Struggling with debt? Ask a debt advisor a question

StepChange_Pavan

pilky wrote: »

I have a couple of questions and would be so grateful if you could offer advice or guidance.

I bank with RBS, I have my current account with them a credit card and my mortgage.

When I was made redundant 6 months ago I requested RBS switch my mortgage to Interest only (instead of Capital and Interest) until I find another job - they declined - so I am really struggling to pay my mortgage. I also have an overdraft of £5,000 which I am being charged £75 per month interest, again, I am really struggling to pay this, but I don't want my credit rating affected - as it stands my credit rating does not have any late payments or defaults on.

Hi pilky and thanks for your post.

It can be difficult if you don’t want to affect your credit rating, especially if you’re struggling.

You could ask your mortgage provider if they’d be willing to give you a payment holiday until you get back on track. I’d also recommend that you open a basic bank account away from your overdraft because they could withdraw this facility at any time, leaving you with no money to live off. This way you can pay towards your overdraft and remain in control of your income.

I wouldn’t recommend taking out any further credit to consolidate your debts as this can sometimes make your situation worse in the long term.

Kind regards,
Pavan

System

lostc wrote: »

Hi there, I hope you can offer me some advice :beer:

I currently have 3 credit cards, all up-to-date, no history of being naughty, clean credit file. 2 of the 3 creditors have decided to raise interest rates and minimum repayments over the last year, effectively doubling interest rates and raising repayments by 1% making it extremely difficult for me to make reasonable repayments on top of interest charged.

The total owed is £30k, 15k (Virgin Money), 11k (Barclaycard) and 4k (American Express). With the most recent monthly payment restructure by Virgin Money and yet another interest rate rise proposed by Barclaycard, I am looking at over 1k in minimum payments per month.

Having assessed the cost of rent, commute cost, food and so forth, these changes will certainly put me deeper into the red with all my previous savings already used up over the last year to cover interest rate rise and increase in living costs (and I am already living as basic as one can be). It did not help when I started using my AMEX to cover the deficit but having seen the amount I owe them, I think enough is enough.

My company has also recently announced redundancy in the pipeline (circa 2 months) and I certainly won't be getting anything out of them as I have been with them for just less than 2 years so it puts me in an awkward situation.

I have considered the routes of DMP, IVA and bankruptcy but I have been advised by friends that this will have an adverse effect on my career and qualifications. With redundancy due soon, DMP and IVA would almost certainly be ruled out.

One proposed option from a friend was for him to help me with a lump sum, although that is in the region of 10-14k, not even half of the 30k I owe. He has suggested that I go down the Full and Final Settlement Offer route with this lump sum? Is this ideal? Are there any alternatives?

Thanks in advance!

Hi lostc and welcome to the forum.

Full and final settlement could be a route that would work out well for you. I’d also recommend that you consider a 3rd party lump sum IVA (this is a lesser known but highly effective solution).

In regards both solutions I would suggest that you give us a ring for some detailed advice. 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
Mat

SDR0708

Hi

We're looking to find out the best way to resolve our debts over a 4-5 year period to enable us to make neccesary savings in the short term to help deal with a Pregnancy and Renting.

Currently, my partner and I have the following Debts to pay off:

Personal Loan: £209.00 per month - 38 months left - total amount outstanding £8,000
Professional Course Loan via Natwest: £232.02 per month - 58 months left - total amount oustanding £13,351
Natwest Credit Card: £2942.00 total outstanding (currently paying monthly minimum)
Santander Credit Card: £600.00 total outstanding (currently paying monthly minimum)
MBNA Credit Card: £2900.00 total outstanding (currently paying monthly minimum)

Incomes: £1100 per month, £1300 per month

We're looking for advice on the best way to resolve this debt as a couple, whether that's a joint loan or single loans in order to make the overall sum more manageable. We're expecting a baby in November and we're going to have to rent a house in order to accomodate that. We're looking to put together a plan to do this over a 5 year period in order to minimise our monthly outgoings and maximise our free cash for living at the moment.

Any help much appreciated.

StepChange_Pavan

phillipson wrote: »

hi, can you tell me if you can find anything about clark richards? its a debt management company im with but im begining to think they are not legit, HELP!

Hi phillipson

We’ve already replied to the message you sent us privately.

I hope this helped, but if you need anything else please let us know.

Kind regards,
Pavan

copperboom_2

Hi.

I want to call CCCS about this but my mobile is in repair at the moment and I don't have a landline so I have no way of getting in touch for a while.

I started a new job (after a year of unemployment) last month and got paid for the first time yesterday. Before I got paid, I filled out Debt Remedy with CCCS and went ahead with a DMP. I used a salary calculator to calculate my monthly income and worked out that initially I'd have £60 a month to put towards debts.

Now my payslip has come, the amount showing on it is about £90 more than the amount I quoted you in Debt Remedy because - according to HR - I was out of work for so long that I haven't reached the tax threshold for this year yet and am paying a much lower rate than I should be - student loan instalments also haven't started coming out just yet for the same reason. HR says both issues should rectify themselves in about 3-6 months but I'm worried that when I send my payslip to CCCS you'll think I've been lying and make me pay at a rate that will be unsustainable when my income is at the normal level. I am happy to pay at the higher rate whilst I'm getting more pay (although I'd also love to be able to put it in a F&F fund obviously) but I'm worried that dropping payments from £150ish to £60 at the end of the year or whenever it is will cause my creditors to make a fuss. Please give me advice on what the best course of action is/what CCCS might recommend when I finally get to call them about it. This is delaying me starting the DMP which is causing a lot of stress.

StepChange_Pavan

nem39esis wrote: »

Hi, Ive managed to rack up a sizeable debt on credit cards over the years. Not all are bad, some are on cards with 0% offers and others rate for life. However i decided that the only way to clear it completely was to have it all in one place on one rate and pay off as much as possible every month to get rid of it. I initially applied for a loan with my bank. Prior to doing this i checked my credit reports on all 3 companies. Allw as good, no bad marks at all and credit scores all came out good. I applied for a 14k personal loan over 5 years to consolidate my credit cards. I was rejected. I asked for reasons why but kept getting told it was based on my credit file which i asked for further clarifcation but was ignored repeatedly with the same letter. This is being investigated by the banks complaintes department, but theyre taking months. However, this leaves me in the same situation. I applied for a credit card the other day for its 0% offer and was turned down. I now worry that because of this loan application and the ammount of debt over my cards, i can't get any further cards to move debts around at better rates and so my debt will increase rather than decrease when the offers run out on the cards i have.

For info here what i have so far
£1800 at 20%apr
£4000 at 16% apr
£4000 at 0% untill july (16% after)
£1500 at 0% untill september (16% after)
£3800 at 4.98% for life
£1500 overdraft at 19%
£1450 overdraft currently 0%

total = +18k

I have a mortgage at a good rate which is costing £480 a month, i live with my girlfriend and shes on the mortgage also. I make 27k a year and so does she.

Whats my best solution? Was i refused the loan because of the card debts totalling so much?

Hi nem39esis and thank you for your post.

It’s tricky to say exactly why you were rejected as each creditor has differing lending criteria. However, although you’re up to date with all your payments it could be because of the amount that you owe and because it’s spread over a number of cards. This article gives some really useful information about how credit files work: http://www.moneysavingexpert.com/loans/credit-rating-credit-score.

It’s difficult for me to recommend an option for you, as I’m not sure whether you’re struggling to make your repayments or whether you’re looking for a way to repay your debts as quickly as possible.

If you’d like us to look at your budget in more detail to see what options are available to you, I’d recommend that you visit our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu) to help you find a solution to your debt problem.

Debt Remedy will assist you in completing a financial statement with information on your household, employment, income, expenditure and debts. From this the service will automatically determine your options.

To help you fill in the form, it’s best to gather together information about:
• Your income
• Your expenditure
• The creditors you owe money to

You’ll receive a downloadable advice booklet providing a tailored solution for you based on your current circumstances and advice on ways you may be able to improve your situation.

If you’re not confident with computers or would like to speak to an advisor then you’re welcome to ring our free Helpline on 0800 138 1111. We’re open Monday to Friday 8am - 8pm.

If you phone us 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.

You’ve taken the first step to sorting out your money worries and we can support you with free and impartial advice along the way.

Kind regards,
CCCS Pavan

StepChange_Pavan

rsjg80 wrote: »

Can you help?!

I'm trying to 'find' my debts. I know I used to have two debts with Barclays (Overdraft/ Credit Card) two with MBNA (Credit Cards) and one with Capital One (Credit Card) but used DebtAdvisoryLine for a while before getting rid of them.

Since then I've not known who to pay and no-one's asking for anything. I've written to all the original creditors and no reply. I looked at my Equifax Credit Report and they're all there and with original creditors but, despite being updated recently, nothing seems to be happening with them. They defaulted ages back and are 'white' since or are just 'red' every month to date.

What's going on? I want to attempt to negotiate full and finals but can't if no-one has the debt!!

Hi rsjg80 and thanks for your post.

Although the original creditors are showing on your Equifax report, the debts could have been sold on and they may have used one of the other credit reference agencies.

If your creditors aren’t responding to your written requests, I’d recommend that you check your file with Call Credit and Experian first.

If you still have no joy with this, you could try ringing the original creditors as your written correspondence may have got lost or gone to the wrong department.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

SDR0708 wrote: »

Hi

We're looking to find out the best way to resolve our debts over a 4-5 year period to enable us to make neccesary savings in the short term to help deal with a Pregnancy and Renting.

Currently, my partner and I have the following Debts to pay off:

Personal Loan: £209.00 per month - 38 months left - total amount outstanding £8,000
Professional Course Loan via Natwest: £232.02 per month - 58 months left - total amount oustanding £13,351
Natwest Credit Card: £2942.00 total outstanding (currently paying monthly minimum)
Santander Credit Card: £600.00 total outstanding (currently paying monthly minimum)
MBNA Credit Card: £2900.00 total outstanding (currently paying monthly minimum)

Incomes: £1100 per month, £1300 per month

We're looking for advice on the best way to resolve this debt as a couple, whether that's a joint loan or single loans in order to make the overall sum more manageable. We're expecting a baby in November and we're going to have to rent a house in order to accomodate that. We're looking to put together a plan to do this over a 5 year period in order to minimise our monthly outgoings and maximise our free cash for living at the moment.

Any help much appreciated.

Hi SDR0708 and welcome to the forum.

We don’t usually recommend taking out more credit to clear existing debts as this can sometimes make the situation worse in the long term.

The first thing to do is visit our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu) to help you find a solution to your debt problem quickly.

Debt Remedy will assist you in completing a financial statement with information on your household, employment, income, expenditure and debts. From this the service will automatically determine your options.

To help you fill in the form, it’s best to gather together information about:
• Your income
• Your expenditure
• The creditors you owe money to

You’ll receive a downloadable advice booklet providing a tailored solution for you based on your current circumstances and advice on ways you may be able to improve your situation.

If you’re not confident with computers or would like to speak to an advisor then you’re welcome to ring our free Helpline on 0800 138 1111. We’re open Monday to Friday 8am - 8pm.

If you phone us 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.

You’ve taken the first step to sorting out your money worries and we can support you with free and impartial advice along the way.

Kind regards,
Pavan

foreveradevil

Hi,

I have been on a dmp since 2005 and originally i started the plan with my now ex wife. I am now in much stronger posistion to sort of my debts and credit file as i have a new job with a much bigger salary and i want to get a mortgage as soon as possible.

I have spoken to cccs and they have said i need to split the current plan i am on and i would need to speak to an advisor about setting up a new plan on my own, my query is that i don't think i would now qualify for a dmp... i am in a posistion where i can afford to pay more towards my debts and i would ideally like to manage them myself but i am worried about how i could achieve this? Is it possible to set up direct debits with my creditors direct? if i upped the payments would this mean 'defaulting' on my current payments as i want to clean up my file which only has 3 defaults left due to the 6 year period being up.

Any help on how i could go about this would be greatly appreciated.

Rob

StepChange_Pavan

copperboom wrote: »

Hi.

I want to call CCCS about this but my mobile is in repair at the moment and I don't have a landline so I have no way of getting in touch for a while.

I started a new job (after a year of unemployment) last month and got paid for the first time yesterday. Before I got paid, I filled out Debt Remedy with CCCS and went ahead with a DMP. I used a salary calculator to calculate my monthly income and worked out that initially I'd have £60 a month to put towards debts.

Now my payslip has come, the amount showing on it is about £90 more than the amount I quoted you in Debt Remedy because - according to HR - I was out of work for so long that I haven't reached the tax threshold for this year yet and am paying a much lower rate than I should be - student loan instalments also haven't started coming out just yet for the same reason. HR says both issues should rectify themselves in about 3-6 months but I'm worried that when I send my payslip to CCCS you'll think I've been lying and make me pay at a rate that will be unsustainable when my income is at the normal level. I am happy to pay at the higher rate whilst I'm getting more pay (although I'd also love to be able to put it in a F&F fund obviously) but I'm worried that dropping payments from £150ish to £60 at the end of the year or whenever it is will cause my creditors to make a fuss. Please give me advice on what the best course of action is/what CCCS might recommend when I finally get to call them about it. This is delaying me starting the DMP which is causing a lot of stress.

Hi copperboom and thanks for your post.

You’re right that you will need to contact us with your reference number as I don’t have access to your information. However, if you can’t phone us at the moment you could send us an email with your details to [EMAIL="contacus@cccs.co.uk"]contacus@cccs.co.uk[/EMAIL] and I will forward it on to the right department for you straightaway.

I hope this helps.

Kind regards,
Pavan