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  • FIRST POST
    • MSE Andrea
    • By MSE Andrea 18th Nov 16, 1:05 PM
    • 8,464Posts
    • 20,699Thanks
    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. They’re a friendly bunch so please don’t 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 – 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 haven’t already, join the forum to reply!
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Page 24
  • StepChange_Linsi
    Hi Lauren

    Thank you for your message and welcome to the forum.

    I’m sorry to hear you’re struggling and have to rely on your credit card at the end of the month.

    Without knowing more about your situation I can’t say whether an IVA or a DMP would be right for you. If you’d like a second opinion on the best way to manage your debts I’d recommend you use our online Debt Remedy tool, here’s the link.

    The tool will help you create a budget and then recommend a solution tailored to your circumstances. You’ll be able to download a personal action plan which will explain the benefits and considerations of the recommended solution and any alternative solutions to help you decide on the best way forward.

    I hope this helps.

    Linsi

    Hello, I am writing about debts that I have incurred over the past few years. I am only 22 but have 2 credit cards, two overdrafts and a loan. I took out a £4000 loan but my dad needed it more than me so I gave him the money and he hasn't been able to pay me back. I find that I am paying so much out every month in interest but always continue spending on my credit card because I need to by the end of the month. I dont know whether I should look into getting an IVA? or DMP? the problem is that I will be wanting to buy a house in a few years and at the moment I cant afford to save any. I have been speaking to Payplan and they have said that they think an IVA is more suitable, but I dont want it to affect me for years.
    Originally posted by laurenmarsters
    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.
    • meme86
    • By meme86 14th Sep 17, 12:34 PM
    • 75 Posts
    • 17 Thanks
    meme86
    I've been in a DMP for several years now, but now things are very stable and better, I could get off this, and start to rebuild

    I have just looked at my credit report and 2 entries from Lloyds and Sainsburys both say Current status: Default/Ended and credit agreement has ended and also the accounts were settled in June 2012...
    With it saying the accounts were settled in 2012, does it just mean that the agreement was cancelled?

    Would it be wise to get in touch (in writing) to ask about going back to the 'normal/original' monthly repayments from when I originally took the loans out, or could they stick many late charges on top, and therefore would it be better so stay on the DMP, and just significantly increase the repayments that way because there would be no benefit for me coming off?
    Or maybe hold fire for a couple of months, and then send them settlement offers?
    Last edited by meme86; 14-09-2017 at 12:44 PM.
  • StepChange_Rachael
    Hi

    Thanks for posting.

    Credit files can be difficult to understand. Once a debt has a reduced payment made towards it, like in a DMP or there have been missed payments the debt will default at some point.

    This will be noted on your credit file as a default. The credit agreement will end at this point. Defaults come off automatically after 6 years from the date it was issued.

    When a debt is classed as settled on your credit file, as far as I’m aware this means that the debt repayment agreement has finished and the debt is settled.

    Settled can either mean the debt has been paid back in full or the creditor has agreed to stop collecting for a debt. A creditor agreeing to a reduced payment and settling the account usually happens when a partial lump sum has been agreed as payment to the creditor and usually shows as a partial settlement on the credit file.

    It may be worth checking with the provider of your DMP as to what is left to pay and to which creditors. The DMP company should be providing you with updates.

    You’ve mentioned you’ve been in the DMP for several years; it’d be worth checking where you are and how much is left to be paid. If it’s a long time then I’d suggest seeking free, impartial debt advice to see if there are other options available, especially if there are changes in your financial situation.

    However, if you feel that you can afford to increase your payments to the original amount then it’s worth doing as the debts will clear quicker.

    A creditor won’t remove a default on your credit file once you start the original payments again but it will show the debts have been paid off sooner.

    I hope this helps.

    Thanks
    Rachael




    I've been in a DMP for several years now, but now things are very stable and better, I could get off this, and start to rebuild

    I have just looked at my credit report and 2 entries from Lloyds and Sainsburys both say Current status: Default/Ended and credit agreement has ended and also the accounts were settled in June 2012...
    With it saying the accounts were settled in 2012, does it just mean that the agreement was cancelled?

    Would it be wise to get in touch (in writing) to ask about going back to the 'normal/original' monthly repayments from when I originally took the loans out, or could they stick many late charges on top, and therefore would it be better so stay on the DMP, and just significantly increase the repayments that way because there would be no benefit for me coming off?
    Or maybe hold fire for a couple of months, and then send them settlement offers?
    Originally posted by meme86
    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.
    • Nvw2908
    • By Nvw2908 18th Sep 17, 9:42 PM
    • 1 Posts
    • 0 Thanks
    Nvw2908
    Hi

    Not sure if this is the right forum but I am in about £23k of debt and I haven't defaulted on anything and am making payments but am struggling to live. I filled out a StepChange form and was advised to lower my sky/broadband but nothing else, and to be honest this won't change much. Any suggestions?
  • StepChange_Rachael
    Hi

    Welcome to the forum and thanks for your post.

    If you feel maintaining the minimum payments to your creditors is causing you to fall behind on household bills and struggle with your general living costs then we can certainly help your explore your options.

    I assume from what you’ve mentioned that you’ve been completing our online Debt Remedy tool. Once you reach the end you’ll be able to access your advice in a personal action plan which is downloadable as a PDF file and will include our advice and recommendations. It doesn’t sound as though you’ve reached this stage.

    Debt Remedy works on an average of your household, if there’s areas of expenditure outside the averages Debt Remedy will flag them up to see if you can change them.

    If you can’t it’ll ask you to call our advisors to discuss the area and we can leave a note next to the cost to stop it flagging up and so you can carry on to your advice. The budget does need to be realistic for you so our advice will be.

    The reason we use these averages is that it’s the same the courts and creditors use. It’s less likely the creditors will question our recommendations if the budget is within the averages they’d expect to see or there’s at least a note to explain the cost.

    If you’d like to discuss the progress of your Debt Remedy further with our advisors you can find our contact details by logging back into your Debt Remedy budget here.

    Thanks
    Rachael




    Hi

    Not sure if this is the right forum but I am in about £23k of debt and I haven't defaulted on anything and am making payments but am struggling to live. I filled out a StepChange form and was advised to lower my sky/broadband but nothing else, and to be honest this won't change much. Any suggestions?
    Originally posted by Nvw2908
    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.
    • conhoj
    • By conhoj 21st Sep 17, 4:28 PM
    • 2 Posts
    • 0 Thanks
    conhoj
    Hi,
    I have a debt on a credit card, originally Marbles, it was assigned to IDEM and later assigned to Arrow Global Ltd. Arrow have made a claim in court for the debt. I have made a counter claim because the amount claimed is unfair and consists entirely of unfair charges and interest. Part of the response from Arrow is:-
    'The counterclaim relates to sums allegedly paid to the original creditor. The Defendant has not paid any sums at all to the Claimant, and therefore cannot recover the said sums from the Claimant.'
    Is Arrow Global Ltd not liable for the unfair treatment?
    Should I drop the counter claim against Arrow Global Ltd and make a claim against Marbles?
    Does this mean that I should pay Arrow Global Ltd even though I wish to contest the fairness in court?
  • StepChange_Allen
    Hi there

    Welcome to the forum and thanks for posting.

    Defending a CCJ and counter-claiming is quite complex and requires more legal advice than debt advice. At StepChange we're debt advice trained but not legally trained, so can offer only limited advice on this type of issue. I will give my best thoughts though.

    From my understanding, Arrow Global have bought the debt and hence any dispute or complaint you have about the charges is with Marbles rather than them, hence their response.

    Unfair interest and charges added by the creditor could be a valid defence to a CCJ; are you disputing the whole balance or just part of it? Did you raise a complaint to Marbles whilst they owned the debt? The court may want to see evidence that you disputed these interest and charges before the court claim was issued by Arrow.

    For more in depth advice on the process and on what you should perhaps do next, please seek legal advice. You could try your local law centre or a solicitor, and perhaps see if your home insurance cover gives free legal advice.

    Best wishes

    Allen

    Hi,
    I have a debt on a credit card, originally Marbles, it was assigned to IDEM and later assigned to Arrow Global Ltd. Arrow have made a claim in court for the debt. I have made a counter claim because the amount claimed is unfair and consists entirely of unfair charges and interest. Part of the response from Arrow is:-
    'The counterclaim relates to sums allegedly paid to the original creditor. The Defendant has not paid any sums at all to the Claimant, and therefore cannot recover the said sums from the Claimant.'
    Is Arrow Global Ltd not liable for the unfair treatment?
    Should I drop the counter claim against Arrow Global Ltd and make a claim against Marbles?
    Does this mean that I should pay Arrow Global Ltd even though I wish to contest the fairness in court?
    Originally posted by conhoj
    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.
    • conhoj
    • By conhoj 22nd Sep 17, 4:35 PM
    • 2 Posts
    • 0 Thanks
    conhoj
    I had credit cards with 5 different companies and was behind with mortgage payments. In December 2006 I notified all of them that I was in financial difficulty, thanks to advice and guidance I received from CCCS. Interest was stopped and repayment plans were agreed. At this point I owed Marbles approx £1,000. In 2009 marbles started charging interest again. I am disputing the whole remaining balance which is approx £550, the amount I am counterclaiming for late payment, interest charges and extortionate charges is £1,336 I would also ask for interest on top of that.
    I did complain to Marbles before the debt was assigned, and I believe that was the reason the debt was assigned.
    Thank you for your help I will seek legal advice from a solicitor on the best way forward.
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