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wannabe_super_saver

Hi there. I'm 27 and making good progress on digging myself out of the mess I got myself in when I was a bit younger. I have one loan with my bank with 4 years left to run on it. I have another loan I took with Barclays for IT training with Advent, 2 years left to run on it. About 18 months ago I had credit cards everywhere and debt all over the place. I cannot fault my bank they have been great with borrowing. Anyway, the loan with my bank is consolodation and the barclays loan is for the IT training. Advent (training company) have gone bust and there is a big hoo haa about advent students getting their money back from Barclays and finance agreements cancelled, sec 75 consumer credit act claims.
My question is this. I personally feel like in time barclays will pay out which makes me set to receive back two years or more worth of payments (about £4000 - £4500) plus my agreement cancelled. My bank loan is £13,048 with four years left at 16.9%. Is there anything I am missing or I could do better? I have been thinking about applying for a new loan to try and bring down the APR and reduce montly payment on the loan. Or shoudl I be re -applying for a loan with a shorter term and pay more per month?

spongebobfancypants

I am going to sound really stupid here, but what is a DMP???:j

00susan

Thanks for getting back to me Matthew.. Just to be clear..

Would it be better for me to make a settlement offer & have the accounts showing as "settled" on my credit file (& save some money!)?

Or

Pay the accounts off in full & have this show on my records? I have no immediate plans to get into any more debt, but anything could happen in the next 6 years!!

Kind Regards
Susan

mumtoangel

Hi,

I have a ccj against me which started in Dec 2006. Since that time my working hours have decreased and so has my salary, although my tax credits have increased I am finding it increasingly hard to find the money at the time the payments are due which is the middle of the month so a couple of times I have paid it 8 days later which is when I get paid.

Do they see this as not paying it and can I write to them and ask if the due date can be changed to the end of the month.

I wish there was some way of paying the ccj off.

Many thanks

CCCS_Matthew

wannabe_super_saver wrote: »

Hi there. I'm 27 and making good progress on digging myself out of the mess I got myself in when I was a bit younger. I have one loan with my bank with 4 years left to run on it. I have another loan I took with Barclays for IT training with Advent, 2 years left to run on it. About 18 months ago I had credit cards everywhere and debt all over the place. I cannot fault my bank they have been great with borrowing. Anyway, the loan with my bank is consolodation and the barclays loan is for the IT training. Advent (training company) have gone bust and there is a big hoo haa about advent students getting their money back from Barclays and finance agreements cancelled, sec 75 consumer credit act claims.
My question is this. I personally feel like in time barclays will pay out which makes me set to receive back two years or more worth of payments (about £4000 - £4500) plus my agreement cancelled. My bank loan is £13,048 with four years left at 16.9%. Is there anything I am missing or I could do better? I have been thinking about applying for a new loan to try and bring down the APR and reduce montly payment on the loan. Or shoudl I be re -applying for a loan with a shorter term and pay more per month?

Hi there.

This is a hard question to answer, so bear with me!

If you are seeking cheaper credit via a loan, it's the total cost you need to consider. Although you may pay less per month, or the APR maybe less, you need to work out the amount it's going to cost you over the term of the new loan, and whether that total amount is less than the amount you need to pay to settle your existing loan.

If you take a new loan out at a cheaper APR over, say, over 5 years, you may find out that you still pay back more in total than was payable on the remaining months of your old loan, which would be pointless.

However, if the overall total cost of a new loan at a better APR is less than the amount your current lender is willing to settle the loan for, then in theory it's a good idea. So you'll need to get a settlement from your existing lender, and also do your sums to see whether you could get another loan for that amount

Don’t be misled and assume that a loan at a cheaper APR will mean you will necessary repay less than what you currently are paying back on your existing loan. The big thing to consider is that by taking on a new loan, you are committing yourself to pay interest upon interest, which in often results in you paying more.

Another thing to consider is if you're in the position to be able to pay more than the normal payment on your loan you can look at overpaying each month in order to reduce the term of the loan.

Hope that offers a bit of help.
Matthew.

CCCS_Matthew

spongebobfancypants wrote: »

I am going to sound really stupid here, but what is a DMP???:j

DMP = Debt Management Plan.

http://www.cccs.co.uk/InfoCentre/EnglandandWales/Debtsolutions/Debtmanagementplan.aspx

Regards,
Matthew.

CCCS_Matthew

00susan wrote: »

Thanks for getting back to me Matthew.. Just to be clear..

Would it be better for me to make a settlement offer & have the accounts showing as "settled" on my credit file (& save some money!)?

Or

Pay the accounts off in full & have this show on my records? I have no immediate plans to get into any more debt, but anything could happen in the next 6 years!!

Kind Regards
Susan

Hi again Susan.

Having your creditors update your credit file as settled isn't necessarily much to worry about, particularly if you are not concerned about taking further credit on in the near future. Even so debts shown as settled won't neccesarily mean you won't be offered credit again. If offering a settlement will save you money, I'd say it's worth doing - but only you can make that decision!

Good luck,
Matthew.

daddo11

On 2 March 2007 I was having trouble paying off some credit cards so I did a spreadsheet of all expenses and sent it to Lloyds, Virgin and Halifax with a covering letter asking them to suspend interest charges and offering to pay off the outstanding debt by monthly payments. Lloyds and Virgin agreed and both are now paid off, but Halifax didn't reply. I wrote again offering to pay £15 per month (the debt was £1618). I also said that if the amount wasn't enough, to let me know how much they would accept. That letter also went unanswered.

Since that time I have written to them 10 times asking them to stop charging interest, all of which have been ignored. I did receive a telephone call from their collections dept. and I explained the above. I was asked to fax all the letters I had sent to them, and they would get back to me. That was 4 weeks ago.

On 14 January I printed off all 10 letters with a covering letter explaining the whole saga and sent it by recorded delivery to the Halifax Collections Dept. The only communication I have received from the Halifax since then is a letter threatening court action!

Since 2 March 2007, I have paid £1260, which would have left a balance of £358 if they had accepted my request, instead of which the balance now stands at £996. Could you advise me what to do next? I don't know what it takes to get an answer from them!

Thank you and regards, Colin

antony85

hi im currently experiencing alot of trouble with payday loans, i have been struggling to keep up with them, i had £2800 all guaranteed by cheques,

i was advised that if i stop paying them the bank will as they are guaranteed, now so far its been hit and miss, i think the bank decides when they do and dont want to pay them! sometimes they'll bounce the cheque, then when its claimed at a later point, they pay it out ?? madness i know,

so far they paid out £870 leaving me with £1930 but when my balance reached -£999.11 they stopped paying out, they bounced about 7 of them, then when a cheque for £120 was cashed they paid out ! but my card only guarantees £100 :S so im a little confused to how they work!

anyways my points is im recieving letters demanding payment within 7 days, but 1 letter i got the other week said 7 days but i only had 3 days by the time i recieved it! so far i have been extremeley lucky (dont know how, ) but when they have turned up at the door ive been able to pay them before anything becomes of them, but i have a strong feeling this will no longer be the case, is there anything i can do to stop this happening,

one letter quoted i owed £220 payable withing 7 days, from albermale & bond, who used transax (i.e they get paid no matter what transax do the chasing) and if i didnt pay, it would be transferred to a dca, with 35% added onto the debt.

im really starting to worry about this, none of them seem to want to help, ive tried making payment plans but they dont wanna listen. the only ones who helped me were HTP i owed them £600 and have paid them £25 every week (lthought its a bit high for me) but now only owe the £350 and hopefully by end of the week only £300. but as i said others arnt so helpful. the money shop sent me a letter today they wacked on a £25 charge, onto the £100 bounced cheque, and are demanding payment within 7 days,

i only earn £170 a week, and many weeks i find it hard to meet the repayments on these loans, let alone other bills, which is why i have stopped paying them all, what im doing now is praying the bank pays them and if they dont, when i recieve debt letters hoping i got the money for them,i cant pffer them any payments as i have tried and they arnt willing to help!!!! but as i said, i cant see me having the money for them when all of em turn up. i have spoken to my bank they cant help, they just said pay a regular payment in, and when debt collections take it over theyll see your comitted to your debt, and they will be a lot more helpful with you, compared to if i stop all payments to the bank.

p.s i have open a new account and pay my money into that.

maxandmatty

hello

just a quick moan and help needed.

:mad:

have been on a dmp with dfh (fee paying) since march last year.
Have now found out that one of my creditors (link financial) issued a ccj in october and that dfh ignored it and just continued to give the original amount. they won't even discuss it with me. the only thing they told me is that link want to get a charging order to force the sale of our house.

have found out yesterday that there is a form that should have been done after the judgement to offer a reduced amount to them.

is it too late to do that - want to leave dfh is it too late to do that and also can i stop the charging order as am already on anti depressants due to debt stress. have two small children, one autistic and am scared stiff about losing the house and how this might affect his love of familiar places. please please help.