Struggling with debt? Ask a debt advisor a question

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FormandFunction wrote: »

Hi there,

I wonder if you can offer some advice. I am looking to have to enter an IVA in order to address my debt given a large change in work and the end of a long-term relationship.

I understand I can normally end my tenancy before the contract end date if I continue to pay rent until the property is relet. However, my contract states the following:

"If at any time:...the tenant shall become bankrupt, insolvent, go into liquidation or enter into a voluntary arrangement...the landlord may give written notice to seek possession of the premises"

Ideally I need to leave the flat as I am now left alone to pay for all the rent and bills and can't do so for long especially given other debts (hence the IVA). If I enter an IVA can I therefore break the contract without penalty and without having to continue paying the rent or losing any of my deposit? I do have a guarantor for the property and of course would also need not to affect them.

Your advice is very much appreciated!

Hi FormandFunction and thanks for your post.

From my experience you would find that the clause in the rental contract is a standard one. If you left the property now, in most cases the landlord would continue to chase you for the unpaid portion of your rental agreement and you would obviously lose your deposit. Your guarantor could also be affected.

If you can budget to stay in the property until the rental period ends and afford your IVA payments you could consider doing that.

As you are already a client of ours I would recommend that you call our support team - they have all of your details and would be able to advise you fully.

I hope this helps

Kind regards
Mat

StepChange_Pavan

tonybroad wrote: »

Hi I have a debt for a credit card total amount is 3430, I made arrangements with them to pay£ 60.00 per month and as told on the telephone no interest is charged, this started inNov 2010 and so far I have paid £ 310.00 which shoukld have brought my balance down to £ 3120, but checking my credit reference it is saying my current balance is £ 3283.00 which means is missing £ 163.00 , how can I speak to them to stop charges so that I can get this debt paid or is there a better way in dealing with this please let me know thanks

Hi tonybroad and thanks for your post.

You can contact them again and ask for their consideration in stopping the interest and charges.

Unfortunately your 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’re 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.

If you would like us to look at your situation in more detail you can either online advice facility Debt Remedy, or ring our free Helpline on 0800 138 1111 to book a telephone appointment with a counsellor.

I hope this helps.

Kind regards,
Pavan

k_moor25

hiya please can you tell me the email address for the aftercare department
regards Karl

ThomasCrocker

Thankyou for this! Helped me a lot!

rachaelfleur

Help someone please!! I really need some advice. I was in debt management plan with the CCCS but now my plan has been cancelled because I fell behind with payments. Unfortunately my mother died at christmas 2009 and I tried to keep on top of everything but unfortunately I fell into deep depression and attempted to commit suicide. I've been in and out of a psychiatric hospital and now feel very ashamed about what I did. Because of my depression everything else in my life got ignored especially my finances. I'm now seeing a counsellor on a regular basis and I'm slowly beginning to deal with my problems. I wrote a letter to the CCCS explaning my situation and also informed all of my creditors, a few have been very nice but a few have been awful to me. I've had debt collectors at my door and threatening letters. I currently owe money to my rent, council tax, gas & electric and all of my creditors. I'm really trying to get my life back on track but feel like I've fell at the first hurdle. I'm feeling really low right now and I'm beginning to think that suicide is my only option. Please someone help me.

d3mon4ngel

rachaelfleur wrote: »

Help someone please!! I really need some advice. I was in debt management plan with the CCCS but now my plan has been cancelled because I fell behind with payments. Unfortunately my mother died at christmas 2009 and I tried to keep on top of everything but unfortunately I fell into deep depression and attempted to commit suicide. I've been in and out of a psychiatric hospital and now feel very ashamed about what I did. Because of my depression everything else in my life got ignored especially my finances. I'm now seeing a counsellor on a regular basis and I'm slowly beginning to deal with my problems. I wrote a letter to the CCCS explaning my situation and also informed all of my creditors, a few have been very nice but a few have been awful to me. I've had debt collectors at my door and threatening letters. I currently owe money to my rent, council tax, gas & electric and all of my creditors. I'm really trying to get my life back on track but feel like I've fell at the first hurdle. I'm feeling really low right now and I'm beginning to think that suicide is my only option. Please someone help me.

My advice is not qualified in any way other than personal feelings.

Please do NOT let this make you feel that way. It is only money at the end of the day, and they cannot take what you do not have to give. My cousin committed suicide for the sake of a few grand and the shockwave it has sent through my family is huge! You are worth more than a few pounds so please try not to let this get to you. If you have to, send them all the £1 monthly payment until you get yourself sorted. Post a statement of affairs (link here) as people will help you to cut down on areas where you are overspending without realising. Also, remember though that your rent and council tax are your priority debts so these will need to be tackled first. You will probably get more practical advice soon, but please don't do anything stupid.

Much love and hugs!
d3mon4ngel

Hephaestion

Hi,

I hope someone can help. I have a number of debts I've been managing to keep up minimum payments on for the last few years. Problem is I'm now losing work, and can't keep things up any more. I've recently tried to reorganise with limited success, but the main problem is the lack of money coming in, and that's only probably due to get worse, especially as I work in education and have two months every summer when I don't get paid.

My debts are:

Card 1: £5800, 30% APR. Minimum payments roughly £170-£200/month when new repayment rules kick in.
Card 2: £2200, 0% APR. Payments £60/month. 14 months left on 0%.
Card 3: £900, 5% APR. Payments £20/month.
(The last two are recent transfers from Card 1)
Card 4: £450, 27% APR, £20/month.
Loan: £5000. £140/month, 3 and a half years left on loan.
Overdraft: Hovers around £300.

Total debts: roughly £14350, payments roughly £420/month.

I've been doing this for the last three years or so, and though I managed to get £3000 off the balance of Card 1 switched onto lower interest cards (I worked out I'd given £6000+ to Card 1 over the last few years for the balance not to move) I've reached the end of what I can do. I've been working part time over the last 6 months (earning roughly £450-£600 per month depending on term dates), and have spent all my spare time trying to find more work to no avail. I'm pretty certain that the work I have may be reduced further come September, and I've borrowed from family to keep things going. I feel like I'm staring into an abyss. This has affected my physical and mental health, and I can't go on any longer.

I'm thinking that Bankruptcy may be my only option, as paying debts is leaving me with between £50 and £200 per month for living costs, which I'd barely meet even without debts. I have a very small occupational pension, so don't think I qualify for a DRO.

Can anyone give advice?

Thanks,
M.

StepChange_Pavan

k_moor25 wrote: »

hiya please can you tell me the email address for the aftercare department
regards Karl

Hi Karl,

If you send us your details in a private message, I can forward it on to the relevant department.

Thanks,
Pavan

kisle

Please can someone help me and give some advice, I am curently on a Debt Managment plan and one of my credit cards have not acepted my payment offer for a year now. I am paying them 7.00 a month but they are adding about 12.00 of intrest a month and I am not getting anywhere with them.
I really dont know what to do as I have written to them loads of times telling them about the intrest and my payments and they just are not doing out or stiopping the intrest. I will never get this paid off

Needhelpsaving

My Mom and Dad split up in June last year, but kept their house to provide stability for my younger brother. However, 5 weeks ago, my dad walked out of his job - he only told my mom yesterday. Basically the bills are due to come in in two weeks time and although my mom has 2 jobs, she can either pay the mortgage and no bills or the bills and no mortgage.

Unfortunatley, I am not in a position to help. My mom doesn't mind losing the house (she can move in with me), but it is not suitable to be sold as it is in a really bad state of disrepair.

The mortgage (joint) is about 85k and she has around 12k of debts herself. What would you advise should be the next steps?