Struggling with debt? Ask a debt advisor a question

jonnyboi1982

Hi,

I started a uni course and dropped out in the first year but didn't work. I basically thought it was bad starting year 1 again being £1500 over drawn. I had to ring the bank to ask them to extend my overdraft and they did up to £3000. I then dropped out of uni again and started another course in year 1. I've accidentally crept over the £3000 overdraft and now the bank have written to me saying they will charge me £35 per day if I dont go back over -3000. Is there any way I can get them to extend my overdraft?

Thanks

StepChange_Pavan

daze21 wrote: »

Hi,
I am looking for some advice on where to start sorting things out

I recently graduated after spending 9 years dossing about being at uni working and part time study.. a whole mix of things really. So durin this time I had a great time went abroad, partied etc.
Now at the end of it I have a bit of a trail of destruction with debts knocking about in a few places which to be honest I am unsure of their exact location and amount as they seem to sell them on for fun

I now am quite interested in boring things like mortgages as renting just seems like a bit of a waste.

I now have a job and do extra work self employed. I am in a position where in 1 - 2 years I could save up enough money to pay off these debts should things carry on the way they are.

Do I contact these companies (most of which have no idea where I am and are not bothering me atall) or wait until I can contact them and give them money?

My total debts are roughly split over 3 credit cards all of which I have not paid since 2007 at the time of my beginning to ignore them they were :

GE Money £3,500 (cl finance)??
Mint (RBS) £3,500
+ Natwest: £350 (phillips) ??

I have no idea what happend to them but think I might have a ccj from atleast one if not all of them. A while ago (2007) they were ringing me offering me to pay half and get rid of them, Any chance of them doing this still?

what should I do? I hate talking to these people when I have no money as they are unreasonable and ask you if someone can lend you the money to pay and stuff like that. But I want to get a mortgage in the near future so perhaps paying them in installements would help this.. I really don't know.. Help??

I have already paid off council tax, water, a speeding fine that escalated and some other smaller bills which seemed more important as they actually knew where I was.

Hi daze21 and thanks for your post.

I’d recommend that you get a copy of your credit reference file to find out exactly who you owe and how much.

Once you have this information, you can start to contact them and offer them reasonable amounts to repay the debts.

It’s a good idea to repay them at a rate that you can realistically afford. The best way to do this is to compile a budget showing everything that’s coming in and all your expenditure. You can then split whatever’s left over between your creditors.

If you’d like some help with this or 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

head_above_water wrote: »

we have come to the end of the road. we have borrowed, begged and sold stuff on ebay to make all our payments, but we can go no further. Although we are both working full time, there is no money left after paying bills so have been using credit cards to do shopping, petrol etc.
we need help, but are currently up to date with all our payments. we did miss one cap 1 payment and the relentless phone calls are driving us crazy, esp as I work nights and need to sleep in the day ( i can't turn the phone off in case my elderly parents need me )
I know our situation is self inflicted, we looked into a newspaper advert that could lower our credit card payments, but the fees were high . also we feel responsible for a debts and don't want them written off like the advert says. we want to pay, but at the moment we are getting hammered in fees. I paid the minimum on my card 1 day late so they added a 12 charge that put me over my limit so they charged me another £12 for going over. its a viscous circle. How do we get help as we are working?

Hi there and thanks for your question.

I’d recommend that you get in touch with us so that we can look at your situation in more detail and advise you on your next best step.

It sounds as though you don’t have much money left after paying your priorities, but it’s important that you maintain these no matter what.

We can look at your budget to see if there are any changes you can make and explore all of the solutions that are available to you. Most importantly we won't charge you a penny for our advice.


If you’d like us to help, 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.

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

biondina

Hello there,

I am new here but I came here to try and get some advice. OK, I am 27 and am living in Geneva Switzerland. (I will transfer all amounts into pounds to make sense to everyone) I earn about £3300 after tax per month but although that salary would go quite a way in the UK in Geneva it is a poor salary (I didn't know that when I jumped at the opportunity back in 2009) although most authorities in the UK would seem to think I am rolling in it.

Out of the money I earn my expenditures are as follows:

1) rent of £837 (for the moment I only pay £415 but I will be paying the full amount from End of October as my partner has to go away for a year for work) THIS IS A VERY LOW RENT IN GENEVA AND I HAVE TO CONSIDER MY DEBT PROBLEM AS URGENT IN CASE I WAS FORCED TO MOVE BY THE AGENT/OWNER. A "normal" rent would be £1500

(TOTAL AFTER RENT 2,463)

2) utility bills which total approximately £120 per month

(TOTAL 2,340)

3) loan on car (which I had to do at the time as when I arrived I had to move somewhere VERY far away and was in fact doing 80miles round trip everyday which is £250 per month

(TOTAL 2,090)

4) Compulsory health insurance (there is no social security in Switzerland) of £284 per month

(TOTAL 1,806)

OK, so that would all seem ok until you add the fact that the student loans company are barking at my door (they want £170 per month (TOTAL 1,636)) then my credit card from when I was in the UK (on which I only pay the minimum payment so therefore am in permanent debt) which is £6500 and then the credit card in Switzerland (you need one here because you cannot buy online without one) of £4400.

I will hold up my hands and say that I have been irresponsible but now I need to find a way out.

I have thought about a loan to consolidate the two credit cards into one monthly payment but that scares me because of the fact that you cannot buy anything online without a credit card therefore I can see having a loan to pay off the credit card plus a credit card with money on it!!

Another option I have considered was to start using my UK debit card as a "credit card" once again. That way I can pay off my debt with a loan and transfer funds to my UK account in order to buy online. What do you think about that?

Any advice that anyone can give me would be much appreciated.

Thanks again

Sarah xxx

mum2one

I have finally got off my rear, and plucked up the courage to do my debt online, and I was shocked, as this may sound been paying 3/4 of my incoming then using the cards to top up the missing money, and now my free income equates to 1/3rd of what the creditors want. So good luck cccs, who ever gets the short straw with me need a brandy.

I know its only the 1st run on the ladder, but it was a hard step to get to, but I'm on there, and without sounding daft for the first time in a long time I feel like a weight has been lifted off my shoulders. I've been dipping my toe for about 3 months, not ready to really admit I need help, so anyone who is in my position, take the plunge, it may be journey, but its a new one xx

jim_smith

i have had a lot of debts in the past, with divorce etc i have ignored them for years, last year i lost my job and was heading further down the spiral

Luckily i got a job abroad and now have paid all of my £100k debts off, credit cards loans and mortgage and utilities arrears taken me a year

I have collected black marks etc against my name, what is the best way to have them all cleared


thanks


jim

StepChange_Pavan

sambodidly wrote: »

Hi
Im completely and utterley devestated and ashamed that its come to this.

I/we are in severe debt and I know we having been living far beyond our means.

We are £3000 overdrawn, with £2000 on Credit Cards and £6000 loan.

Today, we having nothing left.

We run our own small business but that is struggling too so were in a no win situation.

Please please can anybody advise me of what to do.

Thank you.

Hi sambodidly and thanks for your post.

Firstly don’t be ashamed of your situation, you’re certainly not alone and there’s lots of good advice that’s readily available to you.

You don’t mention whether you have a regular income coming in or not. Have you had a benefits check to make sure you’re claiming everything you’re entitled to?

I’d firstly recommend that you open up a basic bank account away from your overdraft and any existing debts. This way you can pay towards your overdraft in the same way that you pay your other debts at a rate that you can afford. It also removes the risk of them taking any income to reduce the overdraft and leaving you with no money to live on.

I’d also recommend that you compile a budget that you can show to your creditors to support your offer of payment. You can send them copies to prove how much you can afford to pay.

If you’d like some help with this or you’d like us to look at your situation in more detail to see what your options are you can get in touch.

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.

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

Squat wrote: »

Hi,

I'm not in debt, but my girlfriend has managed to acquire 3 or 4 credit cards. She is capable of managing her debt if she manages to balance transfer onto another card. Left to her own devices, this won't happen.

I want to be able to make decisions for her with regards to this. She lets me file her bills now so that I can keep an eye on things, but I would like some sort of power of attorney so that I don't need her consent/presence every time and as I am freelance, I have time (an inclination) to shift her debt. Nothing nefarious - she wants me to do this.

Thanks,

Hi Squat and welcome to the forum.

If you’d like to be able to speak to her creditors on her behalf she would need to send them all written letters of authority.

You may need to seek legal advice on getting power of attorney.

Kind regards,
Pavan

StepChange_Pavan

jonnyboi1982 wrote: »

Hi,

I started a uni course and dropped out in the first year but didn't work. I basically thought it was bad starting year 1 again being £1500 over drawn. I had to ring the bank to ask them to extend my overdraft and they did up to £3000. I then dropped out of uni again and started another course in year 1. I've accidentally crept over the £3000 overdraft and now the bank have written to me saying they will charge me £35 per day if I dont go back over -3000. Is there any way I can get them to extend my overdraft?

Thanks

Hi jonnyboi1982 and thanks for your question.

It may not be a good idea to extend your overdraft further as this could make your situation worse.

You could look at other cheaper ways of borrowing money or consider getting a part time job to help your finances.

You could contact your bank to see what options they give you.

Kind regards,
Pavan

StepChange_Pavan

biondina wrote: »

Hello there,

I am new here but I came here to try and get some advice. OK, I am 27 and am living in Geneva Switzerland. (I will transfer all amounts into pounds to make sense to everyone) I earn about £3300 after tax per month but although that salary would go quite a way in the UK in Geneva it is a poor salary (I didn't know that when I jumped at the opportunity back in 2009) although most authorities in the UK would seem to think I am rolling in it.

Out of the money I earn my expenditures are as follows:

1) rent of £837 (for the moment I only pay £415 but I will be paying the full amount from End of October as my partner has to go away for a year for work) THIS IS A VERY LOW RENT IN GENEVA AND I HAVE TO CONSIDER MY DEBT PROBLEM AS URGENT IN CASE I WAS FORCED TO MOVE BY THE AGENT/OWNER. A "normal" rent would be £1500

(TOTAL AFTER RENT 2,463)

2) utility bills which total approximately £120 per month

(TOTAL 2,340)

3) loan on car (which I had to do at the time as when I arrived I had to move somewhere VERY far away and was in fact doing 80miles round trip everyday which is £250 per month

(TOTAL 2,090)

4) Compulsory health insurance (there is no social security in Switzerland) of £284 per month

(TOTAL 1,806)

OK, so that would all seem ok until you add the fact that the student loans company are barking at my door (they want £170 per month (TOTAL 1,636)) then my credit card from when I was in the UK (on which I only pay the minimum payment so therefore am in permanent debt) which is £6500 and then the credit card in Switzerland (you need one here because you cannot buy online without one) of £4400.

I will hold up my hands and say that I have been irresponsible but now I need to find a way out.

I have thought about a loan to consolidate the two credit cards into one monthly payment but that scares me because of the fact that you cannot buy anything online without a credit card therefore I can see having a loan to pay off the credit card plus a credit card with money on it!!

Another option I have considered was to start using my UK debit card as a "credit card" once again. That way I can pay off my debt with a loan and transfer funds to my UK account in order to buy online. What do you think about that?

Any advice that anyone can give me would be much appreciated.

Thanks again

Sarah xxx

Hi Sarah and thanks for your question.

It’s difficult to give you detailed advice without looking at your budget as a whole; including your everyday expenditure such as food etc.

We wouldn’t normally recommend consolidating debt as you’re usually borrowing more money and paying back more in the long term. If you add to this the temptation of continuing to use your credit card, your situation could get worse.

I’d recommend that you go through your budget with a fine tooth comb to see what changes you can make. Is there the option of getting a lodger whilst your partner is away or could you work a second part time job to get more money coming in? You can also look at saving money on your utilities or food bills for example.

If you’d like us to look at your situation in more detail you can call us on +44 113 297 0126 to book an appointment with a counsellor. Lines are open Monday to Friday 08:00-20:00.

I hope this helps.

Kind regards,
Pavan