Ask a CCCS counsellor a question

brunettegirl

I have a query on behalf of my dad - he is retired and gets pension credits, he rents and has no assetts he currently owes 20k between credit cards and loans - the amount that these companies want him to pay are silly, he is literally robbing peter to pay paul. He doesn't recieve full HB so he has to top the rent up every month which means he now has rent arrears, although the landlady is being very nice. Can he get the debt reduced/written off? He is never going to work, he doesn't drive and my mum is not in good health and therefore she can't work.
Any suggestions would be greatly appreciated.
Many thanks

debtqueen

CCCS_ Sarah, Thanks for you answer earlier . I do have another question relating to DMP. I have an appointment next week for our local debt counsellor (who works for a charity). Prior to the appointment I have been asked for my National Insurance no. - is this usual, why would they need it? My other question is, will my employer be informed at any point if I go the DMP route (just that if they are it will cause a lot of problems for me).
Thanks

CCCS_Matthew

MountainOfDebt wrote: »

Hi there,
My wife is going to be made redundant soon. Which, effectively, will remove half of the household earnings. She’ll get redundancy, but will no longer be contributing to the bills, as such.

All of our debt, bar £13k, is in my name (£85k). My earnings, during this period, due to tax commitments and other extraordinary items, will be ridiculously low and I may also be out of work from August/September.

If I put a SOA together, on my earnings, on my debt, it would indicate an absolute inability to pay all of my commitments. Does my wife’s’ redundancy money have to be taken into consideration for my debts?

I just want to know what I have to do. My repayments are around £2500 a month, before we talk of my share of the mortgage and other secured loans. When doing a SOA, as it is for me, do I simply take my earnings etc into account if the debt is all in my name?

Thanks for any help.

Hi there MoD.

The most important thing to consider when drawing up a budget is to ensure there is enough to service the priority costs, such as rent/mortgage, council tax, utilities, food, travel etc. It may well be that if there is not enough coming in to service these costs, the redundancy money may need to act as a 'buffer' to make up the difference each month, to prevent falling behind with the above costs.

If things are going to be very tight, I would be reluctant to start offering the redundancy money to creditors to then find that you have no money to live on.

As far as doing a budget is concerend, you could choose to do it to illustrate your income, your debts, and your share of the household costs - or you can do it to illustrate all income, all joint debts, and all the household costs. It really depends on the way you and your partner work things. Generally speaking, doing a joint budget to illustrate everything tends to give a better reflection of the situation but it really depends on how you feel you want to do it.

Hope that helps,
Matthew.

CCCS_Matthew

brunettegirl wrote: »

I have a query on behalf of my dad - he is retired and gets pension credits, he rents and has no assetts he currently owes 20k between credit cards and loans - the amount that these companies want him to pay are silly, he is literally robbing peter to pay paul. He doesn't recieve full HB so he has to top the rent up every month which means he now has rent arrears, although the landlady is being very nice. Can he get the debt reduced/written off? He is never going to work, he doesn't drive and my mum is not in good health and therefore she can't work.
Any suggestions would be greatly appreciated.
Many thanks

Hi there.

Generally debts won't be written off by creditors. The only time I have come across creditors agreeing to write debts off has been when the debtor has been terminally ill, or have in the situation where they've had to move to a care home.

However, if your father has no assets to speak of and is unable to clear the debts within a reasonable timescale on his income he could look at the possiblity of something such as bankrutpcy which is where he takes the process of writing the debts off through the courts. Before taking such a step it's definitely important that he gets some advice.

So we can help him, I think he would benefit from using our online debt advice facility called Debt Remedy. Debt Remedy will assist you in completing a full financial statement and you will be provided with tailored advice on the best way to deal with his debts. It should take him about 20 minutes to complete and it’s completely free and impartial. To get advice straight away, click here to be taken directly to Debt Remedy. If he’s not Internet savvy you could always sit down with him and help him through the process, or you could do it on his behalf with his permission.

Alternatively, if he would prefer to talk to a debt counsellor about his situation, he can book a telephone based appointment by calling our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00.

Hope this helps,
Matthew.

CCCS_Matthew

debtqueen wrote: »

CCCS_ Sarah, Thanks for you answer earlier . I do have another question relating to DMP. I have an appointment next week for our local debt counsellor (who works for a charity). Prior to the appointment I have been asked for my National Insurance no. - is this usual, why would they need it? My other question is, will my employer be informed at any point if I go the DMP route (just that if they are it will cause a lot of problems for me).
Thanks

Hi there debtqueen.

Asking for your NI number isn't something we would ever request for an appointment, so I'm not sure why they would need it. Different organisations work in different ways though so it's hard to say why. If they the counsellor is offering impartial, free advice and works for a non for profit charity then I shouldn't worry.

If you went down the DMP route your employer wouldn't be informed.

If you would like a second opinion on your options, you're more than welcome to use our Debt Remedy facility here: here or call us for a telephone appointment on 0800 138 1111.

Regards,
Matthew.

Bumear

Hi,

I am just trying to get some advice regarding my current financial position.
Currently I have a debt of 1,742.50 made up of a Credit Card (£400) and three "Pay Day" loans making up the rest (I know, stupid) I have had a poor credit rating for some time now but over the last few years have managed to reduce my debt by quite a lot (Credit card used to be £3,500 for example) At the minute I seem to be stuck in a viscious circle of repaying the pay day loans each month and then having to take another loan out to survive the rest of the month. Im sure you have probably heard this a lot regarding pay day loans. I have a good, secure and well paid job where I should have at least £100 per week to spend (After petrol, food, rent etc) I was wondering what options there are available to help get out of this circle? I have tried applying for a small loan to reduce the monthly payments but due to my poor past I am unable too. Your advice would be greatly appreciated.

Regards

xmickeyx

I have a few silly pay day loans which are at debt agencies now will i be able to put these on my dmp ?? my debt consists of about 4500 I have a telephone interview next week!

kellycontrary

Hello, please could I get some advice on my current debt
In total I owe approx £8,500 worth of debt. I have no problem paying the monthly amounts, and for two of the cards I have I pay over the minimum payment to try and reduce it as quick as possible. However, its never ending adn I get frustrated that its swallowed up with interest! My credit rating is bad so I cannot get a lower interest card, Ive tried life of balance cards too.

I did contact moneyexpert.com and someone called me and after Id explained things, he suggested a debt settlement plan which would pay the debts off after 19 months, writing off some of the interest. Obviously there is a fee. THis sounds too easy to me, and they have someone coming out to me on saturday that worries me. Is there another way in which I can try and reduce my interest that is less risky? or is this company legit???

Ive tried to speak to someon on the CCCS debt remedy chat page, but I didnt get a lot of help to be honest, after Id explained everything they just told me a pack would be out in the post!

Please help!

CCCS_Matthew

Bumear wrote: »

Hi,

I am just trying to get some advice regarding my current financial position.
Currently I have a debt of 1,742.50 made up of a Credit Card (£400) and three "Pay Day" loans making up the rest (I know, stupid) I have had a poor credit rating for some time now but over the last few years have managed to reduce my debt by quite a lot (Credit card used to be £3,500 for example) At the minute I seem to be stuck in a viscious circle of repaying the pay day loans each month and then having to take another loan out to survive the rest of the month. Im sure you have probably heard this a lot regarding pay day loans. I have a good, secure and well paid job where I should have at least £100 per week to spend (After petrol, food, rent etc) I was wondering what options there are available to help get out of this circle? I have tried applying for a small loan to reduce the monthly payments but due to my poor past I am unable too. Your advice would be greatly appreciated.

Regards

Hi there.

Sue has replied to your PM about this I think.

Regards,
Matthew.

CCCS_Matthew

xmickeyx wrote: »

I have a few silly pay day loans which are at debt agencies now will i be able to put these on my dmp ?? my debt consists of about 4500 I have a telephone interview next week!

Hi Mickey.

If you were to be offered a DMP then payday loans can be included.

Regards,
Matthew.