Struggling with debt? Ask a debt advisor a question

System

Mister80s wrote: »

Hi, I wonder if you could give me some advice please.

I'm currently with Payplan who are looking after several loans/credit cards - started in 2008 and the new revised finish date is 2014. All payments made on time and have increased every year. (12,494.79 remaining)

I also have a loan with FLM (Payplan couldn't take this one) - payment of £180.66 a month (interest/charges of £137.20 a month) - due to finish March 2013. (4,443.86 remaining)

I'm now beginning to rely on payday loans, which i know is going in the wrong direction, but not sure what to do?

Hi and thanks for your message.

If you are relying on payday loans whilst on a debt management plan it suggest that your budget isn’t working.

A debt management plan budget should provide all the money you need for day to day and month to month costs. Taking out further lending is a sign that your budget maybe too tight for you to live on or that you maybe having trouble sticking to the spending limits.

Some clients take out payday loans in an emergency when they would be better suited making a reduced DMP payment that month.

I’d recommend that you contact Payplan and take further advice from them as they have access to all your details.

I hope this helps.

Kind regards,

Mat

System

debt3soon wrote: »

Hello

I am not sure if I am posting in the right place. I was wondering if someone could help me. I have an outstanding debt for £1900. I contacted the claimant and explained my situation and because of my personal circumstances and the fact I am on a very low income they agreed to me paying £40 per month until the debt is repaid. The solicitor sent me a consent order today and gave me ten days to sign and return it to them. They will then lodge it with the court.

There is clause in stating if I miss any payments they will enter judgement. I am just really worried because I am self employed. I only earn 6K per year at the moment and I am struggling but I cannot afford to have a judgement against me. I am worried if I miss a payment they will enter the judgement. I will not be able to keep trading with judgement I am not sure what to do. Any advice or guidance would be appreciated.

Thanks

I would appreciate any advice or guidance as to my option.

Hi and welcome to the forum.

I’d recommend that you contact us for some free and impartial advice so that we can look at the full situation.

A creditor can go for a CCJ once you have defaulted on the terms and conditions of the original agreement, we’d like to learn more about what the consent order they have asked you to sign actually stipulates.

What is important is that you only agree to repay an amount that you can reasonably afford. The first step to determining this is to put together an accurate income and expenditure budget.

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,

Mat

System

DanielD2008 wrote: »

Hi,

I am looking for some advice.

I have the following credit card debts :-

Cap1- Owe about £950 (£800 limit)
Cap1- Owe about £450 (£300 limit)
Aqua- Owe about £450 (£300 limit)
B/Card- Owe about £900 (£800 limit)
Catalogue Acc.- Owe about £180

I havent paid in about 5-6 months.Im on Incapacity Benefit.

I know there will be plenty of other options,but just for arguments sake,how much will it be per month if I go to a debt consolodation company and make the one monthly payment towards clearing my debt ?

Thanks

Hi and thanks for your message.

We wouldn’t normally recommend taking out further lending as this often makes your situation worse further down the line. We also can’t comment on what sort of rates or repayment schedules you might or might not be offered by lenders.

As you suggest there could be some debt solutions available to you depending on your budget. By taking our advice we can also check to make sure you are claiming for all available entitlements.

The first thing to do is 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.

I hope this helps.

Kind regards,

Mat

System

bexyk1987 wrote: »

my partner has a full time job and i have managed to get a part time job and am looking for a second job with no luck at all!! i was previously unemployed for about a month and we have got an overdraft of £1200 and are constantly over it we are struggling to pay the bills and have beeen through all of them and cut them down or got rid of where we can but are still really struggling we cant get any benefits (even when i was unemployed i couldnt get any) because my partner works more than 24 hours a week. we have spoke to the bank to see if they would stop charges so we could pay back they wouldnt, my partner has a loan and has used all the holiday on it and we cant do anything on the mortgage, we have no savings. what do you suggest we do? or how can we be helped we have run out of options now!!

Hi and welcome to the forum.

It sounds like you would benefit from some free and impartial advice.

The first step is to put together an accurate income and expenditure budget and we can assist you with this.

You may also consider opening a new basic bank account not connected to any of your creditors and without an overdraft. This should assist you with budgeting and allow you to steadily reduce your current overdrawn position.

I’d recommend that you try our online counselling 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.

I hope this helps.

Kind regards,


Mat

Charlie_Manchester

Firstly just to say that thanks to this brilliant site I am almost debt free for teh first time in 18 years.

I had a Halifax credt card that was transferred to Blair, Oliver and Scott on a DMP and I owed approx £7,400. This is nor down to approx £990 and luckily I can pay that amount off today or I can carry on with the monthly payments as is and have it setlled in 4 months time.

If I phone today to ask for the balance I know that they will say I can settle today for a lesser figure, maybe £600.

My question is if I settle at the lower figure will this show on my Credu Report and is it seen as bad? My report will be bad anyway as I am on a DMP so in some ways I think what's teh difference and I may as well settle at the lower figure and save £300.

Please help!!!

Just_Trying_4

Hi,

Looking for some advice regarding getting my credit file updated asap.

My partner and I have about £10k debt between us on various overdrafts/credit cards and have recently moved into my parents to sort ourselves out (massively appreciative that we have the option to do so!).

Anyway due to a dispute I had with T-Mobile in 2009 I have a default on my credit file. The 0% offers have ended on all our debts meaning we are now paying huge amounts of interest and thanks to T-mobile I cannot get credit at all to transfer the balances.

Yesterday I finally gave in an begrudgingly paid the £300 I 'owed them'. Now what I want to know is how soon do they have to update my credit file? I called them to ask how long it will take but after 20 minutes on hold was told that the department I need to speak to do not take calls and I need to write to them! All I wanted to know was how long their process takes, funnily enough when I 'owed them' £300 they could put me through to the credit department!

Anyway basically I just want to know how long they are 'allowed' to take and the quickest possible way for me to get my file updated - of course I know the default will still be on there but I need it to be updated to satisfied so I can move my debt and stop paying ridiculous amounts of interest each month.

I know I only paid it Friday and it is likely to take weeks/months but I just want to be on the ball with this and know where I stand as I know how awful their customer service is and don't want them to have control over my finances for any longer than is necessary!

Thanks in advance for any advice!

curious39

Charlie_Manchester wrote: »

Firstly just to say that thanks to this brilliant site I am almost debt free for teh first time in 18 years.

I had a Halifax credt card that was transferred to Blair, Oliver and Scott on a DMP and I owed approx £7,400. This is nor down to approx £990 and luckily I can pay that amount off today or I can carry on with the monthly payments as is and have it setlled in 4 months time.

If I phone today to ask for the balance I know that they will say I can settle today for a lesser figure, maybe £600.

My question is if I settle at the lower figure will this show on my Credu Report and is it seen as bad? My report will be bad anyway as I am on a DMP so in some ways I think what's teh difference and I may as well settle at the lower figure and save £300.

Please help!!!

Hi Charlie, good question ! good question ! mine are listed as "satisfied" or "settled"
but
some were *settled* at a reduced rate, and others in full years ago.

The only remaining one that is still unpaid is listed as "default".

and "normal" stands for the current and active accounts.

I have been told usually default stays on file for 6 years anyway.. but is it 6 years from the day it has turned into a "default" or from the day it has been "satisfied" and, is there a difference between "settled" and "satisfied" in practice?

I can see on my report from ID Aware, that, the term "settled" has also been used for other cards that has not defaulted, and for the mobile phone account that hasn't been in areas and used for the store card that is basically settled in court and paid off with all the fees.
The term "satisfied" is for the satisfied debt collectors. (btw i sorted my great mess out without dro or iva or any equivalent)

Thank you for raising this issue, I too would like know when will be the day, that, when with proper financial attitude and behaviour from now on my part, and, the paid off last creditor, also B.O.S. for £8,000, I will be able to get the 0% credit again. Will it happen in my lifetime?

And good to know that BOS is willing to accept offers ! - this is my remaining debt for similar amount to yours - £8,000 from the same collector.

StepChange_Pavan

Charlie_Manchester wrote: »

Firstly just to say that thanks to this brilliant site I am almost debt free for teh first time in 18 years.

I had a Halifax credt card that was transferred to Blair, Oliver and Scott on a DMP and I owed approx £7,400. This is nor down to approx £990 and luckily I can pay that amount off today or I can carry on with the monthly payments as is and have it setlled in 4 months time.

If I phone today to ask for the balance I know that they will say I can settle today for a lesser figure, maybe £600.

My question is if I settle at the lower figure will this show on my Credu Report and is it seen as bad? My report will be bad anyway as I am on a DMP so in some ways I think what's teh difference and I may as well settle at the lower figure and save £300.

Please help!!!

Hi Charlie Manchester and thanks for your post.

Congratulations on being so close to debt free! :j


If you settle the debt for less than the amount owed, it’s really important that you get confirmation of their acceptance in writing before you pay the money. They would also need to agree that they won’t sell the debt on to any other debt collection agency to prevent you from being chased for the remaining debt further down the line.

Like you mention, your credit file will be affected either way. It shouldn’t make much of a difference but the lender can add a note to explain that the debt was settled for less.

I hope this helps.

Kind regards,
Pavan

lap1970

Hi - I would like to know if you creditors are required by law to issue you with a yearly statement of your account which shows any payments you have made and any charges they have added? I have been on a reduced payment plan for around 6 years now and although some do this (Aktiv Kapital, Paragon Finance) others do not (Morton Fraser Solicitors for Nationwide Building Society), Wescot Finance (for Provident) and MacKenzie Hall (for Littlewoods Catalogue). The ones that do send them always give me a letter saying that they are required to do this. Does this mean that these other companies are breaking the law by not keeping me up to date with statements?

StepChange_Pavan

Just_Trying wrote: »

Hi,

Looking for some advice regarding getting my credit file updated asap.

My partner and I have about £10k debt between us on various overdrafts/credit cards and have recently moved into my parents to sort ourselves out (massively appreciative that we have the option to do so!).

Anyway due to a dispute I had with T-Mobile in 2009 I have a default on my credit file. The 0% offers have ended on all our debts meaning we are now paying huge amounts of interest and thanks to T-mobile I cannot get credit at all to transfer the balances.

Yesterday I finally gave in an begrudgingly paid the £300 I 'owed them'. Now what I want to know is how soon do they have to update my credit file? I called them to ask how long it will take but after 20 minutes on hold was told that the department I need to speak to do not take calls and I need to write to them! All I wanted to know was how long their process takes, funnily enough when I 'owed them' £300 they could put me through to the credit department!

Anyway basically I just want to know how long they are 'allowed' to take and the quickest possible way for me to get my file updated - of course I know the default will still be on there but I need it to be updated to satisfied so I can move my debt and stop paying ridiculous amounts of interest each month.

I know I only paid it Friday and it is likely to take weeks/months but I just want to be on the ball with this and know where I stand as I know how awful their customer service is and don't want them to have control over my finances for any longer than is necessary!

Thanks in advance for any advice!

Hi Just_Trying and thanks for your post.

The default itself will remain on your file for six years from when it was entered. They can update your file to say that the debt is satisfied and this will also drop off with the default.

It’s important that you write to the lender to tell them that you’d like them to add a note and in the letter you can ask them to respond to you within 28 days. There’s more information on what to do including if they don’t respond in this booklet: http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/credit_explained_leaflet_2005.pdf.

I hope this helps.

Kind regards,
Pavan