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  • FIRST POST
    • MSE Andrea
    • By MSE Andrea 18th Nov 16, 1:05 PM
    • 8,695Posts
    • 20,973Thanks
    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 24
  • StepChange_Linsi
    Hi Lauren

    Thank you for your message and welcome to the forum.

    Iím sorry to hear youíre struggling and have to rely on your credit card at the end of the month.

    Without knowing more about your situation I canít say whether an IVA or a DMP would be right for you. If youíd like a second opinion on the best way to manage your debts Iíd recommend you use our online Debt Remedy tool, hereís the link.

    The tool will help you create a budget and then recommend a solution tailored to your circumstances. Youíll be able to download a personal action plan which will explain the benefits and considerations of the recommended solution and any alternative solutions to help you decide on the best way forward.

    I hope this helps.

    Linsi

    Hello, I am writing about debts that I have incurred over the past few years. I am only 22 but have 2 credit cards, two overdrafts and a loan. I took out a £4000 loan but my dad needed it more than me so I gave him the money and he hasn't been able to pay me back. I find that I am paying so much out every month in interest but always continue spending on my credit card because I need to by the end of the month. I dont know whether I should look into getting an IVA? or DMP? the problem is that I will be wanting to buy a house in a few years and at the moment I cant afford to save any. I have been speaking to Payplan and they have said that they think an IVA is more suitable, but I dont want it to affect me for years.
    Originally posted by laurenmarsters
    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.
    • meme86
    • By meme86 14th Sep 17, 12:34 PM
    • 75 Posts
    • 17 Thanks
    meme86
    I've been in a DMP for several years now, but now things are very stable and better, I could get off this, and start to rebuild

    I have just looked at my credit report and 2 entries from Lloyds and Sainsburys both say Current status: Default/Ended and credit agreement has ended and also the accounts were settled in June 2012...
    With it saying the accounts were settled in 2012, does it just mean that the agreement was cancelled?

    Would it be wise to get in touch (in writing) to ask about going back to the 'normal/original' monthly repayments from when I originally took the loans out, or could they stick many late charges on top, and therefore would it be better so stay on the DMP, and just significantly increase the repayments that way because there would be no benefit for me coming off?
    Or maybe hold fire for a couple of months, and then send them settlement offers?
    Last edited by meme86; 14-09-2017 at 12:44 PM.
  • StepChange_Rachael
    Hi

    Thanks for posting.

    Credit files can be difficult to understand. Once a debt has a reduced payment made towards it, like in a DMP or there have been missed payments the debt will default at some point.

    This will be noted on your credit file as a default. The credit agreement will end at this point. Defaults come off automatically after 6 years from the date it was issued.

    When a debt is classed as settled on your credit file, as far as Iím aware this means that the debt repayment agreement has finished and the debt is settled.

    Settled can either mean the debt has been paid back in full or the creditor has agreed to stop collecting for a debt. A creditor agreeing to a reduced payment and settling the account usually happens when a partial lump sum has been agreed as payment to the creditor and usually shows as a partial settlement on the credit file.

    It may be worth checking with the provider of your DMP as to what is left to pay and to which creditors. The DMP company should be providing you with updates.

    Youíve mentioned youíve been in the DMP for several years; itíd be worth checking where you are and how much is left to be paid. If itís a long time then Iíd suggest seeking free, impartial debt advice to see if there are other options available, especially if there are changes in your financial situation.

    However, if you feel that you can afford to increase your payments to the original amount then itís worth doing as the debts will clear quicker.

    A creditor wonít remove a default on your credit file once you start the original payments again but it will show the debts have been paid off sooner.

    I hope this helps.

    Thanks
    Rachael




    I've been in a DMP for several years now, but now things are very stable and better, I could get off this, and start to rebuild

    I have just looked at my credit report and 2 entries from Lloyds and Sainsburys both say Current status: Default/Ended and credit agreement has ended and also the accounts were settled in June 2012...
    With it saying the accounts were settled in 2012, does it just mean that the agreement was cancelled?

    Would it be wise to get in touch (in writing) to ask about going back to the 'normal/original' monthly repayments from when I originally took the loans out, or could they stick many late charges on top, and therefore would it be better so stay on the DMP, and just significantly increase the repayments that way because there would be no benefit for me coming off?
    Or maybe hold fire for a couple of months, and then send them settlement offers?
    Originally posted by meme86
    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.
    • Nvw2908
    • By Nvw2908 18th Sep 17, 9:42 PM
    • 1 Posts
    • 0 Thanks
    Nvw2908
    Hi

    Not sure if this is the right forum but I am in about £23k of debt and I haven't defaulted on anything and am making payments but am struggling to live. I filled out a StepChange form and was advised to lower my sky/broadband but nothing else, and to be honest this won't change much. Any suggestions?
  • StepChange_Rachael
    Hi

    Welcome to the forum and thanks for your post.

    If you feel maintaining the minimum payments to your creditors is causing you to fall behind on household bills and struggle with your general living costs then we can certainly help your explore your options.

    I assume from what youíve mentioned that youíve been completing our online Debt Remedy tool. Once you reach the end youíll be able to access your advice in a personal action plan which is downloadable as a PDF file and will include our advice and recommendations. It doesnít sound as though youíve reached this stage.

    Debt Remedy works on an average of your household, if thereís areas of expenditure outside the averages Debt Remedy will flag them up to see if you can change them.

    If you canít itíll ask you to call our advisors to discuss the area and we can leave a note next to the cost to stop it flagging up and so you can carry on to your advice. The budget does need to be realistic for you so our advice will be.

    The reason we use these averages is that itís the same the courts and creditors use. Itís less likely the creditors will question our recommendations if the budget is within the averages theyíd expect to see or thereís at least a note to explain the cost.

    If youíd like to discuss the progress of your Debt Remedy further with our advisors you can find our contact details by logging back into your Debt Remedy budget here.

    Thanks
    Rachael




    Hi

    Not sure if this is the right forum but I am in about £23k of debt and I haven't defaulted on anything and am making payments but am struggling to live. I filled out a StepChange form and was advised to lower my sky/broadband but nothing else, and to be honest this won't change much. Any suggestions?
    Originally posted by Nvw2908
    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.
    • conhoj
    • By conhoj 21st Sep 17, 4:28 PM
    • 2 Posts
    • 0 Thanks
    conhoj
    Hi,
    I have a debt on a credit card, originally Marbles, it was assigned to IDEM and later assigned to Arrow Global Ltd. Arrow have made a claim in court for the debt. I have made a counter claim because the amount claimed is unfair and consists entirely of unfair charges and interest. Part of the response from Arrow is:-
    'The counterclaim relates to sums allegedly paid to the original creditor. The Defendant has not paid any sums at all to the Claimant, and therefore cannot recover the said sums from the Claimant.'
    Is Arrow Global Ltd not liable for the unfair treatment?
    Should I drop the counter claim against Arrow Global Ltd and make a claim against Marbles?
    Does this mean that I should pay Arrow Global Ltd even though I wish to contest the fairness in court?
  • StepChange_Allen
    Hi there

    Welcome to the forum and thanks for posting.

    Defending a CCJ and counter-claiming is quite complex and requires more legal advice than debt advice. At StepChange we're debt advice trained but not legally trained, so can offer only limited advice on this type of issue. I will give my best thoughts though.

    From my understanding, Arrow Global have bought the debt and hence any dispute or complaint you have about the charges is with Marbles rather than them, hence their response.

    Unfair interest and charges added by the creditor could be a valid defence to a CCJ; are you disputing the whole balance or just part of it? Did you raise a complaint to Marbles whilst they owned the debt? The court may want to see evidence that you disputed these interest and charges before the court claim was issued by Arrow.

    For more in depth advice on the process and on what you should perhaps do next, please seek legal advice. You could try your local law centre or a solicitor, and perhaps see if your home insurance cover gives free legal advice.

    Best wishes

    Allen

    Hi,
    I have a debt on a credit card, originally Marbles, it was assigned to IDEM and later assigned to Arrow Global Ltd. Arrow have made a claim in court for the debt. I have made a counter claim because the amount claimed is unfair and consists entirely of unfair charges and interest. Part of the response from Arrow is:-
    'The counterclaim relates to sums allegedly paid to the original creditor. The Defendant has not paid any sums at all to the Claimant, and therefore cannot recover the said sums from the Claimant.'
    Is Arrow Global Ltd not liable for the unfair treatment?
    Should I drop the counter claim against Arrow Global Ltd and make a claim against Marbles?
    Does this mean that I should pay Arrow Global Ltd even though I wish to contest the fairness in court?
    Originally posted by conhoj
    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.
    • conhoj
    • By conhoj 22nd Sep 17, 4:35 PM
    • 2 Posts
    • 0 Thanks
    conhoj
    I had credit cards with 5 different companies and was behind with mortgage payments. In December 2006 I notified all of them that I was in financial difficulty, thanks to advice and guidance I received from CCCS. Interest was stopped and repayment plans were agreed. At this point I owed Marbles approx £1,000. In 2009 marbles started charging interest again. I am disputing the whole remaining balance which is approx £550, the amount I am counterclaiming for late payment, interest charges and extortionate charges is £1,336 I would also ask for interest on top of that.
    I did complain to Marbles before the debt was assigned, and I believe that was the reason the debt was assigned.
    Thank you for your help I will seek legal advice from a solicitor on the best way forward.
    • rcstocko
    • By rcstocko 24th Sep 17, 2:19 PM
    • 1 Posts
    • 0 Thanks
    rcstocko
    Hello there

    I know that no debt case is Ďtypicalí, and I guess mine is no exception. Itís not caused by the loss of a job, or a huge unexpected item of expenditure, but mainly through being too busy and taking my eye off the ball over a protracted period of time.

    I have one large credit card balance (approx 6500) and a smaller credit card balance of around 600 (a remnant of a previous attempt at reducing my interest payments on the larger bill). In addition I have liabilities of around 1600 and tend to dip into my overdraft significantly by the end of the month (though through money management the overdraft situation is improving).

    Iíve only ever not paid my credit card through forgetfulness rather than inability to make the minimum payment, and the last time that happened was about 4 years ago. In truth, my comparatively high level of income has managed to disguise the problem for a while now, but I know that in around 6 monthsí time I will be taking a pay cut.

    I know I need to get a handle on things, but Iím not convinced that efficiencies in spending will be enough to dig me out of this any time soon, and I really donít want to be stuck paying this credit card off for years to come.

    I had considered taking out a personal loan given the current low rates, and using this to consolidate the debt and pay it back over 3.5-4 years. Bearing in mind the difference in interest rates, the monthly repayment wouldnít be much more than the minimum payment of the big credit card and although the end would be some time away, there would be a plan in place rather than just bumbling along.

    Iím sorry, in a way, for taking up your time with this. I know there are many others in worse positions through no fault of their own, whereas my position has been arrived at chiefly by overwork, distraction and most of all stupidity.

    Iíd appreciate any thoughts that Stepchange might have on this - I know conventional wisdom is not to solve debt using other debt, but it seems like it might be a feasible way to sort out the credit card and limit the interest paid.
  • StepChange_Allen
    I had credit cards with 5 different companies and was behind with mortgage payments. In December 2006 I notified all of them that I was in financial difficulty, thanks to advice and guidance I received from CCCS. Interest was stopped and repayment plans were agreed. At this point I owed Marbles approx £1,000. In 2009 marbles started charging interest again. I am disputing the whole remaining balance which is approx £550, the amount I am counterclaiming for late payment, interest charges and extortionate charges is £1,336 I would also ask for interest on top of that.
    I did complain to Marbles before the debt was assigned, and I believe that was the reason the debt was assigned.
    Thank you for your help I will seek legal advice from a solicitor on the best way forward.
    Originally posted by conhoj

    Hi

    Thanks for posting.

    You're welcome, and I hope the solicitor is able to offer some further help to you.

    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.
  • StepChange_Allen
    Hi there

    Welcome to the forum and thanks for posting.

    You're right that we never give advice to borrow money to pay off debt, though this doesn't mean it's always a bad idea. You'd need to be sure that you could still comfortably manage the loan payments on your lower wage. This page on the MSE site itself has some advice on loans: www.moneysavingexpert.com/loans/cheap-personal-loans

    If you decide not to, or aren't able to get something you're happy with, you can contact us to have a free assessment of your financial situation and a recommendation of options you have to deal with the debts. You can find our contact details here: www.stepchange.org/Contactus

    I hope this is helpful.

    Allen


    Hello there

    I know that no debt case is Ďtypicalí, and I guess mine is no exception. Itís not caused by the loss of a job, or a huge unexpected item of expenditure, but mainly through being too busy and taking my eye off the ball over a protracted period of time.

    I have one large credit card balance (approx 6500) and a smaller credit card balance of around 600 (a remnant of a previous attempt at reducing my interest payments on the larger bill). In addition I have liabilities of around 1600 and tend to dip into my overdraft significantly by the end of the month (though through money management the overdraft situation is improving).

    Iíve only ever not paid my credit card through forgetfulness rather than inability to make the minimum payment, and the last time that happened was about 4 years ago. In truth, my comparatively high level of income has managed to disguise the problem for a while now, but I know that in around 6 monthsí time I will be taking a pay cut.

    I know I need to get a handle on things, but Iím not convinced that efficiencies in spending will be enough to dig me out of this any time soon, and I really donít want to be stuck paying this credit card off for years to come.

    I had considered taking out a personal loan given the current low rates, and using this to consolidate the debt and pay it back over 3.5-4 years. Bearing in mind the difference in interest rates, the monthly repayment wouldnít be much more than the minimum payment of the big credit card and although the end would be some time away, there would be a plan in place rather than just bumbling along.

    Iím sorry, in a way, for taking up your time with this. I know there are many others in worse positions through no fault of their own, whereas my position has been arrived at chiefly by overwork, distraction and most of all stupidity.

    Iíd appreciate any thoughts that Stepchange might have on this - I know conventional wisdom is not to solve debt using other debt, but it seems like it might be a feasible way to sort out the credit card and limit the interest paid.
    Originally posted by rcstocko
    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.
    • manue1970
    • By manue1970 25th Sep 17, 11:15 AM
    • 18 Posts
    • 2 Thanks
    manue1970
    debt management program
    Hello
    Hope someone can help.
    I have 25k worth of debt :


    Barclay Card : 11k
    Natwest Card : 5.5 k
    NatWest Overdraft : 6.5 k


    I would like to do a Debt Management program to clear my debt but worried about few things :


    My Mortgage is with Natwest so if I need to close my account with them will I be able to renew my mortgage with them when the time come and if I cannot stay with them will I found it difficult to move my mortgage with another company?


    Which bank should I use? I have been told that it should not be a bank link with NatWest


    Can I do a DP just for Barclay card and pay for the rest as before ?


    Many Thanks in advance


    Emmanuelle
  • StepChange_Allen
    Hi Emmanuelle

    Thanks for posting.

    There's not normally any obligation to bank with the same place you have your mortgage with, so you should be free to switch. If you're unsure you could ask them to make sure it's okay. You can use any bank you have no debts with.

    Any debt solution, whether a debt management plan (DMP) or a different option, would require all unsecured debts to be listed including overdrafts.

    You can register with us free of charge either by phone or online, with details here: www.stepchange.org/Contactus

    We'd then assess your financial situation and let you know what options you have; then you're free to choose the option you prefer.

    I hope this is okay, we look forward to helping you.

    Allen


    Hello
    Hope someone can help.
    I have 25k worth of debt :

    Barclay Card : 11k
    Natwest Card : 5.5 k
    NatWest Overdraft : 6.5 k

    I would like to do a Debt Management program to clear my debt but worried about few things :

    My Mortgage is with Natwest so if I need to close my account with them will I be able to renew my mortgage with them when the time come and if I cannot stay with them will I found it difficult to move my mortgage with another company?

    Which bank should I use? I have been told that it should not be a bank link with NatWest

    Can I do a DP just for Barclay card and pay for the rest as before ?

    Many Thanks in advance

    Emmanuelle
    Originally posted by manue1970
    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.
    • manue1970
    • By manue1970 25th Sep 17, 2:53 PM
    • 18 Posts
    • 2 Thanks
    manue1970
    Many thanks for your reply.
    My SOA is :


    2903.41 salary / month (husband and me)
    Outgoing :


    Mortgage £628.00
    Rent 2nd charge
    Council Tax £109.00
    Life insurance£0.00
    Buildings & contents insurance £14.06
    Water rates £27.90
    GasElectricity £44.00
    Other Fuel £44.00
    TV Licence £12.33
    Telephone £12.50
    Internet £12.50
    Mobile telephone £45.00
    Housekeeping (food & toiletries)£400.00
    Clothing and footwear £60.00
    Public transport "son"£40.00
    Car petrol *husband and me*£280.00
    Car insurance £68.00
    Car road tax £18.00
    Car repairs & servicing£ 15.00
    Medical expenses£7.50
    Optical expenses£0.00
    Dental expenses£0.00
    Sky £0.00
    Laundry & dry cleaning£0.00
    Hairdressing £20.00
    Pocket money *kids*£60.00
    Newspapers£0.00
    Cigarettes£215.60
    Meals at work£100.00 .
    Pets £10.00
    Other Outgoings: Specify daughter and son hot dinner £88.00
    Other Outgoings: Specify scouts£22.00
    Other Outgoings: Specify Daughter afterschool activity£100.00
    Other Outgoings: Specify Son afterschool activity£50.00
    Total Outgoings £2,503.39



    Creditor Information (Debts)
    Creditor Balance%
    Monthly Payment
    1NATWEST MASTERCARD £5,737.91 24.61% £130.00
    2NATWEST OVERDRAFT£6,576.98 28.21% £121.00
    3BARCLAY CARD £11,000.00 47.18% £295.33
  • StepChange_Kirsty
    Hi Emmanuelle,

    Thanks for your reply.

    Itís good to see that youíve worked on a statement of affairs (SOA). This is a very important step to take when dealing with financial difficulties.

    There are a couple of ways you can now receive help and advice from us. The first option is to use our online Debt Remedy tool where you can input this information online and receive advice in the form of a personal action plan. You can find our Debt Remedy tool here.

    Alternatively, if you would prefer to speak to us over the phone, you can call our Helpline and have a debt advice session with one of our specialist advisors. You can find our contact details here.

    Either way weíre happy to help.

    Kirsty


    Many thanks for your reply.
    My SOA is :


    2903.41 salary / month (husband and me)
    Outgoing :


    Mortgage £628.00
    Rent 2nd charge
    Council Tax £109.00
    Life insurance£0.00
    Buildings & contents insurance £14.06
    Water rates £27.90
    GasElectricity £44.00
    Other Fuel £44.00
    TV Licence £12.33
    Telephone £12.50
    Internet £12.50
    Mobile telephone £45.00
    Housekeeping (food & toiletries)£400.00
    Clothing and footwear £60.00
    Public transport "son"£40.00
    Car petrol *husband and me*£280.00
    Car insurance £68.00
    Car road tax £18.00
    Car repairs & servicing£ 15.00
    Medical expenses£7.50
    Optical expenses£0.00
    Dental expenses£0.00
    Sky £0.00
    Laundry & dry cleaning£0.00
    Hairdressing £20.00
    Pocket money *kids*£60.00
    Newspapers£0.00
    Cigarettes£215.60
    Meals at work£100.00 .
    Pets £10.00
    Other Outgoings: Specify daughter and son hot dinner £88.00
    Other Outgoings: Specify scouts£22.00
    Other Outgoings: Specify Daughter afterschool activity£100.00
    Other Outgoings: Specify Son afterschool activity£50.00
    Total Outgoings £2,503.39



    Creditor Information (Debts)
    Creditor Balance%
    Monthly Payment
    1NATWEST MASTERCARD £5,737.91 24.61% £130.00
    2NATWEST OVERDRAFT£6,576.98 28.21% £121.00
    3BARCLAY CARD £11,000.00 47.18% £295.33
    Originally posted by manue1970
    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.
    • Gr8st33t
    • By Gr8st33t 29th Sep 17, 4:22 PM
    • 23 Posts
    • 1 Thanks
    Gr8st33t
    Hi I wasn't sure which part of the forum to post this on, so please let me know if this is the right thread. My question relates to a County Court Claim.

    I received a County Court claim form, filed by Lowell Solicitors, for an old O2 debt. The total amount on the claim is £660.74. I've also signed up for the online service www.moneyclaim.gov.uk, which apparently extends the deadline for response to 28 days.

    Having calculated my monthly outgoings and expenses, I've decided that the amount I can realistically pay is around £10.

    In your experience, given the small size of this debt (£660.74), how likely it is that the County court would challenge my calculations and ask me to provide further proof of income and expenses? While I am concerned about responding as swiftly as possible I am equally concerned about making a mistake in my calculations. Does anyone know if the county courts challenge these sort of amounts, or do they tend to accept any offers of repayment?

    PS: As I was writing this letter, I received another letter, this time from Lowell Solicitor's themselves. The letter mentions the County Court Claim which I should be expecting and asks me to call them to discuss paying the outstanding balance.

    In your view, now that they have already lodged a County Court claim isn't this a bit pointless? Can a claim be cancelled once it's already been filed and I have already received the notification? I'm guessing the purpose of this letter is to use the claim to pressure me into accepting whatever it is they tell me on the phone. I would really rather not discuss this over the phone as based on previous experience these agents are invariably rude and aggressive. Do you think it is worth writing a letter with a payment proposal at this stage?

    Thank you
  • StepChange_Linsi
    Good morning and thanks for your post.

    The deadline to respond to a claim form is 14 days from the date of service. If you needed more time to prepare a defence you can return the Acknowledgement of Service which would give you an additional 14 days to submit your defence.

    As you donít plan to defend this claim youíll need to respond to the claim form (either online or by post) within 14 days from the date of service.

    Lowell will review your offer of repayment initially. If they accept this theyíll update the county court and youíll receive a judgment in acceptance. This will confirm the repayment you offered and tell you when and how the payments need to be made.

    If Lowell didnít accept your offer, then the repayment will be decided by the county court. I canít say whether or not the £10 youíve decided to offer will be accepted by either Lowell or the court as this is looked at on a case by case basis.

    From past experience offers can be rejected if your living costs are excessive such as budgeting a high amount for entertainment costs. The court will also ignore some living costs such as tobacco, childrenís pocket money and newspapers/magazines.

    As the judgement hasnít been registered against you yet, you can try to come to an arrangement with Lowell directly. If you decide to do this and they accept your offer Iíd recommend you ask them to confirm in writing that theyíve accepted your offer and wonít be pursuing a county court judgement.

    Should you decide not to contact Lowell or if you donít have time to contact them before the deadline, then itís best to return the claim form. If you donít return the claim form its likely Lowell will ask for the full payment to be made immediately.

    Thereís a video tutorial on our website which shows you have to complete the claim form, hereís the link.

    I hope this helps,

    Linsi



    Hi I wasn't sure which part of the forum to post this on, so please let me know if this is the right thread. My question relates to a County Court Claim.

    I received a County Court claim form, filed by Lowell Solicitors, for an old O2 debt. The total amount on the claim is £660.74. I've also signed up for the online service www.moneyclaim.gov.uk, which apparently extends the deadline for response to 28 days.

    Having calculated my monthly outgoings and expenses, I've decided that the amount I can realistically pay is around £10.

    In your experience, given the small size of this debt (£660.74), how likely it is that the County court would challenge my calculations and ask me to provide further proof of income and expenses? While I am concerned about responding as swiftly as possible I am equally concerned about making a mistake in my calculations. Does anyone know if the county courts challenge these sort of amounts, or do they tend to accept any offers of repayment?

    PS: As I was writing this letter, I received another letter, this time from Lowell Solicitor's themselves. The letter mentions the County Court Claim which I should be expecting and asks me to call them to discuss paying the outstanding balance.

    In your view, now that they have already lodged a County Court claim isn't this a bit pointless? Can a claim be cancelled once it's already been filed and I have already received the notification? I'm guessing the purpose of this letter is to use the claim to pressure me into accepting whatever it is they tell me on the phone. I would really rather not discuss this over the phone as based on previous experience these agents are invariably rude and aggressive. Do you think it is worth writing a letter with a payment proposal at this stage?

    Thank you
    Originally posted by Gr8st33t
    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.
    • simwells
    • By simwells 3rd Oct 17, 2:53 PM
    • 1 Posts
    • 0 Thanks
    simwells
    Hi,

    I was wondering if you have any advice as I am at an extremely frustrating point with debt that I'm not sure what to do, it has built over time but generally I am okay with covering the minimums and not missing payments (none late or anything for a good 6 months) however this month a few awkward costs have meant I will be really struggling to avoid payday loans this month.

    My remaining debt is the following;

    5k loan (3 years remaining) 6.9%
    1k overdraft
    5.5k credit card 18.9%
    4.5k credit card 18.9%
    2.2k credit card 8.9%

    My credit rating is reasonable but not great (high 800s) I really want to be able to consolidate all of this into a 5 year loan apart from the existing loan which I'm comfortable paying off. I would be able to afford the payments this way and it wouldn't drag on forever with a much lower interest rate.

    However I am hitting a brick wall with banks saying I won't be offered a loan due to my credit rating but the only negative is how close I am to the limit and the fact the total is 50% of my salary. Is there anything I can do about this, I've avoided directly doing full credit applications to not further damage my rating but I'm a bit lost as to how to clear this. Really not wanting to go the IVA route or anything else that would likely long term mess up my credit rating also.

    Thoughts?
    • Mr. Gee
    • By Mr. Gee 6th Oct 17, 9:22 AM
    • 1 Posts
    • 0 Thanks
    Mr. Gee
    Hello. Here is a brief outline of my situation. My mortgage is ending on the 16th of this month (October) and I will have a shortfall of approximately £13,000. I am a teacher and usually do supply work. However, I have not had any work from September, so effectively have not had any money coming in for over two months. My wife works part time but does not earn enough to pay all the outgoing costs. We have contacted StepChange but they said they cannot help until I get an income. We have contacted the bank (Barclays) but have been passed around to various departments and have now been told we might have left things too late. There has been mention that our home could be repossessed!! The one piece of good news is that I have been offered full time employment but that does not start until January 2018. I have also joined several more education employment agencies in the hope of securing work up until January. What I would like to know is it possible to extend the time period for payment until I have a steady income? Or, who would be best to contact to offer me advice. I am still in contact with Barclays and I am in the process of completing forms regarding income and expenditure so they can evaluate my position. It has been suggested that I could borrow the money from a money lender but I believe the repayments would astrological.
    I am really hoping you can help as we have worked hard over the years to own our home and these final few months have now put our home at risk.
  • StepChange_Allen
    Hi,

    I was wondering if you have any advice as I am at an extremely frustrating point with debt that I'm not sure what to do, it has built over time but generally I am okay with covering the minimums and not missing payments (none late or anything for a good 6 months) however this month a few awkward costs have meant I will be really struggling to avoid payday loans this month.

    My remaining debt is the following;

    5k loan (3 years remaining) 6.9%
    1k overdraft
    5.5k credit card 18.9%
    4.5k credit card 18.9%
    2.2k credit card 8.9%

    My credit rating is reasonable but not great (high 800s) I really want to be able to consolidate all of this into a 5 year loan apart from the existing loan which I'm comfortable paying off. I would be able to afford the payments this way and it wouldn't drag on forever with a much lower interest rate.

    However I am hitting a brick wall with banks saying I won't be offered a loan due to my credit rating but the only negative is how close I am to the limit and the fact the total is 50% of my salary. Is there anything I can do about this, I've avoided directly doing full credit applications to not further damage my rating but I'm a bit lost as to how to clear this. Really not wanting to go the IVA route or anything else that would likely long term mess up my credit rating also.

    Thoughts?
    Originally posted by simwells
    Hi there

    Welcome to the forum and thanks for posting.

    I can't say for sure why you're not being successful in your efforts for a loan, but your affordability and amount of debt is taken into account as well as your actual credit score.

    The best place I know to try and find competitive loans is the main MSE site itself, here's a link: www.moneysavingexpert.com/loans/cheap-personal-loans

    There's also an eligibility calculator here: www.moneysavingexpert.com/eligibility/loans-calculator/

    An alternative to the loan route is to contact us for some free, impartial advice. You can register with us on the phone or online, with all our contact details here: www.stepchange.org/Contactus

    We'll then be able to get a fuller picture of your financial situation and see whether a debt solution may be necessary.

    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.
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