Struggling with debt? Ask a debt advisor a question

CCCS_Sue

annetta123 wrote: »

I feel very strange posting on a site about my problems, but do need some advice.

I am 62 years old, my sole income is from a private pension, and my state pension. The private pension is paid into my current account monthly and my state pension paid in to the same account weekly on Mondays.

I have an agreed overdraft limit of £3,000 with my bank. For the last couple of months when I checked at the cash machine, I was into my overdraft to the tune of £2, 700, it came down when my pensions went in - naturally, but then all of my standing orders/direct debits start coming off, and I'm back to square one. I have used up all of my savings to get me to where I am right now, sometimes these went to reducing my overdraft.

Funds have now run out of my savings, and I fear an emergency of any kind cropping up. I'm not spending other than on food, I've turned off my heating, there is little else I can reduce to save money.

My problem is that I fear the phone ringing, or opening the mail in the morning or even going to the door to see if I have any mail. In March my bank did not pay my monthly direct debit to one of my credit cards due insufficient funds remaining - this was because I was near my £3,000 OD limit. I'm worried sick, a new Direct Debit has been set up, and I have paid manually until this happens which will be this month.

I cannot go on living this way, I'm alone and scared and don't know what to do. If I was only paying my mortgage, council tax, gas, electricity, tv licence and insurance for the house etc. the normal things. My pensions would be enough, but I fear my problems are that I'm still paying minimum payments on my credit cards - and a bank loan which finishes at the end of 2011 - this alone is £332 a month. But if I only paid my essentials I would be ok living on my pensions.

Can someone please tell me how to proceed. I find it very difficult to pick the phone up and even admit to having a problem, let alone looking at the problems on paper - it's just how I am. I have buried my head in the sands for long enough, but I'm so very badly depressed right now, and I don't know where to turn.

Thank you
Judy.

Hi Judy and thank you for your message

It is good that you have taken the first step towards help, and welcome to the forum!:)

The first thing you need to do is get a basic bank account elsewhere and have your money paid into this account.
This puts you back in charge of your finances, and prevents the bank taking money from your account to repay the debts you have with them.
Then you need to put together a budget showing your income and expenditure and send a copy to each of your creditors with an offer of payment you can realistically afford. This would be any surplus left after paying all your priorities such as your mortgage/utility bills/council tax/ food etc.
If there is no surplus, then you should offer a £1 as a token gesture until you have looked at options to improve your situation.
You could call us for an appointment to speak to one of our debt counsellors about your situation.
The counsellor would help you to complete your budget and then discuss all the options for your situation with you.
All our help is completely free and confidential.
To make an appointment please call 0800 138 1111. Lines are open from 08.00 until 20.00 Monday to Friday.

Hope this helps and please feel free to contact us if you need further help and advice.

Regards
Sue

annetta123

Thank you for the advice.

I really don’t know what to do, and I have never been in a state like this in my life. I feel as if there is no way out where I can still maintain my dignity and credit rating which I want to do.

I was looking in my local yellow pages and noticed that there is a company, which I presume I can’t mention but I live in Scotland, who offer free home visits, they do say on their website that if they act on your behalf they charge a fee. This is a debt counselling company. What I like about what I read is that they would come and visit me in my home – I’m not very good at going to somewhere as far from me, as CAB or other outlets – taking a step through the door would almost kill me if I had to be that open. I don’t know if anyone will relate to this but not only am I unhappy, sad and very depressed, but I don’t want to be around people. I know that I have read on here not to go with a company who will doubtless charge me, but the temptation today is to give them a call, as it means I can see someone in the comfort of my own home, which I'd feel much better about. What sort of fee do people like this charge - can anyone tell me. I don't want to get involved with a company who may not be on the up and up - so how can I tell if this company is good or not?

My 4 year old relationship with a man I deeply loved also ended on 15th April, so I am as low as I have ever been., and now and then he would help me out - of course I'll miss that help now too which will only make matters worse.

I have been separated from my husband for more than 5 years but his name is still on the title of the house. He has no money to help me and pays nothing towards any of my house running costs – and I wouldn’t expect him to either as he said I had always worked so hard that it was right I should stay in the house. Our Mortgage is of course in joint names – it is an interest only mortgage fixed for 10 years, which is why I don’t even think (and don’t want to involve my husband) that I could even consider Equity Release. I want a simply straight forward way out of my problems urgently I’m afraid, as I have noticed on the threads that this seems to take some time, and I don’t know how long I can go on like this, the worry is just awful.

There are so many threads on here it’s hard to follow. But I shall have a look around.
Thanks to all of you Judy.

PoorOldPete

Posted this elsewhere before seeing this thread... really need some advice.

Hi

I need some advice before I make my next move with our debts, my wife's and mine. Little bit of background... the debts are fairly long term, some over 6 years since last payment towards or communication etc, and our mostly store cards, bank loans, catalogues, student loan etc etc, but there are some utility bills, water, elec and council tax... We are both out of work for health reasons, neither likely to ever return due to the health reasons... Our income is incap ben/child tax cred/DLA/housing ben/child ben... no wages or other income. No savings, live in rented house and car on DLA... we also don't own anything expensive, so I presume that means no assets?

Our debts our in our individual names, but together total about £34k. I know at least 2 could be removed under limitations act, dropping that by £3k. I think there are others that could also be dropped but need to check them out in detail. I think that individually we would have less than £15k each if we did this.

What I need to know is if we can go for DRO rather than BK. So...

1. can we as a married couple do seperate DRO's or do they have to be merged as one debt because we are married?

2. are DLA and child benefit ignored income when doing an income/expenditure? DLA is currently being renewed so if we didn't get it back our financial situation would dramatically change for the worse.

3. some of the debts, banks/CC's are mostly made up of charges. If I claim this money back under hardship would that affect a DRO? If I claimed it back but used it to reduce the debt owed to that company would affect DRO? If I claimed back and shared between all debts would that be acceptable?

4. I will be claiming DLA for myself in the near future, if I get it then there is a backdated payment made, would this affect DRO?

5. If I have to have a BK would my Natwest step account, joint, have to go? It has all bens paid into it and DD's for non debts paid out.

6. would a DRO affect my bank account?

7. I have been told there are acceptable levels of expences by the government, e.g. how much is allowed to be paid on housekeeping etc per month. Is there somewhere I can see these levels so I can see if mine reasonable?

8. if I ask CCCS to help with my debts would I do all the contacting/negotiating or can it be done by CCCS?

I am sure I will have more questions as I have so many concerns about my situation and I want to do it right as my family has lived with these debts and the 'callers' for years now and it has had a great effect on us.

Thanks in advance.

Pete

Missycass

Recently had a letter from Marbles wanting to raise the interest on my card to nearly 39%!!! Am I right in thinking this is extreme? I plan to take the option to close the account and stay at the present rate and pay off the card as quickly as possible. I've never been in arrears with my card - my old card was taken over by Bank of Scotland and since then the rate has gone up and up and up - surely this sort of interest rate smacks of the type of loan sharks that prey on those with small incomes? I have a number of credit cards, HSBOS and Marbles among them and charging extremely high interest rates - due to unforseen circumstances I am only now able to pay the minimum payments - it's going to take me 15 years to pay them off. I can't get a loan due to a recent poor credit rating BUT if I could I could continue paying the same amount that I pay now to Halifax and Marbles (both Bank of Scotland) I could have all my credit cards paid off in 4 years. I know it's my fault, I'm not saying credit cards were forced on me but this bank is making life extremely hard by upping and upping the interest rates - how can it be stopped - surely it can't be legal? And how can I change my life with a loan and pay off my cards?

CCCS_Sarah

bluerhino6 wrote: »

Hi I have just been divorced, I have no house, I rent, No car and no savings. I have over the last year managed to get myself into About £18k worth of debt, 3 credit cards, 1 loan and store cards.

I am in full time employment but this barely covers my rent and bills let alone debt payments.

Do you have any advice for me? I am considering bankruptcy!!!

Hello,

Thank you for your message.

You would need to complete a detailed financial statement and then see how much money is left over to service the debts.

If you need any help completing a financial statement, CCCS have a free online tool called Debt Remedy. You would just need to input the details of your income, expenditure and debts and then you will be provided with a budget and a booklet explaining your options. The link will take you directly to Debt Remedy.

If you would prefer, you could call and speak to a debt counsellor who will be able to help you complete your budget and look at your options.

Regards
CCCS

CCCS_Sarah

annetta123 wrote: »

Thank you for the advice.

I really don’t know what to do, and I have never been in a state like this in my life. I feel as if there is no way out where I can still maintain my dignity and credit rating which I want to do.

I was looking in my local yellow pages and noticed that there is a company, which I presume I can’t mention but I live in Scotland, who offer free home visits, they do say on their website that if they act on your behalf they charge a fee. This is a debt counselling company. What I like about what I read is that they would come and visit me in my home – I’m not very good at going to somewhere as far from me, as CAB or other outlets – taking a step through the door would almost kill me if I had to be that open. I don’t know if anyone will relate to this but not only am I unhappy, sad and very depressed, but I don’t want to be around people. I know that I have read on here not to go with a company who will doubtless charge me, but the temptation today is to give them a call, as it means I can see someone in the comfort of my own home, which I'd feel much better about. What sort of fee do people like this charge - can anyone tell me. I don't want to get involved with a company who may not be on the up and up - so how can I tell if this company is good or not?

My 4 year old relationship with a man I deeply loved also ended on 15th April, so I am as low as I have ever been., and now and then he would help me out - of course I'll miss that help now too which will only make matters worse.

I have been separated from my husband for more than 5 years but his name is still on the title of the house. He has no money to help me and pays nothing towards any of my house running costs – and I wouldn’t expect him to either as he said I had always worked so hard that it was right I should stay in the house. Our Mortgage is of course in joint names – it is an interest only mortgage fixed for 10 years, which is why I don’t even think (and don’t want to involve my husband) that I could even consider Equity Release. I want a simply straight forward way out of my problems urgently I’m afraid, as I have noticed on the threads that this seems to take some time, and I don’t know how long I can go on like this, the worry is just awful.

There are so many threads on here it’s hard to follow. But I shall have a look around.
Thanks to all of you Judy.

Hello,

CCCS offer a telephone based service that you can call, this is completely free. We have an office in Glasgow so you would have your phone appointment with them. They will be able to help you complete a detailed budget and look at your options. They will be able to discuss this in detail with you. You would get all the information through the post.

I would recommend that you contact a free organisation such as CCCS, National Debtline or CAB not a fee charging company as this money is better going towards your debts.

If you would like an appointment, please call our helpline free on 0800 138 1111.

Regards
CCCS

CCCS_Sarah

PoorOldPete wrote: »

Posted this elsewhere before seeing this thread... really need some advice.

Hi

I need some advice before I make my next move with our debts, my wife's and mine. Little bit of background... the debts are fairly long term, some over 6 years since last payment towards or communication etc, and our mostly store cards, bank loans, catalogues, student loan etc etc, but there are some utility bills, water, elec and council tax... We are both out of work for health reasons, neither likely to ever return due to the health reasons... Our income is incap ben/child tax cred/DLA/housing ben/child ben... no wages or other income. No savings, live in rented house and car on DLA... we also don't own anything expensive, so I presume that means no assets?

Our debts our in our individual names, but together total about £34k. I know at least 2 could be removed under limitations act, dropping that by £3k. I think there are others that could also be dropped but need to check them out in detail. I think that individually we would have less than £15k each if we did this.

What I need to know is if we can go for DRO rather than BK. So...

1. can we as a married couple do seperate DRO's or do they have to be merged as one debt because we are married?

2. are DLA and child benefit ignored income when doing an income/expenditure? DLA is currently being renewed so if we didn't get it back our financial situation would dramatically change for the worse.

3. some of the debts, banks/CC's are mostly made up of charges. If I claim this money back under hardship would that affect a DRO? If I claimed it back but used it to reduce the debt owed to that company would affect DRO? If I claimed back and shared between all debts would that be acceptable?

4. I will be claiming DLA for myself in the near future, if I get it then there is a backdated payment made, would this affect DRO?

5. If I have to have a BK would my Natwest step account, joint, have to go? It has all bens paid into it and DD's for non debts paid out.

6. would a DRO affect my bank account?

7. I have been told there are acceptable levels of expences by the government, e.g. how much is allowed to be paid on housekeeping etc per month. Is there somewhere I can see these levels so I can see if mine reasonable?

8. if I ask CCCS to help with my debts would I do all the contacting/negotiating or can it be done by CCCS?

I am sure I will have more questions as I have so many concerns about my situation and I want to do it right as my family has lived with these debts and the 'callers' for years now and it has had a great effect on us.

Thanks in advance.

Pete

Hi Pete,

Thank you for your message.

I would recommend that you have an appointment so that we can answer your questions in detail, but just to cover some of the points.

Benefits – Child Benefit would be taken into account as a form of income. DLA is for your disability and not to be used for debts. So with DLA, it would be included on your budget as the money is coming in, but then it would be balanced back out in your budget so effectively wiping the amount out.

If you wanted to apply for a DRO you would need to do this individually.

Your bank account would not be frozen, however banks do have their own policies so maybe still better to open a new one and see it as a fresh start.

If you would like an appointment to see if you are eligible, then you can call our helpline free on 0800 138 1111.

Regards
Sarah

CCCS_Sarah

Missycass wrote: »

Recently had a letter from Marbles wanting to raise the interest on my card to nearly 39%!!! Am I right in thinking this is extreme? I plan to take the option to close the account and stay at the present rate and pay off the card as quickly as possible. I've never been in arrears with my card - my old card was taken over by Bank of Scotland and since then the rate has gone up and up and up - surely this sort of interest rate smacks of the type of loan sharks that prey on those with small incomes? I have a number of credit cards, HSBOS and Marbles among them and charging extremely high interest rates - due to unforseen circumstances I am only now able to pay the minimum payments - it's going to take me 15 years to pay them off. I can't get a loan due to a recent poor credit rating BUT if I could I could continue paying the same amount that I pay now to Halifax and Marbles (both Bank of Scotland) I could have all my credit cards paid off in 4 years. I know it's my fault, I'm not saying credit cards were forced on me but this bank is making life extremely hard by upping and upping the interest rates - how can it be stopped - surely it can't be legal? And how can I change my life with a loan and pay off my cards?

Hi Missycat,

Consolidation loans do sometimes seem tempting and many people fall into the trap of consolidating. All this does is move the debt from one place to another and increase the overall interest as a general rule.

You need to complete a detailed financial statement, this needs to include everything from priority household costs, food, clothing travel etc and then see how much money you have left to service the debts.

If you would like help completing a financial statement then you could call our helpline free on 0800 138 1111.

Regards
CCCS

chocolates

Hi there
My partner had an unpaid phone bill from Orange for £150, however he was unable to pay it and so was disconnected. The debt was passed on to Buchananclark & Wells and costs etc added. He agreed to pay them £28 per month but he missed a payment last month. He made a payment last week but today he has received a letter saying- Despite repeated requests for payment your overdue debt in the sum of £225.17 with our client Orange pcs remains outstanding. Accordingly documents can now be prepared for the issue of a claim against you in your local court. Once judgement or decree has been granted the following can take place;
1. Your debt being increased to include legal costs and interest
2. Your name being entered in the public records of your local court
3.Your credit worthiness being adversely affected for future credit and mortgage applications.
To avoid these actions being taken payment must be made immediately........etc etc

I am extremely worried about this as i am already on a debt management plan with yourselves. My partner only has a credit card with £200 on so his debt is small but i am worried about court action etc etc.
What would you advise us to do??
Many thanks in advance.

hilaryjp

My partner moved in with me last September and the other day received a letter saying that he owed money for debts against Severn Trent Water. He admitted to me that he did but my question is how did they get hold of his address? There are only three companies that know his address - The local council (who although he owes them money and they know his present address still send mail to his previous address), his bank and Orange.

My question is how did STW get his addresss when he should have been covered by Data Protection?

BTW he is registered for voting at his previous address (not the property he owes money for!).