Struggling with debt? Ask a debt advisor a question

StepChange_Pavan

mum2one wrote: »

I know no-ones in till 26th, and theres a backlog, but thought better get into the queue, while I'm feeling brave.
It looks like in the near future that my money is going to be reduced, and as such will be in financial do-do.
Bankruptcy is not an option for personal reasons, - the questions I've got going round?

DMP - Is there a time limit that you pay for eg 5 yrs or is to the full amount paid off or a certai %, and what disposable income would be needed for this

IVA - I know thats one step from bankruptcy, but would it need to be declared, its just that im in a position where bankruptcy would mean I lose a lot and not pratical for more ways than one, again is there a a certain % of disposable income that you need, and how long would that generall last, and do all or a % of the creditors have to agree?

Sorry its all questions,

what documents etc would I need to proceed with any way

Thank you xx

Hi mum2one and thanks for your post.

Firstly I’d recommend that you get in touch so that we can look at your situation in more detail – there may be options available to you, other than a DMP or IVA depending on your circumstances.

To answer your questions though: you would repay your debts through a DMP until they are repaid in full. Because it isn’t legally binding, the creditors have the right to continue to add interest and charges so we couldn’t confirm the exact finish date.

An IVA is where you would repay a percentage of the debt back within a 5 year time frame. You’re right that this is a form of insolvency and creditors representing at least 75% of the total debt need to vote in favour of the IVA proposal for it to go ahead.

When you ask whether it would need to be declared, but it’s not clear who you are referring to. You would only need to declare it to your employer if there is anything written in the terms and conditions of your employment.

In both cases you would need a certain level of disposable income but this amount depends on the level of your debt.

Like I mentioned, your next best step would be to contact us so that we can determine what your best solution is.

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. 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

Lizardwoman1

Hi
I am in around £27,000.00 worth of debt and currently on a DMP but this will take me 20 years to clear the debt I am now considering an IVA but am concerned that if I start one with a company that has upfront charges that my creditors will not get a penny for 2 months. I have been in contact with Gregory Pennington and looked on their website and they take the first 2 months payments as their fees.

Can you advise me of any IVA Providers that will not charge an up front fee. I understand that there will be ongoing fees that will be taken from my monthly payments.

Many thanks

k_moor25

Today I recieved a letter from sygma Bank regarding my account and have told me they have stopped the tempary monthly payment and they are wanting me to pay the normal monthly payment from my next statment.

Please can you advise me what to do as the normal monthly payment will be about £80-100 pound

StepChange_Pavan

winnie wrote: »

Hi there,

Today its finally hit me just how much i need some advice on debt. A few years ago i got myself tangled up with someone who turned out to be addicted to gambling, however at the time i didnt realise this, until all my credit cards got maxed out. Before that id taken out a loan to pay off another ex when we split up so i could keep the house. So this is the position i find myself in.

I earn £42,500 before tax
Mortage and bills come to £1200

Now the bad part:
I have 2 credit cards and 2 loans.

Alliance and Leicester loan, took out £20000 in Aug 08, pay £430 a month and have about £12k left to pay

Alliance and Leicester credit card, £3000 limit, owe £2,974 and only pay the minimum a month which is about £90

Natwest Loan, took out £25000 in April 09, pay £460 a month and have just under £20000 left to pay

Halifax credit card, Had £13k limit, owe £11,750 and again pay te minimum a month which is £210.

I have tried to take out a new loan of £25000, to try and consolidate to lower my payments and pay off the debt quicker, but i have been refused as my borrowing is so high.

I have a mortgage but have no capital in it.

I would be really grateful if you could give me some advice over what to do. At the minute, the only way i can see is to try and survive the next 2 and a bit years until my A&L loan is paid off and then try to take out another one to consolidate my credit card debts, but obviously id like to try and start paying more off that off now.

i know ive been stupid and have been so angry with myself letting this happen to me, but im happy that i am taking control and getting it sorted. A lot has already been paid off, i just wish i could find another way to pay the rest of quicker.

I look forward to your reply.

Many thanks,

Winne

Hi Winnie and thank you for your post.


It’s difficult to give you thorough advice without knowing more information about your income and expenditure. From what you’ve said you could benefit from offering your creditors reduced payments but we’d need to look at your circumstances in more detail before confirming this. We don’t usually recommend taking out further debt as it can often make the situation worse in the long run.

You can get in touch 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.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

mum2one wrote: »

Is it possible to get some advice, - theres a strong possibility that my income is going to reduce by 50% in a couple of months, at the mo just balancing the books, but is difficult.
Looked at the debt remedy - suggested bankruptcy or dmp, bankruptcy isn't an option due to personal circumstances, but if I went for a dmp, can the creditors say no, - theres 3 (loan, od, cc) with one company, whilst the others are split between single instutions, - if the dmp was the option to follow is there a time limit for this or does it continue till the debts are paid off ??

When would it be best to get the ball rolling, when I know if the income is def being reduced - date wise?
Cheers in advance

Hi mum2one.

Sorry for the delay in getting back to you – like you mentioned, we had a bit of a backlog!

As you’ve now completed Debt Remedy, it’s best that you discuss your options with our Debt Remedy support team as they have access to all your information. Their contact details are in your advice booklet.

Whilst on a DMP, the creditors can reject the proposal, but we would continue to send them payments anyway. This is because you can’t realistically afford to offer them any more at this moment. If they’re not happy with the payments, they may go down the standard debt collection process. There will be more information about this in your advice booklet too.

Have you entered your income based on the expected reduction? If so, it’s best to wait until it does change. If you’re already struggling though, it might be better to discuss your solution options sooner rather than waiting.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

skywarp81 wrote: »

dec 09 debt (really confused please help)



Hi I am being chased out of the blue for a bill at Bupa. I had an op there in dec 09 I was with Standard life insurance. I was not aware I had to pay more than my excess £50 and now after emailing them for a copy of my notes they have come back to me saying I owe them £225.25 and that they will not send me my notes until I give it to them and that I owe them this much.

I had no idea I owed it to them I was never billed or contacted. I have moved but that was 7 months after my op and I was never called either and my mobile number has never changed. So I am unsure what I need to do. I am not sure that they are allowed to refuse me my notes because of it either as I thought under the FOI act that they have to give them to me anyway regardless of allegid debts .

I do remember once someone saying that if the company has not contacted you for 2 years and or called you can declare the debt vente? something? HELP!!! please.

Hi skywarp81 and thanks for your post.

You have a right to this information under the Data Protection Act. It’s not clear who is actually chasing you for the debt but I’d recommend that you request a Subject access report. The link gives you a lot more information and hopefully once they supply you with this you should be able to get to the bottom of it.

Alternatively you could contact Consumer Direct as they will be able to advise you on your rights.

With regards to them not contacting you for two years, I think you must be referring to the Limitations Act, where the debt is unenforceable (or statute barred) after six years of no contact.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

Lizardwoman1 wrote: »

Hi
I am in around £27,000.00 worth of debt and currently on a DMP but this will take me 20 years to clear the debt I am now considering an IVA but am concerned that if I start one with a company that has upfront charges that my creditors will not get a penny for 2 months. I have been in contact with Gregory Pennington and looked on their website and they take the first 2 months payments as their fees.

Can you advise me of any IVA Providers that will not charge an up front fee. I understand that there will be ongoing fees that will be taken from my monthly payments.

Many thanks

Hi Lizardwoman1 and thanks for your post.

I’ve just replied to the message that you sent us – if you need any further help, please let us know.

Kind regards,
Pavan

StepChange_Pavan

k_moor25 wrote: »

Today I recieved a letter from sygma Bank regarding my account and have told me they have stopped the tempary monthly payment and they are wanting me to pay the normal monthly payment from my next statment.

Please can you advise me what to do as the normal monthly payment will be about £80-100 pound

Hi there and thanks for your post.

I’ve answered your query that you sent to our private message inbox.

Kind regards,
Pavan

mum2one

CCCS_Pavan wrote: »

Hi mum2one.

Sorry for the delay in getting back to you – like you mentioned, we had a bit of a backlog!

As you’ve now completed Debt Remedy, it’s best that you discuss your options with our Debt Remedy support team as they have access to all your information. Their contact details are in your advice booklet.

Whilst on a DMP, the creditors can reject the proposal, but we would continue to send them payments anyway. This is because you can’t realistically afford to offer them any more at this moment. If they’re not happy with the payments, they may go down the standard debt collection process. There will be more information about this in your advice booklet too.

Have you entered your income based on the expected reduction? If so, it’s best to wait until it does change. If you’re already struggling though, it might be better to discuss your solution options sooner rather than waiting.

I hope this helps.

Kind regards,
Pavan

Hi Pavan

Your wonderful thank, been throwing a before and after figures, its all up in the air re money, just be worried that if I jumped across now, then in a couple of months time it all needs redoing. Worked out earlier, can cover to july, know by then whats going on, either way it be ""HELP" -
Cheers in advance x

StepChange_Pavan

mum2one wrote: »

Hi Pavan

Your wonderful thank, been throwing a before and after figures, its all up in the air re money, just be worried that if I jumped across now, then in a couple of months time it all needs redoing. Worked out earlier, can cover to july, know by then whats going on, either way it be ""HELP" -
Cheers in advance x

Hi again,

Just wanted to mention – if you’re already struggling, it may be best to look at your options now – it wouldn’t be a problem if you needed to review your situation in a few months as circumstances can change at any time.

Like I said before, just contact our Debt Remedy support team and they will be able to discuss this in more detail as they have access to all your information.

Kind regards,
Pavan