Struggling with debt? Ask a debt advisor a question

Givens wrote: »

First of all I'm not sure if I'm posting in the right place so apologies If I'm not. A friend has come to me asking for some advice on his business overdraft. First of all he is no longer trading anymore but it was a ltd company but his business overdraft is unfortunately about £8000, he does inform me that he has personally guaranteed £2000 of his loan but is awaiting confirmation of this.

He is under the impression once he has paid the £2000 back he can walk away from the rest of the loan and they can't follow him personally for the loan, is this correct? A relative is willing to lend him the £2000 if this is the case.

Any help and advice would be greatly appreciated.

Hello

Thanks for posting.

It's difficult to be able to answer that with much certainty without seeing the terms and conditions of the overdraft myself and what your friend signed up to. I'd recommend your friend contacts Business Debtline for the best advice on this. They're a free service like StepChange but they're experts on debts that have resulted from businesses.

I hope this proves to be helpful.

Allen

cowslip378 wrote: »

I am considering equity release, need 50,000k. I will be in a position to repay it in full when I receive some money in 5yrs time. Is it a good idea?

Hi there

Thanks for your post.

Without knowing your full financial circumstances, it's impossible for me to advise you on this. There's a lot of factors involved with equity release that we'll need to discuss in more detail.

I would suggest using our Debt Remedy tool on our website to help you build a budget. This will show us your financial situation. We can then advise you on the pros and cons of equity release and discuss any other options with you too.

If you would rather call and speak with an advisor instead you can find all our contact details here.

Take care
Richard.

Mkl79 wrote: »

Hi

I am in a dmp and have been for 4/5 months now. I originally had a fairly decent emergency fund behind me but a little while ago i suffered a minor stroke, relating i believe to a massive release of pressure after 8 years and 40k of debt at over £900 a month. This meant i could no longer do my job and am now unemployed and just do a bit of casual work here and there. My savings are all but gone and things are looking bleak. My dmp provider (stepchange) have been so helpful and taken a huge weight off my shoulders for which i am very grateful. I have an old bank account with an overdraft facility already set up and am considering taking the overdraft money out and using it to replenish my savings but as this account is with a certain bank who are also my main creditor i am wary af 'rocking the boat' and causing issues with my dmp. All creditors bar 1 have been excellent thus far and the dmp is working. Any advice would be appreciated. Thanks

Hi there,

Welcome to the forum and thank you for your post. I'm so sorry to hear of your health and how its affected your work. We'll do everything we can to help you with this though.

As you are on a plan with us already, the best way we can help would be for you to call and speak with an advisor. Without knowing your full financial situation myself, its hard to give you accurate advice. If you call and speak with an advisor, they can see the budget you are working with and give you practical advice on this.

All the contact details for the charity can be found here.

Let us know if there's anything else we can do to help.

Take care
Richard

muppetscotland wrote: »

Hi there
I am in a self managed DMP, have been getting very good responses from creditors to date (started in March this year). RBoS we are owe nearly £20,000 on a credit card. They accepted our offer of reduced payment and froze interest etc then defaulted.

Got a letter they are passing us to Wescott. I was wondering what to expect now? I will carry on paying RBoS meantime until I hear from Westcott but am worried they will force a larger repayment than we can afford or take us to court.
With thanks for your advice.

Hi there

Thanks for your post and welcome to the forum. I'm glad to hear that you have been getting good responses so far. I'll try and shed some light on what is happening with the RBoS debt now.

It is quite common for creditors to pass debts on to debt collection companies in these situations. Wescott is a debt collection company. These companies have no other powers than the original creditor to collect the debt from you. Just because a debt collection company is now collecting the debt does not mean that you should pay any more to it than you can afford.

Once you have defaulted on your credit agreement your creditor can apply for court action against you. A debt collection company is no more likely to do this than the original creditor, but it could happen. Just in case you need it, our website has a lot of information about court action and how to respond.

I hope this has been of some use, but if you need any further help please let us know. All our contact details are here if you would like to speak with an advisor.

Take care
Richard.

Feel_like_a_plum wrote: »

Sorry this is my first post and dont know if im doing it right or writing as a replie to someone else so i wont post me situation until i get a replie to let me know. Thanks

Hello

Welcome to the forum and thanks for your post.

The way you've posted is absolutely fine, so if you'd like to post a question for us we'll be more than happy to answer.

Thanks

Allen