Struggling with debt? Ask a debt advisor a question

StepChange_Pavan

CCCS_Pavan wrote: »

Hi cambsno and thanks for your post.

It’s best to offer token payments of whatever you can afford and make them aware that you’re seeking help from us. It might also be helpful to give them your client reference number.

I hope this helps.

Kind regards,
Pavan

Hi cambsno,

Just thought it worth clarifying as Gimpsdad has made a few incorrect assumptions above.

You’ve been recommended an IVA by our Debt Remedy, but you will still go through the normal and thorough process that everyone is legally required to go through at the start. This includes explaining all options available to you and the implications they can have.

It’s best to continue making token payments as you’ve not yet made your decision on the best course of action. Giving them a client reference number just shows the creditor that you’re actively seeking free and impartial debt advice – it doesn’t mean that you have to take our recommendations, it can just help with easing the pressure.

I hope this helps but please get in touch if you’d like to discuss anything in more detail


Kind regards,
Pavan

Gimpsdad

Hmmmm. Incorrect assumptions? No, just questions that needed clarification, re the remedy tool you have and client reference number, which to your credit you have addressed. Fair enough.

As I stated previously, I don't disagree with the poicy of making token payments, but once an IVA has been decided upon as a course of action by a debtor then it is perfectly true that it makes no difference to the outcome of a creditors meeting whether token payments are made or not. If the debtor decides not to make payments then that is fine.

StepChange_Pavan

Johnsmoney wrote: »

Hi - I've been getting some advice from one of the (non profitmaking) Helplines re a 18K debt. They seem to be pointing me towards an IVA. After reading some of the posts on this and other forums, I got the impression that many people prefer Bankruptcy - not because its the easy way out - but because it allows you to wipe the slate clean quicker to start afresh. The Helpline have said that even if I go for bankruptcy I may well be paying as much to that as I would for an IVA...on a monthly basis. Whilst I know there are set up costs in the region of £700 for bankruptcy - what is the position for my salary - currently !2k a year. IVA will cost me £150 a month - if I go for bankruptcy will my creditors also be allowed to a share of my income - and for how long? Thanks.

Hi Johnsmoney and thanks for your post.

If you’ve worked out that you can afford to pay around £150 in an IVA it’s likely that you’d have to pay a similar amount for up to 3 years in bankruptcy. This would be called an Income Payment Order or Agreement. You can read more in this leaflet from the Insolvency Service (It’s a word document so I can’t link to it directly but it’s about half way down the page): http://www.bis.gov.uk/insolvency/Publications.

The official receiver will decide how much you would need to pay and if your circumstances change at any point during the 3 year period you can ask them to evaluate your situation again.

We have a free and impartial bankruptcy support team that can help you throughout the process including any help that you might need with filling out the forms etc. If you’d like some more detailed advice you can use our Debt Remedy (http://www.cccs.co.uk/ref/drcu) or call our free helpline on 0800 138 1111.

It’s important that you explore both options fully as they have different implications so you’d need to work out what’s best for you.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

mlt wrote: »

Hi,

Can someone advise me what to do. My mortgage company is sending me a letter before action to start off the repossession process for my house which i am in arrears for. Ive been honest with them and stated since Nov 11 i am £500 a month worse off and in July 12 i will be a further £150 a month worse off. The mortgage is in £1000 arrears and the unsecured part of the mortgage is in £4000 arrears. When i receive the letter knowing that i will also be filing for bankruptcy do i still pay the mortgage or as im already going to lose the house not pay for it as what i dont pay will be added to the debt.

Thanks

MLT

Hi MLT and thanks for your post.

It’s difficult to say whether you should stop paying the mortgage especially if it could have implications on whether you will be re housed.

You could speak to the council again and explain your situation to see what priority you would be. It might be that you need to find private housing instead.

I’d really recommend that you call our free helpline so that we can look at your situation in a bit more detail and advise you thoroughly. You can ring us on 0800 138 1111 and we’re open Monday to Friday 8am - 8pm and Saturdays 9am – 3pm.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

shrewsyj wrote: »

Hi there,

I recently completed an MA, for which I took out a career development loan of £7.5k. The monthly repayments, which I can barely make due to low income, are set at £156.39 for 5 years, meaning that not only am I struggling to pay month by month, but over this period I'm paying an extra £1,933.40 in interest.

I was thinking about a super balance transfer to a 0% credit card for 20 months which would buy me a bit of flexibility during the next few months, in which my income is set to fluctuate, pretty much unavoidably due to the nature of my work. It'll also hopefully reduce the overall interest payable, and as far as I can see, it's possible providing I pass the credit check. I hope I do, as the loan totals £7.5k and this seems a lot to ask for on a credit card. Do you think this is feasible?

My problem is also that I don't fully understand my loan account, and the bank are not great at explaining how it works - when I log in, there's a 'current account' (£2 in credit) and a 'career development loan' account (in which the loan amount is shown as overdrawn) both under the same account no and sort code - if I make a super balance transfer to this account, will it actually clear my loan debt?

I am also looking into a change of careers (or at least reverting to what I used to do) next year, and intend to move in with my parents for a while to save money, so I am taking other steps to solve these problems in the long run. But if I could take the pressure off the loan payments in the short term, it'd be a big help.

Very confused, and grateful for any help!

Thanks
Shrewsyj

Hi Shrewsyj and thanks for your post.

This isn’t really something we can advise on as we are a debt advice charity and we recommend debt solutions. You could speak with your bank to see what solutions they could provide and insist that they explain it so that you understand.

It’s good that you’re taking steps to improve your situation and if you’d like any detailed debt advice you can call us on 0800 138 1111.

Kind regards,
Pavan

StepChange_Pavan

Hazeybabes wrote: »

Hi, I've had a debt problem for over 2years and been on a debt management plan but it's not working, I've looked at an iva but that won't work so I'm comfortable with a bankruptcy solution. However Im not sure what to do about my current accounts.
Since entering the dmp my partner added my name to his account so they are in joint names. There is no money in them, in fact at the end of each month we are in the overdraft. One my partners wages are paid into, the other my state benefits are paid into.
I have to list these in held accounts but we can't afford for these to be frozen and they are working acceptably and it's not like there is any money in them but I don't want these the be declared as creditors.
Should I get my name removed from these joint accounts, is that going to cause more problems?
I don't want to get my partner dragged into this any more than he is, and him be financally hit with my problems.

Hi Hazeybabes and welcome to the forum.

It’s probably best not to remove your name right before your bankruptcy as it may raise questions from the official receiver.

There’s no guarantee that your account will be frozen but it’s best to withdraw any money that you need so that you won’t be stuck if it is. If there is an overdraft it would be included and your partner will be liable to pay it.

If you’ve got any more questions please feel free to get in touch.

Kind regards,
Pavan

surflou

My debt problems are all Ireland-based. I do have a credit card over here in the UK but, although I am behind on my payments due to a couple of problems with work, I am paying it and when it's back down it will stay there because I'm cutting it up!

My problems in Ireland have been ongoing now for a few years and are only getting worse not better. When I lived there, I got myself a credit card and a loan from the Bank of Ireland, I also had 2 accounts which went a little overdrawn.

When I came over here 3 years ago (I'm from the UK originally) I managed to keep everything being paid for a while but soon found myself in a bit of a bind. I was constantly on the phone with them and constantly trying to agree on a minimum amount to pay them each month by a certain date and sometimes i could keep to it and others I couldn't manage.

I think they've had enough now, I haven't had two beans to rub together for the last 3 months, my wife has been off work sick and any money we got in went on our UK bills and food etc.

This morning I received 4 letters from the Bank of Ireland, none of which are great. The first 2 letters are regarding the loan and one of the overdue accounts, they both say that they are being passed to their debt collection agents for the recovery of all sums along with interest. They also say I can avoid this action by paying in full within 7 days of the date of the letter which is in 3 days time due to the amount of time it takes to get a letter from Ireland to the UK. One amount is €234.03 + accruing interest and the other €3874.08 + accruing interest, both accounts are in EUR.

The other two letters are different again, one is regarding my other overdrawn account (€243.95 + accruing interest) and asks that I clear the balance and close the account and the last one regards my savings account, which is €30 in credit, and which I use to be able to pay them, they are asking me to close it and if I don't they will and they will use any money in there (€30) against one of the other outstanding amounts. This account is how I pay them, if they close it I have no way to pay them any more... I send the money into an Irish PayPal account and then transfer it from there to the savings account and use online banking to pay the debts (I hope that makes sense).

Usually they send me a standard letter if I have missed a payment and I call them and arrange something but I really need to sort something out, the longer this goes on the more interest I seem to be paying, it's getting too much and I can't afford the monthly payments at all, not if I'm managing all my monthly payments in the UK as well! I'm starting to get stressed with it all...

What can I do? Ideally I would like to get all the outstanding amounts together and pay a monthly sum that isn't too hard to reach without paying TOO much interest so I'm not paying it for years to come. know this will affect my credit and my credit in Ireland is pretty much shot anyway but will it affect my credit in the UK as well? I already have a phone and utilities and I have no intention of getting myself in more debt by way of credit cards, store cards, loans or store credit, but I do want to be able to buy a house with my partner in the next 10 years or so...

Is there any way that I can close these accounts and arrange a manageable monthly payment? I also want to close my credit card with them and do the same things there too...

Starting to stress big time, can anyone help?

Blaknite

Hi,

I have just submitted my details on your website to start a DMP, however, but have a quick question about assets. I currently own my house, which has little equity in it. However, a couple of years ago, my parents signed their house over to me and my siblings (5 in total), with the condition that they have life tenancy, rent free. Would this be considered an asset? It is not in any way realisable.

Thanks

System

surflou wrote: »

My debt problems are all Ireland-based. I do have a credit card over here in the UK but, although I am behind on my payments due to a couple of problems with work, I am paying it and when it's back down it will stay there because I'm cutting it up!

My problems in Ireland have been ongoing now for a few years and are only getting worse not better. When I lived there, I got myself a credit card and a loan from the Bank of Ireland, I also had 2 accounts which went a little overdrawn.

When I came over here 3 years ago (I'm from the UK originally) I managed to keep everything being paid for a while but soon found myself in a bit of a bind. I was constantly on the phone with them and constantly trying to agree on a minimum amount to pay them each month by a certain date and sometimes i could keep to it and others I couldn't manage.

I think they've had enough now, I haven't had two beans to rub together for the last 3 months, my wife has been off work sick and any money we got in went on our UK bills and food etc.

This morning I received 4 letters from the Bank of Ireland, none of which are great. The first 2 letters are regarding the loan and one of the overdue accounts, they both say that they are being passed to their debt collection agents for the recovery of all sums along with interest. They also say I can avoid this action by paying in full within 7 days of the date of the letter which is in 3 days time due to the amount of time it takes to get a letter from Ireland to the UK. One amount is €234.03 + accruing interest and the other €3874.08 + accruing interest, both accounts are in EUR.

The other two letters are different again, one is regarding my other overdrawn account (€243.95 + accruing interest) and asks that I clear the balance and close the account and the last one regards my savings account, which is €30 in credit, and which I use to be able to pay them, they are asking me to close it and if I don't they will and they will use any money in there (€30) against one of the other outstanding amounts. This account is how I pay them, if they close it I have no way to pay them any more... I send the money into an Irish PayPal account and then transfer it from there to the savings account and use online banking to pay the debts (I hope that makes sense).

Usually they send me a standard letter if I have missed a payment and I call them and arrange something but I really need to sort something out, the longer this goes on the more interest I seem to be paying, it's getting too much and I can't afford the monthly payments at all, not if I'm managing all my monthly payments in the UK as well! I'm starting to get stressed with it all...

What can I do? Ideally I would like to get all the outstanding amounts together and pay a monthly sum that isn't too hard to reach without paying TOO much interest so I'm not paying it for years to come. know this will affect my credit and my credit in Ireland is pretty much shot anyway but will it affect my credit in the UK as well? I already have a phone and utilities and I have no intention of getting myself in more debt by way of credit cards, store cards, loans or store credit, but I do want to be able to buy a house with my partner in the next 10 years or so...

Is there any way that I can close these accounts and arrange a manageable monthly payment? I also want to close my credit card with them and do the same things there too...

Starting to stress big time, can anyone help?

Hi and thanks for your post.

For Ireland based debt issues I would recommend that you speak to MABS. You can contact them on their website at http://www.mabs.ie/

I hope this helps.

Kind regards,

Mat

System

Blaknite wrote: »

Hi,

I have just submitted my details on your website to start a DMP, however, but have a quick question about assets. I currently own my house, which has little equity in it. However, a couple of years ago, my parents signed their house over to me and my siblings (5 in total), with the condition that they have life tenancy, rent free. Would this be considered an asset? It is not in any way realisable.

Thanks

Hi and welcome to the forum.

It’s not currently a realisable asset so it wouldn’t need to be listed in a DMP. If you have any other questions please call the support team number in your pack as they will have access to all your details.

I hope this helps.

Kind regards,

Mat