Struggling with debt? Ask a debt advisor a question

StepChange_Pavan

wolves062347 wrote: »

Hi, i am really struggling with creation financial services/Sygma bank and have been advised to send a second letter before i go to the financial ombusman. My debt is nearly £8000 and at the rate they are charging me i will never clear it, do you think this letter is suitable

I am writing to complain to you with regards to a number of issues with my above account particularly concerning the extremely unfair interest and charges you apply.

You have recently written back to my letter dated 18th June 2011 and I have quoted your reference above. However I still feel you have not resolved this issue in full and you have not understood my letter properly, so I have outlined again my main complaints;

1) I have paid you £1310.81 since September 2009 and yet my debt with you has actually INCREASED considerably.

2) On your statement dated 7th June 2011 you have charged me £209.70 in a single month against my usual payment of £72.31.

3) I still feel your monthly interest of £57.44 against my payment of £72.31 is hindering my ability to clear the debt.

4) Every other company on my debt management plan has frozen interest to help assist me to pay the debt off. Please could you do the same for me?

5) I genuinely believe that your interests and charges are extremely unfair and as a consequence are clearly hindering my ability to pay this debt off

I would really appreciate a clearer response to the above.

Continued on page 2




I understand and that you must send a written acknowledgement of my complaint within 5 business days of its receipt. If you are unable to resolve my complaint within 4 weeks you must send a holding response, explaining the reasons why and indicating when you will make further contact.

If you fail to resolve my complaint within 8 weeks, or if matters are not settled to my satisfaction, I will have no alternative but to escalate my complaint to the Financial Ombudsman Service.

Obviously, on my part I will continue to make my monthly payments from CCCS.

I look forward to your reply.




any help would be appreciated as they are really stressing me out now. My 7 year plan will end up being 70 years at this rate.

Hi wolves062347 and thank you for your post.

This letter looks fine to send – it seems to cover everything that you need to.

I’d also recommend that you send it recorded delivery and keep a copy of it for your records.

Kind regards,
Pavan

paddypaws101

Hi, I realise I am entering the lions den in many respects by asking this question here, but do not know where else on the board to post.
(Deep breath)
Ok,A year ago, I lent a friend a substantial sum of money with strict agreement in writing of time of repayment which was to have been completed by jan 2011. She defaulted. After chasing her for months I finally got hold of her 5 weeks ago and she grudgingly, without apology, agreed to a repayment of £100 per month ( 6k outstanding, I am paying overdraft fees on it which she knows and as the sum was actually saved for my tax bill I got hit with a fine) I agreed to give her a second chance and accept this....yet again she has failed to honour the agreement.
I am seriously considering using a Debt Recovery service to help me get this money back as I am myself in severe financial difficulty while this 'friend' is still running what appears to be a profitable company.
Can anyone advise me on this matter?
I have spoken to a company called Daniels Silverman, does anyone know of them?

StepChange_Pavan

James1965 wrote: »

Hi I would really appreciate some advice. I'm struggling with debt and whilst I havn't fallen into arrears on anything yet the time will come. I owe about £65k on loans & credit cards. I have a £730k mortgage (interest only) on a house worth in the region of £1.6m with 18 years to run. My situation has arisen because my income has fallen by about 50% and I now earn in the region of £100k. My house is on the market but there is little movement and I know if I did a firesell of the property it would go but it pains me to do so. Would it be wise to speak to my mortgage company to see if I could get a further advance to pay of my unsecured loans like credit cards or will they simply tell me to go away as my salary isn't what it used to be? My min payments on all cards & loans is in the region of £1500 pm and if I could cut this I should be in a position to carry on fine. All advice is welcome.

Thanks

Hi James1965 and welcome to the forum.

You could approach your mortgage provider to see what options they give you.

However, I’d be very careful about signing up for anything before doing a thorough budget. You would need to work out how much you can realistically afford to repay on your current income.

Also look at ways of cutting back areas on your budget to free up extra money. Your other option, like you mentioned would be to reduce the asking price to sell quicker.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

Hippychick2007 wrote: »

Hi,

with a combination of 'my own fault' and 'no more tax credits' I have found myself in an exhaustable situation, I have only missed one payment on one debt so far, I have also opted out of work pension

Income £1348 p. m (total)

Ougoings (p.m)
£370 rent month (dont own any property)
£102 council tax
£45 water utilities
£40 gas
£40 electric
£32 sky (lowest package)
£65 car ins (looking at downgrading car - no finance on it, old alfa romeo)
£22 House ins
£30 Mobile Phone
£25 Mobile Phone (old number still paying until May 2012)
£327 RBS Loan (has 5 yrs 3 mths remaining)
£58 Catalogue bill (balance to pay £1750)
£18 Credit Card (balance to pay £480)
£40 Store Card (balance to pay £400)
£50 Petrol

Balance of £84 without any food, car repairs, TV licence and also have £286 cat/Store card (not made any payments yet on this balance)

Really scared to enter into a DMP, also wonder if its worthwhile, at the moment, I have not missed any payments but can clearly see that it is only a matter of time.

My daughter, who I got tax creds for, now has a small part time job, not enough to give me any keep, although she has been buying odd bits of food for us.

Best suggestions please? any help much appreciated!
P.S. I work in Local Government, so not sure Bankrupcy would affect my job?

Thank you

Hi Hippychick2007 and thank you for your question.

Looking at the figures above, although you haven’t missed many payments yet, you are definitely struggling.

It looks as though a DMP could be a good option but without looking at your situation in more detail it’s difficult to say. Bankruptcy may also be an option but once we look at your circumstances properly we will be able to determine what’s best for 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 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.

Kind regards,
Pavan

StepChange_Pavan

trythisname wrote: »

Hello & thanks for your help in advance

9 months ago I got taken of benefits & have been living ruff & supporting myself ever since.

Now 9 months later out the blue ?? I get 3 letters to my parents house, 1 from council tax, outstanding benefit loan & overpayment of rent, all from when I was on benefits 9 months ago & they want £3000 NOW

I do not work or get benefits at this time so can not pay them, they are sending letters to my parents saying they are coming to take goods.

I have been told that if im not on the electrol roll no one can come for goods if I dont live there?? also that I do not have to pay if im not on a electrol roll..

what can I do? I have no money & they say they are coming to my parents.

Hi trythisname and thanks for your post.

Firstly you need to establish whether you actually owe this money – how did they overpay you?

If you agree that you owe the money, you can only come to an arrangement if you have money coming in to pay them. They can’t take anything from your parents house as this isn’t their debt.

I’d recommend that you contact them and inform them of your situation. They may agree to hold the debt until your circumstances improve. You may need to provide proof of your situation.

I hope this helps.


Kind regards,
Pavan

fluffy1974

Hi,

GULP!

Myself and my wife have finally had 'the lightbulb moment' and have been advised by friends this is the place to come to take the first steps to sorting our mess out!

Below is our SOA but I would like to add the following beforehand-

Prior to my wife taking maternity leave we were doing ok, arrangement with my wifes work was to go back to 4 days however, due to the financial climate her employer have stated they can only afford to pay for 3 days for the foreseable future.

We shouldnt jinx it but we feel our jobs are as safe as they can be.

Thanks in advance for any advice... we are going to make an appointment with the CCCS soon.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1552.3
Partners monthly income after tax....... 875
Benefits................................ 122
Other income............................ 0
Total monthly income.................... 2549.3

Monthly Expense Details
Mortgage................................ 594
Secured/HP loan repayments.............. 209
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 105
Electricity............................. 66
Gas..................................... 45
Oil..................................... 0
Water rates............................. 45
Telephone (land line)................... 10
Mobile phone............................ 30
TV Licence.............................. 6
Satellite/Cable TV...................... 18
Internet Services....................... 10
Groceries etc. ......................... 80
Clothing................................ 10
Petrol/diesel........................... 100
Road tax................................ 5
Car Insurance........................... 42
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 140
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 8.5
Contents insurance...................... 8.5
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 7
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1579


Assets
Cash.................................... 0
House value (Gross)..................... 106000
Shares and bonds........................ 0
Car(s).................................. 7000
Other assets............................ 0
Total Assets............................ 113000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 104000...(594)......5.69
Secured Debt.................. 24700....(209)......8
Total secured & HP debts...... 128700....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA...........................3070......72........0
Barclaycard....................6236......141.......6
HSBC...........................3750......104.......0
Total unsecured debts..........13056.....317.......-


Monthly Budget Summary
Total monthly income.................... 2,549.3
Expenses (including HP & secured debts). 1,579
Available for debt repayments........... 970.3
Monthly UNsecured debt repayments....... 317
Amount left after debt repayments....... 653.3

Personal Balance Sheet Summary
Total assets (things you own)........... 113,000
Total HP & Secured debt................. -128,700
Total Unsecured debt.................... -13,056
Net Assets.............................. -28,756

mum2one

fluffy1974 wrote: »

Hi,

GULP!

Myself and my wife have finally had 'the lightbulb moment' and have been advised by friends this is the place to come to take the first steps to sorting our mess out!

Below is our SOA but I would like to add the following beforehand-

Prior to my wife taking maternity leave we were doing ok, arrangement with my wifes work was to go back to 4 days however, due to the financial climate her employer have stated they can only afford to pay for 3 days for the foreseable future.

We shouldnt jinx it but we feel our jobs are as safe as they can be.

Thanks in advance for any advice... we are going to make an appointment with the CCCS soon.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1552.3
Partners monthly income after tax....... 875
Benefits................................ 122
Other income............................ 0
Total monthly income.................... 2549.3

Monthly Expense Details
Mortgage................................ 594
Secured/HP loan repayments.............. 209
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 105 - Have you checked your in the right bsnd, - still the same money, but of you find it difficult could u c if you could spread it over 12 months
Electricity............................. 66 - that looks high, look at simple things first stopping standyby, turning lights off, not leaving items on charge night.
Gas..................................... 45 - see if you can turn 5 mins off the heating either side, all save a few pennies
Oil..................................... 0
Water rates............................. 45
Telephone (land line)................... 10
Mobile phone............................ 30 - could you look at pay + go, or sim only deal
TV Licence.............................. 6
Satellite/Cable TV...................... 18 - could you look at freeview instead
Internet Services....................... 10
Groceries etc. ......................... 80
Clothing................................ 10
Petrol/diesel........................... 100
Road tax................................ 5
Car Insurance........................... 42 - at renewal shop around look at cashback sites all helps
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 140
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 8.5
Contents insurance...................... 8.5
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 7
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1579


Assets
Cash.................................... 0
House value (Gross)..................... 106000
Shares and bonds........................ 0
Car(s).................................. 7000
Other assets............................ 0
Total Assets............................ 113000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 104000...(594)......5.69
Secured Debt.................. 24700....(209)......8
Total secured & HP debts...... 128700....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA...........................3070......72........0
Barclaycard....................6236......141.......6
HSBC...........................3750......104.......0
Total unsecured debts..........13056.....317.......-


Monthly Budget Summary
Total monthly income.................... 2,549.3
Expenses (including HP & secured debts). 1,579
Available for debt repayments........... 970.3
Monthly UNsecured debt repayments....... 317
Amount left after debt repayments....... 653.3

Personal Balance Sheet Summary
Total assets (things you own)........... 113,000
Total HP & Secured debt................. -128,700
Total Unsecured debt.................... -13,056
Net Assets.............................. -28,756

it looks positive as you have a positive balance, if your finding that you haven't got that much available, look into a spending diary and write everything down whether its 50p for a packet of chewing gum or £20 for petrol.
Also holiday, entertainment and life ins have no figures by them\\\/ x

fluffy1974

Also holiday, entertainment and life ins have no figures by them

thanks for the reply!

we havent been on holiday, entertainment, thats a joke we dont do anything and we shelved the life ins!

binksieboy_2

CCCS_Pavan wrote: »

Hi binksieboy and thanks for your post.

Firstly it’s unlikely that they’ll make you bankrupt, because they would have to pay the fees and unless you have assets worth a lot of money, they wouldn’t get anything anyway.

I’d recommend that you put together budget showing your income and expenditure. You can send a copy of this to them to show how much you can realistically afford and you shouldn’t agree to pay them anything more.

In light of your situation, I would also consider complaining to CFO regarding the fines. Although you haven’t stuck to the agreement, they may take your circumstances into consideration and reduce the charges. There’s no guarantee but it’s worth trying.

If you need any further advice, please give us a call on our free helpline – 0800 138 1111.

I hope this helps.

Kind regards,
Pavan

Hi Pavan,

Thanks for the advice. I have just checked my bank accounts and found that CFO have taken money from an account other than the one that I authorised them to use... Does this constitute theft?

I'm absolutely hopping mad here :mad: as this is leaving me short of money to live on.

Any advice greatfully received

Thanks,

StepChange_Pavan

bisselljk1986 wrote: »

Hi,

I am currently on a DMP with CCCS and before I go on I must say they have always been extremely helpful and understanding. Whoever I have spoken to has genuinely showed that they wanted to help!

I am in a predicament with the amount I am paying on my DMP. I have always tried to keep the payments as high as possible so the debt can be cleared before my children reach an age where it will really affect them. Until now I have managed without the use of a car as I live relatively close to my work and have gotten used to the walk (it counts as my daily exercise!). Although after a meeting this morning I have been told I will need to frequent our London office (I'm based in Birmingham) once a week. I am not 'important' enough to be given a company car and they don't provide pool cars any more. I've been told I can use my own car and claim the mileage back or rely on public transport and do the same.

Using public transport to get to London so early is pretty much Mission Impossible so I am going to need to get myself a little car (I'm going to need one when the new baby comes along anyway actually). I've done some quotes and as I have zero no-claims the insurance is extortionate!

This is going to almost completely wipe out my extra finances for the next year meaning I'd have to adjust my payments to survive. I doubt my creditors will agree to go from over £100 a month between them to practically nothing.

I'm scared I might end up bankrupt - all for the sake of a car! I've done some quotes and the only cars I could afford the insurance on are tiny little fiats etc which is going to be difficult enough as I'm over 6 foot tall!

Please help!!!!!

Hi bisselljk1986 and thanks for your post.

This is tricky as it’s difficult to say what your options will be without looking at your budget in more detail.

Have you spoken to your employers to see if they can help at all? They may give you the option to work different hours if you have to rely on public transport.

However as you mention that you need a car regardless, it could be a good idea to look at your budget and reassess your situation.

As you’re already a client, I’d recommend that you give us a call and we can discuss your options. If you’d prefer you can send us a private message with your client reference number and I’ll arrange for someone to call you back.

Kind regards,
Pavan