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StepChange_James · 27 November 2012 at 11:24AM

earwig wrote: »

Hi James

Thanks for you reply i have had the increase for a while now and have a bit of savings in the bank around £ 1500 will i get in trouble for not saying about them stright away .

I was going to try and save some more before my review in june should idothis or just phone up tell themabout the savings and the increase will they want proff of when i got the increase or will they not be that bothered as long as i told them now . just dont want to get done for with holding information from them .

Thankyou earwig

Hi earwig,

We’re here to help people, not tell them off, so don’t worry. It would be best to give us a call now, tell whoever you speak to about the situation and they’ll update your budget.

I’d recommend you also say you’ve got some money set aside and they’ll then be able to give you advice on how best to use it.

Kind regards

James

StepChange_James · 27 November 2012 at 11:34AM

wickesy wrote: »

I'm in a slightly unusual situation that I need some advice on. I currently owe just over £28,000 over 7 credit cards and I am able to pay the minimum payments on all of them, plus a little bit extra on a couple, largely thanks to the fact that I live with my Dad completely rent free. I have worked out that carrying on the way I am I could be debt free in around 4 and a bit years

Around 5 months ago I met my girlfriend and, as she also lives with her parents, we would now like to move in together but we can't afford to do it without me contributing to all the household bills. Our plan was to find somewhere, move in and then for me to go on a DMP but our only worry is that the credit card companies will want to know why I suddenly cannot afford to repay them and will force me to move back in with my Dad. Is this something that is likely to happen, or is it reasonable for my girlfriend and I to be able to live together without having to wait 4 years for me to become debt free - bearing in mind I am 41 and she is 33.

Hello,

Thanks for posting. While your creditors do have some powers if you aren't paying them in full, they absolutely don't have the power to force you to live with your parents.

If your situation changes and you move in with your partner then it would be a matter of planning a budget based on your finances then and working out how best to deal with your debts.

Clearly it will help you (and your debts) to try to keep costs as low as you realistically can when you move in and making sure that bills are fairly distributed between you and your partner.

Once you know what your costs are likely to be I'd suggest getting in touch with us and we'll be able to give you more detailed advice.

You could do this using our online advice tool Debt Remedy (http://www.stepchange.org/msehelp) or your could give us a call (http://www.stepchange.org/Contactus.aspx).

Hope this helps.

James

StepChange_James · 27 November 2012 at 11:49AM

Cee wrote: »

Hi,
I'm trying to sort out a bit of a dilemma and not sure the best path to take.

Having just found I have to pay out double for my bank overdraught fee now and trying hard to pay off higher interest accounts first, I'm now faced with either paying my overdraught off to the point I'm just paying off the £1 a day limit or paying off a credit card and trying to clear the other debts at high interest.

I'm not sure now which is the higher interest.

The overdraught is now £2 a day until its in the black or the credit card is 29.9% apr.

I'm thinking of going to the bank to ask for them to change it so I can repay it off and close the account or do I go to the credit card company with the same tale.
I will have access to £2000 that has come from a family member to help me out and don't want to make the wrong decision. I've tried on 3 occasions to try and get this debt cleared and no loan company will take me on which means I can't get rid of it due to the interest on the accounts. My total debt is just under 8000 and I know I can clear it with this assistance.

Hi Cee,

It's hard to say which would be best, based on the figures you've given. The overdraft is costing you roughly £60 a month, whether this is a less expensive debt than the card would depend on the balance.

The only suggestion I would perhaps make would be to plan out a detailed budget, so you can work out what you can afford to pay towards the remaining debt after you've covered essential living costs.

Our online advice tool, Debt Remedy (http://www.stepchange.org/msehelp), will guide you through planning a budget and give you customised advise on how best to proceed.

All the best.

James

rach_smith2006 · 27 November 2012 at 8:52PM

Thank you for your help James and mum2one. I will try that and let you know how I get on.

What is classed as 'affordable'. I can afford it, just. It leaves me VERY tight on a monthly basis, what would the citizen's advice bureau/legal advice tell me I should pay?

For example how much should I allow myself for food/petrol/etc. I used to work at a debt collecting agency, when I was a teenager!!, so know that there are accepted amounts but I do not know what these now are as this was over 10 years ago!!

Thank you very much again.

wickesy · 27 November 2012 at 9:21PM

Thanks James. I have already done Debt Remedy with some dummy figures so once my girlfriend and I have found somewhere I will update it with the proper figures and give an adviser a call.

Dannii75 · 27 November 2012 at 9:34PM

Hi,

Can I get some advice please?

I have debt credit cards & the interest rates are battering me so I'd like to do something else! Details are:
£4853 in Barclaycard Visa @ 26.9% :mad: paying £152 pcm
£3925 on Virgin @ around 19.4% paying £65 pcm. (different rates for different amounts)
£925 on HSBC cc paying £24 pcm

Just moved address & registered on the electoral roll last week (not sure
how long it takes to appear on that).

I earn £25k.
I have a Capital One card with nothing on it but £19k available credit but 19.9% int rate.

I also have a motorbike loan & pay £75 pcm.

What's the best thing for me to do?

Thank you

Dannii

earwig · 27 November 2012 at 9:44PM

StepChange_James wrote: »

Hi earwig,

We’re here to help people, not tell them off, so don’t worry. It would be best to give us a call now, tell whoever you speak to about the situation and they’ll update your budget.

I’d recommend you also say you’ve got some money set aside and they’ll then be able to give you advice on how best to use it.

Kind regards

James

Thank you James

I know im silly, i just worry they will ask me why i didnt tell them sooner and to be honest after 5 years on a dmp i just enjoyed having the extra money and they will think im a cheat, but i will give them a ring and tell them wish me luck and thankyou for your kindness x

mum2one · 28 November 2012 at 1:01AM

rach_smith2006 wrote: »

Thank you for your help James and mum2one. I will try that and let you know how I get on.

What is classed as 'affordable'. I can afford it, just. It leaves me VERY tight on a monthly basis, what would the citizen's advice bureau/legal advice tell me I should pay?

For example how much should I allow myself for food/petrol/etc. I used to work at a debt collecting agency, when I was a teenager!!, so know that there are accepted amounts but I do not know what these now are as this was over 10 years ago!!

Thank you very much again.

glad to help, just a thought but if you do the budget on stepchange, (debt remedy link), it gives guidelines for budgets based on the household, and petrol, if your driving to work your petrol may be more than the suggested amount, but then stepchange would put a note by it for your creditors,

Even if you use this as a guideline, its not tieing you to stepchange (not that there not brilliant,), but for me it took a couple of weeks to take the plunge xx

mum2one · 28 November 2012 at 1:06AM

Cee wrote: »

Hi,
I'm trying to sort out a bit of a dilemma and not sure the best path to take.

Having just found I have to pay out double for my bank overdraught fee now and trying hard to pay off higher interest accounts first, I'm now faced with either paying my overdraught off to the point I'm just paying off the £1 a day limit or paying off a credit card and trying to clear the other debts at high interest.

I'm not sure now which is the higher interest.

The overdraught is now £2 a day until its in the black or the credit card is 29.9% apr.

I'm thinking of going to the bank to ask for them to change it so I can repay it off and close the account or do I go to the credit card company with the same tale.
I will have access to £2000 that has come from a family member to help me out and don't want to make the wrong decision. I've tried on 3 occasions to try and get this debt cleared and no loan company will take me on which means I can't get rid of it due to the interest on the accounts. My total debt is just under 8000 and I know I can clear it with this assistance.

Hi,
I'm guessing your with the halifax - as the overdraft rates changed if your OD over 2.5k, not being nosey are you much over the 2.5k limit, at the present time the bank wont change the costs, unless you went into a dmp and added the account as a creditor,

I would use the overdaft and try to get it below the limit - thinking as there is a financial incentive to do that it and its short term plan this would give u a springboard to tackle the next debt xx

john10001 · 28 November 2012 at 3:03AM

In these difficult economic times in the early stages of a great decadal depression does it make sense to sign up for income protection insurance (ASU or U only), especially ahead of any possible IVA you may be considering applying for?

As I comprehend it, an IVA is an alternative to bankruptcy but not quite as severe, however if you ultimately default on any of the IVA payments you are essentially !!!!!!ed and they can put you into bankruptcy?

I have a reasonably secure job, albeit on a low income, but I am just considering if the situation for my employer ever changed in the future for the worst and they had to make reduncancies I potentially would be up a creek if I could not make an IVA payment at any point during that 5 year period? If so I am thinking that even just £20 or £30 per month to protect some of my income would offer a little security and safety?

What do you think of this? Do you believe income protection insurance (either full ASU or just U) is a good thing or a waste of money?

John

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