Struggling with debt? Ask a debt advisor a question

Stevev99

MonkeyDog wrote: »

Hello, this is my first post and really looking for some advice. My wife and I have run up considerable debts on credit cards and a personal loan to the tune of approx £52,000. We have so far managed to pay the minimum payments to all of our creditors without default but it really is only a matter of time before we start to sink. I am considering a DMP but have a couple of questions in regards to this. Firstly, would my creditors even consider agreeing to a DMP baring in mind that we have not yet defaulted on a payment & secondly, how adversely would our credit rating be affected once the debts are cleared? We would dearly love to move house in the future (obviously once debt free) but are afraid that by entering DMP, would leave ourselves blacklisted as far as remortgaging goes.

Many thanks in advance for your help and assistance.

Hi, you sound in a similar situation that my wife and I were in 2 years ago, in fact a very similar amount.
We essentially had to resort to a DMP with CCCS even though we'd been scraping minimum payments.
It was a very hard decision because we knew it'd ruin our credit file but then again we were in a position where it was going to take us about 35 years to pay off everything at minimum payments with barely enough to live on if we did.
We contacted the CCCS, they contacted the creditors and so did we and the defaults rolled in.
Defaults essentially live on your credit file for 6 years whether satisfied or not and of course it'll make it hard to mortgage for a while especiually in this climate I'm afraid.
But then again hopefully we'll be debt free in 2 more years and able to mortgage again a couple after that once the file is clear or possibly take the hit on a higher interest mortgage.

It's hard making the decision but creditors will accept the DMP if it all looks appropriate on the financial evaluation you do to set it up and they see you have no choice.
Some take a few months to stop interest and even then others like M&S in our case, are on an interest free arrangement but haven't issued a default against us.

Good luck with whatever route you choose.

CCCS_Sue

garywilliams82 wrote: »

I lost everything between 2008 and 2009 including my Credit. I lost savings, cars, IRA, Credit cards, EVERYTHING! How to I build it back up my credit if no one will issue me a credit card. Not even a Home Depot 250.00 credit limit. Not even a Car loan with a $1000.00 cash Deposit?
I've been working in a new job in a new state sense the beginning of 2010. I have about 14 months of steady income with them. They pay me 10.25 per hour for 40 hours per week. I have no debt and my rent is 300.00 per month. I am 55 and wife is 59.
Thank you

Hi garywilliams82 and thank you for your message


Are you looking to improve your credit file abroad or in the UK?


If you are looking to improve your credit file in the UK, there is some really good information on this site. I have attached a link for you.
http://www.moneysavingexpert.com/loans/credit-rating-credit-score


Regards
Sue

CCCS_Sue

k_moor25 wrote: »

Heya everyone
I posted off about £300 worth of postal orders to pay for my ppi fee back in october and I have just recieved a letter from them demanding payment for the fee but I sent payment in October and have lost the reciepts from my postal orders. Is there anyone know what I can do ? I cant afford to pay that again

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Hi k_moor25 and thank you for your message

It will be difficult to prove if you don’t have the receipts but if they haven’t received them, then they shouldn't have been cashed.

I would recommend that you contact Consumer Direct for further advice.
http://www.consumerdirect.gov.uk/

They may be able to advise you further

Kind Regards
Sue

CCCS_Sue

MonkeyDog wrote: »

Hello, this is my first post and really looking for some advice. My wife and I have run up considerable debts on credit cards and a personal loan to the tune of approx £52,000. We have so far managed to pay the minimum payments to all of our creditors without default but it really is only a matter of time before we start to sink. I am considering a DMP but have a couple of questions in regards to this. Firstly, would my creditors even consider agreeing to a DMP baring in mind that we have not yet defaulted on a payment & secondly, how adversely would our credit rating be affected once the debts are cleared? We would dearly love to move house in the future (obviously once debt free) but are afraid that by entering DMP, would leave ourselves blacklisted as far as remortgaging goes.

Many thanks in advance for your help and assistance.

Hi monkeydog and thank you for your email

Welcome to the forums!

A debt management plan is not always suitable for everyone and so it is essential to first work out a budget you are able to live on. Do not include your non priority debts on the budget.
If the surplus in your budget shows you are managing to maintain the minimum payments to your non priority creditors, then a DMP would not be suitable for you.

I would recommend that you contact us for an appointment so that we can look at your whole situation and discuss all your options.
If you fall behind on your payments, then your credit file will be affected whether you do a DMP or not. I have attached a link to a booklet called ‘Credit Explained’ which gives you further information on your credit file

http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/credit_explained_leaflet_2005.pdf

In order for us to be able to provide you with advice on your financial situation you can either use our online advice facility Debt Remedy, or ring our free Helpline to book a telephone appointment with a counsellor.

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.

Alternatively if you would prefer to talk to a debt counsellor about your situation, you 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
Sue

CCCS_Sue

NO-BRAIN wrote: »

Hi,

In 2001 I wanted to buy a new kitchen so took out a loan from FNB to pay for it. then I sold my house and knew that rough times were ahead tried to be sensible and clear large debts. I requested a settlement figure from my loan company-they wanted it in writing so I did that but never got a response. Although I chased I never got any info and the money was burning a hole in my pocket. I made a payment (2002)which I estimated would cover the cost. I never heard anything more. 2 years on (2004) I was contacted by FNB who advised I now owed over a a grand as my payment was 700 quid short and over the years they'd added interest and charges. My account was sold to Link Financial who passed it backwards and forwards pretending to be different companies then finally settled down. My circumstances were bad and CAB phoned them and so a repayment plan of £5 per month was agreed along with freezing of the interest. So I've been paying religously for a few years now with no interest added. Then at end of 2010 I received a yearly statement and the balance had gone back up another £100 quid as they'd added interest for the year 09-10. I have rang and asked them to remove this and continue with previous arrangement and they have stated that they are entitled to the interest I have not paid over the past years and now want nearly £7K from me????

All this bearing in mind the original loan was only ever for £5k but when I was discussing on the phone I said to the lady my balance should be £600ish and no more and I didn't think it was right for them to add interest all of a sudden. She then said if I paid this amt in a lump sum they could clear the acct.....so the £7k just disappears??? I'm all for paying my debts and not hiding from them but this seems to be blatant daylight robbery.
Please can you advise of my rights?
1-Can they suddenly add this interest on?
2-If I stop paying what action could they take?

I have uploaded copies of the original agreement and their statements.

www.!!!!!!/shared/z39lqq2zv


Many thanks in advance,

Hi and thank you for your message

A creditor has the right to add charges and interest. All charges that can be added are stated upfront in the terms and conditions of the credit application which you are required to sign to take out credit.

However, these do seem excessive.

If you feel that these charges have been added unfairly, you could complain to the Financial Ombudsman. I have attached a link for you
http://www.financial-ombudsman.org.uk/

They may be able to advise you further.


Kind regards
Sue

NO-BRAIN

Hi Sue,

Thanks for getting back to me so promptly but I don't think I made my question clear. I realise that creditors can add interest and charges but the interest which has suddenly been added this past year is by a debt collection agency-Link Financial-as the debt was so to them in 2004 by the original creditors-FNB. Are a debt collection agency allowed to add interest to the debt? Pleas advise, thanks

Kind regards,

yesmum

Help me please i have what seems like a mountain of debt runs into the thousands most of them are many years old. i really want it sorted i was going to write to them myself but have read some horror stories about how some debt companies just harass you once you get in contact with them. ive got one of them dreadful log book loans @ the moment which i wish i never took out in the first place and a council tax bill with a debt collector which i know is very serious. i jus feel overwhelmed with it all. i have 2 young daughters and struggle everyweek. please please help me

fluffed

Hello - I have a quick question please!

Was wondering how much expendible income do you have to have to be able to go onto a DMP?
CCCS says I am eligible, but will all of the expendible income go on debt or will I have the opportunity to save a little?
(I'm worried about having nothing at all for mishaps, especially dentist as I seem to be having alot of problems & car - I have
a banger, sold my newish car to save £)

Thanks in advance

StepChange_Pavan

NO-BRAIN wrote: »

Hi Sue,

Thanks for getting back to me so promptly but I don't think I made my question clear. I realise that creditors can add interest and charges but the interest which has suddenly been added this past year is by a debt collection agency-Link Financial-as the debt was so to them in 2004 by the original creditors-FNB. Are a debt collection agency allowed to add interest to the debt? Pleas advise, thanks

Kind regards,

Hi there,

Debt collection agencies can add interest and charges in the same way that a creditor can. Like Sue mentioned these do sound excessive and if you think that the charges are unfair you can complain to the Financial Ombudsman.

Kind regards,
Pavan

StepChange_Pavan

yesmum wrote: »

Help me please i have what seems like a mountain of debt runs into the thousands most of them are many years old. i really want it sorted i was going to write to them myself but have read some horror stories about how some debt companies just harass you once you get in contact with them. ive got one of them dreadful log book loans @ the moment which i wish i never took out in the first place and a council tax bill with a debt collector which i know is very serious. i jus feel overwhelmed with it all. i have 2 young daughters and struggle everyweek. please please help me

Hi yesmum and thank you for your post.

You’ve come to the right place to look for advice and support.

The main thing is to communicate with your creditors and inform them of your situation. We can help you to do this so I’d recommend that you either use our online advice facility Debt Remedy, or ring our free Helpline to book a telephone appointment with a counsellor.

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.

Alternatively if you would prefer to talk to a debt counsellor about your situation, you 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.

I hope this helps.

Kind regards,
Pavan