Struggling with debt? Ask a debt adviser a question

mejaa · 15 October 2017 at 1:05PM

Just looking for a bit of advice.
Me and husband have got a fair bit of debt between us. No joint debt
I am willing to try and enter a dmp for the debt in my name, I am worried abOut how it will affect my husband as we have a joint bank account so are financially linked, my husband needs to keep him credit score relatively clean as we need a car on finance.please do not judge me, it has taken me all morning to write this, I am so ashamed and feel like I have let my kids down &#55357;&#56875;&#55357;&#56875;&#55357;&#56875;
Please someone give me some advice

StepChange_Allen · 16 October 2017 at 9:53AM

mejaa wrote: »

Just looking for a bit of advice.
Me and husband have got a fair bit of debt between us. No joint debt
I am willing to try and enter a dmp for the debt in my name, I am worried abOut how it will affect my husband as we have a joint bank account so are financially linked, my husband needs to keep him credit score relatively clean as we need a car on finance.please do not judge me, it has taken me all morning to write this, I am so ashamed and feel like I have let my kids down ��
Please someone give me some advice

Hello

Thanks for posting.

I can understand that you're worried but there'll definitely be options for you to get the financial situation under control. We don't judge people at StepChange, we just want to help everybody that contacts us.

The best thing to do is to register with us so that we can get a good understanding of your financial situation. You can either complete a budget online and receive your advice in writing at the end, or call our Helpline to register on the phone. All details are found here: www.stepchange.org/Contactus

We can explain how any available debt solutions may impact your husband before you choose.

I hope this is okay and we look forward to helping you.

Allen

katiegovier · 16 October 2017 at 2:28PM

Hi,
I currently have a £1600 overdraught with that costs me at least £30 per month in fees (soon to go up to around £54 or more) I also have a credit card with the same bank at £750 and 23% p.a (was 0% but I missed a few payment so lost this)
I was wanting to get a balance transfer to another credit card and pay it off £100 per month. I saw one on MBNA that was 4.9% pa which even though its not 0% would still not be as bad as what i am paying now. My application was denied. My credit score is on the lower side of "fine". I think one of the main problems is that my credit limit is reached based on my income which is low. The only other thing affecting my credit score is some previous applications for my overdraught increasing (which also failed) . I applied quite often and didn't realise the effect. Im wondering how I can solve this if my credit limit for my income is reached and I cant get further credit for a balance transfer. Im currently just paying fees and interest that could be going towards paying off the debt.
Any advice would be much appreciated

Katie

Carrera74 · 16 October 2017 at 8:14PM

As part of my divorce I agreed to take on the loan / credit card debt and to keep the equity in the house (it works out the same amount). This was to save me selling the house as I am a carer for my autistic adult son as we would have been homeless. The divorce etc was stressful enough so this seemed the best option at the time.

I have been paying into the DMP for 2 years now and I have an estimated end date of July 2036!!

I am due to do my annual review and I have read about IVAs and I am wondering if this is a route I can take now that I am more financially stable after the divorce. I am budgeting okay so able to sign up to something more permanent.

My problem is that I have a joint loan that I want to keep out of the agreement. Is this allowed? The reason I want to keep it out is that it is listed in the consent order and we have both agreed to pay our half til the end of the agreement and if not we will be breaking the court order.

Once the joint loan is paid in 2 years time I will pay the money I use for this into my IVA (assuming you can increase payments as I know it’s a fixed agreement).

Any guidance would be appreciated.

StepChange_Rachael · 17 October 2017 at 8:53AM

Hi Katie

Thanks for your post.

I know it can be very frustrating when the payments are barely reducing the balance.

As a debt advisor I wouldn’t be able to give advice on further borrowing but I know there’s specific articles and information on the MSE website on how you can soft search to find lower interest rates, where the checks won’t impact your credit file so severely. However, as you’ve mentioned this may not be an option with your current credit file.

Where minimum payments to creditors are a struggle, or you find you’re borrowing further to meet general living costs then I’d advise to look into other debt solutions.

To find out more about alternate solutions to deal with problem debt you can follow this link.

I hope you’re able to find the best way forward for you.

Rachael

katiegovier wrote: »

Hi,
I currently have a £1600 overdraught with that costs me at least £30 per month in fees (soon to go up to around £54 or more) I also have a credit card with the same bank at £750 and 23% p.a (was 0% but I missed a few payment so lost this)
I was wanting to get a balance transfer to another credit card and pay it off £100 per month. I saw one on MBNA that was 4.9% pa which even though its not 0% would still not be as bad as what i am paying now. My application was denied. My credit score is on the lower side of "fine". I think one of the main problems is that my credit limit is reached based on my income which is low. The only other thing affecting my credit score is some previous applications for my overdraught increasing (which also failed) . I applied quite often and didn't realise the effect. Im wondering how I can solve this if my credit limit for my income is reached and I cant get further credit for a balance transfer. Im currently just paying fees and interest that could be going towards paying off the debt.
Any advice would be much appreciated
Katie

StepChange_Rachael · 17 October 2017 at 9:19AM

Hi

Thanks for posting.

Based on your DMP end date it makes sense to look into other options to see if you can find a solution to get you debt free quicker. An individual voluntary arrangement (IVA) may be a good option for you and it’s certainly worth looking into.

You’ve not mentioned which DMP company/organisation you’re currently with. If this is with StepChange then you can contact the team dealing with your DMP and we’ll discuss this option with you. If not you can still contact StepChange for free and impartial debt advice to discuss this as a possible option. You can find contact details here.

In any debt solution it’s generally a standard that all unsecured non-priority debt would be included. However, a court order through a divorce settlement does make things more complex, I wouldn’t be able to answer this for certain at this stage but I’d say it’s still worth looking into further.

IVA’s can be amended due to changes in your situation but this would have to be discussed with the Insolvency Practitioner.

You can also contact the Insolvency Service who can provide more advice regarding IVAs.

Best of luck going forward.

Rachael

Carrera74 wrote: »

As part of my divorce I agreed to take on the loan / credit card debt and to keep the equity in the house (it works out the same amount). This was to save me selling the house as I am a carer for my autistic adult son as we would have been homeless. The divorce etc was stressful enough so this seemed the best option at the time.

I have been paying into the DMP for 2 years now and I have an estimated end date of July 2036!!

I am due to do my annual review and I have read about IVAs and I am wondering if this is a route I can take now that I am more financially stable after the divorce. I am budgeting okay so able to sign up to something more permanent.

My problem is that I have a joint loan that I want to keep out of the agreement. Is this allowed? The reason I want to keep it out is that it is listed in the consent order and we have both agreed to pay our half til the end of the agreement and if not we will be breaking the court order.

Once the joint loan is paid in 2 years time I will pay the money I use for this into my IVA (assuming you can increase payments as I know it’s a fixed agreement).

Any guidance would be appreciated.

Meerkat1979 · 17 October 2017 at 9:25AM

Hi ,

My friend has just checked his credit score and there is a £194 default with Virgin Media outstanding from 2016 from when he lived with his wife.

This is the only debt he has , and he believed all bills were being paid.
Its a small amount and if he contacts Virgin he could clear it in a few months.

Would this then remove it from his credit file ? Or will it stay there regardless of if paid off or not ?

opps posted on the wrong board

BengalTilly · 17 October 2017 at 10:07AM

Hello

I'm after some debt management/consolidation advice please.

In the passed few months my circumstances changed and I have become part time however I calculated that our monthly income would still be sufficient as long as we followed a budget. Sadly that has not been followed and this month as we speak we are at our overdraft limit so direct debits are failing for the first time ever.

I personally have 4 credit cards which are maxed out and some of the failed direct debits sadly will be to do with them so that will make the situation worse. My credit rating is Poor 689.

What is the best approach now as unfortunately we're going to be forever chasing our tails now to catch-up. For example, the total £370 this month of failed direct debits this month if I make payments on payday later in the month we're still going to be £370 behind (and we don't have that value of spare cash each month).

My credit cards total and bank overdraft plus current monthly payments are as follows:

Overdraft £1,600 total credit - monthly payment/charges £20
MBNA credit card £3,400 total credit - monthly payment £95
NUBA credit card £5,000 total credit - monthly payment £52
Barclaycard credit card £5,000 total credit - monthly payment £126
Marbles credit card £450 total credit - monthly payment £50

TOTAL CREDIT £15,450 CURRENT MONTHLY PAYMENT £343 say

I wondered is consolidation loans available to me (with my circumstances/credit score) that would cover the £15,450 but spread over x years with a lower monthly payment than £343. This would then allow us to get to a balanced position to follow a budget. But I'm doubtful whether this would be an option to me with my credit score?

I accept I've got myself in this mess particularly through spending over my means but right now I need a solution and for the first time very concerned as we've never not paid direct debits before.

Thank you in advance.

Former_StepChange_Linsi · 18 October 2017 at 10:15AM

Hi

Thanks for your post and welcome to the forum.

The default will stay on your friends credit file for six years from the date it was registered regardless of whether or not the debt is repaid.

It’s in your friend’s best interest to try and come to an arrangement to repay this debt as Virgin could look at taking further action now the account has defaulted. There’s more information about the collections process on our website.

If your friend is worried about the credit file they could add a notice of correction. This would give them an opportunity to explain how the debt came about and can be seen by potential lenders.

I hope this helps.

Linsi

Meerkat1979 wrote: »

Hi ,

My friend has just checked his credit score and there is a £194 default with Virgin Media outstanding from 2016 from when he lived with his wife.

This is the only debt he has , and he believed all bills were being paid.
Its a small amount and if he contacts Virgin he could clear it in a few months.

Would this then remove it from his credit file ? Or will it stay there regardless of if paid off or not ?

opps posted on the wrong board

Former_StepChange_Linsi · 18 October 2017 at 10:35AM

Hi

Thanks for your post.

I’m sorry to hear you’ve fallen behind with your debt repayments. I can certainly appreciate missing direct debits for the first time can be worrisome but you’ve done the right thing to get in touch.

Taking out a consolidation loan, isn’t something I'd normally recommend and isn’t something I can give advice on specifically. Usually consolidation loans look good on paper but often involve additional costs and longer repayment terms, meaning you’ll pay more in the long run. You may also find you don’t get the best interest rate if you have a poor credit rating. For impartial advice about loans I'd recommend speaking to the Money Advice Service.

There are other debts solutions we can recommend which don’t involve taking out additional credit and will allow you to make affordable repayments towards your existing debts.

Before we can recommend a debt solution you’ll need to create a budget online using our Debt Remedy tool. After putting a budget together you’ll be able to download a personal action plan on the last page of Debt Remedy. This explains what the recommended solution is, how this works and what the next steps will be. Here’s the link to our online tool.

I hope this helps.

Linsi

BengalTilly wrote: »

Hello

I'm after some debt management/consolidation advice please.

In the passed few months my circumstances changed and I have become part time however I calculated that our monthly income would still be sufficient as long as we followed a budget. Sadly that has not been followed and this month as we speak we are at our overdraft limit so direct debits are failing for the first time ever.

I personally have 4 credit cards which are maxed out and some of the failed direct debits sadly will be to do with them so that will make the situation worse. My credit rating is Poor 689.

What is the best approach now as unfortunately we're going to be forever chasing our tails now to catch-up. For example, the total £370 this month of failed direct debits this month if I make payments on payday later in the month we're still going to be £370 behind (and we don't have that value of spare cash each month).

My credit cards total and bank overdraft plus current monthly payments are as follows:

Overdraft £1,600 total credit - monthly payment/charges £20
MBNA credit card £3,400 total credit - monthly payment £95
NUBA credit card £5,000 total credit - monthly payment £52
Barclaycard credit card £5,000 total credit - monthly payment £126
Marbles credit card £450 total credit - monthly payment £50

TOTAL CREDIT £15,450 CURRENT MONTHLY PAYMENT £343 say

I wondered is consolidation loans available to me (with my circumstances/credit score) that would cover the £15,450 but spread over x years with a lower monthly payment than £343. This would then allow us to get to a balanced position to follow a budget. But I'm doubtful whether this would be an option to me with my credit score?

I accept I've got myself in this mess particularly through spending over my means but right now I need a solution and for the first time very concerned as we've never not paid direct debits before.

Thank you in advance.

Struggling with debt? Ask a debt adviser a question

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