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StepChange_Pavan

unlucky_alf wrote: »

We're in a similar situation to most people on here.It's very depressing,but we're determined to get through it somehow. Naively,I went into the bank, thinking they would help. A re-finance loan was discussed, but we were declined. We pay £800 pm credit card minimum payments & £500 pm loans. The re-finance loan would've been £600 pm, leaving us money for food, but they said we wouldn't be able to afford it. This was our last lifeline as the mortgage is maxed.

We have been considering a DMP, but it's a big step and I want to be absolutely sure it's the right decision. We will be credit blacklisted, how long will this be for once the debts are paid off? We haven't defaulted - yet, but it's a matter of time.

I am also going to open another bank account to remove the offset risk. Do I need to tell the new bank about our problems or is that an issue best left undisclosed? Could they refuse to open an account, especially as we've just had a loan refused?

Hi unlucky alf and welcome to the forum.

It’s best that you open a new account before you make your existing bank aware of the problem. It’s important to make sure that you don’t have any debts with or connected with the new bank and there are no credit facilities (such as an overdraft) available. You should be able to open a basic bank account but you need to be clear that you only want a basic account.

You’re right that making reduced payments will affect your credit file. Unfortunately there is no way around this if you are unable to maintain the minimum payments. Anything that’s marked on there will drop off after 6 years. You can read more about how they work here: http://www.moneysavingexpert.com/loans/credit-rating-credit-score.

If you’d like some more detailed advice on your options you can use our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu) or call our free helpline on 0800 138 1111. We’re open Monday to Friday 8am - 8pm and Saturdays, 9am – 2pm.

Kind regards,
Pavan

fredblooggs

I received a letter fom student loans saying I had been overpayed some grant in 1999 which I disputed. I originally had a letter in 2000 and sent a reply but heard nothing, they say now i definitely was overpayed. I read a lot of peoples posts and decided to send them the statute barred letter. They have just sent me a reply saying this grant overpayment is not statute barred. They want me to contact them. I have been unable to work for 10 years because of illness and my wife only works part time. Have you any advice what to do and what student loans are able to do regarding been able to make me pay the payment back?

smcshane

Hi,

Any advice would be appreciated.

I have received a lump sum payment which will allow me to offer full and final settlements. I wish to do this on all debts and will be posting letters to this effect on Monday (27th Feb) using the settlement calculator from CCCS, who my DMP is currently with.

During this period is it usual to continue with the montly DMP payment as some of these debts may be settled before the next payment goes to creditors on 25th March.

I would be grateful for some advise so I can ensure this is carried out correctly.

Regards

SMcShane

terrilor

Please could you have a look at this post I put elsewhere on this forum.

We have been in a DMP with Payplan plan for six years, we have paid back a very large amount of debt and now although the original amounts are all paid we have a bit left - charges and interest - and will continue the plan for about another 4 months. One of the debts was for a catalogue company, the debt was for £370. We have paid the agreed amount every month for the last 6 years and have actually paid £369. However, the company now say we still owe £349 even though they claim to not be charging interest. This is due to the fact that they want payment every 4 weeks and we have been charged a late payment fee nearly every month although we never had any control over when the payments were made. I feel so angry about this, if we had opted for IVA or bankrupcy we could have walked away from most of this debt but we chose to do the right thing (as we were in a position to do so) and now this company are acting like a seedy money lender and we have spent six years paying back precisely £20. Payplan have requested they take a smaller amount to pay the debt off but they have refused.

My question is this - should I just swallow the anger and continue paying over the 4 months of should I fight it? If I chose to fight it where do I go? Payplan dont seem to be very strong in this case...

what would you do?

StepChange_Pavan

fredblooggs wrote: »

I received a letter fom student loans saying I had been overpayed some grant in 1999 which I disputed. I originally had a letter in 2000 and sent a reply but heard nothing, they say now i definitely was overpayed. I read a lot of peoples posts and decided to send them the statute barred letter. They have just sent me a reply saying this grant overpayment is not statute barred. They want me to contact them. I have been unable to work for 10 years because of illness and my wife only works part time. Have you any advice what to do and what student loans are able to do regarding been able to make me pay the payment back?

Hi fredblooggs and thanks for your post.

Student loans aren’t covered by the Limitations Act so they’re right that it wouldn’t be statute barred.

I’d recommend that you contact them to make them aware of your situation and come to an agreement to repay it at a rate that you can afford. They could follow the standard collection procedure if they’re not happy with your payments but you can’t give them money that you haven’t got.

If you’d like some more detailed advice you can call our free helpline on 0800 138 1111 and we can discuss your options with you.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

smcshane wrote: »

Hi,

Any advice would be appreciated.

I have received a lump sum payment which will allow me to offer full and final settlements. I wish to do this on all debts and will be posting letters to this effect on Monday (27th Feb) using the settlement calculator from CCCS, who my DMP is currently with.

During this period is it usual to continue with the montly DMP payment as some of these debts may be settled before the next payment goes to creditors on 25th March.

I would be grateful for some advise so I can ensure this is carried out correctly.

Regards

SMcShane

Hi SMcShane and thanks for your post.

It’s usually best to continue with your payments in case they don’t accept the settlements. However, I’d recommend that you give our support team a call as they will have access to your information and can advise you in more detail.

Kind regards,
Pavan

StepChange_Pavan

terrilor wrote: »

Please could you have a look at this post I put elsewhere on this forum.

We have been in a DMP with Payplan plan for six years, we have paid back a very large amount of debt and now although the original amounts are all paid we have a bit left - charges and interest - and will continue the plan for about another 4 months. One of the debts was for a catalogue company, the debt was for £370. We have paid the agreed amount every month for the last 6 years and have actually paid £369. However, the company now say we still owe £349 even though they claim to not be charging interest. This is due to the fact that they want payment every 4 weeks and we have been charged a late payment fee nearly every month although we never had any control over when the payments were made. I feel so angry about this, if we had opted for IVA or bankrupcy we could have walked away from most of this debt but we chose to do the right thing (as we were in a position to do so) and now this company are acting like a seedy money lender and we have spent six years paying back precisely £20. Payplan have requested they take a smaller amount to pay the debt off but they have refused.

My question is this - should I just swallow the anger and continue paying over the 4 months of should I fight it? If I chose to fight it where do I go? Payplan dont seem to be very strong in this case...

what would you do?

Hi terrilor and thanks for your question,

Like others have mentioned it is worth challenging the amount especially as it’s doubled and you’ve kept to your side of the bargain through your DMP. You can write to them initially and then take it to the Ombudsman if they don’t deal with your complaint.

There’s no guarantee that they will agree but ultimately it’s your decision. You could decide that it’s not worth the hassle but it’s worth considering your options.

Kind regards,
Pavan

shockindkj_2

My husband is in a DMP and we are fortunate enough to see our finances improving due to giving up various things and me starting work again.

My question is: what would happen if we were to manage our debts ourselves again & pull out of the DMP? We get regular updates from our creditors saying we are so much in arrears, would this become payable immediately?

Thanks for your help

VividPrincess

About 8 years ago I found myself in a lot of debt, credit cards and personal loans. I went to speak to a Money Advisor at Money Matters who advised me due to my circumstances I would be best to ignore the creditors from now on and wait to be taken to court to apply for personal bankcruptcy. (In Scotland applying for personal bankcruptcy was not an option at this time)

In the last 8 years I have not had any debt, I have budgeted and managed my monthly money etc However, I have never been taken to court.

I went back to Money Matters last month because I know I have to find some resolve for all the debt I had back then and I have been told the law in Scotland has now changed so that I can apply for personal bankcruptcy under LILA's. Also I was told that the debts are also Statute Barred. However, I was still advised that my best option was to apply for personal bankcruptcy due to the amount of debt.

I ordered a copy of my credit file from Experian, and there is only 1 defaulted account showing on it. It's for a small amount from June 2006. It states that all defaulted accounts drop off the credit file after 6 years.

I am left unsure what to do for the best? Because the old debts are no longer showing on my credit file does that mean that anyone I applied for credit with now, would not see them either? What about the actual creditors I borrowed the money from, surely they will still have a record of the debt on their systems and it would be flagged up if I was to apply for credit from them? I cant find an actual credit score on the report. I do have 0000000 for my bank account.

If I go for personal bankruptcy I know the debts are wiped and after 6 years the bankruptcy note would fall off my file. However in the furture I could still be asked by lenders have I ever been bankrupt and it would unlaw to declare. So in a way there is not escape from it.

But if I leave things how they are now, will I ever be able to rebuild my credit file? Will I ever get credit again?

I am trying to find out what I should do for the best!

Any help or advice would be gratefully received.

Kind Regards
Vivi :-)

confusedaboutdoshhh

Just wondering if anyone can give me some advice on some of my money worries!

I am the first one to admit that I spend more money than I have, however any debt I have had in the past has been paid on time and I have never missed a payment or got into any real trouble.

I'm moving abroad for the summer (hopefully longer!) and although I can't get rid of my debts completely, I would like to be able to manage it all a bit easier whilst I'm away. I like the idea of having everything in one place and just having a payment every month to stick to eg. a loan, credit card, but not too sure on what is best for me.

At the moment I have:-

• A loan with Halifax with £1000 left to pay.
• A store card with roughly £500 on.
• A laptop worth £600ish that I have on finance at £28 a month. (bought in November 2011)
• £1,100 overdraft.

My first thought was to top-up my loan to cover everything else and keep paying the minimum payments every month. I really dont like being in an overdraft when I'm away, I'd prefer to be in credit in my current account and just have the loan to think about paying off. I know I won't go in my overdraft when I'm abroad as the cost of living will be much cheaper for me. I am also thinking of getting a credit card to help with purchases I need to make before I go away, but I don't really want a loan AND a credit card. I understand (sort of) how balance transfers work, but unsure whether you can do a balance transfer of a loan to a credit card?

Basically, I'm VERY confused and any help would be amazing!

Thank you!