Struggling with debt? Ask a debt adviser a question

Former_StepChange_Linsi · 4 May 2017 at 3:09PM

Hi Rachel

Thanks for your post and welcome to the forum.

An IVA is a legally binding arrangement so I’d recommend speaking to your IVA provider directly. They’ll be able to answer this question for you.

All the best,

Linsi

Rachel2475 wrote: »

Hi I have just paid a settlement figure to my IVA company as creditors agreed to let me settle early! Can I now sell my house or do I need to wait for my completion certificate

HoneyOnThePavement · 4 May 2017 at 3:15PM

Hello, I also have a similar situation. Would appreciate your piece of advice)

Former_StepChange_Linsi · 4 May 2017 at 4:12PM

[FONT=&quot]Good afternoon,

[/FONT][FONT=&quot]Thank you for your post and welcome to the forum.

[/FONT][FONT=&quot]Credit applications are shown on your credit file and can impact your credit rating, especially if your application is declined.

[/FONT][FONT=&quot]Whilst I can’t say what the likelihood is of you being accept for a loan, there is an [/FONT][FONT=&quot]eligibility calculator you can use on the MSE website. The calculator uses a soft search, so doesn’t affect your credit file, and will give you a better idea of which loans you’re more likely to be accepted for.

[/FONT][FONT=&quot]Building a credit history is also a good way to improve your credit score. So keeping one credit card (providing you pay it off in full each month) should improve your credit rating over time, usually within 6 to 12 months.

[/FONT][FONT=&quot]There are other ways to improve your credit file and you can find more information about this here. If you’re privately renting at the moment you may also want to look into signing up to the Rental Exchange scheme. This can help to improve your credit file as long as you pay your rent on time each month.

[/FONT][FONT=&quot]When applying for a mortgage lenders will look at your credit file but they’re also going to look at, and take into consideration, your affordability and deposit amount.

[/FONT][FONT=&quot]I hope this helps.

[/FONT][FONT=&quot]Linsi[/FONT]

rcunningham87 wrote: »

Hi Guys,

I've got myself into a bit of a pickle and have an "Average" credit score according to Experian. My aim is to improve this ASAP and look to get a mortgage in the next few years (But only after my cards and debts are paid off etc.)

I have 2 credit cards I currently pay the minimum (I'm able to pay off more each month but this could take longer than I'd like). I'm looking to get a P2P loan to pay off the cards and get a newer car. But I'm worried that I'll be refused the loan and it'll affect my rating even more.

My question is, is it better to keep one of the cards and pay it off in full each month to improve my credit rating?

I guess my question is, what is the quickest way to improve my credit rating considering my situation and get debt free?

Thanks in advance.

Former_StepChange_Linsi · 4 May 2017 at 4:21PM

Hello,

Thank you for getting in touch.

Please feel free to use the links we've provided in previous responses to find further information about dealing with debt.

If you'd like more tailored advice then I'd recommend you use are free Debt Remedy tool. The online tool will help you to create a budget and we can then recommend a solution to make managing your debts easier.

If you have a specific question that you cant find the answer to, post the question here and we'll do our best to answer it.

All the best,

Linsi

HoneyOnThePavement wrote: »

Hello, I also have a similar situation. Would appreciate your piece of advice)

djpailo · 5 May 2017 at 8:29PM

My partners parents are in disarray.

So her dad had originally gambled away money from a mortgage reserve joint account, including gambling the overdraft limit. Her mum claims that her Dad was moved from the joint account, but his name could not be removed from the overdraft reserve. Her mum requested to cap the limit, but they subsequently increased it by 4k, which her dad then took out.

My question is, is this all actually possible, I am confused about how someone can have their name removed from a joint account, but still have access to its overdraft facility. The bank told her mum that its too much money for his name to be removed.

Please advise.

StepChange_Kirsty · 6 May 2017 at 2:10PM

Hi there,

Thanks for your post.

I can see this is a very difficult situation for your partner’s parents. First of all, is your partner’s Dad seeking help for his gambling? If he’s not already seeking help I would recommend he contacts an organisation called Gamcare who provide free advice and support for those with problem gambling.

I can’t say for sure what has happened here but as the joint account is linked to the mortgage I’m surprised that they would have agreed to take his name off the joint account. It is usual that the bank would not agree to take his name off the overdraft reserve whist there is a debt outstanding because he would be liable to pay any monies owed. To remove him from the account would remove his legal responsibility which would not be wise for the bank to do.

Your partner’s mum might want to look into why the bank has extended the overdraft limit instead of capping it as she requested. She would need to follow the bank’s complaint process which most banks will detail on their websites. If she hasn’t received a response within 8 weeks or has received a final response she is not happy with, she can refer the matter up to the Financial Ombudsman Service. You can find their details here.

If your partner parents are now finding themselves having difficulties with debts, we can certainly offer them some help and advice. They can either contact us by telephone or complete our online Debt Remedy tool.

I hope this information is helpful.

Kirsty

djpailo wrote: »

My partners parents are in disarray.

So her dad had originally gambled away money from a mortgage reserve joint account, including gambling the overdraft limit. Her mum claims that her Dad was moved from the joint account, but his name could not be removed from the overdraft reserve. Her mum requested to cap the limit, but they subsequently increased it by 4k, which her dad then took out.

My question is, is this all actually possible, I am confused about how someone can have their name removed from a joint account, but still have access to its overdraft facility. The bank told her mum that its too much money for his name to be removed.

Please advise.

fatuesque · 7 May 2017 at 1:37PM

Hi,

Need some debt advice please.

1. I have a number of very old small debts for things which i disputed at the time & just left. Nobody is chasing me for them & the last letter received was in 2011. I also never made any contact or payments. Just things like phone bills etc.

These are not on my credit file. Am I okay to just forget them?

2. Do old bank accounts without debt or money in them harm credit if it appears on my credit file?

3. Whats the quickest way to improve credit rating of someone with 3 defaults & a CCJ (all totalling around £500) plus a very large water bill which is under arrangement?

Thanks in advance for your help.

Karl

Former_StepChange_Linsi · 8 May 2017 at 1:10PM

Hi Karl

Welcome to the forum and thank you for your post.

I’ve answered your questions below but if you’re struggling to repay any of your debts and need further tailored advice you can use our free online Debt Remedy tool. There’s also more information specifically about CCJs and water arrears on our website.

1. Even if a debt isn’t visible on your credit file it doesn’t mean the creditor can’t take further action to recover the debt. The exception to this would be if the debt was statute barred; if this was the case the debt would be unenforceable. There’s more information about statute barred debts on our website including a template letter you can use to inform your creditors if this is the case. If any of your creditors obtained a court judgment before the limitation period passed the debt can never become statute barred.

2. Having access to too much credit, even if it isn't being used, can impact your credit rating and make it harder to get additional credit.

3. There’s lots of ways to improve your credit file such as making sure you’re on the electoral roll. You can find more tips about improving your credit file on the MSE website.

I hope this helps.

Linsi

fatuesque wrote: »

Hi,

Need some debt advice please.

1. I have a number of very old small debts for things which i disputed at the time & just left. Nobody is chasing me for them & the last letter received was in 2011. I also never made any contact or payments. Just things like phone bills etc.

These are not on my credit file. Am I okay to just forget them?

2. Do old bank accounts without debt or money in them harm credit if it appears on my credit file?

3. Whats the quickest way to improve credit rating of someone with 3 defaults & a CCJ (all totalling around £500) plus a very large water bill which is under arrangement?

Thanks in advance for your help.

Karl

debby · 9 May 2017 at 1:21PM

Hi currently drowning. Been talking to husband about Iva. Just want to know if they cover it on all your debt, as we don't want to include the car...or does the car have to be part of it too. Thanks

Former_StepChange_Richard · 11 May 2017 at 5:44PM

Hi Debby

Thanks for getting in touch. We can help with this.

An IVA (Individual Voluntary Arrangement) is a legally binding agreement and method of insolvency that can be used to partially pay debts off by installments with any remaining debts written off after a given period of time (typically 5 or 6 years).

An IVA will cover most debts, but some are always excluded. Our website gives you a list of debts included and excluded.

For your car, it's important for us to know what type of agreement (if any) your vehicle is on and how much it is worth. To give you the best advice on this you can call and speak with our advisers. All our contact details are here.

If you are looking for advice on the best way to deal with your debts you can use our free Debt Remedy tool that will show the best options for you.

I hope this helps and we look forward to hearing form you soon.

Richard.

debby wrote: »

Hi currently drowning. Been talking to husband about Iva. Just want to know if they cover it on all your debt, as we don't want to include the car...or does the car have to be part of it too. Thanks

Struggling with debt? Ask a debt adviser a question

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