Struggling with debt? Ask a debt advisor a question

StepChange_Pavan

ando51 wrote: »

Hello. I have got into some problems with debt due to my working hours being cut back to two days a week two years ago. I now have a full time job again but am unable to get a consolidation loan in order to make my outgoings more manageable as I now have a poor credit record, in spite of having a secure income. Any advice would be appreciated.

Hi ando51 and thanks for your post.

We don’t usually recommend debt consolidation as it can sometimes make your situation worse, especially if the new repayments aren’t more affordable.

Also, if your credit file has been affected by the problems you’ve had in the past, it’s unlikely that you will be accepted for a loan.

For us to be able to give you advice on your options, we would need to know more details about your situation. To give us this information you can wither use our online debt advice tool, Debt Remedy, or call our free helpline to book an appointment with a debt advisor. You can call free on 0800 138 1111 and lines are open Monday to Friday 08:00-20:00.

Kind regards,
Pavan

StepChange_Pavan

joanne2008 wrote: »

Hi i have just entered into a DMP with CCCS and have been instructed to open a new bank account i took one out with Halifax and have just found out it is part of the same group (RBS) as my old bank (Natwest) will they be able to take my money from my new account to my old?
Im really worried

Hi Joanne2008 and thanks for your post.

Don’t worry, Halifax is part of the Bank of Scotland (rather that Royal Bank of Scotland – confusing, I know!). Your money will be safe with the Natwest, provided that you don’t have any other debts with them.

Kind regards,
Pavan

leopardlady_2

Hi is there anywhere a list of which creditors are likely to freeze interest/charges please?

Is a plan from cccs more likely to be taken seriously than a self administered plan?

StepChange_Pavan

leopardlady wrote: »

Hi is there anywhere a list of which creditors are likely to freeze interest/charges please?

Is a plan from cccs more likely to be taken seriously than a self administered plan?

Hi leopardlady and thank you for your post.

It’s very difficult to guess whether or not a creditor will stop interest and charges as there are no guarantees. They seem to assess each case differently.

With regards to your second question, there are many people who successfully repay their debts by self administering their payments. However, going through a plan can make things easier for you and we do have good working relationships with most lenders.

I hope this helps.

Kind regards,
Pavan

skintoflinto_2

Hi there
We've had a DMP since May 2010. However, we have recently had some work done on our car which has taken what money we had managed to put away for Xmas. We are now panicking a bit! Is it possible to miss a payment? Or would that put the creditors backs up? All but one have been really good so far. Thanks for your time.

StepChange_Pavan

skintoflinto wrote: »

Hi there
We've had a DMP since May 2010. However, we have recently had some work done on our car which has taken what money we had managed to put away for Xmas. We are now panicking a bit! Is it possible to miss a payment? Or would that put the creditors backs up? All but one have been really good so far. Thanks for your time.

Hi Skintoflinto and thanks for your post.

You may be able to reduce your deposit for a month if you have had to pay for emergency car repairs. I’d recommend that you call our client support team to discuss this as they will have access to all your details.

Kind regards,
Pavan

MPwannasavemoney

Hi,

I am completely stuck what to do.

We have over the past few years been spending well above what I have been earning. My wife has not cared and has no income nor seems able to work. All savings basically gone and credit card debts are now £30,000 almost and rising. We are going to split up and get divorced, only reason I have not left yet is that it puts yet more financial pressure on the situation through having to pay additional rent on top. Wife says she can get various benefits for being a single parent (we have 3 kids) but cannot specify how much.

When I tried to get her to see the reality of the situation she just said it is not her fault it is mine for not earning enough. I am not in a position to increase income nor to take on a second job (contractually my employer forbids it and realistically with having to travel around Europe 2 or 3 days every week and having to put in many hours just to manage one job then to look after the kids at the weekend leaves no time to do anything else in the week).

I tried to get debt help. First step seems to be to put a financial statement/budget together. Wife does not care to assist. I tried to do one based on guesswork but it simply confirms what I already know - we spend more than I earn and I cannot see how to cut anything down as wife does all the spending.

Selling the house seems to be a short term option but with the wife's spending habits all the equity released will be wasted.

The only reason we have not reached crisis point yet is that I have managed to put some debt onto a Barclaycard at 6.8%, however we have no card limits anywhere to use. Even then some aspects of this are quite ridiculous as she can go to her beaty treatments whenever she likes but I am scared to open letters in case there is a bill in there, I cannot get a new pair of glasses even though my eyesight prescription has changed and I am scared to put petrol in the car.

I was told to separate the finances so that essential bills get paid and she gets a fixed amount to spend. When I suggested this all I got was abuse back. As I have to work abroad a lot I am worried that she will not manage it at all. The only day she will learn is when she cannot buy food in the supermarket - I can force this situation but it is the kids who will suffer.

I have been struggling for years to find real help on this, originally I did not want to separate/divorce but now it seems to be the only option - provided we both can find solicitors who can be paid over a very long period of time as there is no means to pay them in cash or credit card.

Appreciate any advice you can give.

Cheers

roberts516

Hi Mp
Cant offer any advise but I do know how you feel.I have an very unsurpportive husband. We have about £20,000 debts and like you I am the one who will sort the mess out.He has just gone and bought a new car ! and various other things we do not need.He had a cehque a few weeks ago for £600 I only managed to get £120 of him to pay our debts.So divorcee could also be my out-come.You have made a start and aknowledged the debt has to be sorted. I am sure there are people on here who will advise you. I wish you all the best

cacadah

In brief we have over the years increased our debts to what we thought was manageable. We are paying all of our bills including our mortgage on time every month and have no arrears or late payments. However, we only just have enough money left for the bare essentials, and sometimes not enough for this. Anything out of the ordinary that has to be paid other than regular monthly outgoings goes onto a now very limited credit card, we cannot afford to pay any more than minimum payments on our credit cards.
We have little or no equity in our house due to a secured loan on top of our mortgage. We can only see things getting worse if we don't do anything about this soon, please can somebody advise

whybother?

Hi There

I'm another one who feels a little hard done-by for trying to face up to my (ir)responsibilities and do the right thing only to have been strangled by loopholes.

I had to enter into DMP conditions a number of years ago with 6 creditors...my mess but felt I should at least pay back what I owed.

I thought I understood the implications at the time, the fact that my creditors would default my accounts and this would be reflected on my records for the next 6 years or so. Indeed, 4 of my creditors did so almost immediately, whilst MBNA chose to action an Arrangement to Pay (Jan 2003). Cahoot on the other hand, whilst at one point showing a 3 on my Credit History initially, neither defaulted nor APed me...and actually began registering 0s against me as CCCS paid on a monthly basis.

By 2008, my debts were repaid, settled and the initial Defaults finally dropped off my Credit History. However, on checking through Experian and Equifax, I noticed that (a) in the month that my settlement with Cahoot was finalised, they registered my account as Default; (b) my MBNA records contined for a full 5 years to be registered as AP until settlement in January 2008.

Obviously my issue is that both the AP and Default will remain on my record until 2014 which I believe is unjust considering I approached them to repay my full balance rather than running away from my debts and only paying a proportion of them.

Surely Cahoot's registration of Default at the point they did so is morally unfair? I have written to them but received nothing in reply.

As for MBNA, they did reply stating that had made me aware of the implications of AP and that this will remain on my record until 2014 regardless of the fact that the balance was satisfied. For my part, I KNOW I received no such notification but I have no proof of such and it would be a case of their word against mine which I would expect to get nowhere with. However my chief grievance is the fact that the AP will remain on my records for this length of time and I would actually have been better off if they had defaulted me too. I feel heavily penalised for doing the right thing. Also, I thought that AP was supposed to be recorded for short periods of time rather than 5 years!

Is there anything I can do to address these situations? Since entering DMP in 2002, I have not missed or underpaid anything.

Thanks