Struggling with debt? Ask a debt advisor a question

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  • Hi , this is the first time I have used this website so please excuse any errors I make. I am experiencing some debt problems and hope that you might be able to advise me on the best course of action I can take.

    Earlier this year my dad had a stroke and I had to give up work to help him. I have since used my savings to pay off my monthly bills (mortgage etc) and have managed to stay on top of them all expect my Marks and Spencer Card which I have been unable to make a payment on since June. I spoke to Marks and Spencer today about a payment plan and they said they have referred the case (the total on the card is £5000) to Rockwell Debt Recovery Agency. I phoned the Rockwell Agency up and they said they haven't received the referral yet but will be in touch with me as soon as they do.

    Given the pressures I have now returned to work (the council have finally put a care package in place for my dad) and should get my first months pay at the end of October. I would like to make my first payment then - I am keen to clear this debt as soon as possible and with some tight budgeting could pay £500 a month. I have never liaised with a debt recovery agency before and am concerned about whether they will accept this, what extra charges they might claim etc.. I did try to speak to the Citizens Advice Bureau but unfortunately they don't have a telephone service available in my area and When I'm not in work I have to be with my dad. Any advice that you might be able to give would be much appreciated. Thank you.
  • Any help greatly appreciated from the debt advisors.
    We owe our local council some money for council tax (previous years), housing benefit overpayment, and an admin penalty to do with the HB overpayment.

    I am very good at just throwing the letters away when I see they're from the council so tbh I don't even know where we are with this. I do know that one debt is definitely with the DC agency (Stirling Park) and I've not responded regarding it, another is with same DC and I tried to offer some money but they have emailed saying they need to speak to me, can't face it as I know they're just going to demand more than I offered. Think one debt may still be with council. How to I go about getting the DC agency to be reasonable. We are potentially going to have 3 accounts with them and they're going to want the minimum payment that they deem fit for each one.
  • Former_StepChange_Rachel
    Former_StepChange_Rachel Posts: 252 Organisation Representative
    Hi, I am struggling with my credit card debts, and I was just hoping that someone from here could give me a bit of advice. These are the credit cards that I have:

    Tesco credit card: balance - £1,980, 0% interest until July 2015, then goes up to 18.9% interest. Minimum monthly repayment - £25.

    Lloyds credit card: balance - £1,426, 0% interest until February 2017, then goes up to 18.9% interest. Minimum monthly repayment - £15.

    Halifax Clarity Credit card: balance - £1,000, currently 17.9% interest. Minimum monthly repayment - £25.


    I am in a real mess and dont know what to do. should I apply for another balance transfer card for the Halifax balance? should i try and get a card with a longer 0% period for the Tesco balance?

    I can afford to repay a total of £140 per month, so how much should I pay off of each card?

    Thank you.

    Hi there Nathan. Thanks for posting.

    We would usually advise against trying to get a balance transfer to pay off existing debt balances. People often find that doing this tends to make their debt more difficult to deal with in the long run, as there's always the temptation to continue relying on credit. You can read more about this here: http://moneyaware.co.uk/2014/01/being-regularly-at-your-credit-limit/

    From what you've told us, it sounds like it would be a good idea for you to get in touch with us so we can have a closer look at your situation. We are a free and confidential debt advice charity, and we can give tailor-made advice on the debts your dealing with and what solutions are best to consider moving forward.

    In order for us to advise you, we will need to take a look at your budget. There's two ways to proceed with this:

    Use our online advice tool Debt Remedy to put together your own personal action plan, or visit our contact us page to find out how to get in touch with one of our advisors.


    You've taken the first step towards getting the help you need. We will do all we can to support you from here.

    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
    Baybeeboo wrote: »
    So here it is, my credit rating is shocking! (226 I believe) I have had a problem with debt since the day I turned 18! Now nearly 8 years on, they really are out of hand.

    Recently I have came out of a long term relationship and have been abandoned with my 2 children, no child maintenance as of yet and have been forced to apply for pay day loans, to my suprise I was accepted by a few, pounds to pockets, Mr Lender, Wage day advance, and Jeremy Lawrence.

    So late today I will be receiving a lump sum of £6000. I am currently in a DMP for some other debts (Some are DCA) I have spoken to the people who deal with my DMP and they have advised that they offer a settlement service, but will charge a minimum of £50 or 18% of what they save me. They are going to send the info out to me.

    I don't know how to go about settling my debts, I will list what I have on my credit file...

    Capital One Balance: £201.08 paying £1.84 a month in DMP
    EOS Solutions Balance: £245.79 paying £2.19 a month in DMP
    Idem Capital Services Ltd Balance: £2,622.01 paying £23.94 a month in DMP
    Moorcroft Debt Recovery Ltd balance: £362.04 paying £3.34 a month in DMP
    NCO Europe Ltd balance: £261.18 paying £2.38 a month in DMP
    Provident Personal Loans balance £1955.28 paying £12.02 a month in DMP
    Reliable Collections balance: £201.58 paying £2.79 a month in DMP

    The pay day loans are not in DMP:
    Pounds to pockets £548 - in arrears
    Wageday advance £209.49 - in arrears (this is the balance as of today)
    Mr Lender £328 - Not in arrears but that is the settlement balance as of today
    Jeremy Lawrence £150 - not in arrears.

    Total: £7084.45

    I also have council tax owing for the past 5 years which total £2,200. but i have an attachment on my earnings, so not sure whethere i should worry about this one?
    Would also like to pay my water bill, (£150)

    With the above totalling: £9434.45.

    Over 3 grand I will have! So I have no idea how to prioritise..

    I really would appreciate any help or advice!

    Hi there, thank you for getting in touch.

    I'm really sorry to hear of the stressful situation you and your children have been facing. The debt you've described must be causing a great deal of anxiety for you.

    I'm curious about the terms of the DMP you've mentioned. We ourselves offer DMPs but we would include every debt a person is dealing with, not just a few of them. This is to ensure that everyone is being treated as fairly as possible. It also ensures that the person on the DMP is making payments that are realistic based on their living expenses (rent, food, council tax, utilities etc), which are most important and must be paid on time.

    When it comes to the payday loans you mentioned, I would also advise that you get the continuous payment authorities on these cancelled if you haven't already. When you take out a payday loan, you give them authority to take payments out of your bank account without consulting you, which can leave you in a very difficult situation. We've written a blogpost covering CPAs and how to deal with them if you would like to find out more.


    As your situation is quite complicated, I would advise that you get in touch with us to discuss it in more detail. We can give you free and confidential advice via our online advice tool Debt Remedy.

    You can also discuss your situation over the phone with one of our trained debt advisors. They can have a look at your whole situation and tell you if there's something we can do to make things easier. Find out how to speak to one of our advisors by visiting our contact us page.

    Please also be aware that we have a settlements team who can advise you on how best to use this lump sum you've been awarded. This is a completely free service that we offer. You can find out more about how it works here.


    This has no doubt been a very daunting time for you, but please know that we will do all we can to help.

    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
    Help5000 wrote: »
    Hi , this is the first time I have used this website so please excuse any errors I make. I am experiencing some debt problems and hope that you might be able to advise me on the best course of action I can take.

    Earlier this year my dad had a stroke and I had to give up work to help him. I have since used my savings to pay off my monthly bills (mortgage etc) and have managed to stay on top of them all expect my Marks and Spencer Card which I have been unable to make a payment on since June. I spoke to Marks and Spencer today about a payment plan and they said they have referred the case (the total on the card is £5000) to Rockwell Debt Recovery Agency. I phoned the Rockwell Agency up and they said they haven't received the referral yet but will be in touch with me as soon as they do.

    Given the pressures I have now returned to work (the council have finally put a care package in place for my dad) and should get my first months pay at the end of October. I would like to make my first payment then - I am keen to clear this debt as soon as possible and with some tight budgeting could pay £500 a month. I have never liaised with a debt recovery agency before and am concerned about whether they will accept this, what extra charges they might claim etc.. I did try to speak to the Citizens Advice Bureau but unfortunately they don't have a telephone service available in my area and When I'm not in work I have to be with my dad. Any advice that you might be able to give would be much appreciated. Thank you.

    Hi there, thank you for posting.

    I'm very sorry to hear that things have been quite difficult since having to reduce your work hours to look after your dad. I'm very glad to hear he finally has his care package in place. This must be a relief for you to know he will be getting that support he needs.

    In regards to M&S referring the debt to Rockwell Debt Recovery Agency, this is a normal part of the collection process. Once a person misses several payments on a debt, the creditor will eventually sell the debt on to agencies such as this when they've exhausted all attempts to recover the money themselves.

    Debt collection agencies are NOT bailiffs however, so if you're worried that they may come to your home to repossess goods, please be reassured that they don't have this kind of power. They may mention in letters that they'll send an agent to your property to discuss further payment with you, but this is very rare and is often used as a threat to frighten people. In the unlikely event that a Rockwell debt agent visits you, you do not need to open the door to them or let them in. You can find out more about debt collectors from our blogpost.

    Before committing to a monthly amount to pay towards your debts, I suggest you get some free and confidential debt advice first. We can provide this via our online advice tool Debt Remedy, which can help you put together a personal action plan in around 20 minutes.

    You can also discuss your situation over the phone with one of our debt advisors. Please visit our contact us page for more information.

    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]

  • StepChange_James
    StepChange_James Posts: 861 Organisation Representative
    Hello everyone,

    We're all going to be in training on Monday and Tuesday next week (20th & 21st October). We'll be back in on Wednesday and will answer any questions then.

    If you've got an urgent query then please call our Helpline on 0800 138 1111 (Mon-Fri 8am-8pm; Sat 8am-4pm) or use our online Debt Remedy tool (http://www.stepchange.org/Debtremedy.aspx) for full debt advice.

    Thanks

    James
    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 Need to Sleep

  • I have been in a Debt Arrangement Scheme (DAS) in Scotland which will be completed in December. What should I do to try and repair my credit file as my ultimate aim will be to obtain a new mortgage. Also, how long should I wait before even attempting to apply for a mortgage?
  • Hi I am new to this site but I thought I might be able to get some advice.

    My current credit score is bad for a number of reasons but I have been trying extremely hard the last few months to improve it. I have paid all bills on time for the last 5 months and I am seeing an improvement. I still have one outstanding credit card with my bank but I am unsure if I should pay this in full as I am trying to save to move out of the family home. Do you have any advice on how to improve my credit score? Should I pay my loan or save?

    Any advice would be welcome.

    Thanks.
  • dwill1503
    dwill1503 Posts: 142 Forumite
    Hi,

    We have a house that is valued at an estimated £170k.

    Our mortgage is just under £98k.
    We have approx £25k debt (£8k of this to family) and do not have a good credit score - loans to pay credit cards etc etc and have been on a payment plan with debit line which we are about to end and pay direct instead.

    Our income is one full time worker on £32k and the other part time on £8k. (we are both under 38 years old).

    We are trying to work out whether we should:
    a) sell the house, pay off the debt and just rent for 6 years and be very good or
    b)try to find a new (re)mortgage and stay in current house or
    c)try to find a new mortgage for a house that is valued at £210k using the equity after debt as deposit (if this is an option)
    d) Is there an option d?

    Thank you in advance,
  • Former_StepChange_Rory
    Former_StepChange_Rory Posts: 145 Organisation Representative
    I have been in a Debt Arrangement Scheme (DAS) in Scotland which will be completed in December. What should I do to try and repair my credit file as my ultimate aim will be to obtain a new mortgage. Also, how long should I wait before even attempting to apply for a mortgage?

    Hi Worried Girl,

    Lots of people worry a lot about their credit rating and it's one of the most commonly asked questions our advisors talk about.

    Once the DAS has completed there's a few different steps you can take to help improve your credit file. It's best to cover the myths around credit scoring first of all so that you're hopefully much clearer on what to do next. You can read our blogpost on credit ratings here.

    One thing that's generally true is that nothing on your credit report will show forever. There's lots of myths around 'credit blacklisting' that aren't true.

    I couldn't say for certain how long to wait to apply for a mortgage, lenders tend to use different criteria to assess you for borrowing and this can be really varied depending on who you speak to.

    You can get some useful tips on improving your credit rating by reading another of our blogposts on this here. The article is specific to debt management plans but the advice is quite general and can apply to your situation too.

    I hope this helps,

    Rory
    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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