Struggling with debt? Ask a debt advisor a question

dazla

Hi

I am intending this week to take up a dmp with either cccs or payplan. The problem is some credit card debts are due this month which I don;t have the money to meet the minimum repayments. I contacted the one company, mbna, who said that the minimum payment could be reduced as long as i agree to enter their dmp. If i did this would this prejudice any re-payment offer which would be made to them via cccs or payplan. I would hope that the payment offer made via cccs or payplan would be less that what mbna have offered me as its still a lot for me to have to find. Should i agree now to mbna's plan in order for me to pay at least some amount?

Thanks

Dalgarroch5

Hi, I have never posted on this forum before and I hope that I am posting my query in the correct place. Apologies if I'm worng.
i'm looking for a bit of advise on the best way to management current financial difficulties. Due to redundancy of both myself and partner the last 3 years have seen a slide in income and although we have reduced our monthly spending I have debt of around £11,000 (£8000 on a credit card £3000 on overdrafts). Debt was build up as we relied on credit when out of work. I thought to swap CC debt to another card but we have been turned down now by several (as income reduced and outgoings too high) I also approached my own bank, Clydesdale bank, where I have been a customer for 20 years but they have refused me a loan.
We have a loan with Santander which has £6000 left to pay over 2 1/2 years.
Mortgage of £80,000 on house worth maybe £140,000. Really don't want to sell. with Northern Rock, again tried to remortgage with Clydesdale but turned down for that too.
Currently managing to pay all bills but spending about £100 pm on CC which I know is stupid but all don't seem to have a clear way forward with this.
Would appreciate opinions on whether I need to go to a debt management company or are there other options open to me?
Am beginning to really panic about debt and the more I panic the less I can think straight!!
many thanks

StepChange_Pavan

misstasty wrote: »

Hi
I have a query ref a DCA ( Fredricksons) who I sent a credit agreement request to. They have now said they have closed the account and have sent it back to the *original* DCA. This would be fine but Fredricksons placed a default on my file. If they are sending it back to the *original* DCA what will happen to the default, can I ask them to remove it....or do I now need to contact the other DCA? Is the new (old) *original* DCA able to update a default???
I just want to clear my credit file, but these people make it impossible!!! ARGGHH!
TYVVM x

Hi TYVVM and thanks for your post.

If you received a default before the debt was passed to Fredericksons, you shouldn’t have two defaults on your file for the same debt.

If this is the case, you would need to write to them asking that they remove the it. Pages 19 and 20 of this credit explained booklet give you more information on how to do this.

If you only have the one default from Fredericksons, it may remain there but you shouldn’t get another for the same debt.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

summerstreetallotments wrote: »

Hello I have a question, I have debts of about 15,000 ...I can afford to pay the two smallest at the amount that they want - but not the credit cards so I'm going to write to them on Monday offering a small temporary amount ...is this going to be o.k...or should I offer the small amount to them all or spread it around or not?...I dont have a lot of spare cash but am confident that some of the stuff that I have on ebay will sell well...x

Hi summerstreetallotments and thanks for your post.

It’s best that you don’t show preferential treatment to some creditors over others.

I’d recommend that you put together a sustainable income and expenditure to work out how much you can realistically afford to repay each month. Once you have this figure you can split it between your creditors on a pro rata basis.

To do this, take the individual debt, divide it by the total debt and multiply by your surplus.

You can then write to each of your creditors, explaining your situation and offer them a copy of your budget as proof. You can also send them a list of your creditors to show them that you’re treating them all fairly.

As and when you receive extra income through ebay you can offer more to reduce the debt quicker. If it’s a sizeable amount you could even offer full and final settlements.

If you’d like help with this or more detailed advice on your options 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

bushpiglet27 wrote: »

Hi,

I'm new to the forum so sorry if this is in the wrong place!!

I'll try to keep this as brief as possible. Myself and my husband took out a loan to pay for our wedding just over 6 years ago. 3.5 years ago we were advised by an independant mortgage advisor to buy a property to do up and sell, which we did. He advised us to take out a 95% mortgage, and add the other 5% to the wedding loan we already had, and put it all as an unsecured loan with the mortgage company (Northern Rock). Unfortunately the housing market crashed a week later. Our house is now worth less than we paid for it and needs renovating (cosmetic). We owe £90,393 on the mortgage, and £20,611 on the unsecured loan.

Since then I have trained as a nurse. I qualified in September and we are now a 2 income family again but, during my training we accrued some other debts (car finance, loan from my mum, and overdrafts to cover childcare). We owe my mum £3000, we have £6000 car finance (including the interest - the actual amount owed on the car is approx £3000), and roughly £6000 in overdrafts.

So - in total we owe approx £35000 (although it would be slightly lower if we cleared some of the debts now due to the interest). We're considering the best options for how to pay this back now that we are both earning again and we're finding it quite overwhelming. We were thinking of taking out a loan to cover the smaller debts (car finance, mum and overdrafts). Another option would be to see if we can get a loan to clear the unsecured loan which runs alongside the mortgage. This currently runs for the mortgage term and we're wondering whether it'd make more sense to get rid of this first.

Another thing which has been suggested to us, but we know nothing about (and terrified us) is filing for bankruptcy. To complicate things we're planning on emigrating asap so I guess we're feeling the pressure to clear things off quickly.

Any advice would be fantastic please!!

Thanks!

Hi bushpiglet27 and welcome to the forum.

We don’t usually recommend taking out further debt to clear existing debts as it can sometimes make the situation worse in the long run.

We’d need to know a bit more detail about your situation before we can advise on your options. Bankruptcy would only be an option if you had no means of repaying the debts yourselves, but I can’t say if this is an option without looking at your income and expenditure.

I’d recommend that you 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

StepChange_Pavan

dazla wrote: »

Hi

I am intending this week to take up a dmp with either cccs or payplan. The problem is some credit card debts are due this month which I don;t have the money to meet the minimum repayments. I contacted the one company, mbna, who said that the minimum payment could be reduced as long as i agree to enter their dmp. If i did this would this prejudice any re-payment offer which would be made to them via cccs or payplan. I would hope that the payment offer made via cccs or payplan would be less that what mbna have offered me as its still a lot for me to have to find. Should i agree now to mbna's plan in order for me to pay at least some amount?

Thanks

Hi dazla and thank you for your post.

I’d recommend that you let them know that you’re seeking free debt advice and that you will get back to them once you have spoken to us/Payplan. You can offer each of your creditors token payments of whatever you can afford in the time being.

It’s not a good idea to agree to their plan if you feel that it’s not affordable. It’s better to offer a realistic amount and stick to it. Otherwise they may continue to hassle you for extra payments even when you are struggling.

I hope this helps.

Kind regards,
Pavan

TherealMandM

Hi,

When i was younger (20) i ran up some debt on credit cards, car that was taken back and a few other things as utility bills etc.
Since then i have moved many times and have not heard anything from these companies for a long time 6-7 or so years.
I cant remember who i owe and what amounts, or if they have gone to bailiffs. how do i find out who i owe and the amounts i owe, as i would like to get these things cleared off my record and out of the back of my mind. i wouldnt be able to pay the lump sums off but would like to offer them a monthly payment, how would i go about this?

StepChange_Pavan

Dalgarroch5 wrote: »

Hi, I have never posted on this forum before and I hope that I am posting my query in the correct place. Apologies if I'm worng.
i'm looking for a bit of advise on the best way to management current financial difficulties. Due to redundancy of both myself and partner the last 3 years have seen a slide in income and although we have reduced our monthly spending I have debt of around £11,000 (£8000 on a credit card £3000 on overdrafts). Debt was build up as we relied on credit when out of work. I thought to swap CC debt to another card but we have been turned down now by several (as income reduced and outgoings too high) I also approached my own bank, Clydesdale bank, where I have been a customer for 20 years but they have refused me a loan.
We have a loan with Santander which has £6000 left to pay over 2 1/2 years.
Mortgage of £80,000 on house worth maybe £140,000. Really don't want to sell. with Northern Rock, again tried to remortgage with Clydesdale but turned down for that too.
Currently managing to pay all bills but spending about £100 pm on CC which I know is stupid but all don't seem to have a clear way forward with this.
Would appreciate opinions on whether I need to go to a debt management company or are there other options open to me?
Am beginning to really panic about debt and the more I panic the less I can think straight!!
many thanks

Hi Dalgarroch5, you certainly have posted in the right place - welcome to the forum!

It sounds as though you’d benefit from speaking to us so that we can look at your situation in more detail – there’s no obligation to take our advice and we are completely free and impartial.

Being turned down for credit is a sign that you’re struggling so I’d recommend that you get in touch. We can explore all of the options that are available to you so there’s no need to panic.

You can do this by either
using our online advice facility Debt Remedy, or calling 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.

I hope this helps.

Kind regards
Pavan

StepChange_Pavan

matmidgley wrote: »

Hi,

When i was younger (20) i ran up some debt on credit cards, car that was taken back and a few other things as utility bills etc.
Since then i have moved many times and have not heard anything from these companies for a long time 6-7 or so years.
I cant remember who i owe and what amounts, or if they have gone to bailiffs. how do i find out who i owe and the amounts i owe, as i would like to get these things cleared off my record and out of the back of my mind. i wouldnt be able to pay the lump sums off but would like to offer them a monthly payment, how would i go about this?

Hi matmidgley and welcome to the forum.

I’d recommend that you get a copy of your credit reference file to see how much you owe and who to. This link gives you more information about credit files and how to access yours: http://www.moneysavingexpert.com/loans/credit-rating-credit-score#files

Once you have this information you can come back to us for advice on how to go about repaying your debts.

I hope this helps.

Kind regards,
Pavan

rainbowfairydust

Hi
Hope someone from CCCS can help me if possible.. i am currently on a DMP and have been for approximately 10 months now. Last month i received a letter from HMRC advising that i have been overpaid in tax credits and i owe them £277 which breaks down into a payment of around £23 per month. A couple of days later i then received a letter from the HB office advising me that i have been overpaid in HB as well .. the figure being just short of a grand.. HB are expecting me to pay £87 a month to get this paid off in 12 months .. the £23 i could just cope with but the £87 is far too much
So my question is would it be possible for CCCS to add these debts to my existing DMP ? I know that technically im not allowed to add on more debts but both of these are completely out of the blue & unexpected.. not sure what i should do ?? Please advise?