Struggling with debt? Ask a debt advisor a question

wantabeedebtfree

Hi just wondered if you could give a little advice really. I have now got to a point where I could not continue robbing peter to pay paul each month and then reversing the next month, this months WFTC is being reduced by £160 and petrol has increased to a point where there is almost a question as to whether it is worth working. My social life is zero and I cannot afford to take my son to the dentist to get his teeth fixed. Its dire. I have completed a budgeting plan, including things like hairdressers, clothes, dentist, entertainment (at an extreme minimal amount) - when I have been going without for the past 18 months and just feel like really really low with a desperate need for a decent haircut, some new clothes/ something from ebay and a trip to the pub with my mates. I have sent a suggest DMP to my creditors and have received responses from two to date - one agreeing to my suggested payment with hold on the interest and charges until their Debt Management Peeps get onto it and the other saying to call them with a copy of my budget plan. I have not heard from either of the others yet (one my ex-bank re overdraft, the other a credit card). Should I just make the payments that I suggested to these people when I get paid and wait for them to contact me - or is there anything else I should/ could do? I am ok to continue managing this debt and the payments or is there someone (like yourselves) that I should go through?
I must say I feel so much better knowing that I have faced up to and am dealing with this situation before the whole thing got really bad. At last I am starting to feel a little positive!
Thanks in advance for your advice and help,

StepChange_Pavan

Dennyjen wrote: »

Hi Sue

Thank you for your reply to my post. I have already sent the letter you suggested to the debt collection agency and they didn't bother to reply. I then received a letter along with a statement of payments made so far from the original lender - Santander, who suddenly seem to have reappeared on the scene after two debt collection agencies contacted me re this debt. I haven't replied to Santander yet until i hear further from you re the best way forward.

Kind regards.

Denise.

Hi Denise,

It sounds as though Santander have taken the debt back from the collection agency.

I’d recommend that you make them aware of your situation and start making payments that you can realistically afford. You can back up your offer with a copy of your income and expenditure.

They may ask you for extra payments but you can’t offer them money that you haven’t got, so you should continue to pay what you can afford.

If you’d like some help in compiling your budget and making an offer of payment, you could use our online advice facility Debt Remedy. This will take information about your income and expenditure and provide you with tailored advice based on your situation.

I hope this helps.

Kind regards,
Pavan

System

Jas5000 wrote: »

Hello

I am hoping for a bit of advice. I am looking to get on the housing ladder and get a mortgage at the end of the year so decided to perform a credit check on myself. I used to be reckless with credit cards spending etc going back many years. I have been paying everything off and have not defaulted on anything for about 4 years - I'm just about to start saving.

I usually check my credit report with Experian however went for a free option this time with "Creditscorematters". My report was fine, a 3/5 star rating. However I noticed at the bottom of the report was a link to previous aliases/addresses which showed my ex, old address etc. I clicked on this which redirected me to a seperate report based on a previous address I lived at with my disturbed ex partner. On this page I was mortified to see my name and a CCJ listed! This is something I haven't ever previously seen!

Then it all came flooding back to me (although I can't actually vividly remember - the joys of being a daft foolish 20 year old!). I believe I was a guarantor on one of his previous loans (silly me I know!) and it would appear that he defaulted so many times it went to a CCJ in Feb 2007. I haven't (as of yet) ever heard anything and its not like I have been in hiding. I have since been approved for credit cards elsewhere/had several credit checks after moving back home to my parents house which was my previous address. I would of thought they would of found me by now if they were trying? Other companies searching for me definitely did!

What I find confusing is that on my report it states I have 0 CCJ's however linking to a seperate address there it is, for £1900. Does anyone understand how this works? I would of thought they would link together?

I am not in contact with my ex any more and not sure what to do? I know he left our old address a few months after I did as I was stuck paying off various bills in that time. All I can see is that he is on Facebook and I know the area he is living in, but thats it. I'm not sure if I should look into it as I don't want to open up a can of worms as I am desperately trying to save towards a deposit for a house - it hasn't affected me yet so not sure if its going to cause problems in the future?

Any advice would be greatly appreciated

Many thanks

Hi Jas5000 and welcome to the forum.

It’s worth getting in touch with the lender in question and verifying if you were or were not a guarantor on the debt in question.

It’s also worth checking your credit file with all 3 credit reference agencies to see if this information is contained in all the reports (Experian, Equifax and Call Credit).

As you said it hasn’t seemed to have affected you so far but it is worth clearing up why this is listed. If you are a guarantor it would be unusual to have not heard from the company when your ex defaulted, and I would suggest you speak to the creditor to see how this may affect you in the future.

I hope this helps

Kind regards
Mat

StepChange_Pavan

Jane91 wrote: »

Ive found myself in a position where im currently paying a DMP and im able to pay a little more per month on it.

My question is I have spoken to the people who i owe and they are willing in some cases to accept a lower final payment.

Should i just increase the amount i pay monthly to the debt management people or do i keep the money to one side and pay the debts off at the lower settlement fee? whilst also paying my current monthly payment.

The company i am with is fee free.


Thank you

Hi Jane91 and thanks for your post.

It’s up to you which way you would prefer to pay your creditors. If you trust yourself to put the money to one side each month this could work well for you – however it’s important to remember that the creditors are under no obligation to accept a settlement figure unless you have proof of their offers in writing.

It might be best to discuss your options with your DMP provider. The most important thing is that you’re not being charged for your DMP so at least you know your entire deposit is paid to your creditors each month.

I hope this helps.

Kind regards
Pavan

System

Hunglish wrote: »

Hi,

Looking for some good honest solid advice. Received advice from several different companies and banks that all seem to want to offer their own solutions rather than give unbiased advice.

To be short I am in a mess, due to many reasons, over borrowing in the past, closure of my business, end of relationship, and if i'm honest, plain carelessness and pretending the problems didn't exist.

My income has reduced from £4,000 per month to £950 due to my business closing. I saw this coming, but only when it was too late.

So now I have £6000 tax bill and £800 accountant fees to pay immediately.
£22000 in personal loans/credit cards owed, with monthly repayments of £750.

This is before I even begin to look at child maintenance and living expensives.
I am currently living with work colleagues abroad, so have no home costs, but this will end imminently. I will have to live somewhere. But how?

Please, where should I turn first?
Thanks for any help.

Hi Hunglish and welcome to the forum

As you’re currently living aboard we’d need some idea of your expenditure when you return to the UK if that’s what you intend to do. This aside I think you’d benefit from speaking to us directly so that we can asses the best solution for you.

You can contact us on +44 113 297 0126 to book an appointment with a counsellor. Lines are open Monday to Friday 08:00-20:00. It would be helpful that when you call you have details ready regarding your income, expenditure and creditors, as this can help speed up the referral process. If you have this information ready it may be possible to refer you directly to a counsellor if one is available, otherwise we will arrange a time that is convenient for you to be called back for an appointment.

I hope this helps

Kind regards
Mat

StepChange_Pavan

wantabeedebtfree wrote: »

Hi just wondered if you could give a little advice really. I have now got to a point where I could not continue robbing peter to pay paul each month and then reversing the next month, this months WFTC is being reduced by £160 and petrol has increased to a point where there is almost a question as to whether it is worth working. My social life is zero and I cannot afford to take my son to the dentist to get his teeth fixed. Its dire. I have completed a budgeting plan, including things like hairdressers, clothes, dentist, entertainment (at an extreme minimal amount) - when I have been going without for the past 18 months and just feel like really really low with a desperate need for a decent haircut, some new clothes/ something from ebay and a trip to the pub with my mates. I have sent a suggest DMP to my creditors and have received responses from two to date - one agreeing to my suggested payment with hold on the interest and charges until their Debt Management Peeps get onto it and the other saying to call them with a copy of my budget plan. I have not heard from either of the others yet (one my ex-bank re overdraft, the other a credit card). Should I just make the payments that I suggested to these people when I get paid and wait for them to contact me - or is there anything else I should/ could do? I am ok to continue managing this debt and the payments or is there someone (like yourselves) that I should go through?
I must say I feel so much better knowing that I have faced up to and am dealing with this situation before the whole thing got really bad. At last I am starting to feel a little positive!
Thanks in advance for your advice and help,

Hi wantabeedebtfree and thanks for your post.

It does sound like you’re starting to take control of your situation and I’m glad that you’re starting to feel more positive.

Once you’ve made all your creditors aware of your situation and sent them a copy of your income and expenditure you should start to make your payments even if they don’t respond.

They may not accept your offers but you should send them anyway as your budget proves that you can’t afford any more at this stage.

It’s up to you whether you prefer to manage your own DMP or whether you’d like to go through a free charity like us. Some people find it easier to make one monthly payment whereas others prefer to be in control of it themselves – it’s just personal preference really, but some creditors are more willing to accept reduced payments if they are made through a third party.

I hope this helps.

Kind regards,
Pavan

Heydelboy

Hi,

I've just been asked for a review by Cabot for the egg card they took over.

I've checked the balances and there is a discrepancy of £337.91 on the total fee owing to them.

I feel I should query it as it's a lot of money I don't have.

Thanks

daz_c

i have an overdraft on my account with natwest of £2400 each month my income is £1800 a month , i asked natwest if i can add my overdraft to my natwest loan , they said no even though i have never missed a payment, i have been with them for 12 years

could i open another acount somewhere else and payback natwest the overdraft in installments of say £100 a month????

StepChange_Pavan

Heydelboy wrote: »

Hi,

I've just been asked for a review by Cabot for the egg card they took over.

I've checked the balances and there is a discrepancy of £337.91 on the total fee owing to them.

I feel I should query it as it's a lot of money I don't have.

Thanks

Hi heydelboy and thanks for your post.

It’s likely that the discrepancy is in interest and charges. You could ask Cabot for a break down of these so you can work out exactly what you have been charged for.

If you still feel that these charges are excessive you could write to them and ask for their consideration in stopping these.

If you are already on a DMP with us, it is your responsibility to keep your balances up to date. I’d recommend that you get in touch with our support team to update the balance. We will do all that we can to help stop the debt increasing but there’s no guarantee that we can do this as you agreed to the interest and charges being added when you originally signed for the credit.

I’m not sure how long you’ve been on the DMP but 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.

I hope this answers your question.

Kind regards,
Pavan

System

daz_c wrote: »

i have an overdraft on my account with natwest of £2400 each month my income is £1800 a month , i asked natwest if i can add my overdraft to my natwest loan , they said no even though i have never missed a payment, i have been with them for 12 years

could i open another acount somewhere else and payback natwest the overdraft in installments of say £100 a month????

Hi Daz c and thanks for your post.

You’re completely within your rights to open another account with a different bank if you wish. I would suggest you open a basic account without any overdraft facility to remove the temptation of dipping into it.

As long as you set up a payment into your Natwest account that covers all the interest and charges on that account as well as making some headway into the reducing the amount owed then this should be fine.

You may also want to check the terms and conditions of your Natwest account just to ensure you are not breaking them by having your salary paid into a different account.

If you are struggling to budget you might want to get in touch with us for some further help.

I hope this answers your question.

Kind regards
Mat