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Struggling with debt? Ask a debt advisor a question

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  • PasquiC wrote: »
    Hi,

    I am struggling with debt, I have £1300 on a credit card which interest begins at the end of this month and £3500 on another credit card which runs out in May or June (just checking with the card company) before interest goes onto that one as well. To make matter complicated, I got a littlewoods account that has £600 on it which ends in March.

    I took out the 2 credit cards originally to clear my HSBC debt which I did but then stupidly spent money on which I deeply regret.

    I want to clear all of my debt within 7 months but not sure what the best way around this is.

    I have another Credit Card with 9 months interest free, I have not used it yet but was skeptical about using it, but I think the best way I can suggest was pay the £1300 onto my new Credit Card then close that old card down.

    My Littlewoods, im debating about using the new card or clearing it on my next pay.

    I really want to focus on that £3500 so I don't end up with a 23% interest rate on whatever is in there at the time.

    All of this is making my head spin and for the past 2 weeks, I have been seeing flying numbers and noticedI am starting to forget things and becoming alot more stressed out and really can no longer see what i'm doing.

    Any advice that can help me.

    Thanks

    Hi PasquiC and thanks for your post.

    The first thing to do is to draw up a realistic budget to work out what you can afford. It’s really important that it’s sustainable to make sure that you can stick to it. Once you know how much surplus you have, you can create a plan. Even writing things down can help you focus and calm your stress levels.

    You’re right that it could be a good idea to transfer existing debt to a 0%, but you MUST close the old account to avoid any temptation to use it again. It’s best to focus on the one with the highest interest but you will need to work out whether paying it all back within 7 months is realistic.

    I hope this helps.

    Kind regards,
    Pavan
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy
  • Hi,

    I'm looking for some advice on behalf of my partner. We've been together for 2 years and before we met he got into a lot of debts and rather than sort them out he buried his head in the sand and ignored everything. He keeps receiving mail and phone calls from debt collection agencies about money he owes and always seems to be paying off something. He still buries his head a lot, ignoring phone calls, not opening mail and he doesn't keep track of anything. He doesn't know what he owes its just expected that someone will always be contacting him for money. Is there anyway he can find out all of the companies he owes money to and how much?? At least then he would know exactly where he stands and be able to plan a solution to clearing it all!!

    Many thanks for any advice!!
  • hi! i have been very careless with money and now owe 7000 on tesco creditcard and 2500 on barclaycard! i have tried to transfer the balances to halifax card in my husbands name which he has agreed with, but they will only give us a low credit limit! we are fortunate to only have a mortgage of 28000 which is only 135.00 per month, is there a way we can put all debt on our mortgage and start afresh?

    Hi jograham1711 and thanks for your post.

    You could look at consolidating your cards in to a secured loan but we rarely recommend this as it can sometimes make your situation worse in the long term. You can read more on our blog:

    It’s a good idea to look at your budget to see if there are any changes you can make to free up some money to pay extra towards the debts – can you increase your income or make cutbacks in your expenditure?

    Although you’ve been given a low limit, you could transfer whatever you can to the 0% and concentrate on the debts with the higher interest levels first.

    Whatever you decide to do, it’s important that you don’t continue to spend on the cards.

    Alternatively, you can get in touch with us and we can look at your options. 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.

    Kind regards,
    Pavan
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy
  • GIBMSY wrote: »
    Hi,

    I was just wondering if there was any chance a light could be shone on my situation.

    Over the past 5 years i have managed to accumulate a debt of around £9k to date :( This is made up of the following:

    (Worst First)
    £1150 - Wonga
    £1000 - Quick Quid
    £630 - PayDayUK
    £500 - PayDayExpress
    £1170 - Capital One (Maxed)
    £1960 - Barclaycard (Maxed)
    £2400 - Barclays OD (Maxed)
    £250 - Natwest OD (Maxed)
    £477 - Barclayloan (2 Instalments left)

    I take home around £1500 AT. I have worked out by making a spreadsheet that i could possibly be Debt clear in 8 months. But this leaves me with next to nothing to live on, Which is not really doable with birthdays etc coming up. I have tried to increase my loan+Overdraft to consolidate my debts but i was rejected.

    So i was just wondering is there any other ways i could do this so its easier on myself? Also i have looked into DMP's but i not want to do these.

    Hope you can help,

    Mark

    Hi Mark and thanks for your post.

    You could work out a more affordable budget and repay the debts at a slower rate. Although you won’t be debt free as quick, your budget won’t be as strict and it may be more sustainable.

    Without looking at your budget in more detail, it’s difficult to look at your options. However, if you can manage your minimum payments, it’s unlikely that a DMP could be an option anyway.

    If you’d like some help with your budget and would like to see if there are any debt solutions available to you, you can visit our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu).

    Kind regards,
    Pavan
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy
  • peacheywoo wrote: »
    OK folks - any thoughts on this one.

    We have a credit card with RBS - for various reasons we ran into problems, contacted them and made an arrangement for a payment plan. That was reviewed in July last year and a new amount agreed (less than the previous amount). That was for 6 months and finishes at the end of this month. The payments are all up to date and are paid by standing order, the account is in credit and we haven't missed any payments

    Yesterday we get a letter from debt collectors saying RBS has passed our account over to them and we need to pay just over 7k immediately.

    As we only have £102 in the bank and no savings we are slightly screwed.

    Any ideas what the hell is going on???

    Hi peacheywoo and thanks for your post.

    It just sounds as though the reduced payment agreement has ended and they’ve sold the debt on to a collection agency – this is standard practice if you have defaulted and are behind with payments.

    I’d recommend that you contact the collection agency and make them aware of your situation. If you send them a copy of your budget, you can offer them an affordable payment that you can stick to.

    If you’d like some help with your budget or you’re struggling with other debts too you can get in touch with us. You can our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu) or call our free helpline on 0800 138 1111.

    I hope this helps.

    Kind regards,
    Pavan
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy
  • TrixieB
    TrixieB Posts: 704 Forumite
    Part of the Furniture Combo Breaker
    Hi, I have posted this on a thread but no replies as yet so posting here too

    I recieved a letter from Walker Love just before Christmas re a small amount of unpaid Council Tax, which due to Christmas postal delays and Christmas itself and waiting for the spare money etc, I have only come to pay it yesterday.

    I've recieved another letter this morning from this company with an extra £100 added on top! This is more than the original debt.

    1. Can they do that legally? Adding £100 after less than a month from first letter? Even banks don't charge that much for a letter!

    2. The date on todays letter was before the date on which I actually paid the first amount on the first letter - am I now liable for this extra £100?

    Thanks in advance
    Trying very hard to be frugal and OS - just plodding on and doing my best!
    :money: :money:
    :money:
  • Addison07 wrote: »
    I am looking for a bit of advise please.

    I am a married Mum of two. We already had a small amount of debt but since my husband lost his job last year it has spiraled out of control. I have not missed a payment or defaulted on anything but it is now getting to the point where I am not going to be able to pay the next gas and electric bill as I haven't had enough to set aside each month as I would normally do. I work full time, we have sold anything we can get our hands on doing car boots and on Ebay and I have been knitting, crocheting and making greetings cards to make some extra money but its not enough.

    My husband has just qualified as a personal trainer and is trying to get work in the industry so hopefully we will be getting some money from that soon but I am worried that things are going to fall apart before it gets to the stage where he is making any money. My question is would it be adviseable for me to enter into some sort of debt management program now? or should I just carry on as I have been but with the possibility of missing some monthly payments on some things? either way my credit history is going to be affected isnt it?

    Any help would be greatly appreciated. If you need anymore information from me then please ask.

    Hi Addison07 and thanks for your post.

    You’ve done the right thing by looking for advice at this stage rather than letting it get out of control.

    It’s difficult to give detailed advice without more information, but from what you’ve mentioned it’s likely that there will be debt solutions available to you. However, you’re right that going down this route will affect our credit rating. Unless you have any way of maintaining your minimum payments, this is unavoidable.

    I’d recommend that you visit our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu) (http://www.cccs.co.uk/debtremedy?WT_mc_id=900001) 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
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy
  • hi, i have some questions please. had to cease work 3 years ago due to having a progressive illness.
    i got help from cab who got 6 creditors i owed money to to accept a pound a month each due to me having only benefits as an income.i live alone so no other money coming into the home.
    this week, iv had letters regarding 2 of them, which have been sold on along with a reassigned letter fromthe original compqnies i owed.

    could you give me an idea how much percentage wise the debts may have been sold on for.
    i have a ppi case going thru on one of the debters currently, if it goes ahead i expect that debt to be cleared by it and have a bit left over to use elsewhere and am wondering what kind of percentage full and final figure they may start considering , with a view to me possibly being able to clear another of them.
    the two iv had letters from iv contacted and set up the pound a month payment with after discussing my circumstances.
    thanks for any advice you can offer.

    Hi bored at home and thanks for your post.

    It’s difficult to say how much they were sold on for as there are no set amounts. I’d recommend that you wait to find out how much you have leftover and then split this between your remaining creditors, depending un how much it is.

    Once you know how much it is, I’d recommend that you call our free helpline and we can advice you in more detail.

    Kind regards,
    Pavan
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy
  • Hello,

    About 5 or 6 years ago my wife both lost her job and fell pregnant meaning that our joint income fell by roughly half. This meant that our high Mortgage became our priority and therefore I defaulted on C£30k of unsecured debts, over about 6 or 7 creditors.

    After a while of ignoring calls and hoping they'd go away my wife took control of the situation and we rang around and made invidual agreements with my various creditors to freeze interest and pay back a monthly amount that we could afford, which we have done without missing any payments in 5 years or so.

    I am happy to continue to repay until the debts are paid off and am not looking for a work around. My question is when can I expect my credit score to look a bit healthier? Is it 6 years from when I made the last agreement? Or is it 6 years after my final payment? (about 2045!)

    Many thanks,

    Hi velcromoustache and welcome to the forum.

    It’s best that you check your credit file to see what’s been updated on there. Everything remains on there for 6 years so the defaults should drop off, but if they are registering late payments, these could continue month by month.

    If you’re unsure, it’s best to contact the credit reference agencies for some more detailed advice.

    Kind regards,
    Pavan
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy
  • StepChange_Pavan
    StepChange_Pavan Posts: 1,354 Forumite
    edited 11 January 2012 at 3:52PM
    im not sure where i should be posting this if you could help?

    just wanted some advice really about a home collected loan company we have fallen behind with repayments due to my partner being laid off from work, our lender called on friday and we discussed with him that the company my partner worked for had picked up on trade its seasonal and that my partner had been offered some part time work with them again so should be able to get back on track and make a payment this friday today (monday) i recieved a handwritten note posted through my door reading

    further to our conversation on friday 6th jan you agreed to make a payment today (with today underlined) voices were (were underlined) heard from within your house but no one came to the door. payment is required today to avoid any further action

    all i can think of is that it was while i was doing the washing up in the kitchen and i had the radio on i did not mean to miss the door

    i just really wanted to know if they were allowed to post notes like this through the door

    yes we are behind with repayments but and we currently owe around £700 but are slowly trying to make payments when we can

    thanks in advance

    Hi cluelesskerry and thanks for your post.

    Firstly, it’s important to note that this debt collector isn’t a bailiff and they have no powers whatsoever to force you in to making payments that you can’t afford.

    I’d recommend that you write to them explaining the situation and that you will have the agreed amount on Friday as you discussed. Don’t be pressured in to making extra payments, and there’s no law that says you have to answer the door if they come back.

    If they continue to harass you like this you could report them to the Financial Ombudsman.

    If you’d like some more detailed advice, you can call our free helpline on 0800 138 1111 or use our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu).

    I hope this helps.

    Kind regards,
    Pavan
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy
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