Struggling with debt? Ask a debt advisor a question

StepChange_James · 20 December 2012 at 3:08PM

pantherchick wrote: »

Hi. im after some advice if you can help me.
Over the last two years i have faced my debts head on, i have paid off alot of the debts and now only have a relative small debt left to pay, as they are now coming to a end, Can you tell me will they auto matically be taken off my credit file? or will they still show? but say paid? im in a tiswas over this.
I feel my credit file isnt getting any better, how do i make it more healthier. sorry so many questions. i just want to be debt free.
thanks pantherchick x

Hi Pantherchick,

Great news on getting so close to being debt free.

It's likely that information will still be showing on your credit history after the debts have been paid off. For example a default notice will stay on for six years from the date it was entered, as would a CCJ.

Your credit file will accumulating new negative information once the debts are out of the way though, which should mean your credit rating slowly improves as it will show your difficulty with debt is further and further in the past.

It might help set your mind at ease to get a copy of your credit report to see what's registered on there, so you can then work out when things will drop off. There's an article on the main site that explains how to get a copy: http://www.moneysavingexpert.com/loans/credit-rating-credit-score#files.

Hope this helps.

James

StepChange_James · 20 December 2012 at 3:34PM

john10001 wrote: »

I've not heard anything back from the bank I made a full and final offer to yet, though I did request in the letter that they respond before the end of this month if they wished to accept.

Unfortunately I wasn't aware and didn't realise it would be a good thing to include a statement of accounts with this at the time. I will also have to check my old address again as I suspect that they still haven't updated their records for me.

I have a few quick questions regarding an IVA.

Do different banks within the same banking group class as the same institution for the purposes of being one of your creditors or do they class as seperate entities?

E.g. Would for example Halifax and Lloyds class as separate creditors or would it all be lumped in as the same?

I am thinking in particular of needing 75% or more of creditors to agree with the IVA option to be accepted?

And also in terms of being able to offset?

Can they offset across banks and accounts within the same group, or only within the same individual company/entity?

Finally, for debt advisors/charities with experience of helping people with these sorts of things are IVA's usually accepted or do you get some where more than 25% of creditors vote against it and if so why?

Do you find certain banks etc usually vote no or most vote yes in order to prevent full bankruptcy and getting zero? Any that always vote no?

Cheers,

John

Hi John,

It isn't essential to send an income and expenditure budget but it can sometimes help with a full and final offer.

For an IVA to go ahead the proposal needs to be accepted by more than 75% of creditors in value who vote at the meeting. Some creditors may not vote at the meeting at all though.

Halifax and Lloyds would vote as one entity at the meeting, so this would need to be considered during the drafting process.

There are some creditors that are less keen on IVA proposals than others but usually they'll make a decision based on the individual case rather than having a blanket policy.

If you're interested in an IVA or any other debt solution, we can give you impartial advice on all the options. You can do this online using our Debt Remedy tool (http://www.stepchange.org/msehelp) or over the phone (http://www.stepchange.org/Contactus.aspx).

Hope this helps.

James

laurenalyssa · 20 December 2012 at 6:23PM

I'm really not sure if asking for a debt advisors' help would ease my debt problems... I guess for some people, it does work..

tinabelle · 20 December 2012 at 10:26PM

Hi, I am new to this forum but if anyone can offer any advice or help it would be gratefully received!

We part own a flat and if we were to sell now we would come out with £15-20k profit and we would be debt free with a little left over. The flat is only 2 bed and we have 2 young children now so need to move anyway but im not sure if we sell that we'd ever be able to buy anywhere again!? Due to our credit rating ect. What would you do?

I am also dealing with all of our joint debts and personal ones by myself as well aseverything else and I feel I am useless at it and its all getting out of control! I dont have a budget, constantly borrow money off my family to pay bills etcand I really dont want to live like this anymore. I have an excel spreadsheet with everything on and it seems to say we can afford to pay everything but I never have it! We are paid weekly too which is making it harderfor me!

Anyway any help gratefully received, thanks in advance:)

StepChange_James · 21 December 2012 at 4:35PM

laurenalyssa wrote: »

I'm really not sure if asking for a debt advisors' help would ease my debt problems... I guess for some people, it does work..

Hi Laurenalyssa,

Welcome to the forum. I'd like to think that talking to debt advisors does help to ease a debt problem.

Obviously I don't know much about your situation to be able to say what would be best, but I can give you some general tips.

The first thing to do if you're worried about your finances is to make a list of your money coming in and costs going out. This should give you an impression of how things are looking.

Sometimes just cutting back on living costs can be enough to tip your finances back to a point where you can manage. If that is the case then the forums on moneysavingexpert are an excellent place for advice on living on a budget.

Quite often cutting back isn't enough though, and that's where debt advice is particularly useful. We can give you advice on all the different ways you can deal with your debts and talk you through the pros and cons of these options.

You can do this online using our Debt Remedy service (http://www.stepchange.org/msehelp) or by giving us a call (http://www.stepchange.org/Contactus.aspx).

All the best.

James

Former_StepChange_Rachel · 21 December 2012 at 4:39PM

tinabelle wrote: »

Hi, I am new to this forum but if anyone can offer any advice or help it would be gratefully received!

We part own a flat and if we were to sell now we would come out with £15-20k profit and we would be debt free with a little left over. The flat is only 2 bed and we have 2 young children now so need to move anyway but im not sure if we sell that we'd ever be able to buy anywhere again!? Due to our credit rating ect. What would you do?

I am also dealing with all of our joint debts and personal ones by myself as well aseverything else and I feel I am useless at it and its all getting out of control! I dont have a budget, constantly borrow money off my family to pay bills etcand I really dont want to live like this anymore. I have an excel spreadsheet with everything on and it seems to say we can afford to pay everything but I never have it! We are paid weekly too which is making it harderfor me!

Anyway any help gratefully received, thanks in advance:)

Hi there Tinabelle,

Welcome to the MoneySavingExpert forum

It’s hard to say if selling your house and clearing your debts would be a good option. Obviously it sounds like it would be a way to become debt free relatively quickly (depending on the speed of the sale). The big downside would be whether you’d be able to get back on the property ladder soon, as most mortgages require a decent sized deposit these days.

Ultimately it's your decision but we can help weigh up the options if you get in touch with us (http://www.stepchange.org/Contactus.aspx).

If you can keep your spreadsheet to hand, we can go through a budget with you and help you work out what your best option is moving forward.

Best regards

Rachel

StepChange_James · 21 December 2012 at 5:56PM

Hi everyone,

Just a note to let you know that the MoneyAware team will be out of the office until Thursday. We'll be back and answering your questions then.

Hope you all have a lovely Christmas.

StepChange_James, StepChange_Mat and StepChange_Rachel

joshclem · 24 December 2012 at 5:06PM

Hi

I have an issue I need to talk about in confidentiality.

Can one of you PM me please?

thanks

StepChange_James · 27 December 2012 at 9:48AM

joshclem wrote: »

Hi

I have an issue I need to talk about in confidentiality.

Can one of you PM me please?

thanks

Hi Josh,

You can PM us at StepChange Private Messages and we'll get back to you shortly.

If you'd prefer to speak on the phone to us you can give us a call: http://www.stepchange.org/Contactus.aspx.

All the best.

James

ambertomtom · 29 December 2012 at 2:50PM

Hi there I have been kinda hiding from my debts but now want to get on top of them all, I have just finished off paying a tesco loan this week, i have got a loan with my bank which i have had no problems with the monthly payments. However my problem comes with one of my 2 credit cards and my council tax (i am 2 months behind), i was just wondering if they tend to be okay with payment plans as i have no way of paying these off in one go. Feel really stupid and embarrased for letting this happen as i always said i would never do anything this silly

any help or advice would be greatly appreciated

Struggling with debt? Ask a debt advisor a question

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