Struggling with debt? Ask a debt advisor a question

catlover32

catlover32 wrote: »

Hi Pavan- thanks for the help. I've been online this evening and used debt remedy, and it's very clear and helpful. My only question is, for the sake of the 2 months I can't pay, will I be able to set up a Dmp for this time only? Or will it kind of carry on when I go back to work, but with me being able to pay more as my circumstances have changed?
Thanks!
Cl

Hi- sorry but I just had two further questions. Is a Debt Remedy Plan the same as an IVA? Also, how do I get another bank account whilst having a poor credit rating?
Thanks
C

Flash-bang

Hi,
I am in the process of setting up a DMP with CCCS, and have sent out the initial letters asking for a statement and informing them about the DMP. I have 3 questions:
1 - Can I send the paperwork to you even if not all of the companies have responded? So far I have about 10 replies from 32 creditors.
2 - OH gets basic pay and then commissions which can vary from £0 to almost £1000 on rare occasions, can we work out the budget on what is guaranteed each month and save up the extra to make lump sum payments? Part of the reason we ended up in this mess was because we tended to 'budget' using his average pay and then fell short most months.
3 - I have been having a dispute with one of my creditors, CFO, who won't send me an accurate statement and seem to be adding enormous amounts of interest and charges. At what point do the interest and charges become classed as unreasonable? I borrowed £275 originally, the company made a payment arrangement with me to take £30 and then took an extra £152 (£182 in total mid February), I have not yet made another payment. The last email I had from this company, yesterday, say the amount I owe is now £564.50. I know they can add interest and charges but this seems extortionate.

Thanks for your help.

Mrs_Trouble

Hello

I have finally faced my problems and will be starting a DMP with CCCS on 1st May. I am waiting for some up to date statements before I can send the form in to CCCS.

I wondered whether you can put my mind at rest. I have removed my home and work numbers from all accounts and kept my mobile number on. The only one I am having problems removing my work number from is Santander who want to know why I am removing it - if I am contacted at work with debt problems then as I am in the legal profession I would be in serious difficulties.

I understand CCCS pay the creditors fairly, are they paid on a percentage? I will be paying approx £400 less than my current payments and it will take me 7 yrs 11 months to repay at the current payment, are they likely to refuse the offers as it will take over 5 years?

I know I have to do this but I am worried about bailiffs, CCJs and calls to work. I am committed to paying the debt as soon as I can, I am just very concerned about the consequences of telling them I am in difficulties and in what circumstances they may apply for a CCJ.

Many thanks in advance

Roddy77

Hi,

I have just received a statutory demand on an unsecured debt of around 6k, stating if the debt is not paid within 21 days they will file for bankruptcy. At the moment, my necessary outgoings outweigh my income, so I could only offer them a very small monthy payment plan. I can prove that my essential expenses are more than my income but was wondering if I should contact them with an offer, or if they are likely to pursue the debt through the courts? (which, to me, would seem pointless as I have no savings/assets/property/spare income!)

Many thanks in advance for youe help

channic3

Hi, I wonder if somebody can give me some advise as I am in a real mess right now.
I am currently in about £12k worth of dept and I feel deeply ashamed and angry at my self.

I am working and have been doing so with the same directors for the last 9 years and I have never been in this situation before. The problem started last year when my salary was reduced by £10k a year because the business was very slow and currently still is. I know that you may think I am crazy to still be here, and I guess I am, however please understand that I have known everybody very well for many years and also in my role I currently earn commission on top of my base. The problem is that there is very little commission to be earned at the moment, and I have stayed with the company only because I was assured that things will pick up, and I had no reason to doubt them as I have seen the business go through a bad patch and always pick up later.

I have asked my directors for more money as I also have a family and mortgage to pay, but even though I have asked time and time again, I get now answer or I am given the run around and it goes to show that you can not trust anyone, and being loyal and sticking around for others can be a dangerous thing.

Ok thats over here is the dept problem,

Loan £7500 which I took out a year ago for home improvements (now £5200 remaining)

Credit Card 1 £4000k (maxed out, this is how I have been surviving since my salary has been dropped)

Credit are 2 £2800k (same as above)

In addition I also have an Overdraft on my current account and I am currently about £500 overdrawn.

I know that this is completely stupid from my part to allow this to go on for so long, I have always been good with credit and never had this problem, until my pay check got slashed.

Please everbody, I really don’t need a lecture, and I am now actively looking to get out of this company asap and I am also prepared to take on part time work just to clear this dept off as quickly as possible.

Here is my current problem, based on the above dept and the current income I receive, am no longer in a position to pay my creditors in full as I have been doing. I am dreading the fact that I can foresee them writing to me and I don’t know what can happen from there.

Sorry for the essay, it is just I have been building this up for a while now and needed to give an insight on my dilemma.

Any advice will be appreciated.

StepChange_Pavan

Keith88 wrote: »

Hi there, well I am just curious to work out something with a big debt I have at the moment. I currently work part time, earning just under £310 a month.

I have a bunch of small debts (around 200-800, paying an average of £10-£20 on each debt) that are no trouble at the moment. The only one that is causing me trouble is a Catalogue debt of ~£3000. I have had problems paying them in the past and have defaulted a few times due to my bad income, but have been paying it now for a good few months.

The major problem I have with it at the moment is though, I am paying £70 a month and it is just unaffordable. I live at home with my parents but can't afford to pay anything to help towards the household or even get anything like food/essentials for myself etc. I am barely managing to afford to get to work and if I do not get overtime with my current job I fall short on it.

The £70 a month debt is with Moorcroft, who have been very forceful with me even though I've done the best I can to work with them. I want to call up and seek reducing it because of how I just can't afford it. I am not sure what to do, what can I do?

Hi Keith88 and thank you for your post.

It’s important that you have money to spend on priorities such as contributing towards the household or essentials for yourself before you offer money to your creditors.

I’d recommend that you work out a budget that includes your income and lists all the things that you need to pay out for each month. Then, you can offer your creditors whatever you have leftover between them.

If you would like us to help you 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

dean_warren wrote: »

Hi I am/was struggling with debt, and found myself out of work last year, i worked in IT contracting, and could just about make my minimum payments, the CAB helped me while i was out of work, and did a great job, i was able to offer my 11 creditors £1 a month which the majority accepted, i easily owe in excess of 35k and although i am now working am on a lot less than i was possibly Half the rate i got 18 months ago, i have been offered a fixed term contract for 12 months, but am now getting hounded by the creditors again. i could do with an end to this and hope to start again.
I have seen DMP's or IVA's and i personally think that an IVA is the answer.
but am not sure i would meet the criteria. any advise would be a great help.
Thanks Dean

Hi Dean and thank you for your post.

It’s difficult to say which would be your best option without knowing the details of your circumstances.

I’d really recommend that you get in touch so that we can explore all of the solutions that are available to you.

If you would like us 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,
Pavan

StepChange_Pavan

catlover32 wrote: »

Hi- sorry but I just had two further questions. Is a Debt Remedy Plan the same as an IVA? Also, how do I get another bank account whilst having a poor credit rating?
Thanks
C

Hi C

A debt management plan is very different from an IVA. An IVA is a legally binding arrangement, whereas a DMP is an informal agreement between you and your creditors.

You will only need a basic bank account with no further credit facilities. This leaflet about basic bank accounts gives you more information about what they are and how to get one.

I hope this helps, but if you have any more questions about your Debt Remedy, you can call our support team as they will have access to all your information.

Kind regards,
Pavan

StepChange_Pavan

Flash-bang wrote: »

Hi,
I am in the process of setting up a DMP with CCCS, and have sent out the initial letters asking for a statement and informing them about the DMP. I have 3 questions:
1 - Can I send the paperwork to you even if not all of the companies have responded? So far I have about 10 replies from 32 creditors.
2 - OH gets basic pay and then commissions which can vary from £0 to almost £1000 on rare occasions, can we work out the budget on what is guaranteed each month and save up the extra to make lump sum payments? Part of the reason we ended up in this mess was because we tended to 'budget' using his average pay and then fell short most months.
3 - I have been having a dispute with one of my creditors, CFO, who won't send me an accurate statement and seem to be adding enormous amounts of interest and charges. At what point do the interest and charges become classed as unreasonable? I borrowed £275 originally, the company made a payment arrangement with me to take £30 and then took an extra £152 (£182 in total mid February), I have not yet made another payment. The last email I had from this company, yesterday, say the amount I owe is now £564.50. I know they can add interest and charges but this seems extortionate.

Thanks for your help.

Hi Flash-bang and thanks for your post.

We can’t set up your DMP until we receive statements from all your creditors. It’s best to collate all your information and then send it to us in one go. We need all of this paperwork to ensure we pay the right accounts for you.

You’re right to only include your partner’s basic pay in the budget and save up any extra payments to make lump sum contributions towards your debts.

Unfortunately creditors have 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.

In most cases, there is nothing you can do to stop interest and charges being added. However, if you make reduced payments over a long period of time, usually several months, most creditors will eventually stop charging interest and adding late payment charges.

Usually, a creditor will stop interest and charges either after they issue a default notice or they pass it onto a debt collection agency, although this does not always happen.

Kind regards,
Pavan

StepChange_Pavan

Mrs_Trouble wrote: »

Hello

I have finally faced my problems and will be starting a DMP with CCCS on 1st May. I am waiting for some up to date statements before I can send the form in to CCCS.

I wondered whether you can put my mind at rest. I have removed my home and work numbers from all accounts and kept my mobile number on. The only one I am having problems removing my work number from is Santander who want to know why I am removing it - if I am contacted at work with debt problems then as I am in the legal profession I would be in serious difficulties.

I understand CCCS pay the creditors fairly, are they paid on a percentage? I will be paying approx £400 less than my current payments and it will take me 7 yrs 11 months to repay at the current payment, are they likely to refuse the offers as it will take over 5 years?

I know I have to do this but I am worried about bailiffs, CCJs and calls to work. I am committed to paying the debt as soon as I can, I am just very concerned about the consequences of telling them I am in difficulties and in what circumstances they may apply for a CCJ.

Many thanks in advance

Hi Mrs Trouble and thank you for your post.

You can tell Santander that you would like to remove your contact details as you’d prefer that they contact you in writing only. You don’t need to give any specific reasons and you can advise them that you will report them to the Office of Fair Trading if they don’t comply with your request. You could put this in writing to them so that you’ve got proof that you asked them to do this.

Whilst on a DMP, your creditors will be paid on a pro rata basis. This means that your largest creditor will get the biggest payment.

There’s no guarantee that any of your creditors will accept your offers, but you can only pay them as much as you can afford. Your budget will support your offer of payment so they will be able to see that you can’t realistically pay them any more.

If your creditors are unhappy with your payments, they can go down the standard debt collection process.

If any of your creditors do apply for a CCJ, you can call our support team for more detailed help and advice.

I hope this helps,
Pavan