Struggling with debt? Ask a debt advisor a question

StepChange_Pavan

proudmumof1 wrote: »

I desperately need some advice on where to get started with our debt problems. We have been 'juggling' for a while as we are a 1 income family but I had been oblivious to just how serious things had got. (Ive been completely preoccupied with our son and his special needs statementing process and his problems at school)

My husband has admited today that he has not been entirely honest with whats been happening and how bad things are:
1 month behind with the mortgage
several months behind with the council tax
credit card debts spiralling
bad letters from everybody

He has tried to resolve some of the issue very recently but without going into all the specifics the incoming just doesnt cover the outgoings.
He called the mortgage company just before christmas and requested an interest only option but they have refused ( he got a letter refusing his request between christmas and new year). He has also agreed a payment plan on the council tax but their first repayment isnt due until next week and its huge!

So, any advice would be welcome also as i realise we have to deal with the mortgage, council tax and credit cards as a priority, how do I go about asking them for help.
Are there any standard template letters to send?

Finally, I have done a budget sheet outlining all outgoings and incomings, is it sensible to attach this to the letters to the above people?

Many thanks to anyone reading this who can offer any advice.

Hi proudmumof1 and thanks for your post.

HH has already given you some really useful advice and I’d certainly back up what they have said and recommend that you visit our debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu) to help you look at your options.

You’re right that your mortgage and council tax are priorities but you can only pay your credit cards if you have anything left over after paying these. It’s a good idea to send a copy of your income and expenditure with any offers of repayment to back up your situation.

If you’d prefer you can call our free helpline and we can look at your situation in detail and discuss your options with you. You can call us on 0800 138 1111 and we’re open Monday to Friday 8am - 8pm.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

jay17 wrote: »

I am looking for some advice....

I have recently started addressing my 'bad debts' and received a letter about a current account I held with RBS. The overdraft on this account was £500 however the debt which was outstanding has jumped up to £908.66.

Is there anyway i can challenge the amount that has been added on (im guessing this is through charges etc) or am i stuck with it as i defaulted on payments?

It has now been passed on to a debt recovery company, have i missed my chance to do anything about this amount?

any help at all appreciated

Hi jay17 and thank you for your post.

There’s no guarantee that they’ll agree to reducing the interest and charges but if you explain your situation and ask for their consideration they may do. You could also send them a copy of your income and expenditure if you can’t afford to pay the debt in full to back up your situation.

Alternatively, if you have a lump sum, you could offer this as a full and final settlement and they may be willing to accept and write off the remainder. If you choose to do this, it’s important that you get confirmation in writing before paying them anything.

If you’d like any more detailed advice, you can call our free helpline on 0800 138 1111.

Kind regards,
Pavan

harrineedshelp

i wouldent actually use it but just have it as a buffer for emergencies

emmaking1987

Hi,

In a nutshell:

£3000 with barclaycard
£1000 with tesco clubcard credit card
£6200 with barclayloan.

I think i got the loan in Aug 2011 at £6500 and although ive been paying £189 of a month for 5 months now, only i ridiculous £300 has come off. I'm the sort of person who pays off some debt but then uses it straight away again, hence why the loan was used to pay of the cards but now they are maxed out again.

I've recently lost my job so i have NO spare money to pay these debts, and will prob have my first missed payment on all 3 creditors this months. I got some advice before about a debt management plan which would have just about been manageable, but meant no life at all for the whole duration of the repayments. But since losing my job I have no spare cash so was looking to follow the debt relief order as i am DESPERATE!!

What i want to know is..

1. How much damage realisticly will a DRO affect me getting credit in years to come, or getting bank accounts etc, getting a mortgage? (I know a DRO is on your record for 6yrs, but what about after 6yrs, is it a clean slate?)
2. I would pay nothing for 12months, and after 12months if i can still not afford any money for the debt it will get written off. But if im in a position/job where i can afford a certain amount each month then repayments will restart. Is this correct?

Thanks.

FrugleFlossie

My husband had a car on finance back in 2009 and unfortunately he struggled to make some of the payments. He was told that he could end the contract as it was over three quarters of the way through the finance agreement and he handed the car back. We can't remember the date exactly, but it was early 2009. We have no paperwork to support this except for the log book receipt to say it is no longer in our possession.

Then in April 2011 we had a "Final Charging Order" letter come in the post from Watford County Court to say that he has been ordered to pay the sum of £2678.10 plus interest and £266, the cost for the application.

My husband, the way he is ignored this, burying his head in the sand as he does until a man knocked at the door last year. We thought he was a bailiff at first, but he was surprisingly nice, and on our side. He sat down with my husband and worked out our expenditure plan and agreed a sum that we could comfortably afford to pay back, much less than we had agreed to pay in the first place. This was £85.

We paid this for a few months until we had a letter from another company stating that they required a higher repayment per month, which turned out to be £150. We tried so hard to make the payments, but having a young family and problems with work, we missed a few payments and a bailiff knocked on the door. He set up another payment plan of £150, even though we couldn't afford it and has used our current car as a forteit for missed payments. W
We've missed more payments and he continues to knock on the door. To be fair to the guy, he is really nice and has told us that he goes back to the office and tells them that we wern't in, even though we were, but he can't keep this up and he's told us that we really need to pay up soon.

Just before Christmas he left a letter saying that the amount is now due in full (£3608.41) with a note at the bottom saying they now want more than £150 a month.

I have been to see my accountant who has asked me to ask them for confirmation in writing:

· What was the auction valuation for the vehicle that was sold?
· What is the current interest rate on the vehicle?
· How much has been paid by us so far?

And also for a copy of the finance agreement since we do not have one. We don't have any paperwork relating to this case other than the court order and the bailiff letters. No letters prior to the court letter to say they were taking us to court!!

Obviously I want this sorting out now and have taken the matter out of DH's hands since he won't deal with it himself. I am just wondering what our options are now. I have written them a letter asking for the above information and also with a proposal to pay £85 instead of £150 or more. We can't afford that really, but I can't see them agreeing to any less.

What do I do if they refuse this amount?? Please help me as I can't stand another sleepless night over this

**STRESSED**

I've been on a DMP with CCCS for nearly 8 years now and my debt free date is allocated to be July 2014 ... even though I've managed to pay quite a lump sum on the DMP I kinda feel a little disheartened and like I'm failing coz i'm not debt free yet. I got into this situation after being in a terrible relationship, having to private rent and only having one income. I realised the error of my ways and got in contact with the CCCS who have been brillant, supportive and I would defo recommend to anyone! but they are the only people aware of my situation. I feel really stupid for getting into this situation and although I only have just over 2 years left, I feel like I'm not doing enough. I struggle on bare minimum and very rarely treat myself to anything nice ... i just wondered if anyone else has been in this situation or felt the same?

alfie2011_2

Hi I wonder if anybody can help me,i have 2 credit cards which have a £20,000 limit on them and 1 loan of £6,000 which i have used to pay off my ex wife off with (i know it was stupid) but now i cant get any other credit card to take this on at 0% or get a consolidation loan.The banks say i have to much in the way of loans as it is,I have enough money in my salary to pay £1,000 a month off but no one seems to want to help.can anybody advise me on what to do next

Thanks

this_cant_go_on

hi, im currently on a dmp with the cccs and have been on it for the last 6 months, i received a £2000 bonus from work and planned to split it between my creditors for £200 each, ive made a blunder and paid the 1st creditor 2000 by mistake, is there anyway of getting this reversed?

StepChange_Pavan

harrineedshelp wrote: »

i wouldent actually use it but just have it as a buffer for emergencies

Hi harrineedshelp and thanks for your post.

It’s not a good idea to have an overdraft whilst on a DMP. Although you say you wouldn’t use it, the temptation would be there and it could make your debt situation worse.

If you do get an emergency whilst on a DMP, it’s best to call your provider and ask them if you can reduce your payment for a month or two until you get back on track. If it is a real emergency, there shouldn’t be any problems with you doing this.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

emmaking1987 wrote: »

Hi,

In a nutshell:

£3000 with barclaycard
£1000 with tesco clubcard credit card
£6200 with barclayloan.

I think i got the loan in Aug 2011 at £6500 and although ive been paying £189 of a month for 5 months now, only i ridiculous £300 has come off. I'm the sort of person who pays off some debt but then uses it straight away again, hence why the loan was used to pay of the cards but now they are maxed out again.

I've recently lost my job so i have NO spare money to pay these debts, and will prob have my first missed payment on all 3 creditors this months. I got some advice before about a debt management plan which would have just about been manageable, but meant no life at all for the whole duration of the repayments. But since losing my job I have no spare cash so was looking to follow the debt relief order as i am DESPERATE!!

What i want to know is..

1. How much damage realisticly will a DRO affect me getting credit in years to come, or getting bank accounts etc, getting a mortgage? (I know a DRO is on your record for 6yrs, but what about after 6yrs, is it a clean slate?)
2. I would pay nothing for 12months, and after 12months if i can still not afford any money for the debt it will get written off. But if im in a position/job where i can afford a certain amount each month then repayments will restart. Is this correct?

Thanks.

Hi emmaking1987 and thanks for your post.

After 6 years everything will drop off your credit file and you will have to build a good rating before you are able to take out any credit.

You’re right that if your situation improves whilst on a DRO, you will have to start repaying your debts.

I hope this answers your questions.

Kind regards,
Pavan