Struggling with debt? Ask a debt adviser a question

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  • 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
    StepChange_Rachael Posts: 375
    First Anniversary First Post
    Organisation Representative
    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



    Nvw2908 wrote: »
    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?
  • 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
    StepChange_Allen Posts: 352
    First Anniversary First Post
    Organisation Representative
    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
    conhoj wrote: »
    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?
    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.
  • [FONT=&quot]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.[/FONT]
    [FONT=&quot]I did complain to Marbles before the debt was assigned, and I believe that was the reason the debt was assigned.[/FONT]
    [FONT=&quot]Thank you for your help I will seek legal advice from a solicitor on the best way forward.[/FONT]
  • Hello there

    I know that no debt case is ‘typical’, and I guess mine is no exception. It’s not caused by the loss of a job, or a huge unexpected item of expenditure, but mainly through being too busy and taking my eye off the ball over a protracted period of time.

    I have one large credit card balance (approx 6500) and a smaller credit card balance of around 600 (a remnant of a previous attempt at reducing my interest payments on the larger bill). In addition I have liabilities of around 1600 and tend to dip into my overdraft significantly by the end of the month (though through money management the overdraft situation is improving).

    I’ve only ever not paid my credit card through forgetfulness rather than inability to make the minimum payment, and the last time that happened was about 4 years ago. In truth, my comparatively high level of income has managed to disguise the problem for a while now, but I know that in around 6 months’ time I will be taking a pay cut.

    I know I need to get a handle on things, but I’m not convinced that efficiencies in spending will be enough to dig me out of this any time soon, and I really don’t want to be stuck paying this credit card off for years to come.

    I had considered taking out a personal loan given the current low rates, and using this to consolidate the debt and pay it back over 3.5-4 years. Bearing in mind the difference in interest rates, the monthly repayment wouldn’t be much more than the minimum payment of the big credit card and although the end would be some time away, there would be a plan in place rather than just bumbling along.

    I’m sorry, in a way, for taking up your time with this. I know there are many others in worse positions through no fault of their own, whereas my position has been arrived at chiefly by overwork, distraction and most of all stupidity.

    I’d appreciate any thoughts that Stepchange might have on this - I know conventional wisdom is not to solve debt using other debt, but it seems like it might be a feasible way to sort out the credit card and limit the interest paid.
  • StepChange_Allen
    StepChange_Allen Posts: 352
    First Anniversary First Post
    Organisation Representative
    conhoj wrote: »
    [FONT=&quot]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.[/FONT]
    [FONT=&quot]I did complain to Marbles before the debt was assigned, and I believe that was the reason the debt was assigned.[/FONT]
    [FONT=&quot]Thank you for your help I will seek legal advice from a solicitor on the best way forward.[/FONT]


    Hi

    Thanks for posting.

    You're welcome, and I hope the solicitor is able to offer some further help to you.

    Allen
    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.
  • StepChange_Allen
    StepChange_Allen Posts: 352
    First Anniversary First Post
    Organisation Representative
    Hi there

    Welcome to the forum and thanks for posting.

    You're right that we never give advice to borrow money to pay off debt, though this doesn't mean it's always a bad idea. You'd need to be sure that you could still comfortably manage the loan payments on your lower wage. This page on the MSE site itself has some advice on loans: www.moneysavingexpert.com/loans/cheap-personal-loans

    If you decide not to, or aren't able to get something you're happy with, you can contact us to have a free assessment of your financial situation and a recommendation of options you have to deal with the debts. You can find our contact details here: www.stepchange.org/Contactus

    I hope this is helpful.

    Allen

    rcstocko wrote: »
    Hello there

    I know that no debt case is ‘typical’, and I guess mine is no exception. It’s not caused by the loss of a job, or a huge unexpected item of expenditure, but mainly through being too busy and taking my eye off the ball over a protracted period of time.

    I have one large credit card balance (approx 6500) and a smaller credit card balance of around 600 (a remnant of a previous attempt at reducing my interest payments on the larger bill). In addition I have liabilities of around 1600 and tend to dip into my overdraft significantly by the end of the month (though through money management the overdraft situation is improving).

    I’ve only ever not paid my credit card through forgetfulness rather than inability to make the minimum payment, and the last time that happened was about 4 years ago. In truth, my comparatively high level of income has managed to disguise the problem for a while now, but I know that in around 6 months’ time I will be taking a pay cut.

    I know I need to get a handle on things, but I’m not convinced that efficiencies in spending will be enough to dig me out of this any time soon, and I really don’t want to be stuck paying this credit card off for years to come.

    I had considered taking out a personal loan given the current low rates, and using this to consolidate the debt and pay it back over 3.5-4 years. Bearing in mind the difference in interest rates, the monthly repayment wouldn’t be much more than the minimum payment of the big credit card and although the end would be some time away, there would be a plan in place rather than just bumbling along.

    I’m sorry, in a way, for taking up your time with this. I know there are many others in worse positions through no fault of their own, whereas my position has been arrived at chiefly by overwork, distraction and most of all stupidity.

    I’d appreciate any thoughts that Stepchange might have on this - I know conventional wisdom is not to solve debt using other debt, but it seems like it might be a feasible way to sort out the credit card and limit the interest paid.
    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.
  • Hello
    Hope someone can help.
    I have 25k worth of debt :


    Barclay Card : 11k
    Natwest Card : 5.5 k
    NatWest Overdraft : 6.5 k


    I would like to do a Debt Management program to clear my debt but worried about few things :


    My Mortgage is with Natwest so if I need to close my account with them will I be able to renew my mortgage with them when the time come and if I cannot stay with them will I found it difficult to move my mortgage with another company?


    Which bank should I use? I have been told that it should not be a bank link with NatWest


    Can I do a DP just for Barclay card and pay for the rest as before ?


    Many Thanks in advance


    Emmanuelle
  • StepChange_Allen
    StepChange_Allen Posts: 352
    First Anniversary First Post
    Organisation Representative
    Hi Emmanuelle

    Thanks for posting.

    There's not normally any obligation to bank with the same place you have your mortgage with, so you should be free to switch. If you're unsure you could ask them to make sure it's okay. You can use any bank you have no debts with.

    Any debt solution, whether a debt management plan (DMP) or a different option, would require all unsecured debts to be listed including overdrafts.

    You can register with us free of charge either by phone or online, with details here: www.stepchange.org/Contactus

    We'd then assess your financial situation and let you know what options you have; then you're free to choose the option you prefer.

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

    Allen

    manue1970 wrote: »
    Hello
    Hope someone can help.
    I have 25k worth of debt :

    Barclay Card : 11k
    Natwest Card : 5.5 k
    NatWest Overdraft : 6.5 k

    I would like to do a Debt Management program to clear my debt but worried about few things :

    My Mortgage is with Natwest so if I need to close my account with them will I be able to renew my mortgage with them when the time come and if I cannot stay with them will I found it difficult to move my mortgage with another company?

    Which bank should I use? I have been told that it should not be a bank link with NatWest

    Can I do a DP just for Barclay card and pay for the rest as before ?

    Many Thanks in advance

    Emmanuelle
    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.
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