Struggling with debt? Ask a debt advisor a question

catlover32

Hi - I have a question about credit card payments. Curretly I'm on maternity leave, and my partner and I did not fully realise how much a new baby would cost! I'm returning to work in June, which is the earliest I can go back for various reasons. I was really stupid in my 20s and racked up credit cards debts of 15k which I'm diligently trying to pay off. However we've realised we're going to struggle with even the minimum payments for the last 2 months of my maternity leave i.e. April and may. I need to obviously contact them about this, and obviously don't expect them to say "oh that's alright then!". However I do need advice on the best approach to take, as after June I'll be able to resume payments as usual?
My credit rating is still very poor and will be until I get these debts paid off, so there's no chance currently of applying for more credit, even if we wanted to.
Thanks in advance for any advice.

BellaMay10

I am in bad debt totalling about £22,000. This is as a result of some bad decisions in the past and generally not being great with my money. I know I'm stupid but there's nothing I can do to chnage it now so I've got to deal with the consequences. My husband has also had debt problems in the past and has been on a DMP, although has now finished that and just has agreements with his final creditors.

My debt is spread over a loan, 2 credit cards and an overdraft. I currently pay about £600 a month (paying just the minimum amounts on everything). I also have a joint mortgage (with my husband) of £130k but don't have much equity in the house thanks to buying it just before the crash! The mortgage is interest only.

Because of my husbands past problems we keep our finances very separate (apart from the mortgage) and I'm really struggling to meet my payments now. I take home around £1350 a month and after the mortgage, bills, diesel and my debts there is literally nothing left - every month end I'm scrabbling round trying to find money to put in my bank to avoid going over my overdraft limit or paying for food shopping, diesel etc on my credit card which I know is silly.

I'm just really wondering if you can offer some advice on what I should do - Ideally I would avoid anything that would have an impact on my credit rating as I've managed to keep that ok at the moment. I'm thinking a debt consolidation loan to try to make the amount I pay out a month a bit more affordable, even if it would mean I was paying it off over a longer period - but don't know whether thats the right thing to do?! If it is the right thing, which banks/loan companies would be best to approach?

Thank you

StepChange_Pavan

BB-Blammalam wrote: »

Hi I am a newbie and have found the info on the site very helpful. However I feel that I need advice more relevant to my situation.

I am a single parent living in the home I once shared with my partner. I continue to pay the mortgage. I had managed to pay off my debts and was running smootly until last summer. I inadvertantly overspent during the summer holidays. By the time charges were added it amounted to approx £400.

The bank manager gave me a small overdraft and advised me to take out a credit card to use instead of my visa. He advised that all my spending should be on that as its safer than visa. It has approx £2400 on it.

When the second payment was due I was abroad and had internet connection problems, compounded by being unable to find a telephone that worked. By the time I managed to make the payment it got to them late. I am now charged £12 per month on top of the basic payment. I was recently told that another of my payments didnt arrive at all.

I feel that the credit card situation is uncomfortable for me and I dont want it to get any further out of control.

Furthermore I need to spend some money on building work for the house. It is in a bad state. I need approx £3000 to £5000. Then I intend to sell it as I wont afford theinterest rates once they start to increase and my ex wants to be released from it..

Please would you advise me if I should take out a 0% credit card and transfer the balance, but using a standing order to pay it so that it goes out automatically every month or would a loan be more appropriate?
I would imagine the recent events with the credit card may have damaged my credit rating.

Also I am concerned as someone has taken me to court as she was unhappy with a horse truck she bought off me. She ripped up the floor before asking for a refund. I said no as I didn't have the opportunity to have it back as she had bought it. She is sueing me for the floor that she ripped up plus the initial problem which was some hidden corrosion under the floor that no one could have known about. I am annoyed as she brought an expert with her and the truk is 21 years old. It was tatty. I dont have any money to refund her. I would imagine that I may end up with a CCJ as the courts seem to think I'm the bad guy in all of it. although she bought it 'as seen', she is using the unfit for purpose angle.

So I'd like to get the credit card and/or loan situation sorted before May when the court hearing is. I'm borrowing 'off of peter to pay Paul' so to speak at the moment.

I realise this has been a bit long winded but any advice would be most appreciated, thank you.

Hi there and welcome to the forum

I can’t advise you on getting further credit, but I’d recommend that you work out how much you can realistically repay each month by drawing up a sustainable budget.

If you’re considering taking out a 0% credit card you should ensure that you cut up the old card and don’t use it again as it could make the situation worse. If you do chose to switch the balance it can be a good idea to set up a standing order so that you don’t miss a payment, provided that ensure that the funds are available in your bank account. You should also try to make extra payments to reduce the balance as quickly as possible. This article gives you more information on transferring balances: http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards

If you’re unsure about what’s on your credit file, I’d recommend that you check it before applying for anything else. This article tells you how to do this and also what to do if you’d like to improve your rating: http://www.moneysavingexpert.com/loans/credit-rating-credit-score

I hope this helps, but if you’d like more detailed advice on your situation you could 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

StepChange_Pavan

beanie98 wrote: »

Hi, PLEASE HELP
I have been trying to obtain cca request from cabot and moorcroft.
cabot have sent back a copy of a reply card that I filled back in the year 2000. It basically is just a reply card i sent back but did sign. It has sections filled in with my printed address and sections i filled in with phone number, annual income and my signature. The box they should have signed is blank. Can you please tell me if this is a enforcable agreement as this is a reply card. It has got a small box with credit agreement regulated by consumer credit act 1974 . There is no terms or conditions or interest etc. I have been paying this until December and then asked for a cca request.
When cabot took this over ( it was first a providian national bank card then became monument) and when I first had problems the amount owing was just over 2000 but now they have added 1500 interest so it is now 3500. so all what I have paid since 2006 has been pointless. Please help as what I should do next.
Also I have been having problems with moorcroft, this is for my abbey bank account which went into default in 2006. Again I have been paying up until december and then asked for a cca requests. I finally recieved a letter saying they did not have one but was it was my obligation to pay, so I sent the section 10 letter. They wrote back stating that (I write to advise that a copy of the consumer credit agreement is unavailable as this is a bank account) and then on friday 11th I had someone knock at the door who was a debt collecting agent. He promptly started to discuss this in front of my neighbour who was only a few feet away and heard what was going on. I said I would not discuss this and that he had embarressed me infront of my neighbour and asked him to leave as he was tresspassing on private property. he replied that he new his rights and was allowed to be here. I sent the same day the letter refering to (threat of a doorstep visit) recorded. As they have not supplied a copy of my cca request how do I stand as this is a bank account which is now santandar.
Please help as to what is the best course of action or what can they do.
Mant thanks

Hi beanie98 and thanks for your post.

If you’re concerned about the way in which they’re trying to collect the debt, I’d recommend that you contact Consumer Direct.

However, if you know that you took the debt out, you are liable to repay it. If you’re struggling, you can contact us to look at your situation in more detail. 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,
Pavan

StepChange_Pavan

catlover32 wrote: »

Hi - I have a question about credit card payments. Curretly I'm on maternity leave, and my partner and I did not fully realise how much a new baby would cost! I'm returning to work in June, which is the earliest I can go back for various reasons. I was really stupid in my 20s and racked up credit cards debts of 15k which I'm diligently trying to pay off. However we've realised we're going to struggle with even the minimum payments for the last 2 months of my maternity leave i.e. April and may. I need to obviously contact them about this, and obviously don't expect them to say "oh that's alright then!". However I do need advice on the best approach to take, as after June I'll be able to resume payments as usual?
My credit rating is still very poor and will be until I get these debts paid off, so there's no chance currently of applying for more credit, even if we wanted to.
Thanks in advance for any advice.

Hi catlover32 and thanks for your post.

I’d recommend that you put together a realistic budget to show how much your income and monthly outgoings. You can send your creditors copies of this and an explanation that you hope your situation will improve once you go back to work.

If you have a surplus left over in your budget, offer them this as a token payment until your circumstances change. There’s no guarantee that they will accept this but you should send it anyway as a gesture of goodwill and to show them that you are willing to pay.

If you’d like some help in doing 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.

Kind regards,
Pavan

StepChange_Pavan

BellaMay10 wrote: »

I am in bad debt totalling about £22,000. This is as a result of some bad decisions in the past and generally not being great with my money. I know I'm stupid but there's nothing I can do to chnage it now so I've got to deal with the consequences. My husband has also had debt problems in the past and has been on a DMP, although has now finished that and just has agreements with his final creditors.

My debt is spread over a loan, 2 credit cards and an overdraft. I currently pay about £600 a month (paying just the minimum amounts on everything). I also have a joint mortgage (with my husband) of £130k but don't have much equity in the house thanks to buying it just before the crash! The mortgage is interest only.

Because of my husbands past problems we keep our finances very separate (apart from the mortgage) and I'm really struggling to meet my payments now. I take home around £1350 a month and after the mortgage, bills, diesel and my debts there is literally nothing left - every month end I'm scrabbling round trying to find money to put in my bank to avoid going over my overdraft limit or paying for food shopping, diesel etc on my credit card which I know is silly.

I'm just really wondering if you can offer some advice on what I should do - Ideally I would avoid anything that would have an impact on my credit rating as I've managed to keep that ok at the moment. I'm thinking a debt consolidation loan to try to make the amount I pay out a month a bit more affordable, even if it would mean I was paying it off over a longer period - but don't know whether thats the right thing to do?! If it is the right thing, which banks/loan companies would be best to approach?

Thank you

Hi BellaMay10 and welcome to the forum

Debt consolidation loans are not always the best option as it can make your situation worse if you are unable to maintain the repayments further down the line.

The first thing I’d recommend that you do is to draw up a realistic income and expenditure so you can see exactly where your money is going each month. If you do consider a debt consolidation loan, make sure that you can comfortably afford the repayments and you cut up any old cards to take away the temptation of spending on them again. You might also want to check your credit file first to anticipate how likely it is that you’ll be accepted for a loan. This article may help you: http://www.moneysavingexpert.com/loans/credit-rating-credit-score

You could consider coming to us for some more detailed advice on your circumstances. From what you’ve said, a DMP could be your best option (but it’s difficult to say without looking at your full situation), but this is likely to have a negative impact on your credit rating.

However we could still help you to compile your budget and also suggest other ways that you can improve your situation. It’s important that you look at your options sooner rather than later. If you’re using credit to pay for priorities such as diesel, your situation won’t get any better if you don’t make any changes.

Kind regards,
Pavan

Dennyjen

Hi

I took out a personal loan in February 2007 with Alliance & Leicester for £5000 over 36 months. I then lost my job approx. 18 months later, at that time the outstanding balance on the loan was £1824.44. I contacted Alliance & Leicester immediately to explain my situation and they agreed that I could pay a nominal figure (£1) per month for a period of 10 months which would then be reviewed. I kept in regular contact with Alliance & Leicester the whole time to inform them of the current situation at that time. As I couldn't get another job, they then informed me that they were passing the debt over to a debt collection agency. This agency was Wescot Credit Services. With help from my partner, I agreed a monthly sum to be paid starting in February 2010, which I paid as agreed. I then received two identical letters - one dated 13th February 2010 and the other dated 15th February 2010 from Santander confirming termination of my personal loan agreement with Santander UK plc. In April 2010, Wescot Credit Services informed me that they were no longer dealing with the debt and I should wait for a letter from another debt agency. I then received a letter in May 2010 from Rockwell Debt Collection Agency stating that they had been instructed by Santander UK to contact me regarding the debt and that it was now due in full and I should contact their pre-legal department immediately. I did so and an arrangement was made whereby I would pay £160 per month. I did so for 5 months (plus an extra £40). It was then brought to my attention by someone on this forum, that Rockwell had a 'dubious' reputation. I was advised by another forum member to send the CCA req letter to Rockwell along with a £1 postal order and to print my name on the letter instead of signing it. I did so in November 2010 and received a letter from them a few days later stating that they note my comments and have sought further information from their client, and they would contact me again shortly. I heard nothing further from them. I have today received a notice/'arrears information sheet' dated 11th March 2011 from Santander which states that I should contact them as soon as possible re my 'missed payments'. Any help/advice anyone can give me would be greatly appreciated - I have managed to secure work on a casual basis via an agency, but this is sporadic. I'm not entitled to any JSA or benefits as my partner works full-time and is supporting me which is a struggle.

Stacey1986

Just thought I would post a quick msg to you all. The CCCS keeps being mentioned as a charity. They are not a charity. They are a profit making business paid for by the banks and lenders, hence the reason why the banks suggest you go to them. This means that it is still free to you guys but their priorities lie with the banks and have their best interests in mind rather than yours. Be Careful!

pompeyfaith

Stacey,

That is not entirely correct they are indeed a registered charity and there reg number is Registered Charity no. 1016630

http://www.cccs.co.uk/Legal/Registrationdetails.aspx

CCCS_Sue

Dennyjen wrote: »

Hi

I took out a personal loan in February 2007 with Alliance & Leicester for £5000 over 36 months. I then lost my job approx. 18 months later, at that time the outstanding balance on the loan was £1824.44. I contacted Alliance & Leicester immediately to explain my situation and they agreed that I could pay a nominal figure (£1) per month for a period of 10 months which would then be reviewed. I kept in regular contact with Alliance & Leicester the whole time to inform them of the current situation at that time. As I couldn't get another job, they then informed me that they were passing the debt over to a debt collection agency. This agency was Wescot Credit Services. With help from my partner, I agreed a monthly sum to be paid starting in February 2010, which I paid as agreed. I then received two identical letters - one dated 13th February 2010 and the other dated 15th February 2010 from Santander confirming termination of my personal loan agreement with Santander UK plc. In April 2010, Wescot Credit Services informed me that they were no longer dealing with the debt and I should wait for a letter from another debt agency. I then received a letter in May 2010 from Rockwell Debt Collection Agency stating that they had been instructed by Santander UK to contact me regarding the debt and that it was now due in full and I should contact their pre-legal department immediately. I did so and an arrangement was made whereby I would pay £160 per month. I did so for 5 months (plus an extra £40). It was then brought to my attention by someone on this forum, that Rockwell had a 'dubious' reputation. I was advised by another forum member to send the CCA req letter to Rockwell along with a £1 postal order and to print my name on the letter instead of signing it. I did so in November 2010 and received a letter from them a few days later stating that they note my comments and have sought further information from their client, and they would contact me again shortly. I heard nothing further from them. I have today received a notice/'arrears information sheet' dated 11th March 2011 from Santander which states that I should contact them as soon as possible re my 'missed payments'. Any help/advice anyone can give me would be greatly appreciated - I have managed to secure work on a casual basis via an agency, but this is sporadic. I'm not entitled to any JSA or benefits as my partner works full-time and is supporting me which is a struggle.

Hi Dennyjen and thank you for your message

If you have not got the information you requested, it has been two weeks plus one month since the request was made and they are not ceasing collections whilst the debt is in dispute then an offence may have been committed. You can consider reporting the creditor to Trading Standards and complaining about the breach of OFT Debt Collection Guidance – e.g. para 2.8(k) (not ceasing collection activity whilst investigating a reasonably queried or disputed debt).

You could also send the following letter:-

[FONT=&quot]From:[/FONT]
Name:
Address:
Postcode:
Date:
[FONT=&quot]To:[/FONT]
Creditor’s Name:
Account/Agreement No:
[FONT=&quot]Without Prejudice[/FONT]
Dear Sir / Madam
With reference to the above account.

I wrote to you on (date) requesting a copy of the above agreement
together with the relevant information under Section 77-79 of the
Consumer Credit Act (CCA) 1974. I enclosed the £1.00 fee. This letter was
delivered and signed for on (date).
I have not yet received the information requested.

The CCA allows 12 working days for this request to be fulfilled. The 12
days ended on (date) and you are now therefore in default of the CCA.
I understand that under the Consumer Credit Act 1974 creditors are
unable to enforce an agreement if they fail to comply with the request for
a copy of the agreement and statement of account under these sections of
the Act.
This means this debt is now unenforceable.

Yours faithfully


If they provide the necessary information you requested, then you will need to come to an arrangement to continue with the payments. You need to make sure these are realistic.Do not be pressured into paying more than you can afford.


If you require further help, you can contact us free on 0800 138 1111


Regards
Sue