Struggling with debt? Ask a debt advisor a question

StepChange_Pavan

fluffed wrote: »

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

Hi fluffed and thanks for your post.

If a DMP has been recommended as your best option, your entire surplus will go towards paying your debts (we don’t charge a fee).

There are sections in your budget where you can allocate amounts for the dentist and spares and servicing for your car etc. If you feel that the amounts that are in your budget aren’t sufficient, just give us a call and we can update your budget.

Hope this answers your question

Kind regards,
Pavan

daisygrubb

Hi
I have 2 cc's with about £5000 on them,I have written to them both asking them to freeze interest whilst I get back on my feet,I have had a letter back today saying to continue paying each month with no mention of interest being frozen?????? I am not sure what to do next,I am paying £200 a month to both and that barely covers the interest so I am getting nowhere?? Pleas HELP!!!!:(

pinter_2

Hi, I have a balance due to Marbles which all amounts to interest currently being about £3,740. I have not used my card since 2006 and the balance back then was £6,166. I have worked out that I have paid them £6777 to date. I have been paying Marbles on a payment plan for the last 2 and a half years and at the moment they are still charging interest reduced at 12.65%, but some months for no apparent reason the interest is back to full whack again which is more than the £98 I am paying each month. I have been offered some money from a family member and was going to offer them an early settlement figure - would they be likely to accept and how much do you think I should offer - considering the whole balance is pure interest! Or even better would they consider writing off the interest? Any help would be much appreciated

MonkeyDog_2

Thank you Stevev99 & Sue for your responses and advice. I have used the debt remedy tool and a DMP has been suggested as one of my options. However, before I go down this route I am going to try and keep control of my own finances, the reason being that I have checked my credit file and so far nothing adverse is on there and by avoiding the DMP I still have a chance of keeping it that way.

I have been inspired through reading many of the threads on this forum and the stories and accounts of those in similar or worse positions than myself. So my plan is to try and pay more than the minimum payments on my credit cards, I have used the calculator on this site to work out how paying even only a few pounds above the minimum can reduce the period of time in which it will take to play off my cards, no brainer I know but sometimes it's hard to see the woods for the trees.

To make this possible I am going to sell my beloved 3.2 V6 car and instead buy something more economical which isn't in insurance group 18 and is in a lower vehicle tax band. Hopefully this will free up some more cash to pay towards my cards.

My wife and I are going to set ourselves a rigid but realistic monthly budgets and support one another to stick with them. Our hope and aim is to be debt free within 5 years, still have our credit ratings intact and then hopefully be in a position to buy that house of our dreams.

We know this won't be easy but even a journey of 5000 miles starts with a single step.

Thanks again for your help.

thousandyard1

hi

i wonder if you can advise me. im 30k in debt mainly tocredit card compnnies and 1 advance account which is kind of like a loan with my bank barclays. unfortunately i dont have job at the moment. my minimum payments are about £700 ech month and ive almost run out of credit. i have 2.5k in savings and i stand to inherit about 20 k which has been left to me in a will but it is dependant on a house (not my own) sale. i am a private tenant.

i have heard it might be ppossible to make token payments to my creditors with the promise of making a full and final settlement once the house sells. i havent contacted my creditors and havent yet defaulted on any of my payments but it is getting tight. do you think this looks like an option ?

thanks, andy.

StepChange_Pavan

daisygrubb wrote: »

Hi
I have 2 cc's with about £5000 on them,I have written to them both asking them to freeze interest whilst I get back on my feet,I have had a letter back today saying to continue paying each month with no mention of interest being frozen?????? I am not sure what to do next,I am paying £200 a month to both and that barely covers the interest so I am getting nowhere?? Pleas HELP!!!!:(

Hi there and thanks for your post.

Unfortunately, there is nothing you can do to guarantee the stoppage of interest and charges, especially if you are able to maintain the minimum payments on your cards. This is because you agreed to pay these when you originally signed to take the credit out.

You could consider switching your balance to a 0% interest rate card. This article gives you lots of useful information on how to go about this: http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards

If you are struggling to make the minimum payments or would like some help in putting together an effective budget to help you repay your debts you can get in touch.

To do this 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.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

pinter wrote: »

Hi, I have a balance due to Marbles which all amounts to interest currently being about £3,740. I have not used my card since 2006 and the balance back then was £6,166. I have worked out that I have paid them £6777 to date. I have been paying Marbles on a payment plan for the last 2 and a half years and at the moment they are still charging interest reduced at 12.65%, but some months for no apparent reason the interest is back to full whack again which is more than the £98 I am paying each month. I have been offered some money from a family member and was going to offer them an early settlement figure - would they be likely to accept and how much do you think I should offer - considering the whole balance is pure interest! Or even better would they consider writing off the interest? Any help would be much appreciated

Hi pinter and welcome to the forum!

It’s definitely worth writing to them with an offer of settlement but it’s difficult to say what they are likely to accept. If you can show them how much of the debt contributes towards the interest they may be willing to accept a relatively low amount but you would just need to keep negotiating if they reject.

The most important point is not to send them any money until you have confirmation in writing that the debt is ‘satisfied in full’. You would also need them to confirm that they or any other company will not take any other action to enforce or pursue this debt in any way whatsoever and that you will be released from any liability.

If you would like me to send you an advice sheet relating to full and final settlements, which includes sample letters, send us a private message (to CCCS Private Messages) with your email address.

Hope this helps.

Kind regards,
Pavan

StepChange_Pavan

MonkeyDog wrote: »

Thank you Stevev99 & Sue for your responses and advice. I have used the debt remedy tool and a DMP has been suggested as one of my options. However, before I go down this route I am going to try and keep control of my own finances, the reason being that I have checked my credit file and so far nothing adverse is on there and by avoiding the DMP I still have a chance of keeping it that way.

I have been inspired through reading many of the threads on this forum and the stories and accounts of those in similar or worse positions than myself. So my plan is to try and pay more than the minimum payments on my credit cards, I have used the calculator on this site to work out how paying even only a few pounds above the minimum can reduce the period of time in which it will take to play off my cards, no brainer I know but sometimes it's hard to see the woods for the trees.

To make this possible I am going to sell my beloved 3.2 V6 car and instead buy something more economical which isn't in insurance group 18 and is in a lower vehicle tax band. Hopefully this will free up some more cash to pay towards my cards.

My wife and I are going to set ourselves a rigid but realistic monthly budgets and support one another to stick with them. Our hope and aim is to be debt free within 5 years, still have our credit ratings intact and then hopefully be in a position to buy that house of our dreams.

We know this won't be easy but even a journey of 5000 miles starts with a single step.

Thanks again for your help.

Hi MonkeyDog,

Wow, it really sounds like you’re taking control of your situation and making very positive steps towards becoming debt free.

It’s a shame that you have to give up your car, but the rewards will be there for you in the end.

Keep us posted and if you ever need any advice along the way, you know where we are

Best of luck,
Pavan

StepChange_Pavan

thousandyard1 wrote: »

hi

i wonder if you can advise me. im 30k in debt mainly tocredit card compnnies and 1 advance account which is kind of like a loan with my bank barclays. unfortunately i dont have job at the moment. my minimum payments are about £700 ech month and ive almost run out of credit. i have 2.5k in savings and i stand to inherit about 20 k which has been left to me in a will but it is dependant on a house (not my own) sale. i am a private tenant.

i have heard it might be ppossible to make token payments to my creditors with the promise of making a full and final settlement once the house sells. i havent contacted my creditors and havent yet defaulted on any of my payments but it is getting tight. do you think this looks like an option ?

thanks, andy.

Hi andy and thanks for your post.

You’re right that making token payments as a short term solution could be your best advice.

I’d recommend that you come to us for some more detailed advice so that we can help you to prepare an effective budget which can be sent in support of your offers.

We can also give you support and guidance on how to make these offers and how you should deal with your creditors.

To do this 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. If you do decide to call us, please have details ready regarding your income, expenditure and creditors, as this can help speed up the referral process. If you have all of the necessary information ready, it may be possible to refer you directly to a counsellor for immediate advice. Alternatively, we will arrange for an appointment to be booked at a time convenient for you.

Kind regards,
Pavan

donewithcredit

Hello, not sure if im doing this right as i have never posted on here before. After looking at all available options and undertaking a debt remedy on the CCCS website it looks as though my best options for dealing with my debt is a debt management plan. The debt is mainly from credit cards. i have an hire purchase agreement for my car. This is one of those passport agreements where you lease the car for three years then have the option to renew the car or make a final payment (probably about £3 to £4 thousand in my case). How would a debt management plan effect this agreement. I need a car for work, not just to travel there but to be able to do my job. I am worried that i would have to give the car back and i would then need to find another job. Thanks