Struggling with debt? Ask a debt advisor a question

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  • megandz
    megandz Posts: 11 Forumite
    Hi Megan,

    Thanks for posting. I'd agree with you, family has to come first in these situations.

    While it'd be great if you could get the debts sorted out with a full and final settlement, a £3,000 lump sum is probably unlikely to be enough to clear them all. It won't cost you anything to ask the question of them though, so it's worth a shot.

    If you update this debts with your new address then they won't be able to enforce them through the English legal system as you'll be out of their jurisdiction. However, the debt can be pursued through the Irish legal system while you are living there.

    Usually companies would prefer to set up arrangements directly with you instead of going down that route though (whether you're based in the UK or not).

    I'd suggest giving us a call and getting some advice about the best way to deal with these debts. Here's the contact details to call from another country:

    Kind regards

    James


    Thanks very much James - I will give that number a call.

    All the best.
  • Hi

    I have been in some form of debt for years. I want to take control of it in the hope that in the next (6 or so) years, I will finally be able to get my daughter a 'forever' home. I realise this is going to take a lot of work on my part. Aside from saving of course, I know that one of the things I have to do is to clean my credit report up. I have so far looked at Noddle and Equifax (just waiting on password through the post from experian). They show similar information, although strangely I have 2 CCJs which are listed on Noddle but not on Equifax).

    Specifically I would like to ask a question about the length of time information stays on my file. I have four defaulted accounts (yes, I have been stupid). They are not for major amounts (£244, £301, £319, £470). One of these is dated in 2008, the other three during 2010. By my reckoning these will "fall off" my file in 2014 and 2016.

    I realise that it's better to pay your debts, but I'm worried that if I do pay them, the six years will start all over again. I've searched all over for this information, but no luck. If I was to pay the amount I owe today would the account status simply change to settled and the information still leave my account six years after the original default? If, on the other hand, the six years start ticking again, I wonder if I would be better riding it out until the six years have passed.

    I have no intention of entering into any sort of payment arrangement with any DCAs. I would much rather pick them off one by one and pay what I owe in full (or a negotiated amount) each time.

    Thanks for any advice you can offer.
  • Thank you so much for your time and advice James :)
  • bigdaftkid
    bigdaftkid Posts: 75
    First Post First Anniversary Combo Breaker
    Forumite
    Hi I am looking for some advice for my brother. He is in debt and wants so much to try to sort it out. He is medically unable to work and receives DLA. He has contacted CAB and a few debt management people and he has been told he is not in enough debt to get help. He has paid money on what he owes (previous loans) but because of interest what he pays does not make a difference as he pays then intrest goes on again and the debts are not coming down. Does anyone know what would be best for him to do or who to contact. he is getting very depressed and says there is no point any more. I think he may be heading for suicidal thoughts. Hope someone can advise as I am so worried for him.
    Proud to be living a frugal lifestyle
  • mum2one
    mum2one Posts: 16,279
    Xmas Saver!
    Forumite
    bigdaftkid wrote: »
    Hi I am looking for some advice for my brother. He is in debt and wants so much to try to sort it out. He is medically unable to work and receives DLA. He has contacted CAB and a few debt management people and he has been told he is not in enough debt to get help. He has paid money on what he owes (previous loans) but because of interest what he pays does not make a difference as he pays then intrest goes on again and the debts are not coming down. Does anyone know what would be best for him to do or who to contact. he is getting very depressed and says there is no point any more. I think he may be heading for suicidal thoughts. Hope someone can advise as I am so worried for him.

    The first thing i would say is could you have a word with his GP re worried about him, and get him to go with you.

    As for the debs, its great that your on board with him, that mean a lot, I would suggest if it fills in the debt remedy tool from CCCS (theres links in their posts), and this will allow him an adequate budget and take the debts into account, - I personally found my creditors have took heck of a notice and been more helpful since cccs have been involved,.

    Good luck xx
    xx rip dad... we had our ups and downs but we’re always be family xx
  • Civic
    Civic Posts: 1 Newbie
    I'm new so apologies if this is in the wrong place. My wife and I have made the first steps and sent in the paperwork to Stepchange to set up a DMP. Total sum owing £56500 our creditors have been informed and this week we start to default on payments, made token payments of £20 to all 6 creditors as interim measure and said we are working with Stepchange. Obviously once DMP agreed will establish a sensible level of payment. Problems are that my potential surplus could drop in October as have been acting up for several years and now being marked down although still required to do same work which will have significant impact on my earnings. Done the important stuff such as changed DDs and bank account and esablishe a budget which we are starting to work to. What can I expect to happen now one creditor has already agreed to freeze interest forv 30 days and await Stepchange contacting them. Others well didn't appear interested at all. Never done this before ie always paid my way but am now worrying about charging orders on mortgage as it seems rules have now changed to make it very easy to obtain. Also OH is worried about doorstep collectors baliffs and being harrassed. While myself I am worried as civil servant and if don't accept DMP could only see bankruptcy as other alternative. This would cost me my job then a whole new can of worms. Any advice gratefully received :(
  • mum2one
    mum2one Posts: 16,279
    Xmas Saver!
    Forumite
    Civic wrote: »
    I'm new so apologies if this is in the wrong place. My wife and I have made the first steps and sent in the paperwork to Stepchange to set up a DMP.

    Thats good you have done the hardest step, that is ask for help, if stepchange have recommended a DMP then it will be right for you.


    Total sum owing £56500 our creditors have been informed and this week we start to default on payments, made token payments of £20 to all 6 creditors as interim measure and said we are working with Stepchange.
    Just keep them in the loop and by sending token payments its showing the creditors you are trying to get sorted.



    Obviously once DMP agreed will establish a sensible level of payment. ]

    The payments are done fairly, and all creditors know that when there contacted by stepchange

    Problems are that my potential surplus could drop in October as have been acting up for several years and now being marked down although still required to do same work which will have significant impact on my earnings.
    Thats a bridge your cross in October, I had to have my DMP reduced to a change of circumtances and I was not a year into the DMP, that will be easy to work through and you go from there, just like doing the SOA again -but with ad advisor, there go from there with your new budget


    Done the important stuff such as changed DDs and bank account and esablished a budget which we are starting to work to.

    Thats good, it may take a few months to get use to a budget, sometimes it may feel frustrating, but your on the home straight and your work it through in your own pace



    What can I expect to happen now one creditor has already agreed to freeze interest forv 30 days and await Stepchange contacting them. Others well didn't appear interested at all.

    Creditors can be a mixed bunch, I found they took more notice of stepchange than they did from me, - personally I have a range of zero interest, to reduced interest, I have one who is a pain, but hey there just have to wait longer,


    Never done this before ie always paid my way but am now worrying about charging orders on mortgage as it seems rules have now changed to make it very easy to obtain.

    Sorry can't make any real help with this one, but as long as your paying I would say that be in your favour.


    Also OH is worried about doorstep collectors baliffs and being harrassed. While myself I am worried as civil servant and if don't accept DMP could only see bankruptcy as other alternative. This would cost me my job then a whole new can of worms. Any advice gratefully received :(

    You have done the best thing by getting CCCS involved, there non fee charging so all the money pay goes to the creditors, you may get a few calls to start off with, but mine dropped off pretty quickly, just say your dealig with stepchange and thats what is going on.

    I know its hard, but you have done the right thing, if the remedy was a DMP thats the way to go, the creditiors would rather have some money than non at all. xx
    xx rip dad... we had our ups and downs but we’re always be family xx
  • Hi,

    I currently have a Tesco credit card which is at £1,836 and my 0% balance transfer has ended so im now paying interest. ive tried to get a new balance transfer but for some reason I keep being declined.
    I also have £550 left to pay off on a motorbike and £700 to my mum.

    Should I get a loan to just clear it all? I cant decide what to do.

    I also need a car for my new job, I would include this in the amount of the loan.

    I hope someone can advise me on what to do! I started a lower paid job in june last year and ive been struggling ever since.
  • Former_StepChange_Rachel
    Former_StepChange_Rachel Posts: 252 Organisation Representative
    Hi

    I have been in some form of debt for years. I want to take control of it in the hope that in the next (6 or so) years, I will finally be able to get my daughter a 'forever' home. I realise this is going to take a lot of work on my part. Aside from saving of course, I know that one of the things I have to do is to clean my credit report up. I have so far looked at Noddle and Equifax (just waiting on password through the post from experian). They show similar information, although strangely I have 2 CCJs which are listed on Noddle but not on Equifax).

    Specifically I would like to ask a question about the length of time information stays on my file. I have four defaulted accounts (yes, I have been stupid). They are not for major amounts (£244, £301, £319, £470). One of these is dated in 2008, the other three during 2010. By my reckoning these will "fall off" my file in 2014 and 2016.

    I realise that it's better to pay your debts, but I'm worried that if I do pay them, the six years will start all over again. I've searched all over for this information, but no luck. If I was to pay the amount I owe today would the account status simply change to settled and the information still leave my account six years after the original default? If, on the other hand, the six years start ticking again, I wonder if I would be better riding it out until the six years have passed.

    I have no intention of entering into any sort of payment arrangement with any DCAs. I would much rather pick them off one by one and pay what I owe in full (or a negotiated amount) each time.

    Thanks for any advice you can offer.

    Hi there,

    Thanks for posting today.

    Anything that is on your credit file will be on there for a time period of 6 years from the date it was added. If no payment arrangement has been made on a debt within a six year period, it may fall under something called the Limitation Act.

    This means that the debt is no longer legally enforceable because the record on your credit file only lasts for that six years. It then becomes something called ‘statute barred’ meaning no further legal proceedings can be carried out by the creditor.

    The case is different however once a debt becomes a county court judgement. Once a debt goes that far it is enforceable for an indefinite period of time and Limitation Act will not apply. Simply ignoring the debt is not enough to make them become statute barred.

    We have a blogpost that explains this further if you’d like to take a look: http://moneyaware.co.uk/2012/02/can-you-run-away-from-your-debts/

    While I can certainly appreciate where you’re coming from as far as your concerns about prolonging the six year period, please understand that we as a charity have to advise you to deal with your debts and make realistic payments to them. Please also be aware that once a CCJ hasn’t been paid, it becomes ‘forthwith’ meaning that the court can carry out further enforcement such as bailiffs visiting the property. You can download a form and offer as little as a £1 per month and provided this is in reflection of your budget, the court are usually understanding.

    There are options available to you, and we’re here to provide free and confidential debt advice. We have an anonymous online advice tool called Debt Remedy that can look at the best debt solution for you in just 20 minutes.

    I 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]

  • Former_StepChange_Rachel
    Former_StepChange_Rachel Posts: 252 Organisation Representative
    bigdaftkid wrote: »
    Hi I am looking for some advice for my brother. He is in debt and wants so much to try to sort it out. He is medically unable to work and receives DLA. He has contacted CAB and a few debt management people and he has been told he is not in enough debt to get help. He has paid money on what he owes (previous loans) but because of interest what he pays does not make a difference as he pays then intrest goes on again and the debts are not coming down. Does anyone know what would be best for him to do or who to contact. he is getting very depressed and says there is no point any more. I think he may be heading for suicidal thoughts. Hope someone can advise as I am so worried for him.

    Hi there,

    Thank you for posting today

    To follow on from the great advice already given by mum2one, there's no such thing as a person 'not being in enough debt to get help'. Please assure your brother that we will do all we can to help him put things back on track. We help thousands of people every week, many of whom are struggling with mental health problems such as depression.

    It's certainly a good idea for your brother to talk to his GP and get the support he needs.

    If he goes through our online advice tool Debt Remedy and prepares a budget, we can provide a debt solution for him in just 20 minutes. It's completely free and confidential.

    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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