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  • FIRST POST
    • Bluefae
    • By Bluefae 12th Oct 17, 6:29 PM
    • 6Posts
    • 0Thanks
    Bluefae
    StepChange
    • #1
    • 12th Oct 17, 6:29 PM
    StepChange 12th Oct 17 at 6:29 PM
    Hi,
    Since getting myself into terrible debt in 2005, I have been paying StepChange on a monthly basis ( and never missed a payment).
    I owe a considerable amount to various banks and my debts have been passed on to various loan companies eg Cabot / Moorcroft/Link
    Once a year StepChange go through my payment plan and the payment is always increased.
    I am now terrified because StepChange are saying that my monthly payment plan is not a permanent solution and basically I am being thrown to the wolves, they intend to close my monthly plan.
    I have no idea where to go from here ! I’m worried about interest etc.
Page 1
    • sourcrates
    • By sourcrates 12th Oct 17, 8:16 PM
    • 12,207 Posts
    • 11,658 Thanks
    sourcrates
    • #2
    • 12th Oct 17, 8:16 PM
    • #2
    • 12th Oct 17, 8:16 PM
    Hi,

    That usually means you have a lot of debt which you have been paying token payments to, is that the case ?

    If it is it’s likely you need to look at other solutions to your debt problems.

    Post up an SOA and we can then make suggestion based on your circumstances.

    SOA calculator here :

    http://www.stoozing.com/calculator/soa.php
    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, and delete spam.
    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/
    • Bluefae
    • By Bluefae 12th Oct 17, 8:20 PM
    • 6 Posts
    • 0 Thanks
    Bluefae
    • #3
    • 12th Oct 17, 8:20 PM
    • #3
    • 12th Oct 17, 8:20 PM
    Thanks for your reply.
    Yes I am in a lot of debt
    30,000
    • sourcrates
    • By sourcrates 12th Oct 17, 8:24 PM
    • 12,207 Posts
    • 11,658 Thanks
    sourcrates
    • #4
    • 12th Oct 17, 8:24 PM
    • #4
    • 12th Oct 17, 8:24 PM
    Thanks for your reply.
    Yes I am in a lot of debt
    30,000
    Originally posted by Bluefae
    So your options just based on the amount of debt you have are either IVA or bankruptcy.

    Do the statement of affairs as honestly as you can, then we can see what money there is available.

    A DMP may not be out of the question.
    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, and delete spam.
    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/
    • Bluefae
    • By Bluefae 12th Oct 17, 9:12 PM
    • 6 Posts
    • 0 Thanks
    Bluefae
    • #5
    • 12th Oct 17, 9:12 PM
    • #5
    • 12th Oct 17, 9:12 PM
    I read the SOA however I noticed that my husband’s income is added !
    He has never been in any debt in his life so his income is not an issue at all.
    The debt is my full responsibility.
    We are in our 60’s
    I only have my state pension to pay StepChange, so yes it is just a token off the debt.
    • sourcrates
    • By sourcrates 12th Oct 17, 9:52 PM
    • 12,207 Posts
    • 11,658 Thanks
    sourcrates
    • #6
    • 12th Oct 17, 9:52 PM
    • #6
    • 12th Oct 17, 9:52 PM
    You don’t need to add your husbands income or expenditure, just yours.

    Just add what’s relevant.

    Are you homeowners or do you rent ?
    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, and delete spam.
    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/
    • Bluefae
    • By Bluefae 12th Oct 17, 11:04 PM
    • 6 Posts
    • 0 Thanks
    Bluefae
    • #7
    • 12th Oct 17, 11:04 PM
    • #7
    • 12th Oct 17, 11:04 PM
    We own our home.
    • sourcrates
    • By sourcrates 12th Oct 17, 11:54 PM
    • 12,207 Posts
    • 11,658 Thanks
    sourcrates
    • #8
    • 12th Oct 17, 11:54 PM
    • #8
    • 12th Oct 17, 11:54 PM
    You can keep paying the token payments yourself you know, you don’t need stepchange or anyone else to do this for you.

    As you own your own home, your options are extremely limited, would equity release be an option for you ?

    If you can give us some information to work with {SOA} people can make suggestions to help you, without that info it’s all guesswork.
    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, and delete spam.
    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/
    • StopIt
    • By StopIt 13th Oct 17, 8:29 AM
    • 1,117 Posts
    • 972 Thanks
    StopIt
    • #9
    • 13th Oct 17, 8:29 AM
    • #9
    • 13th Oct 17, 8:29 AM
    As sourcrates has correctly stated, you can go self managed.


    All Stepchange are doing in this situation is administering your token payments, and with a bit of effort, you can do this yourself.


    I know it's not fair, but Stepchange will be beyond their remit if they continue to administer a token payment plan on someone of your age. Their remit is to deal with debt, one way or the other, and leaving a 30k debt on token payments isn't something they can really do once they know it isn't leading to a resolution.


    If you're willing to post an SOA, it would be a great help, you may need to look at other options to deal with this, otherwise it's going to hang over your head for your entire retirement.
    • The_Analyst
    • By The_Analyst 13th Oct 17, 12:43 PM
    • 23 Posts
    • 16 Thanks
    The_Analyst
    As sourcrates has correctly stated, you can go self managed.


    All Stepchange are doing in this situation is administering your token payments, and with a bit of effort, you can do this yourself.
    .
    Originally posted by StopIt
    Exactly this. I was in a DMP for 5 years with Vincent Bond. I was paying £600 a month off a combined debt of 50k. VB were taking £90 of the payment, so effectively I was paying £510 a month off this mountain of debt. By the time the DMP ended (prematurely as VB ceased trading) I had paid off £24k of the debt.

    I then arranged direct payments with my creditors and whilst I am paying more a month (£740) I now only have 15 months until I am debt free. The DMP was great at the time because it took the pressure off us, but it's not a long term solution in my opinion. Once you have set up arrangements with your creditors through your DMP it is far easier to then contact them and arrange direct payments because all the hard stuff and difficult conversations have already happened. Now all the creditors are interested in is getting their money back.
    July 2011 - Total Debts £47,359.19
    July 2013 - Total Debts £36,092.19
    July 2015 - Total Debts £28,068.19

    Oct 2017 - Total Debts £13,486.23
    Jan 2019 - Total Debts £0
    • sourcrates
    • By sourcrates 13th Oct 17, 1:09 PM
    • 12,207 Posts
    • 11,658 Thanks
    sourcrates
    Exactly this. I was in a DMP for 5 years with Vincent Bond. I was paying £600 a month off a combined debt of 50k. VB were taking £90 of the payment, so effectively I was paying £510 a month off this mountain of debt. By the time the DMP ended (prematurely as VB ceased trading) I had paid off £24k of the debt.

    I then arranged direct payments with my creditors and whilst I am paying more a month (£740) I now only have 15 months until I am debt free. The DMP was great at the time because it took the pressure off us, but it's not a long term solution in my opinion. Once you have set up arrangements with your creditors through your DMP it is far easier to then contact them and arrange direct payments because all the hard stuff and difficult conversations have already happened. Now all the creditors are interested in is getting their money back.
    Originally posted by The_Analyst
    The only difference is that you were paying Vincent Bond for the privilege, Stepchange dont charge fee`s for setting up or administering debt management plans.

    Its working better for you because the money you were paying to the DMC is now coming directly off your debts, the OP`s situation, from the limited info we have been given, is that token payments are all they can afford, as they will never be able to repay what they owe, due to the high amount of debt, and a low income.
    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, and delete spam.
    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/
    • sourcrates
    • By sourcrates 13th Oct 17, 1:13 PM
    • 12,207 Posts
    • 11,658 Thanks
    sourcrates
    We own our home.
    Originally posted by Bluefae
    Hi again,

    The way forward here is to post that SOA.

    Then and only then can we help you.

    You posted on here presumably looking for a way out of debt, well the way to do that is to start with the SOA.

    Just your income/expenditure, who you owe money to, and how much, you can give us as much or as little detail as you wish, but we need something to get an idea of your situation.
    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, and delete spam.
    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/
    • The_Analyst
    • By The_Analyst 13th Oct 17, 2:35 PM
    • 23 Posts
    • 16 Thanks
    The_Analyst
    The only difference is that you were paying Vincent Bond for the privilege, Stepchange dont charge fee`s for setting up or administering debt management plans.

    Its working better for you because the money you were paying to the DMC is now coming directly off your debts, the OP`s situation, from the limited info we have been given, is that token payments are all they can afford, as they will never be able to repay what they owe, due to the high amount of debt, and a low income.
    Originally posted by sourcrates
    Yup. Fair point. I guess my point was that a DMP isn't a long term solution for getting out of debt although it is a great way reduce monthly out goings....
    July 2011 - Total Debts £47,359.19
    July 2013 - Total Debts £36,092.19
    July 2015 - Total Debts £28,068.19

    Oct 2017 - Total Debts £13,486.23
    Jan 2019 - Total Debts £0
    • sourcrates
    • By sourcrates 13th Oct 17, 4:02 PM
    • 12,207 Posts
    • 11,658 Thanks
    sourcrates
    Yup. Fair point. I guess my point was that a DMP isn't a long term solution for getting out of debt although it is a great way reduce monthly out goings....
    Originally posted by The_Analyst
    Well it can be a long term solution if you cant, or don't want to explore other solutions.

    There are people on here who have had DMP`s for 10/20 years, now whilst i would say that's far too long, its worked for them, it all depends on individual circumstances.

    If you have property you wish to protect, then your options are limited because of this, that's why getting good advice is so important.
    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, and delete spam.
    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/
    • purdyoaten2
    • By purdyoaten2 13th Oct 17, 4:54 PM
    • 695 Posts
    • 308 Thanks
    purdyoaten2
    Exactly this. I was in a DMP for 5 years with Vincent Bond. I was paying £600 a month off a combined debt of 50k. VB were taking £90 of the payment, so effectively I was paying £510 a month off this mountain of debt. By the time the DMP ended (prematurely as VB ceased trading) I had paid off £24k of the debt.

    I then arranged direct payments with my creditors and whilst I am paying more a month (£740) I now only have 15 months until I am debt free. The DMP was great at the time because it took the pressure off us, but it's not a long term solution in my opinion. Once you have set up arrangements with your creditors through your DMP it is far easier to then contact them and arrange direct payments because all the hard stuff and difficult conversations have already happened. Now all the creditors are interested in is getting their money back.
    Originally posted by The_Analyst
    Your point is well made and provides a good lesson for others. VB took £5400 of your money - you would only have eight months to go if you can chosen a free alternative.
    purdyoaten lost his password
    • Bedsit Bob
    • By Bedsit Bob 13th Oct 17, 5:59 PM
    • 9,714 Posts
    • 51,036 Thanks
    Bedsit Bob
    I was in a DMP for 5 years with Vincent Bond. I was paying £600 a month off a combined debt of 50k. VB were taking £90 of the payment, so effectively I was paying £510 a month off this mountain of debt. By the time the DMP ended (prematurely as VB ceased trading) I had paid off £24k of the debt.
    Originally posted by The_Analyst
    Unless the creditors were still piling on the interest, those figures don't add up.
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1161
    • fatbelly
    • By fatbelly 14th Oct 17, 1:29 PM
    • 11,378 Posts
    • 8,538 Thanks
    fatbelly
    Unless the creditors were still piling on the interest, those figures don't add up.
    Originally posted by Bedsit Bob
    The figures are roughly OK. If The Analyst had said they were paying for 47 months and no interest it would be exact. But as you say there may have still been some interest and the figures are not precise.

    For our OP, some options appear to be

    1. Go to a self-managed token payment plan
    2. Argue enforceability
    3. Equity release and settlement deals

    but there may be other options when we see the full soa.
    • Bedsit Bob
    • By Bedsit Bob 14th Oct 17, 1:57 PM
    • 9,714 Posts
    • 51,036 Thanks
    Bedsit Bob
    The figures are roughly OK.
    Originally posted by fatbelly
    The OP says they were paying £510 per month, for 5 years.

    That's £30,600, which is a lot different from the £24,000 they say has been paid off.

    That's a fair chunk of interest.
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1161
    • sourcrates
    • By sourcrates 14th Oct 17, 2:12 PM
    • 12,207 Posts
    • 11,658 Thanks
    sourcrates
    The OP says they were paying £510 per month, for 5 years.

    That's £30,600, which is a lot different from the £24,000 they say has been paid off.

    That's a fair chunk of interest.
    Originally posted by Bedsit Bob
    The Analyst is not the original OP though Bob, they should start there own thread if they have questions.

    Bluefae is the OP.
    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, and delete spam.
    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/
    • Bedsit Bob
    • By Bedsit Bob 14th Oct 17, 5:45 PM
    • 9,714 Posts
    • 51,036 Thanks
    Bedsit Bob
    I see where I've got confused, but I have to say, The Analyst's figures still don't add up.
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1161
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