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  • FIRST POST
    • worriedDan
    • By worriedDan 20th Mar 17, 11:27 AM
    • 164Posts
    • 442Thanks
    worriedDan
    Debt support trust
    • #1
    • 20th Mar 17, 11:27 AM
    Debt support trust 20th Mar 17 at 11:27 AM
    About a week ago I put our figures into a calculator on the debt trust website. I had forgotten about but they just called me!

    They are linked to Gregory Penington I think. A debt advisor offered to talk to me and go through my concerns. I explained that we were in a lot of debt but that we were able to service it and overpay. She explained that a formal solution would not be needed for us as it would ruin our credit rating unnecessarily. She asked me why I was so concerned about the debt if I was able to pay and overpay? It really made me think about how I have been beating myself up.

    I asked her how common our debt level is. She explained that she hears these types of figures everyday and often much higher, up into the £100K's. She explained that many many people owe similar levels to us and that it is just not talked about. Apparently our debt in relation to our income is not unusual! She said that the level of debt is not as important as the persons ability to repay it.
    These conversations do make me feel a little better about things.
Page 1
    • sourcrates
    • By sourcrates 20th Mar 17, 11:38 AM
    • 10,237 Posts
    • 9,986 Thanks
    sourcrates
    • #2
    • 20th Mar 17, 11:38 AM
    • #2
    • 20th Mar 17, 11:38 AM
    Just remember these companies charge for there services, and in my opinion, tend to make your financial situation a good deal worse because of this.

    All formal debt solutions have fees associated with them, bankruptcy and DRO have fixed fees, but IVA practitioners can charge what they like.

    There debt management fees are around the 30% mark, after an initial "deposit", i have never found taking advice from these companies to be beneficial, as they always have an agenda.

    Much better to take advice from one of the debt charities, or better still, National Debtline, as they are not in the business of selling you anything.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • worriedDan
    • By worriedDan 20th Mar 17, 12:09 PM
    • 164 Posts
    • 442 Thanks
    worriedDan
    • #3
    • 20th Mar 17, 12:09 PM
    • #3
    • 20th Mar 17, 12:09 PM
    Hi Sourcrates,

    To be fair, the advisor did say straight away that a formal solution would not be appropriate and yet she still took 10 minutes to talk to me about my situation. If I did need a formal solution I would probably go via stepchange.
  • National Debtline
    • #4
    • 20th Mar 17, 12:11 PM
    • #4
    • 20th Mar 17, 12:11 PM
    Hi Dan

    The level of your debt isn’t the only thing to consider. It’s more important to think about your debt level compared to your income, and whether you can afford to pay the contractual payments each month. In your case you can afford to overpay your debts, which is great.

    For someone on JSA a debt of £1,000 might seem very difficult to deal with, so it’s all relative.

    James
    @natdebtline
    Last edited by National Debtline; 20-03-2017 at 12:13 PM. Reason: grammar
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • another casualty
    • By another casualty 20th Mar 17, 12:11 PM
    • 2,155 Posts
    • 3,250 Thanks
    another casualty
    • #5
    • 20th Mar 17, 12:11 PM
    • #5
    • 20th Mar 17, 12:11 PM
    What sourcrates says .
    Forgive me for asking Dan , but I was under the impression that you were beginning to get an grip on the situation . You seemed to more or less thrash out the issues with your other half , and vowed not to discuss it further with her. That seemed to me to be a positive step in the right direction .

    I'm trying to understand what's changed since then .
    I know I go on a bit in my thread , which you kindly contributed to.

    All I can say at this stage , is that you need to have some sort of plan ( I e a direct debit to stepchange / payplan etc) . Do not use any of the others .
    Then just commit yourself to that by obligating your regular direct debits . Hopefully build up an emergency fund etc.
    After that , stop worrying or your health and wellbeing will suffer.

    Wishing you all the best
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