a debt problem then it’s important to get help from the right place. Moneysavingexpert.com has a list of the places to get free debt help. That way you can get an honest opinion about what options best suits your finances.
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) 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

    If money worries are keeping you awake, read Paul's success story at [url="http://www.needtosleep.org]Need to Sleep[/url]

  • StepChange_James
    StepChange_James Posts: 861 Organisation Representative
    The myth:

    If you have an additional credit card holder, they are liable for their own spending #debtmyths

    The reality:

    If you have named someone, for example your husband, wife or partner, as an additional card holder on a credit card you’re responsible for repaying all of their spending.

    As the credit agreement is in your name you’re solely liable, even if your partner made the actual purchases.

    To learn more about how joint finances can have an impact on you and your relationships read about blogpost about splitting up splitting up when you’re financially connected.
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) 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

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

  • System
    System Posts: 178,077
    Photogenic Name Dropper First Post
    Community Admin
    The myth: Once it’s set up, the payments into an IVA cannot be changed

    The reality:

    An individual voluntary arrangement (IVA) is a legally-binding debt solution. Many people subject to IVAs don’t know that if their circumstances change these arrangements can be varied.

    If the change in circumstances is a significant one your IVA supervisor may have to call a ‘variation meeting’ where your creditors will be allowed to vote again on any changes to the IVA.

    Some of the most common reasons for calling a variation meeting are life-changing events such as a sudden unexpected reduction in income, a relationship break up or a pregnancy.
    As an IVA is a long term solution variations to the arrangements can be necessary for both creditor and client to ensure successful completion.
  • StepChange_James
    StepChange_James Posts: 861 Organisation Representative
    edited 7 January 2013 at 4:17PM
    The myth:

    The people affected by child benefit cuts can afford it #debtmyths

    The reality:

    The changes to child benefit introduced today will affect people who earn more than £50k a year. While to many this may seem like enough money for anyone to manage on, we have many clients who are on debt management plans (DMPs) who will lose their child benefit.

    2.1% of our DMP clients who have children fall within the group of people affected by the change. While two percent might not sound like many, when you look at the numbers it’s into the thousands and many people will struggle as a result of the reduction in child benefit, whether they’re currently a client of ours, or have money worries.

    If you think you might be entitled to more benefits then you can find out by using our online benefits checker or you can use the one on the main moneysavingexpert.com site.
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) 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

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

  • fermi
    fermi Posts: 40,546
    First Anniversary Combo Breaker First Post Intrepid Forum Explorer
    Forumite
    Couple of questions....

    Moved to the main "Struggling with debt? Ask a debt advisor a question" thread, where a councillor is more likely to respond.
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • fermi wrote: »
    Moved to the main "Struggling with debt? Ask a debt advisor a question" thread, where a councillor is more likely to respond.

    thank you :0)
  • StepChange_James
    StepChange_James Posts: 861 Organisation Representative
    The myth:

    If my creditors reject my debt management plan I’ll have to increase my payments #debtmyths

    The reality:

    Some creditors reject reduced payments stating that it’s not enough. However, if you’re on a DMP with us we’ll have worked out a realistic income and expenditure budget with you and you’ll already be paying as much as you can afford.

    Whether the creditor accepts or rejects the payment, it’s important to stick to your guns and maintain the payments anyway. Don’t be pressured into making extra payments as it’s likely that they’ll continue to do this and keep requesting more and more money. The key is to create a budget that’s sustainable and live within it.
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) 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

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

  • System
    System Posts: 178,077
    Photogenic Name Dropper First Post
    Community Admin
    The myth:

    Celebrities are all fabulously wealthy and never have money troubles #debtmyths

    The reality:

    Many people in the public eye get into a pickle with their finances, just like the rest of us. We all tend to live to our means (or occasionally beyond them!) and even when you’re famous and earning a lot it’s easy to spend more than you earn and get into debt.

    You can read more about famous people who’ve gone bankrupt in our blogpost, I’m a celebrity, make me bankrupt! which lists 10 famous people who’ve become insolvent. Among them is Kerry Katona, who recently talked to the Daily Telegraph about how she was glad she was made bankrupt, and this week became the face of a payday loan company.
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