Struggling with debt? Ask a debt advisor a question

pollijc2268

Hi, I have a 21 year old son who I have just found out has got himself into a load of debt. The breakdown is :-
British gas & elec £280
BT £270
Lloyds tsb £1500
O2 £500
Payday loan £100
He also owes for the water and tv licence but he dosn't know how much.
Most of these debts were incurred last year when he shared a house with 3 other mates. He now shares a flat with his girlfriend so on top of all the debt he still has his current expenses to pay. His take home pay is £650 - £700 per month, his girlfriend can't find work, they have no children and they recieve no benefits. He has fallen behind on the rent and is now having to pay £450 till Jan to catch up.
Is there anything he can do? as even I can see that the figures don't stack up and there is no way he can manage to pay his rent, current bills and debt on his wages.

Thanks

CCCS_Sue

rbw0471 wrote: »

Hi

My wife and i started a DMP through CCCS in Oct 2008. We have been making regular monthly payments, which we increased in 2009 and are about to increase again next month.

I have just checked my credit report through Experian and noted that three of my creditors, RBS / Natwest and Mint are showing my accounts with them in default from 10/10/2010. If as it seems they are going to default the accounts every year we are on the DMP then obviously our credit rating will be ruined for six years after we have paid all the debt back.

I realise that we are in this situation through our own actions, but this seems unnecessarily punitive, particularly as none of the other creditors have followed suit. Is it worth writing to these companies and asking them to remove these defaults? I had a quick look on the Information Commissioners Guidance earlier and this seems to my untrained eye to go against the spirit of the DMP.

Please advise.....?

Many Thanks

Alan

Hi Alan and thank you for your message

Normally your creditor will send you a default notice after three to six missed payments, but this can be some time after.This will show on your credit file for six years from the date of issue. The creditors have to issue a default notice before any legal action can be taken.
Once issued it is difficult to remove them.
Even though you are on a DMP, this is part of the standard debt collection process.
Once your debts are completely paid off, you could try writing to the creditors to ask if they would consider removing the defaults but there are no guarantees.

If you need to discuss this further, you can call our helpline for further advice

Regards
Sue

CCCS_Sue

Suzuki_Boy wrote: »

I have 60k card debts and have contacted a company called Immediate Financial who have offered to take this on as a debt management plan. I think you will know the set up. I pay an agreed amount and all my creditors are taken care. They sound very helpful and genuine but I have reached the end in terms of being able to pay the amounts back to the cards and see this as my only option. They advised me to cancel all my DD's and payments but I am really nervous as I have no real information regarding how things will work out in the future.

Hi suzuki boy and thank you for your message

If you are feeling unsure about anything regarding the plan you have set up with them, then you need to contact them for further clarification.
If they are charging you a fee for their services, it may be advisable to consider changing to a non fee charger. This way all your available money is going towards clearing your debts.
CCCS is an independent registered charity and all our help is free and confidential.

We don’t have the facility to be able to simply transfer your Debt Management Plan from your existing provider as you would need to have an appointment with one of our debt counsellors first. If the counsellor is happy to offer a DMP as a result of your appointment, we would then discuss with you how to end the current arrangement you have and setting it up with ourselves.

If you would like us to take a look at your situation to see what options you have, you would need to book a telephone based appointment with one of our trained debt counsellors by calling our helpline on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00. It would be helpful that when you call you have details ready regarding your income, expenditure and creditors, as this can help speed up the referral process. If you have this information ready it may be possible to refer you directly to a counsellor if one is available, otherwise we will arrange a time that is convenient for you to be called back for an appointment.


Alternatively, you can use our online electronic facility called Debt Remedy. Debt Remedy will assist you in completing a financial statement which includes information on your household, employment, income, expenditure and debts. All this information is used as a basis to determine the options available to you to deal with your situation.

Once you’ve followed the process through and completed all the required information you will immediately be presented with an advice booklet, which will provide tailored advice for you based on your current circumstances. It will also provide advice on ways you may be able to improve your situation. If you would like to get immediate advice on your situation this link will take you directly to Debt Remedy http://www.cccs.co.uk/ref/drcu

Hope this helps,
Sue

CCCS is a registered charity, and there is no charge whatsoever for the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and the possible implications, but not make them for you.

CCCS_Sue

hostie wrote: »

I have a lot of credit card debt and was thinking of asking the companies to reduce their rates or freeze them until I can get things under control. I just wondered how this would affect my credit rating and whether I am likely to be refused for future products.

Thank you for your help.

Hi hostie and thank you for your message

If you are making reduced payments or missing payments to your creditors, then your credit file will be affected.
The creditor may also send a default notice if you miss a number of payments (usually between three and six) and if the debt is regulated by the Consumer Credit Act.
I have attached a link to a booklet called Credit Explained which will give you further information regarding your credit file
http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/credit_explained_leaflet_2005.pdf

Hope this helps

Regards
Sue

CCCS_Sue

JnH wrote: »

Hi there,

Just been suggested to find the website and have now got a question of my own.

I've read through what studantnurse was saying and have got the same question! I joined Experian also after finally getting off my backside and started to begin the long trek to sorting out my finances.

I have racked up a fair amount of debt and pretty much stuck my head in the sand when it came to paying it back. I've had letters and phone calls from these collection agents, and have finally sorted a very basic payment plan with them. After looking through Experian I also noticed that even though I have been paying these back, I have been defaulting on my credit report.

Please can you advise if this is correct and if so, how can I stop it!

Thanks!

Hi jnH and thanks for your message

A default notice is a standard procedure in the debt collection process.
The creditor may send a default notice if you miss a number of payments (usually between three and six) and if the debt is regulated by the Consumer Credit Act. The only way you can prevent a default notice is if you pay back the arrears amount stated within fourteen days, then no further action will be taken.
However, if future payments are missed a default notice can be issued again.
Once issued, the default will show on your credit file for six years from the date of issue.

Regards
Sue

prettykitty

Hi there

I have got in trouble with Santander re my current account. They are hitting me with £150 in charges this month which I just can't afford to pay without going over my limit again and incurring more charges and missing vital bills. I am on a DMP with CCCS already but not in relation to Santander as things were manageable until a few weeks ago.
The advisor at Santander said they can't cancel the charges but I could close my account and come to an arrangement to repay the charges. So my intended plan of action is to open a basic account elsewhere, allow my salary to be paid in to Santander on the 10th Nov (my rent, CCCS payment and council tax go out immediately) and then shift the balance to my new account before charges are deducted on the 15th. I would then have future salary payments paid to my new basic account and set up new direct debits from there.

Can I do this and can the charges then be added to my DMP? I just feel like I am being overwhelmed again.

Thanks for your time.

StepChange_Pavan

simon31leeds wrote: »

Hi Pavan,

Thanks for the reply. Sorry - don't think you've got the context of my message fully.

I was trying to clarify if there is any way that I can put any pressure on them to remove my arrangement and start paying them usually. I have been on an arrangement with them for some 3 years or more and never missed a payment and pay more than the minimum payment amount (if I weren't on an arrangement) I simply want to go to a normal payment method with them, as the fact the arrangement is on my account is affecting my ability to lower interest on any of my debts, although all are serviceable. My credit limit with them is £3,000 more than my current balance outstanding and I don't necessarily want a card back from them, I just want to be released from the arrangement.

Hi Simon,

Unfortunately I’m not aware of anything that you can do if you agreed to sign for the new arrangement.

I’m assuming that you think that it’s affecting your credit file and that’s why you can’t get another loan? There could also be other reasons why you have been declined and the article on improving your credit file may still help.

You would need to discuss this with RBS but if you’re not happy with their reasons you could contact Consumer Direct for further advice on where you stand.

Kind regards,
Pavan

StepChange_Pavan

prettykitty wrote: »

Hi there

I have got in trouble with Santander re my current account. They are hitting me with £150 in charges this month which I just can't afford to pay without going over my limit again and incurring more charges and missing vital bills. I am on a DMP with CCCS already but not in relation to Santander as things were manageable until a few weeks ago.
The advisor at Santander said they can't cancel the charges but I could close my account and come to an arrangement to repay the charges. So my intended plan of action is to open a basic account elsewhere, allow my salary to be paid in to Santander on the 10th Nov (my rent, CCCS payment and council tax go out immediately) and then shift the balance to my new account before charges are deducted on the 15th. I would then have future salary payments paid to my new basic account and set up new direct debits from there.

Can I do this and can the charges then be added to my DMP? I just feel like I am being overwhelmed again.

Thanks for your time.

Hi Prettykitty,

I’ve already responded to the message you sent us. If you need any further help, just let us know.

Kind regards,
Pavan

StepChange_Pavan

pollijc2268 wrote: »

Hi, I have a 21 year old son who I have just found out has got himself into a load of debt. The breakdown is :-
British gas & elec £280
BT £270
Lloyds tsb £1500
O2 £500
Payday loan £100
He also owes for the water and tv licence but he dosn't know how much.
Most of these debts were incurred last year when he shared a house with 3 other mates. He now shares a flat with his girlfriend so on top of all the debt he still has his current expenses to pay. His take home pay is £650 - £700 per month, his girlfriend can't find work, they have no children and they recieve no benefits. He has fallen behind on the rent and is now having to pay £450 till Jan to catch up.
Is there anything he can do? as even I can see that the figures don't stack up and there is no way he can manage to pay his rent, current bills and debt on his wages.

Thanks

Hi there and thanks for your message.

Your son would need to work out his income and expenditure and then use his surplus to get back up to date with his priorities such as his TV license as soon as possible.

He could offer his other creditors token payments until he gets back on track with his priority payments and then offer them more once he can afford to.

Is his girlfriend not entitled to any Job Seekers Allowance if she is looking for work?

I would recommend that he comes to us for advice as we would need to know more details to help him further. We can also refer him on to our specialist welfare benefits team to check his benefit entitlement.

He can either use our online advice facility Debt Remedy, or ring our free Helpline to book a telephone appointment with a counsellor.

Alternatively 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.

Kind regards,
Pavan

rekab71

Hi there

This my first time using this forum so bear with me.

I took out a loan with Llloyds Bank back in June 2003 for £10,000. I was asked if I wanted PPI on the loan, at the time I thought it was a good idea as I have a cronic back condition.

I was making all payments on time. After a couple years I was made redundant, I informed the bank and the PPI was put into place. After 12 months the payments stopped and the loan was referred to their recoveries dept. I was under the impression PPI covered me for the duration of the loan. Not so.

Having taken advice from my local CAB, I set up a payment plan with a collection agency. Things were okay until I discovered they were taking out more than we had agreed. I stupidly canceled the direct debit. Things got worse from then on, I put my head in the sand and tried to forget about it until they started court proceeding against me. I have set up another payment plan with them to stop this.

I have also written to the bank asking for all information with regards to the loan I took out with them. I recieved a letter back form them, this is where i'm confused.

The loan was for £10,000, but the statment shows it was for £7,800 and £2,200 loan for PPI plus another £2,150 for some reason.

It also shows after each payment was paid I was charged interest on that payment of at least £100.

Sorry to go on so much.

Can anyone shed some light on what I should do.

Thanks in advance