Struggling with debt? Ask a debt advisor a question

StepChange_Pavan

tinkerbell12 wrote: »

I am looking for some advice please - I have been on a CCCS DMP for nearly 4 years. 2 of our 3 credit cards are now charging 17% interest each month after a few years of kindly freezing the interest. One of these refuses to acknowledge that we are on a DMP any longer as we now meet the monthly repayments on our card. Our other debts are loans and one which has been passed onto a debt collection agent.

If we could get a 0% credit card to shift these two debts onto to save money (my credit file isn't looking too bad), would we be breaking the rules of our DMP? It makes sense to us as we would be saving so much money on interest.

Many thanks.

Hi tinkerbell12 and thanks for your post (are you related to Tinkerbe11?!)

Although it seems to make sense, this would be against the terms of your DMP as you’d be taking extra credit out. Even though your credit file is improving, there’s no guarantee that you’d be accepted for a 0% card.

I’d recommend that you call our support team to discuss your situation. We can send updates of your budget and report the lenders to our social policy team.

Kind regards,
Pavan

CIS

Please help! Over the past year and a half I have been paying off my council tax debt through baliffs Goodwillie and Corcoran. After checking how much was outstanding I discovered that infact i have overpaid them by approx £400. When I rang them they fobed me off, I have sent them bank statements by fax, email and post to prove what I have paid but they will not give me any answers as to why there is a discrepency in our figures. Can anyone advise how I can get this money back?

Have you actually spoken to the council to check where you are in respect of payments - from experience most cases like this come about because a person is not fully aware of the level of their arrears and actually has a larger balance then expected to clear.

StepChange_Pavan

Sillygirl wrote: »

Hello,
We have got ourselves into a real sticky situation. We have lots of debt, which we have always managed to pay without problem. However my husband lost his job earlier in the year, he has just accepted another job but at a lower salary with much higher travel expenses, on top of this I am just going back to work after maternity leave so overall we have a lots more going out with less coming in. We have Bernard living on our savings and haven't missed any payments. I have calculated, being thrifty and cancelling non essentials like satellite etc. That we would have about £400 left to pay about £900 of loans, overdrafts and ccs. Would be accepted on any plans? Is there anything we can do? We run one car, value about £150. And haven't got any equity on house etc ...

Hi, and welcome to the forum.

Sicakasachip has already given some useful advice and I’d definitely recommend reading her blogposts to give you some inspiration.

It’s difficult to say what your options are without looking at your situation in more detail. However, it sounds as though you have a a certain amount of surplus and depending on the level of your debt, there certainly will be one - if not more – solutions available to you.

I’d recommend that you use our online advice tool Debt Remedy (http://www.cccs.co.uk/ref/drcu) which will automatically determine your options.

Or if you prefer, you can ring our free Helpline on 0800 138 1111. We’re open Monday to Friday 8am - 8pm.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

bandit199 wrote: »

hi
advice needed
in 2006 i got a car on finace paid most of it and then car went back after they sent some one to collect it, today i recieved a letter from debt recovery company i never heard off and i called the number and spoke to adviser and they said i owe x amount on the car from 2006, i said i have no knowledge of this has the car went back but they said they will look into it but because i called them they said they can now keep it open for another 6 years has it was not full 6 years and if i waited to march 2012 then it would off been written off but i called them, can i just leave it now and not make any more contact to them and after march 2012 will the debt then be written off anyway?
they told me they will reduce the debt if i make payment arrangement which im not willing to do has the company they say is a company i have not heard off or even dealt with before unless its a name change they have done since i had a car on finance, would i have to pay it anyway or can i just ignore them has from now and let it run to march 2012 and then will that be end of it or are they right has i called them it will now stand for another 6 years and i will have to pay it

Hi bandit199 and welcome to the forum.

I think they could be referring to the Limitations Act, but this would only be relevant if you had admitted liability for the debt – but from your post, it doesn’t seem that this is the case.

Provided that they don’t apply for a county court judgement (CCJ), you haven’t made a payment for over 6 years and you don’t admit liability then the debt wouldn’t be written off, but it would be legally unenforceable.

You need to determine whether or not you owe this money. Was there a shortfall that you owed after the car was taken? If so, it’s likely that the car finance company passed the debt on to a collection agency to recover the remaining amount.

You can ask them for proof of the debt and if they supply this you can come to an arrangement to repay it at a rate that you can afford. We can help you to come to this arrangement if you are struggling.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

willy111 wrote: »

Hiya.
Advice needed.
On a dmp plan with payplan,that is going nicely,but i have a car with ford credit that i couldn't afford to pay the balloon payment of £4360,but i can't afford to hand it back.
Had a phone call from link financial the other day to whom the debt has been passed.
Any ideas of my options as i can afford to pay a bit a month to them,but i don't want to hand it back or have the car taken off me.

Hi willy111 and thanks for your post.

As you’re with Payplan, its best that you discuss your situation with them. They’ll have access to all your information and will be able to advise you better than I can.

Kind regards,
Pavan

StepChange_Pavan

gingerbreadgirl wrote: »

I have £20k of debt which I have managed to reduce down from £30k. I have the debt over 3 sources - 2 loans and a credit card. At the moment it is taking up about 70% of my salary which is making life a big struggle. I am paying the monthly amounts and the minimum amount on the credit card but I am continuing to increase the debt on the credit card as I don't have enough to live on. I know it is my own fault but that doesn't help me solve the problem now...what's done is done!

I would like to know if there is something else I can be doing to clear these debts quicker. i work full time already and have a small child so can't do any extra work.

Your advice would be a great help!

Hi gingerbreadgirl and welcome to the forum.

It sounds as though you’re still relying on the credit and prioritising payments to your creditors over your essential living costs. The first place to start is to draw up a budget, including all your income and priority expenditure (bills, food, clothing etc). Anything you have left over can be offered to your creditors.

I’d recommend that you come to us for some more detailed advice. We can help you to compile your budget and explore all of the solutions that are available to you.

You can use our online advice tool, Debt Remedy (http://www.cccs.co.uk/ref/drcu) which will automatically determine your options. Or if you’d prefer, you can call our free Helpline on 0800 138 1111. We’re open Monday to Friday 8am - 8pm.

It’s best to gather together information about your income, expenditure and the creditors you owe money to beforehand.

I hope this helps.

Kind regards,
Pavan

Longships

Around 4/5 years ago we came to an arrangement with most of our many creditors to accept very small payments each month. We did contact CCCS at the time but as our income was not even enough to cover our living expenses let alone make any debt payments, a DMP was not an option.

When we completed a full statement of our income and outgoings most of our creditors were prepared to accept small monthly payments rather than nothing. However there were 2 major debts, both with large banks, both for £30,000+ that refused our offer saying it was not acceptable. For a year or two we received plenty of letters and phone calls - then it all stopped.

My question is what has happened to these debts? One was a small business loan and one was a personal loan used for the business which failed. Is there a time limit before they are written off?

kalico

I hope someone on here can help steer me in the right direction. The advice is to help a friend, or at least to help me to help the friend, who is in debt and depressed about it (and therefore not addressing the issue).

They are on benefits with £65 per week coming in.

The mortgage (circa £28k outstanding, repayment type) is in arrears by £800 so the mortgage company applied for repossession. A bit harsh in my opinion, but there is lots of equity in the property, so maybe they figured that they had nothing to lose.

The court decided that they could not repossess at that time, but gave a stay of execution whilst an application was made to a local council scheme which helps people in arrears on their mortgage.

Sadly, although the monthly mortgage payments are only £181, the mortgage co have added £658 in legal fees and penalties for taking the matter to court.

It strikes me that this could be a ship going backwards, since even if they had enough to pay off the mortgage arrears, they could keep getting battered by these ridiculous fees.

Question 1: Has anyone any experience in dealing with these situations? Are the mortgage company likely to waive the fees if I lend my friend the money to clear the arrears?

There is also a secured loan, which is at an extortionate rate of interest. She borrowed £5000 and pays it back at £94 per month for 7 years. This loan is behind by two payments. I expect that the loan company will also apply penalties. From what I can determine, there is a huge early-redemption penalty.

Question 2: Is there a way to deal with loans like this? It seems a crying shame to pay £94 for a £5000 loan when the mortgage is £181 for £28k!

I suppose there's an over-riding question of where to turn? I have no experience with anything like this and much as I want to help, it's a worry when they seem unable to take a grasp of the matter themselves (still smoking for example = £18.20 per week)

She has gone to the CAB, but they have only referred her to a solicitor to help deal with the mortgage. I'm not experienced here, but I understood there were schemes that can help people to at least get a grasp of where they are now and where they need to get to. I've even heard of organisations that will write to the various creditors and ask for payment plans and such like. I really don't know if they carry any weight, but I would have thought that CAB is well respected and carries some weight.

Any other pointers of how I might help them?

Thanks for any help.

spaindebt

Hi

I'm looking for some Debt Advice

I couldn't get a job at home so I'm living in Spain. I don't earn a lot but I can make my payments every month and have never missed one in my credit history (5 years)

My debt is as follows:

Credit Card 1: £450
Credit Card 2: £580
Credit Card 3: £1800
Credit Card 4: £950

Bank of Scotland Overdraft £3000. This was fine as it was interest free until December 2011 but with the end date soon approaching I can't afford to pay anything towards it, and the interest will be about £45 a month.

I've been in constant contact with the bank since January trying to tell them I wouldn't be able to pay it but they said because I live in Spain they can't do anything to help. I've made sure I've been honest with them from the beginning and they have said "It's fine once your account expires you will default and we'll sort out a payment plan for you." But this doesn't seem right. I've come into around £1600 through tax refund and wondered if I should call and offer a final settlement as they know I won't be able to pay it back?

Thanks

skhilditch

Hi! I have a CCJ currently against me, the payment for which has already been reduced by half after appeal. I have now lost my job due to long term ill health and am finding even that payment too much for me. I have written to appeal again but the decision remains at £164 a month. The company have refused to halt interest on the debt so it is not going down at all and are now claiming that they can take me back to court and use my house as security for the initial debt. Is this correct please?
Kind regards, Susan