Struggling with debt? Ask a debt advisor a question

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  • Good morning,

    My husband and I have a lot of credit card debt (around £25,000), we both have secure jobs earning jointly £65,000 yearly. We have a house with mortgage. We meet all payments each month easily and try and pay off extra too. We want to get debt free as soon as possible, I get down that we can't get there quick enough. Should we consider a debt consolidation loan? I would rate our credit profile as fair to good. Thanks in advance.
    Lightbulb moment Debt at August £32,400

    3 years till I'm forty would love to be debt free by then!
    We will do it!!!! :j
  • Hi there,

    I'd be very grateful if I could get some advice on my debt problems. 4 years ago I started a professional development loan and am now coming to the end of the payment holiday as well as starting my job as a junior doctor after university. The apr on this loan is over 8% with an outstanding amount of £11,000! The loan however can be paid off in full without any additional charges. I was wondering if there is anyway to pay this off with an additional loan or credit card and drop the apr to a lower rate and thus save money!

    I'm sorry if this is a silly question just wanting to know if there is a way to save money.

    kind regards
  • System
    System Posts: 178,077
    Photogenic Name Dropper First Post
    Community Admin
    Good morning,

    My husband and I have a lot of credit card debt (around £25,000), we both have secure jobs earning jointly £65,000 yearly. We have a house with mortgage. We meet all payments each month easily and try and pay off extra too. We want to get debt free as soon as possible, I get down that we can't get there quick enough. Should we consider a debt consolidation loan? I would rate our credit profile as fair to good. Thanks in advance.


    Hi and welcome to the forum.:)

    It sounds like you would benefit from some free and impartial advice.

    We wouldn’t normally recommend taking out any further lending as this can often make a situation worse (with a consolidation loan you’re often borrowing more money over a longer period).

    However, this can sometimes work and help reduce a debt burden. The important thing is to first put together a budget and make sure you can afford the loan payments, and you should also ensure that once you pay off any credit cards that you then cancel these cards and don’t use them again.

    You should also put together a budget to make sure that after you’ve taken out the loan that you can afford to live without further credit.

    I’d recommend that you try our online debt advice tool Debt Remedy http://www.stepchange.org/debtremedy.aspx?hp=400

    Debt Remedy will assist you in putting a budget together and may also suggest some other debt solutions beyond consolidation loans.

    I hope this helps.

    Kind regards,

    Mat
  • System
    System Posts: 178,077
    Photogenic Name Dropper First Post
    Community Admin
    Hi there,

    I'd be very grateful if I could get some advice on my debt problems. 4 years ago I started a professional development loan and am now coming to the end of the payment holiday as well as starting my job as a junior doctor after university. The apr on this loan is over 8% with an outstanding amount of £11,000! The loan however can be paid off in full without any additional charges. I was wondering if there is anyway to pay this off with an additional loan or credit card and drop the apr to a lower rate and thus save money!

    I'm sorry if this is a silly question just wanting to know if there is a way to save money.

    kind regards
    Hi and welcome to the forum:)

    You’d need to see what other credit products where available to you to see if you can get a cheaper rate.

    I’d recommend that you check your credit rating before making a rash of applications.

    This site is an excellent plan to find good deals on credit http://www.moneysavingexpert.com/credit-cards/

    If you can’t pay the loan off early, I’d recommend putting an accurate income and expenditure budget together to make sure you can maintain the contractual payments.

    I hope this helps.

    Kind regards,

    Mat
  • asmith78
    asmith78 Posts: 9 Forumite
    Hi I need advice my partner has judgements against her all though these have been paid off when we spoke to mortgage advisor we were told they still showed as open is there anyway we can get them closed ? And if so what do we need to do ?
  • fatface88 wrote: »
    hi sorry to bother you but looking for some help.

    started dmp a year ago and all going well with it, trouble is our car is not on it due to it being related to car finance and.....as if our bad luck isnt enough the car is about dead :-( and without it we cant get to work so cant pay bills etc! are we allowed to renew car finance (if some company is willing to take us on?)

    we have no savings, no help from anyone so don't know what else to do? sometimes feel like its a step forward and 10 back!
    sorry for the moan, but very grateful for any advice that you offer.

    Thanks



    Please please can you help? Mine was missed out and awaiting patiently thank you x
  • System
    System Posts: 178,077
    Photogenic Name Dropper First Post
    Community Admin
    fatface88 wrote: »
    hi sorry to bother you but looking for some help.

    started dmp a year ago and all going well with it, trouble is our car is not on it due to it being related to car finance and.....as if our bad luck isnt enough the car is about dead :-( and without it we cant get to work so cant pay bills etc! are we allowed to renew car finance (if some company is willing to take us on?)

    we have no savings, no help from anyone so don't know what else to do? sometimes feel like its a step forward and 10 back!
    sorry for the moan, but very grateful for any advice that you offer.

    Thanks

    Hi
    I wouldn't suggest you renew/ take out another car finance agreement as this would be another credit agreement. I suggest that you contact your DMP company and explain that the car may well need repairs. Be aware the DMP company could end your DMP, if they do you can contact another free provider like ourselves or Payplan.

    As the car is on finance you own the car you are just repaying the money for the loan. The car finance payment should be added to your DMP as it is a credit payment – by adding it onto your DMP you are treating all of your creditors equally. The amount you pay towards the car could be a lower amount as you should only pay what you can afford. The car would not be taken off you if you lowered the payment.

    With DMPs there is usually money allocated for car repairs/maintenance. You could then budget to repair the car rather than take out another agreement.

    We have an online tool you can use called Debt Remedy – you can input your budget details (including the car finance) and it would give you a personal action plan and tell you the best way to deal with your debts. If it is a DMP then you can start one with us including all of your creditor making payments within what you can afford to pay. It would be best to have a debt solution including all of your debts.

    I hope this helps.

    Thanks,
    Jess
  • System
    System Posts: 178,077
    Photogenic Name Dropper First Post
    Community Admin
    asmith78 wrote: »
    Hi I need advice my partner has judgements against her all though these have been paid off when we spoke to mortgage advisor we were told they still showed as open is there anyway we can get them closed ? And if so what do we need to do ?

    Hi asmith78,

    You can search for details of any judgments against you on the register of judgments. It costs £4 for a search.

    If the information on the register is wrong, contact Trust Online who can check the details with the court. Trust online number is 02073800133 or info@trustonline.or.uk

    Good luck with it.

    Thanks,
    Jess
  • Hello I would like some advice please. I have the following debts commitments:

    HSBC Loan (£25,000ish) £475p/m
    HSBC Credit Card (£2600) £60p/m
    HSBC Overdraft (£2000) - currently not being reduced

    I also have the following that I am unable to negotiate payments on despite them being owed to family:

    Barclaycard (In my mums name) £10500 - £260p/m
    Owed to Grandparent but actually paid directly to my mum to help with her living expenses after a change in circumstance on her part: £10000 - £460p/m


    When i put the details into the stepchange debt remedy tool it says that i am "ok" as it wont consider the money owed to mum - however i have a negative SOA monthly because these other debts can not be reduced. The barclaycard in mums name obviously needs paying and the other payment is necessary as its what my mum lives off each month.

    Is there any option for me?

    thank you in advance

    Laura x
    Current Debt = LOTS - Must try harder!
  • Former_StepChange_Rachel
    Former_StepChange_Rachel Posts: 252 Organisation Representative
    Hello I would like some advice please. I have the following debts commitments:

    HSBC Loan (£25,000ish) £475p/m
    HSBC Credit Card (£2600) £60p/m
    HSBC Overdraft (£2000) - currently not being reduced

    I also have the following that I am unable to negotiate payments on despite them being owed to family:

    Barclaycard (In my mums name) £10500 - £260p/m
    Owed to Grandparent but actually paid directly to my mum to help with her living expenses after a change in circumstance on her part: £10000 - £460p/m


    When i put the details into the stepchange debt remedy tool it says that i am "ok" as it wont consider the money owed to mum - however i have a negative SOA monthly because these other debts can not be reduced. The barclaycard in mums name obviously needs paying and the other payment is necessary as its what my mum lives off each month.

    Is there any option for me?

    thank you in advance

    Laura x

    Hi there Laura

    Debt Remedy won’t recognise a debt to family and friends as a priority as your creditors will not usually be happy with something like this taking precedence over money you owe to them. We do however appreciate the difficult position you’re in in the sense that you don’t want to let your loved ones down, and we’ll do all we can to help.

    Could you please give our Helpline a call? One of our advisors will be more than happy to go through your budget with you and look at some possible long term options for you moving forward. Our number is 0800 138 1111.

    Hope this helps

    Best regards

    Rachel
    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]

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