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  • FIRST POST
    • MSE Andrea
    • By MSE Andrea 18th Nov 16, 1:05 PM
    • 8,325Posts
    • 20,420Thanks
    MSE Andrea
    Struggling with debt? Ask a debt advisor a question
    • #1
    • 18th Nov 16, 1:05 PM
    Struggling with debt? Ask a debt advisor a question 18th Nov 16 at 1:05 PM
    If you need help with your debts, this is the thread for you.

    Trained advisors from StepChange Debt Charity (formerly CCCS) are here and waiting to answer your debt questions. Theyíre a friendly bunch so please donít be shy!

    There are three ways to get in touch:

    1 - Simply post your question below and Richard, Allen, Rachael, Linsi or Kirsty will reply. If your question is about bankruptcy, then pop over to the Bankruptcy board.

    2 - If you would prefer to ask a question in private, feel free to send a message to StepChange Private Messages.

    3 Ė StepChange Debt Remedy is a free and confidential online debt advice tool. You can put a budget together at your pace, and you can also talk it over with an advisor through online chat.

    If you're a StepChange Debt Charity client already, please contact its Aftercare team rather than posting in this thread (their contact details are in your Welcome Pack).

    This is discussion thread part four, see parts one, two and three.

    Finally, follow @MSE_Forum on twitter for debate and discussion on all things MoneySaving and more.

    If you havenít already, join the forum to reply!
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Page 20
  • StepChange_Rachael
    Hi

    Thanks for getting in contact.

    A debt solution such as a debt management plan (DMP) should be based on what is affordable to offer the creditors after youíve paid your household bills and general living costs.

    Household and general living costs take priority over unsecured debts and a budget should always be based on what your essential living costs are. Then what is left over can be used to work out the best debt solution for you.

    Where you can realistically cut back on household expenditure to help pay back the creditors sooner this is beneficial.

    The creditors expectations for spending is based on something called the common financial statement. This shows average spending for households of various sizes. If your spending is outside of these averages it can make it less likely they will agree to accept reduced payment plans. The common finanacial statement isn't accessable to the public and as far as i'm aware there isn't a publically accessable list.

    Our Debt Remedy tool, which is free and anonymous, works on averages for your household and will flag up any areas that are outside the averages creditors, would expect to see.

    Debt Remedy can be used as a guide to building a realistic budget and to see if any areas of expenditure may be questioned by the creditors.

    I hope this helps.

    Thanks
    Rachael



    hi can I ask is there a list of amounts that are allowed of a DMP for groceries, telephone etc ?

    thanks
    Originally posted by Desperadoo
    I work as a debt advisor for StepChange Debt Charity 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.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
    • Lam39
    • By Lam39 7th Jul 17, 11:51 AM
    • 1 Posts
    • 0 Thanks
    Lam39
    Hi,

    My husband and I purchased our first home in June of last year and managed to do so retaining about £4000 in savings. We underestimated how much things would cost to do up and how much more furniture we would need (coming from a small flat to a 3 bed house!). Since then we've spent what we had in savings and put a lot on the credit card/store cards.We managed to consolidate a lot of this into a loan which we are now paying back but we still have the following:

    Store card 1: £600 (made up of various Buy no pay laters, £400 due in sept and £200 due next year)
    Credit Account with Store: £435
    Credit card 1: £1850 (limit £2000)
    Credit card 2: £300 (limit £2000)
    Overdraft 1: £300 (limit £390)
    Overdraft 2: £175 (limit £200)
    Overdraft 3: £100 (limit £150)

    As you can see these all add up, and we appear to be ineligible for further lending so a balance transfer would not be an option. My husband works full time and I don't work, we don't have any children. I'm not sure what the best approach is to paying this off. We only have £200 in savings and at the end of each month we are only left with around £275 after all our bills and loan payments etc. go out. My husband is applying for a temporary promotion for 6 months which would give us an extra £430 per month were he to get it.

    Please could we have a little advice on how to move forward? Many thanks for your time.

    L
    Last edited by Lam39; 07-07-2017 at 11:52 AM. Reason: Typo
    • colemnic
    • By colemnic 7th Jul 17, 1:44 PM
    • 6 Posts
    • 1 Thanks
    colemnic
    County Court Claim in progress
    Hi lauded experts!!

    I'm hoping you can help me with a credit card debt matter that I've been working on recently ... I had got advice from another forum but seems it's now closed even though the steps advised and taken had worked to date.
    Here's a quick summary of what's happened ... now I really need help on what to do next!

    1. 26/04/2017: received a N1SDT claim form from County Court Business Centre, Northampton which details the claimant as Hoist Portfolio Holding 2 Ltd and also Howard Cohen And Co, Leeds (assume solicitors).!
    This is related to a debt for Barclaycard of £11k which was originally taken out approximately 3 or 4 years ago.
    2. 04/05/2017: Acknowledge Service with intention to defend within 14 days
    3. 04/05/2017: Sent CPR 31.14 to solicitors
    4. 04/05/2017: Sent a request for a copy of the agreement under Section 77-79 of the Consumer Credit Act to the claimant
    5. 25/05/2017: Defence Submitted & Received
    6. 29/06/2017: DQ sent to me
  • StepChange_Allen
    Hi,

    My husband and I purchased our first home in June of last year and managed to do so retaining about £4000 in savings. We underestimated how much things would cost to do up and how much more furniture we would need (coming from a small flat to a 3 bed house!). Since then we've spent what we had in savings and put a lot on the credit card/store cards.We managed to consolidate a lot of this into a loan which we are now paying back but we still have the following:

    Store card 1: £600 (made up of various Buy no pay laters, £400 due in sept and £200 due next year)
    Credit Account with Store: £435
    Credit card 1: £1850 (limit £2000)
    Credit card 2: £300 (limit £2000)
    Overdraft 1: £300 (limit £390)
    Overdraft 2: £175 (limit £200)
    Overdraft 3: £100 (limit £150)

    As you can see these all add up, and we appear to be ineligible for further lending so a balance transfer would not be an option. My husband works full time and I don't work, we don't have any children. I'm not sure what the best approach is to paying this off. We only have £200 in savings and at the end of each month we are only left with around £275 after all our bills and loan payments etc. go out. My husband is applying for a temporary promotion for 6 months which would give us an extra £430 per month were he to get it.

    Please could we have a little advice on how to move forward? Many thanks for your time.

    L
    Originally posted by Lam39
    Hi there

    Thanks for posting and explaining the situation.

    I'm sure there's a solution to this problem to get out of the debt situation you're in. We can only guarantee giving the best possible accurate advice with a full overview of your financial situation. We can then assess whether you need a debt solution or if you could manage these current debts in a different way.

    You can register with us free of charge; all our contact details to register on the phone or online can be found here: www.stepchange.org/Contactus

    I hope this is helpful.

    Allen
    I work as a debt advisor for StepChange Debt Charity 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.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
    • Desperadoo
    • By Desperadoo 7th Jul 17, 10:09 PM
    • 29 Posts
    • 55 Thanks
    Desperadoo
    Hi

    Thanks for getting in contact.

    A debt solution such as a debt management plan (DMP) should be based on what is affordable to offer the creditors after youíve paid your household bills and general living costs.

    Household and general living costs take priority over unsecured debts and a budget should always be based on what your essential living costs are. Then what is left over can be used to work out the best debt solution for you.

    Where you can realistically cut back on household expenditure to help pay back the creditors sooner this is beneficial.

    The creditors expectations for spending is based on something called the common financial statement. This shows average spending for households of various sizes. If your spending is outside of these averages it can make it less likely they will agree to accept reduced payment plans. The common finanacial statement isn't accessable to the public and as far as i'm aware there isn't a publically accessable list.

    Our Debt Remedy tool, which is free and anonymous, works on averages for your household and will flag up any areas that are outside the averages creditors, would expect to see.

    Debt Remedy can be used as a guide to building a realistic budget and to see if any areas of expenditure may be questioned by the creditors.

    I hope this helps.

    Thanks
    Rachael
    Originally posted by StepChange_Rachael
    thanks will have a look at the site
  • StepChange_Allen
    Hi lauded experts!!

    I'm hoping you can help me with a credit card debt matter that I've been working on recently ... I had got advice from another forum but seems it's now closed even though the steps advised and taken had worked to date.
    Here's a quick summary of what's happened ... now I really need help on what to do next!

    1. 26/04/2017: received a N1SDT claim form from County Court Business Centre, Northampton which details the claimant as Hoist Portfolio Holding 2 Ltd and also Howard Cohen And Co, Leeds (assume solicitors).!
    This is related to a debt for Barclaycard of £11k which was originally taken out approximately 3 or 4 years ago.
    2. 04/05/2017: Acknowledge Service with intention to defend within 14 days
    3. 04/05/2017: Sent CPR 31.14 to solicitors
    4. 04/05/2017: Sent a request for a copy of the agreement under Section 77-79 of the Consumer Credit Act to the claimant
    5. 25/05/2017: Defence Submitted & Received
    6. 29/06/2017: DQ sent to me
    Originally posted by colemnic

    Hi there

    Welcome to the forum and thanks for posting.

    As you'll know by now, the process for defending a claim isn't easy. From what you've explained the next stage is for you (and the claimant) to fill in and return the Directions Questionnaire (DQ).

    An important thing to be clear on is whether you've received the N180 or N181, which determines whether you're going through the Small Claims Track or Fast Track. The process is a little more straightforward if it's the N180, but if it's the N181 it means you'd be liable for the creditor's legal fees if you lose the case. Because of that, if you have the N181 we'd advise seeking legal advice at this stage.

    If it's the N180, then you'd fill in the form in the following way:

    A - Settlement/Mediation - tick 'Yes' - mediation is free for small claims, and if both you and the creditor agree it's likely to be cheaper and quicker to resolve this way instead of needing a hearing.

    B - Complete your contact details

    C - Track - tick 'yes'

    D - About the hearing - In D1, write your nearest court and state "This is my local court and the hearing should be here to ensure I can afford to attend and both parties are on equal footing (CPR 1.1(2)(a))"

    The directions questionnaire should be sent with any supporting documents back to the court, ensuring it arrives before the stated deadline.

    Please contact the creditor again to try and resolve the matter direct without need for the hearing, sending a copy of the N180 and any supporting documents to the creditor.

    Should you resolve the dispute before the hearing, please let the court know straight away.

    If not resolved still, once the court has the DQs back from both of you, a hearing will probably result and you'll be informed of this in writing.

    I hope this helps. Should you require anything further please let us know.

    Allen
    I work as a debt advisor for StepChange Debt Charity 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.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
    • 100kdeep
    • By 100kdeep 11th Jul 17, 11:20 AM
    • 9 Posts
    • 5 Thanks
    100kdeep
    Interest
    Hi experts
    I'm considering a dmp with step change I have 80k of credit card debt split between 8 accounts
    And 12k of loan left
    All credit is on promotional rates like 4.9 apt or 0 Apr the loan in 7 Apr
    Because of circumstances and job being commission based. Which has no gauartees my payment would only be around £500 a month (0.5 percent of debt per creditor a month) ,17 years to clear debt.
    The creditors are
    Mbna x 2
    Barclay card x 2
    Hsbc
    Tesco
    Tesco loan
    Nationwide
    RBS
    Would these creditors agree to freeze interest because even if they only charged 6 Apr my payment wouldn't even cover the interest?
    I can't do an iva because my basic wage doesn't cover normal living expenses and commission veries a lot . Ie one month take home could be 1700 next could be 3000.
    Also my job could be at risk if I was made insolvent.
    Just wondered if anyone could answer on these creditors ?
    I know 17 years is a long time but I would rather treat it like an extra mortgage. I'm 35 so debt would be clear by 50 as circumstance will improve when my wife goes back to work full time and kids go to school (No child care)

    If I enter a dmp and creditors don't agree to freeze interest I would be adding £1200 a month interest charges as I would be breaking the promotional terms
    • colemnic
    • By colemnic 11th Jul 17, 12:44 PM
    • 6 Posts
    • 1 Thanks
    colemnic
    Hi there

    Welcome to the forum and thanks for posting.

    As you'll know by now, the process for defending a claim isn't easy. From what you've explained the next stage is for you (and the claimant) to fill in and return the Directions Questionnaire (DQ).

    An important thing to be clear on is whether you've received the N180 or N181, which determines whether you're going through the Small Claims Track or Fast Track. The process is a little more straightforward if it's the N180, but if it's the N181 it means you'd be liable for the creditor's legal fees if you lose the case. Because of that, if you have the N181 we'd advise seeking legal advice at this stage.

    If it's the N180, then you'd fill in the form in the following way:

    A - Settlement/Mediation - tick 'Yes' - mediation is free for small claims, and if both you and the creditor agree it's likely to be cheaper and quicker to resolve this way instead of needing a hearing.

    B - Complete your contact details

    C - Track - tick 'yes'

    D - About the hearing - In D1, write your nearest court and state "This is my local court and the hearing should be here to ensure I can afford to attend and both parties are on equal footing (CPR 1.1(2)(a))"

    The directions questionnaire should be sent with any supporting documents back to the court, ensuring it arrives before the stated deadline.

    Please contact the creditor again to try and resolve the matter direct without need for the hearing, sending a copy of the N180 and any supporting documents to the creditor.

    Should you resolve the dispute before the hearing, please let the court know straight away.

    If not resolved still, once the court has the DQs back from both of you, a hearing will probably result and you'll be informed of this in writing.

    I hope this helps. Should you require anything further please let us know.

    Allen
    Originally posted by StepChange_Allen
    Hi Allen, thanks so much for this. It is in fact the N181 that I've received with notification of Fast Track.
    Can you give me some more info on where to get advice on this and what the best next steps are?

    Thanks
  • StepChange_Kirsty
    Hi,

    Thanks for your post.

    When it comes to debt management plans (DMP) we can never guarantee that the creditors will agree to freeze interest and charges. This is because the DMP is an informal arrangement with the creditors and they are not legally bound to freeze interest and charges and not take any further action. However, in our experience where a DMP is an appropriate solution, creditors will often agree to freeze interest and charges to prevent further financial difficulty.

    First of all we need to make sure that the DMP is a solution which is right for your circumstances and to do this we need to you to complete a budget with us.

    There are a couple of ways you can do this. This easiest way is by using our online Debt Remedy tool where you can input details of your income, expenditure and list of creditors. From this Debt Remedy will provide you with advice in the form of a personal action plan.

    Alternatively, if youíd prefer to speak to us over the phone, you can contact us and have a debt advice session with one of our specialist advisors.

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

    Kirsty

    Hi experts
    I'm considering a dmp with step change I have 80k of credit card debt split between 8 accounts
    And 12k of loan left
    All credit is on promotional rates like 4.9 apt or 0 Apr the loan in 7 Apr
    Because of circumstances and job being commission based. Which has no gauartees my payment would only be around £500 a month (0.5 percent of debt per creditor a month) ,17 years to clear debt.
    The creditors are
    Mbna x 2
    Barclay card x 2
    Hsbc
    Tesco
    Tesco loan
    Nationwide
    RBS
    Would these creditors agree to freeze interest because even if they only charged 6 Apr my payment wouldn't even cover the interest?
    I can't do an iva because my basic wage doesn't cover normal living expenses and commission veries a lot . Ie one month take home could be 1700 next could be 3000.
    Also my job could be at risk if I was made insolvent.
    Just wondered if anyone could answer on these creditors ?
    I know 17 years is a long time but I would rather treat it like an extra mortgage. I'm 35 so debt would be clear by 50 as circumstance will improve when my wife goes back to work full time and kids go to school (No child care)

    If I enter a dmp and creditors don't agree to freeze interest I would be adding £1200 a month interest charges as I would be breaking the promotional terms
    Originally posted by 100kdeep
    I work as a debt advisor for StepChange Debt Charity 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.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • StepChange_Kirsty
    Hi,

    Thanks for your response.

    As your case has been allocated to the fast track, this suggests that the claim is for more than £10,000 or it's complex. In fast track cases, whilst mediation is likely to be cheaper, it is not free so I would definitely suggest seeking independent legal advice at this stage.

    There is a guide on the Courtís website which explains in more detail how the fast track process works and what to expect next. You can find the leaflet here. Whilst this is a very useful guide, it should not replace seeking specialist advice for your individual case. The government website contains useful information about where to get further advice.

    I hope this helps. All the best.

    Kirsty

    Hi Allen, thanks so much for this. It is in fact the N181 that I've received with notification of Fast Track.
    Can you give me some more info on where to get advice on this and what the best next steps are?

    Thanks
    Originally posted by colemnic
    I work as a debt advisor for StepChange Debt Charity 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.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
    • haelen
    • By haelen 11th Jul 17, 4:42 PM
    • 25 Posts
    • 3 Thanks
    haelen
    Redundant Since March. Minor Debts
    Hi,

    I'm self-employed, and was made redundant at the beginning of March, and am currently receiving JSA.

    I have a small (in the scheme of things) number and amount of debts as follows:

    Tax Credit overpayment: £1460
    Leeds Credit Union Loan £700
    Self Employed Tax payment on account £1200 (coming due 31st July)
    Capital One Credit Card £1250

    I have ban overdraft of £1500 (this has been the established amount for some years.)

    At this stage, I'm thinking of asking Capital One to make a payment plan (despite interest still accruing) and the same with HMRC re: self-employment Tax.

    I already have repayment plans with both Leeds Credit Union and HMRC for Tax Credit overpayment.

    Any advice or recommendations would be most welcome.

    Best,
    T
    • miaoww
    • By miaoww 11th Jul 17, 6:25 PM
    • 402 Posts
    • 1,331 Thanks
    miaoww
    help
    Hi guys - I don't know which way to turn re spiralling debt
    iva or debt management plan?
    im a full time working single mum - just divorced was hoping to secure the house / remortgage - ive got a court consent order saying that my ex agrees to sign it ( this will have to wait a while longer now! my own silly fault). Ive have been silently struggling for a while and am now at the stage where I don't think I can meet my minimum monthly payments on my cards - I don't know what to do now / whats my best options
    please help
    my budget as close as I can get it - ive prob been paying more for credit cards somehow bouncing one onto the next ( I know!)Statement of Affairs and Personal Balance Sheet
    Monthly Income Details
    Income from Employment (after tax). . . . . . . . . . . . . . . . . . . . . . . 1,601.36
    Income from Self Employment (before tax). . . . . . . . . . . . . . . . . . . . 0.00
    State Pension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Private Pension / Annuity Payout. . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Benefits (Inc. Child Benefit/Tax Credits & Income Support). . . . . . . . . . . 391.96
    Income From Savings & Investments . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Gifts From Family / Friends . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Monthly Expense Details
    In Your Home
    Mobile phones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.00
    TV licence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.12
    Internet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.00
    Home phone. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Cleaning products/Cleaner . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Garden maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Household maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Oil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Electricity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45.00
    Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.00
    Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46.91
    Council tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84.00
    Overdraft cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Bank account fee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Home insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.43
    Mortgage/Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 601.45
    Plumbing/Boiler cover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Mortgage life insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Mortgage payment protection . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Life insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.73
    Food and household shopping . . . . . . . . . . . . . . . . . . . . . . . . . . 250.00
    Drinks for home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00
    sky . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    secured loan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 486.98
    car tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    loan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157.28
    car insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    charity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.50
    Motoring & Public Transport
    Petrol/Diesel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.00
    Parking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Car tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.37
    Car insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43.54
    Car maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.00
    Rail/Buses/Taxis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Breakdown cover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Debt Repayments
    Credit card repayments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400.00
    Hire purchase repayments. . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Personal loan repayments. . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Car loan repayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Savings & Investments
    Pension payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Buying shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Cash ISAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Lump sum saving . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Regular saving. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Family
    Pet food. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.67
    School trips. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00
    School meals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Pocket money. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.00
    Nappies/Baby extras . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Laundry/Dry cleaning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Children's travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Baby-sitting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Childcare/Playgroups. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Pet insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Travel insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Entertainment
    Satellite/Digital TV. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39.39
    Family days out . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Cinema/Theatre trips. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Books/Music/Films/Computers . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Big days out. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Shopping for fun. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Pet costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.00
    Hobbies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    IT/Computing (antivirus, etc) . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    DVD rental. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Drinking out. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Eating out. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Clothes, Health & Beauty
    Complementary therapies . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Optical bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.76
    Haircuts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Dentistry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Beauty treatments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.00
    Healthcare cash plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Dental insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Private medical insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Fitness/Sports/Gym. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Work clothes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    New children's clothes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00
    New clothes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Education & Courses
    University tuition fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    School fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Your courses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Big One-Offs
    Funeral expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Wedding expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Sofa/Kitchen/TV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Birthdays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.33
    Winter holiday. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Summer holiday. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.00
    Christmas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.00
    Odds & Sods
    Newspapers and magazines. . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Tax & NI Provisions (self-employed only). . . . . . . . . . . . . . . . . . . . 0.00
    Regular charity donations . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Meals at work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Smokes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Coffees/Sandwiches/Snacks . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00

    Total monthly income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,993.32

    Total monthly expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,582.46

    BR as of 14/1/2009
    Discharged Oct 2009
    BC 24
    • clanger66
    • By clanger66 11th Jul 17, 6:41 PM
    • 1 Posts
    • 0 Thanks
    clanger66
    DMP or contact creditors direct?
    Hi, my partner has credit card debts due to re training and is struggling to meet the payments, he is behind with payments at present. He has contacted Step Change and is considering a debt management plan, but was told this would be on his credit file for 6 years, is this correct? We are hoping at some point to get a mortgage in the future. If he contacted the credit card companies himself and told them of his difficulties would this affect his credit file in the same way? One of the credit card companies has agreed to 0 % interest since a year ago but he is struggling to meet the payments and wants them reduced.
  • StepChange_Rachael
    Hi

    Thanks for your post.

    Iím sorry to hear you were made redundant from your job.

    Most creditors will be understanding of the situation and willing to come to an agreement for reduced payments while youíre out of work and on JSA.

    Itís important to keep creditors updated of the situation if you're going to miss the contractual payments, most creditors will want a financial statement showing your income, expenditure and list of creditors so they can see that the payment you make to them is fair and affordable.

    Itís important to make sure the amount you offer them is going to be realistic for you, taking into account your household bills and living costs as a priority.

    When making reduced payments to your creditors it can lead to defaults and possible further collections action, the HMRC have more rights of collection.

    Also, if youíre still using the bank with the overdraft then be mindful of this, you can find more details on bank account advice here.

    I'd also generally advise that any payment available to the creditors is split using a pro-rata calculation so itís a fair payment depending on the debt totals.

    You can use Debt Remedy which is an online tool to complete a budget and receive debt advice. As well as tailored debt advice you can also use the budget to support any offers of payments to your creditors.

    Take care
    Rachael







    Hi,

    I'm self-employed, and was made redundant at the beginning of March, and am currently receiving JSA.

    I have a small (in the scheme of things) number and amount of debts as follows:

    Tax Credit overpayment: £1460
    Leeds Credit Union Loan £700
    Self Employed Tax payment on account £1200 (coming due 31st July)
    Capital One Credit Card £1250

    I have ban overdraft of £1500 (this has been the established amount for some years.)

    At this stage, I'm thinking of asking Capital One to make a payment plan (despite interest still accruing) and the same with HMRC re: self-employment Tax.

    I already have repayment plans with both Leeds Credit Union and HMRC for Tax Credit overpayment.

    Any advice or recommendations would be most welcome.

    Best,
    T
    Originally posted by haelen
    I work as a debt advisor for StepChange Debt Charity 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.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • StepChange_Rachael
    Hi

    Thanks for posting and for your expenditure breakdown, itís great to have a full breakdown as it'll help you find suitable debt solutions and also help you budget going forward.

    When it comes to a suitable solution it depends on what's affordable towards the debts and the debt total. This is important to see if the debt can be paid back in a realistic time frame as well as other aspects such as expected changes in your financial situation.

    When it comes to a repayment solution, like a debt management plan (DMP) over insolvency, such as an individual voluntary arrangment (IVA), other things need to be taken into account which can mean one solution might be more suitable to one person than the other, for example employment, assets etc.

    Taking a look at the budget Iíve noted that the repayments to unsecured debts are £557.82 a calendar month. The credit card repayments of £400 and under loan £157.82 (which I assume is an unsecured loan). Taking this away from your income the budget is still showing an overspend.

    I think the best way for you to be able to explore suitable debt solution options would be to get tailored debt advice.

    If youíd like you can use Debt Remedy which is our online debt advice tool, you can find and complete it here.

    Thanks
    Rachael





    Hi guys - I don't know which way to turn re spiralling debt
    iva or debt management plan?
    im a full time working single mum - just divorced was hoping to secure the house / remortgage - ive got a court consent order saying that my ex agrees to sign it ( this will have to wait a while longer now! my own silly fault). Ive have been silently struggling for a while and am now at the stage where I don't think I can meet my minimum monthly payments on my cards - I don't know what to do now / whats my best options
    please help
    my budget as close as I can get it - ive prob been paying more for credit cards somehow bouncing one onto the next ( I know!)Statement of Affairs and Personal Balance Sheet
    Monthly Income Details
    Income from Employment (after tax). . . . . . . . . . . . . . . . . . . . . . . 1,601.36
    Income from Self Employment (before tax). . . . . . . . . . . . . . . . . . . . 0.00
    State Pension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Private Pension / Annuity Payout. . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Benefits (Inc. Child Benefit/Tax Credits & Income Support). . . . . . . . . . . 391.96
    Income From Savings & Investments . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Gifts From Family / Friends . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Monthly Expense Details
    In Your Home
    Mobile phones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.00
    TV licence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.12
    Internet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.00
    Home phone. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Cleaning products/Cleaner . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Garden maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Household maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Oil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Electricity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45.00
    Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.00
    Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46.91
    Council tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84.00
    Overdraft cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Bank account fee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Home insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.43
    Mortgage/Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 601.45
    Plumbing/Boiler cover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Mortgage life insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Mortgage payment protection . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Life insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.73
    Food and household shopping . . . . . . . . . . . . . . . . . . . . . . . . . . 250.00
    Drinks for home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00
    sky . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    secured loan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 486.98
    car tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    loan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157.28
    car insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    charity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.50
    Motoring & Public Transport
    Petrol/Diesel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.00
    Parking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Car tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.37
    Car insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43.54
    Car maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.00
    Rail/Buses/Taxis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Breakdown cover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Debt Repayments
    Credit card repayments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400.00
    Hire purchase repayments. . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Personal loan repayments. . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Car loan repayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Savings & Investments
    Pension payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Buying shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Cash ISAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Lump sum saving . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Regular saving. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Family
    Pet food. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.67
    School trips. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00
    School meals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Pocket money. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.00
    Nappies/Baby extras . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Laundry/Dry cleaning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Children's travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Baby-sitting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Childcare/Playgroups. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Pet insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Travel insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Entertainment
    Satellite/Digital TV. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39.39
    Family days out . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Cinema/Theatre trips. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Books/Music/Films/Computers . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Big days out. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Shopping for fun. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Pet costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.00
    Hobbies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    IT/Computing (antivirus, etc) . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    DVD rental. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Drinking out. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Eating out. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Clothes, Health & Beauty
    Complementary therapies . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Optical bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.76
    Haircuts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Dentistry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Beauty treatments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.00
    Healthcare cash plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Dental insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Private medical insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Fitness/Sports/Gym. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Work clothes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    New children's clothes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00
    New clothes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Education & Courses
    University tuition fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    School fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Your courses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Big One-Offs
    Funeral expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Wedding expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Sofa/Kitchen/TV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Birthdays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.33
    Winter holiday. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Summer holiday. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.00
    Christmas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.00
    Odds & Sods
    Newspapers and magazines. . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Tax & NI Provisions (self-employed only). . . . . . . . . . . . . . . . . . . . 0.00
    Regular charity donations . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Meals at work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Smokes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Coffees/Sandwiches/Snacks . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00

    Total monthly income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,993.32

    Total monthly expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,582.46

    Originally posted by miaoww
    I work as a debt advisor for StepChange Debt Charity 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.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • StepChange_Rachael
    Hi

    Thanks for posting.

    The impact of debt solutions on credit files can be a concern for many people who begin to struggle with the contractual payments but there are a lot of myths out there.

    It is correct that a credit file will be impacted by making reduced payments or missing the contractual payments. At some stage if your partner makes reduced payments or continues missing payments the creditors will issue a default on your partners credit file. This will happen whether a reduced payment is through a debt management plan or if itís made directly by your partner.

    Each debt can only be defaulted once, which will come off 6 years from the date it was added.

    A default isnít the only thing that will impact your partnerís credit file as many different things positively and negatively impact a credit rating.

    Defaults on a credit file wonít stop someone getting a mortgage as a mortgage will be agreed not only on the credit file but also the deposit, employment and income etc. However, while itís on there it will have some negative impact.

    When someone is making payments towards their debt which has defaulted the creditors often put a flag next to the debt. This is seen as a positive as it shows even though the debt defaulted, there is a repayment arrangement in place.

    Credit files generally improve over time, the important thing is that your partner is finding a way to deal with the debt before it becomes more problematic.

    I hope that helps answer your query.

    Thanks
    Rachael



    Hi, my partner has credit card debts due to re training and is struggling to meet the payments, he is behind with payments at present. He has contacted Step Change and is considering a debt management plan, but was told this would be on his credit file for 6 years, is this correct? We are hoping at some point to get a mortgage in the future. If he contacted the credit card companies himself and told them of his difficulties would this affect his credit file in the same way? One of the credit card companies has agreed to 0 % interest since a year ago but he is struggling to meet the payments and wants them reduced.
    Originally posted by clanger66
    I work as a debt advisor for StepChange Debt Charity 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.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
    • rd93
    • By rd93 12th Jul 17, 12:00 PM
    • 1 Posts
    • 0 Thanks
    rd93
    I'm at a crossroads
    Good Morning Everyone,

    I need some advice on what you think would be the best decision for me to take.

    I am in debt to the tune of c £17k, due to gambling. I am now gamble free, and want to move on with my life. I have a surplus of my income of around £300 per month. I can live comfortably from £1,000 of my £1,300 per month wage.

    The question is, my job is quite dead end, and I have places ready for September at University.

    I am wondering if the better option for me personally is to apply for a DRO and attend university, as it is my understanding I would be able to get a DRO as I would meet the requirements; or do I stick with the DMP I am setting up and continue to pay it off over the next 5 years?
    • FreeMama17
    • By FreeMama17 12th Jul 17, 2:52 PM
    • 9 Posts
    • 0 Thanks
    FreeMama17
    Hi,
    I've received a letter from Moorcroft DCA, but it shows no details of who the creditor is or what the amount is. Is there a template letter I need to send them? It's not to get them to prove the debt is mine - it's to find out what they've contacted me about, if you see what I mean.

    Thanks in advance.
  • StepChange_Rachael
    Hi

    Thanks for your post.

    I can see how it'd be a difficult decision to make and it's important to take into consideration when looking at debt solutions, changes in your financial situation.

    Debt solutions can have quite strict criteria and in particular debt relief orders (DROs). It would be difficult to suggest this solution without knowing your full financial situation and a good idea of the changes your expecting to your finances.

    A DRO has to be applied through a money advisory service before the application is sent to the insolvency service, who then have the ultimate say if it is accepted.

    A DRO wouldnít be a suitable solution at the moment where you are able to make monthly repayments of £300 to your creditors however; a DMP may not be the best solution if you decide to go to University and are unable to make regular affordable monthly repayments.

    Iíd suggest discussing your options with a non-fee charging debt advisory service like StepChange so that this change in your situation can be taken into account while discussing suitable debt solutions.

    Hope this helps,

    Take care
    Rachael

    Good Morning Everyone,

    I need some advice on what you think would be the best decision for me to take.

    I am in debt to the tune of c £17k, due to gambling. I am now gamble free, and want to move on with my life. I have a surplus of my income of around £300 per month. I can live comfortably from £1,000 of my £1,300 per month wage.

    The question is, my job is quite dead end, and I have places ready for September at University.

    I am wondering if the better option for me personally is to apply for a DRO and attend university, as it is my understanding I would be able to get a DRO as I would meet the requirements; or do I stick with the DMP I am setting up and continue to pay it off over the next 5 years?
    Originally posted by rd93
    I work as a debt advisor for StepChange Debt Charity 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.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • StepChange_Rachael
    Hi

    Thanks for getting in contact.

    There is a template letter that you can use and it is found on the StepChange website.

    This letter is to request the original agreement information they are now collecting for.

    The collections agency should send back the details including copies of the original documentation explaining who the original creditor is, how much is left outstanding and what payments have been made so far.

    You could also call them directly to ask for details of the debt. They should be able to give you the details you want over the phone but you might also want written correspondence as confirmation.

    Hope this is helpful,

    Thanks
    Rachael



    Hi,
    I've received a letter from Moorcroft DCA, but it shows no details of who the creditor is or what the amount is. Is there a template letter I need to send them? It's not to get them to prove the debt is mine - it's to find out what they've contacted me about, if you see what I mean.

    Thanks in advance.
    Originally posted by FreeMama17
    I work as a debt advisor for StepChange Debt Charity 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.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
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