Struggling with debt? Ask a debt advisor a question

skinto1877

Hi, I really need some advice, I have 2 credit cards..1-RBS £2800(maxed out) 2-VIRGIN MONEY £2500(maxed out) I was hoping to clear them once I remortgaged but it fell through at the last minute due to my trust deed(disharged 5 years ago) anyway,I have since fell behind a month with repayments due to me relying on THAT remortgage now i'm struggleing to find the cash to pay them.
Can I phone them? will they freeze the interest? I want to pay them and and then one day even clear them off.
HELP!!!

StepChange_Pavan

Theboardroom wrote: »

Hi,

Last year I had a business go under and as I was a sole trader I built up a lot of credit with Lloyds Tsb which is as follows:

Credit Card £6600
Loan 1 £7600
Loan 2 £3500
Overdraft £2500 we hit or get near the limit each month

These cost me £660 a month in repayments alone!

My partner works and I now have another small business which i'm trying hard to build up (currently just earning around minimum wage), I have also just started another job which I do a few nights a week. But i've only been just about keeping our heads above water by using our Tax Credits.

Last year we were overpaid, I new we were getting overpaid but buried my head in the sand with the knowledge that if I told them the payments would reduce and we would then be in trouble. My idea was to keep getting the payments then pay it back when the business takes off. But as expected the payments have been reduced by 60% and now were really in trouble.

I have spoken to the bank but there's nothing they want to do to help.

Now I'm thinking that as 80% of my debts are with LLoyds and there gaining interest at an alarming rate that I should move my other direct debits over to another bank and then have our wages paid into that bank, and deal with LLoyds seperatley.

Would the bank stop the interest and just be happy to get a fixed affordable payment from me each month until the debt is paid? An old collegue has done this with numerous credit cards and although he cant get any decent credit for a few years he can now at least have a decent exsistance, in fact a lot have halved his debt on the cards just to get some back.

I need to do something quick before I lose my house, which only has £15k of equity in it.

Thanks you for any help that anyone can give me:o

Hi Theboardroom and thanks for your post.

I can see that Tixy has already given you some really useful advice on your previous post.

You’re right that it’s good idea to move away from Lloyds and open up an account where you don’t have any debts.

If you’d like us to look at your situation in more detail you can 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.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

lend_me_a_tenner_bud wrote: »

Hi again just to update whats happend since last post.

I sent a letter to Barclays offering a token payment on my loans, had no reply just phone calls from Barclays Collections.

So after your advice I sent it again this time recorded delivery, and asking them not to keep phoning me at all times of the day. And to only make contact in writing only.

Well still no reply from them,just letters saying what I owe them, and further phone calls from Barclays Bl**dy Collections!!. Which I never answer.

Im sending the letters to Barclays Bank Plc, Leicester LE87 2BB.
I have got the right address have I. ?

Hi again and thanks for the update.

It’s difficult for me to know whether you’ve got the right address – I’d recommend that you send it to the address that your collections letters come from.

With regards to the phone calls, you could consider answering one of them and reiterating that if they don’t stop you will report them to the Office of Fair Trading as you stated in your letter.

Kind regards,
Pavan

StepChange_Pavan

Rob_A wrote: »

Hi first time poster looking for some general advice

I lost c17k on the sale of my house 3 years ago. This debt burden was added to 15k I already had on credit cards leaving me with 32k in total. I have been servicing this debt for 3 years at 1100pm (leaving me 1k a month to live) There is nowhere to go with my budget, it is literally rent/food/fuel. My debt now stands at 32k after paying well over the full debt in minimum payments.

Over this time I have periodically attempted to get balance transfers and loans with no success. Mr credit rating is moderate due to 3 missed payments on a £150 store card at the time of the house sale (admin error and the balance was cleared immediately afterwards) and the fact that I have never been on the electoral register at one address more than 4 years.

The bank I have been with for 20+ years would not give me a loan so am I to resign myself to paying £1100pm for the rest of my life without the debt ever reducing. The CC companies must love me. V depressed.

Hi Rob A and welcome to the forum.

It’s difficult to say what your options are without looking at your income and expenditure in more detail.

If you’re able to meet the minimum payments, you could write to your lenders and ask them to consider stopping or reducing the interest and charges.

You could also look at your budget to see if there are any areas that you could improve on – making cutbacks or looking at ways to increase your income for example.

However, if your budget shows that you are prioritising your credit repayments before your living costs there may be other solutions available to you.

I’d recommend that you visit our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu) so that we can advise you on your best next step.

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.

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’d prefer you can call 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.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

Scott101080 wrote: »

I'm 3 years into a 4 year agreement with dial a tv.
A year ago I sent the tv in for repair as it kept turning itself on and off. They sent it back saying they could find no fault with it, although it no longer switched itself off.
Recently it started playing up again until it no longer worked at all. I sent it back to dial a tv again, they sent me a loan tv as a replacement until mine was repaired. It was 3 months, and many phone calls and emails later that I finally found out my tv could not be repaired. Dial a tv said my only option was to settle for the loan tv, which is the same size but of much poorer quality. Should I be expected to pay the same amount of money? And also I no longer can afford to pay the monthly amount due to my wife having to give up work to look after our sick daughter, can I cancel the agreement and send the loan tv back? Do I still have to pay even though I can no longer afford it?

Hi Scott101080 and thanks for your post.

I‘m not sure what type of agreement you have with Dial a TV. Do you own the TV outright after the four year period like a hire purchase, or is it just a rental agreement? I’d recommend that you check the terms and conditions to see what will happen if you can no longer afford to pay. They may just take the TV back and leave it at that.

With regards to the fact that your new TV is not as good as your original, I’d again recommend that you read the terms and conditions to see if they are within their rights to do this. If you need further advice around this you could contact Consumer Direct.

I hope this helps.

Kind regards,
Pavan

inco_jim

Hi,

I really need some advice to get rid of my debt. i have racked up 5.5k and am starting to struggle to pay it off, i have my old student overdraft which is 2k plus one M&S credit card at 2k and one Natwest card at 1.5k
i am just about able to make the monthly payments. i really don't want the worry anymore. please could you help.

Thanks

StepChange_Pavan

skinto1877 wrote: »

Hi, I really need some advice, I have 2 credit cards..1-RBS £2800(maxed out) 2-VIRGIN MONEY £2500(maxed out) I was hoping to clear them once I remortgaged but it fell through at the last minute due to my trust deed(disharged 5 years ago) anyway,I have since fell behind a month with repayments due to me relying on THAT remortgage now i'm struggleing to find the cash to pay them.
Can I phone them? will they freeze the interest? I want to pay them and and then one day even clear them off.
HELP!!!

Hi skinto1877 and thanks for your post.

It’s a good idea to let them know about your situation and you could ask for their consideration in stopping interest and charges.

However, there’s no guarantee that they will agree to this, and if you’re really struggling you could contact us for more detailed advice.

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 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.

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.

Kind regards,
Pavan

marriedlady

Hi,

Please could you tell me if this is to be believed...

We asked how long it would take to clear the following debt. The Debt Management Company (not one of the free ones!) sent us the following:

43.3 months at £179.02 to pay £4,404.46 to Westcot and £3,247.43 to the Debt Management Company = £7,751.89.

Will these figures be fixed? Do interest/ fees get added on, will we have to pay more for longer? Just don't know how these things work! Just need to know if the goal posts are going to be pushed back.

Any advice gratefully received

regards

nmagowan

Hi Folks,

I'm looking some advice on what to do. I have received a civil bill for over £5000 from the Nationwide building society. This is for a credit card debt. I am already on a DMP with Payplan paying £729 a month into it. The Nationwide never accepted the offer so it seems like I'm off to court.
Payplan have told me that they are contacting the creditor directly and have set the debt to priority. I am paying as much as I can afford into the DMP and this includes a payment of £70.00 a month to Nationwide.
As Payplan cannot seem to advise on what to do in regards to legal matters it means that I confused as to what to do now. I have replyed to the civil bill to dispute it so I assume that there will be a court hearing. I live in Northern Ireland so I think that the legal system is different to England.
Can anyone advise me on what I should do?

Kind Regards,

Neill

StepChange_Pavan

inco_jim wrote: »

Hi,

I really need some advice to get rid of my debt. i have racked up 5.5k and am starting to struggle to pay it off, i have my old student overdraft which is 2k plus one M&S credit card at 2k and one Natwest card at 1.5k
i am just about able to make the monthly payments. i really don't want the worry anymore. please could you help.

Thanks

Hi inco jim and thanks for your post.

The first thing I’d recommend is to draw up a realistic income and expenditure to work out how much you can afford to pay towards your creditors after your essentials. If the amount that’s left over is less than your minimum payments it’s likely that you need some more detailed advice.

If you can afford your minimum payments, review your budget to see if there are any areas you can improve – such as making cutbacks or trying to get extra money coming in. Try to pay extra towards your debts as and when you can.

You don’t mention whether your student loan is a new or old style which would make a difference to how you make your payments. If you’re unsure about which type you have, this blogpost should help.

If you’d like some help in drawing up a budget or would like us to look at your situation in more detail, you can 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.

I hope this helps.

Kind regards,
Pavan