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StepChange #debtmyths
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# 21
StepChange_Rachel
Old 04-12-2012, 3:38 PM
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The myth:

Your student loan will be written off if you go bankrupt #debtmyths

The reality:

No matter what kind of student loan you have, you can’t get the Student Loan Company to write it off through insolvency. This means whether you go for an IVA, DRO or bankruptcy, your student loan won’t be written off. There are instances where they’re wiped but not through insolvency. There’s more information on this over on the main site.

If you’re a student and would like a bit of help with managing your finances then you might want to check out our student debt guide, stuffed with useful information about dealing with your finances.
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

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# 22
StepChange_James
Old 05-12-2012, 3:56 PM
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The myth:

There’s nothing you can do to stop payday loan companies taking payments #debtmyths

The reality:

When you sign up for a payday loan there is usually something in the small print that means you’ve agreed to something called a “continuous payment authority”. This means that you’ve given them permission to take payments from your debit card at a future date.

These kinds of payments are trickier to cancel than Direct Debits but not impossible.

Do you need to avoid payday loan payments swallowing up you bank balances? We’ve got a handy blogpost that talks through how to cancel a continuous payment authority, something we advise on every day.

If you’ve got a payday loan and are going to struggle to make the payment then you should get debt advice as soon as possible.
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

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# 23
Time to face the music
Old 05-12-2012, 10:14 PM
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Why do posts keep vanishing from this thread?
LBM 10/1/12 ~ DFW Start 5/2/12: £82344 ~ Month 33: £9990=87.87% paid ~ DFD 31/1/16 ASAP
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# 24
StepChange_Mat
Old 06-12-2012, 4:02 PM
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The myth:

You’ve broken the law if you fall behind on debt repayments #debtmyths

The reality:

It may be surprising to some but “Can I go to jail if I don’t pay my debts?” is one of the most common questions we receive from our clients. Missing payments on credit debts is a civil matter, so it’s not against the law.

Anyone familiar with the works of Charles Dickens will have heard about debtor’s prison, where you get flung into if you’ve got behind on your bills back in the old days. Thankfully the Debtors Act of 1869 abolished debtors prison, so missing a credit card payment won’t mean you end up doing a stretch in Strangeways!
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# 25
fermi
Old 06-12-2012, 4:05 PM
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Quote:
Originally Posted by StepChange_James View Post
The myth:

There’s nothing you can do to stop payday loan companies taking payments #debtmyths
Another very useful link: http://www.paullewismoney.blogspot.c...ts-racket.html
I'm a Board Guide on the Debt-Free Wannabe, Bankruptcy, Credit Cards, Loans, and Benefits boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com | > New to Forum? Click for Guide <

Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
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# 26
StepChange_James
Old 07-12-2012, 4:04 PM
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The myth:

A debt management plan usually takes 10 years or more to pay off #debtmyths

The reality:

Many people approaching us for advice on debt management worry that a debt management plan (DMP) will take forever to clear their debts. We’ve gone back over the stats for our clients who’ve completed their DMPs and found that the average plan took five years, two weeks and five days to pay off (about the same as an IVA).

We’ve got an interesting blogpost if you’re curious about the difference between an IVA and a DMP.
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

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# 27
StepChange Private Messages
Old 10-12-2012, 3:44 PM
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The myth:

If you miss payments on your credit debt you‘ll be blacklisted #debtmyths

The reality:

Please don’t worry. There’s no such thing as a ‘blacklist’. It’s nothing more than an urban legend. If you miss or reduce a payment a note will be made on your credit file. Lenders must look at your credit file before they let you borrow from them but a less-than-stellar credit rating shouldn’t exclude you from every form of lending.

If you’re getting turned down for credit it could be a sign that you need debt help. We can help you put together an income and expenditure budget and work out how best to get on top of your finances.
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# 28
StepChange_Mat
Old 11-12-2012, 3:55 PM
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The myth:

Creditors and debt collectors can call you at any time #debtmyths

The reality:

We often hear about creditors and debt collectors phoning late at night or early in the morning but, as the Office of Fair Trading (OFT) lays out in its debt collection guidelines, calling at unreasonable times or intervals is classed as harassment. This can include parts of the day if you work night shifts.

The OFT also warn debt collectors not to contact those in debt via social networking sites (read our 10 ways to stop debt collectors finding you on social media).
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# 29
StepChange_James
Old 12-12-2012, 4:02 PM
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The myth:

If you go bankrupt you will always lose your house #debtmyths

The reality:

Because bankruptcy is so complicated there’s unfortunately no blanket answer to this. It’s so important that you stay away from companies that offer to manage your bankruptcy for a fee. Instead, you should get free and independent debt advice.

If you have plenty of equity in your home, and it’s the only way to release your money in the property, the official receiver or trustee may have to sell it to help pay the bankruptcy debts. There are exceptions to this and you can read more in this government leaflet.

However if there’s little or no equity in your home you may be able to stay put if you can keep on top of the mortgage payments each month. Your official receiver may compare what you’re currently paying to local rent prices to ensure your mortgage payment is in line with them.

The official receiver or trustee still has 2 years and 3 months from the time of your bankruptcy to realise the asset if the value of the property increases.
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

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# 30
StepChange_James
Old 13-12-2012, 3:57 PM
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The myth:

If you get a county court judgment (CCJ), you’ll have to go to court #debtmyths

The reality:

All paperwork relating to county court judgments (CCJ) is sent through the post. You’d only have to attend court if you wanted to defend or vary the amount, but you certainly don’t have to do this.

Some may fancy their day in court, dressing up in a fancy suit and trying to win over judge with poetic defences and pithy asides. But they’ll be sorely disappointed; if they get a CCJ they’ll just need to post off a form they’ve filled in.
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

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# 31
StepChange_James
Old 14-12-2012, 1:17 PM
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The myth:

If you guarantee a loan for someone you’ll never be asked to make any payments. #debtmyths

The reality:

We understand why you may want to help your friend, but you should know what you’re signing up for first. When you agree to become a guarantor you’re responsible for the full debt if the person that borrowed the money can’t keep up with the payments.

Not being able to pay is usually down to events outside a person’s control, but could potentially leave you, the guarantor, in need of debt help. Think as well of the rift that could cause between you and the person you tried to help. Chances are you won’t be too impressed with them!

For this reason we recommend that you never act as a guarantor unless you’re able to afford the repayments.
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

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# 32
StepChange_James
Old 17-12-2012, 4:19 PM
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The myth:

There are lots of free debt management companies #debtmyths

The reality:

UK-based fee-charging debt management companies that promote their services as “free” are breaking strict advertising rules introduced on 1st September 2010.

This came after some organisations had been guilty of misleading the public, claiming to offer “free” help and advice in their advertising even though a typical plan from a fee-charging debt management company could cost around £5,000.

You should never pay for debt help. We provide free, impartial debt help and advice with no hidden charges.

Other organisations offering genuinely free debt advice include:
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

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# 33
mats84
Old 17-12-2012, 11:14 PM
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Quote:
Originally Posted by GD2 View Post
As CCCS have taken the time to answer Depth Charge, why won't they answer another straightforward question? It isn't a particularly hard question to answer, i.e. as a charity why do you turn people away?

Would be nice to have public clarification, even if only for newbies to the boards on here.
I have had a lot of support from StepChange so I will admit I'm biaised but I think people have got this a little wrong. StepChange exists to provide debt advice and help people with problems to find the right solution for them. If as it has been for me a DMP is the right solution then all well and good but for many people other solutions will be more appropriate. StepChange don't turn anyome away, but if a DMP is not the best option for someone's circumstances then it's only right not to put them on one surely?
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# 34
GD2
Old 18-12-2012, 2:27 PM
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You are so wrong I'm afraid. If a DMP is a good solution, but your affordability is limited, say less than £100 per month, then CCCS will not help and will pass the burden (don't like using that word but it is the best I can think of) either back to the debtor and advise self help or point to somewhere like CAB.

If self help or CAB is the right way to go when you can afford £50 per month, then why is their offer of help a better route when you can afford, say, £400 per month? Make your own mind up as to the answer to that particular countdown conundrum.

So, yes, they DO turn people away when their assistance could be argued to be most needed. I notice though, that whilst you took the time to make your point, and good on you for doing so, CCCS pointedly ignored a very reasonable question.

There are lots of others, but one at a time will do.
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# 35
StepChange_Mat
Old 18-12-2012, 4:00 PM
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The myth: All of your creditors need to agree to your IVA proposal for it to go ahead #debtmyths

The reality:

All of your creditors will be sent a copy of your IVA proposal and will be given a day and time to vote at your creditor meeting.

Not all of your creditors need to accept the IVA terms for your IVA to be approved. The proposal needs to be accepted by 75% of creditors in value who vote at the meeting.

Even if some creditors vote to reject your IVA they can be outvoted by creditors who hold a higher proportion of your debt. Once approved the vote is legally binding for all your creditors, even those who voted to reject it, or didn’t vote at all.
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# 36
StepChange_Mat
Old 18-12-2012, 4:12 PM
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Quote:
Originally Posted by GD2 View Post
You are so wrong I'm afraid. If a DMP is a good solution, but your affordability is limited, say less than £100 per month, then CCCS will not help and will pass the burden (don't like using that word but it is the best I can think of) either back to the debtor and advise self help or point to somewhere like CAB.

If self help or CAB is the right way to go when you can afford £50 per month, then why is their offer of help a better route when you can afford, say, £400 per month? Make your own mind up as to the answer to that particular countdown conundrum.

So, yes, they DO turn people away when their assistance could be argued to be most needed. I notice though, that whilst you took the time to make your point, and good on you for doing so, CCCS pointedly ignored a very reasonable question.

There are lots of others, but one at a time will do.
Hi GD2

We only recommend a debt management plan when it’s best advice for the clients own situation. We don’t have any set criteria for affordability and we have no £100 threshold for DMPs.

It’s probably worth emailing us directly if you have any questions about our policies.

Kind regards,

Mat
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# 37
fermi
Old 19-12-2012, 9:24 AM
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Please keep this thread on topic for discussion of the #debtmyths posts

As requested earlier, if you have other comments/questions then you can post on the main forum/thread, contact via emails etc.
I'm a Board Guide on the Debt-Free Wannabe, Bankruptcy, Credit Cards, Loans, and Benefits boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com | > New to Forum? Click for Guide <

Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

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# 38
dancingfairy
Old 19-12-2012, 9:47 AM
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Maybe this thread could be kept to the myths by Stepchange and the questions be answered (and linked to) and answered in another thread as the questions should be answered.
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# 39
StepChange_Rachel
Old 19-12-2012, 3:51 PM
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The myth:

Your bank can’t take money from your account without permission #debtmyths

The reality:

This catches out a lot of our clients. If you’ve got debts with the bank that your income is paid to, they can take money to pay towards your debts without warning.

For example if you have a current account and a loan with the same bank and are behind on payments, the bank can take money that’s in your account to pay the loan. Remember that a lot of banks are connected nowadays (Lloyds TSB with the likes of Halifax and Bank of Scotland, for example).

This is called the right of offset (point 4) and if you’re worried about the bank taking your money we recommend that you open a basic bank account with a completely impartial bank.
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


Last edited by StepChange_Rachel; 19-12-2012 at 3:55 PM.
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# 40
Lensman
Old 19-12-2012, 9:18 PM
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This is a thread entitled StepChange #debtmyths. From the start it has had a narrow scope.

Posts about the general policies of StepChange should not be posted here - the scope is Debt Myths. Off topic posts may have merit and value, but they dilute the meaning of the thread for posters looking for advice on the subject matter.

Off topic posts should therefore be moderated IMO.
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