Struggling with debt? Ask a debt advisor a question

Che75

Hi. I would love some help. I currently receive jobseekers having lost my job 6 months ago. The new benefit rules mean I have to use JSA to cover a shortfall in my rent and council tax. I'm on the housing list and looking for cheaper housing but no luck so far. In short, I'm struggling to pay anything towards utilities and certainly can't pay anything to my creditors.

I have two problems. 1) I have successfully negotiated reduced payments in the past but creditors don't seem open to a temporary nil payment arrangement, and several have instructed doorstep collectors to come to my home. How do I convince them this is necessary since I must prioritise rent and utilities?
2) I have a very several social anxiety disorder and get panic attacks when using the telephone. I have written to each creditor about my financial difficulties but they do not respond to my letters so there is still no arrangement in place. Is there anything that obligates them to communicate in writing if I ask them to e.g. DDA legislation? Calls and visits are a great source of additional stress and this seems unnecessary when I'm in treatment for depression and anxiety.

Thank you.

lost_in_cybertape

(hello, i'm not exactly sure whether i'm posting this in the right place, so apologies if i end up somewhere inexpected.)
my query is this, sorry if it's all too much information!
having frozen my halifax credit card debt roughly nine years ago i have been making regular repayments ranging from £5-50 per month (with the occasional big payment made as and when i get a little extra). for the majority of this time i have been living abroad and living off a yearly income of approx 8000 euros (at best). i have most recently been dealing with moorcroft, who i call each month to pay over the phone.
the debt started at my credit limit of around £7500 and is now at around £4500.

are they any routes i can take to see about getting this debt written off? i don't want to be doing this same thing for the next nine years plus..! i read recently about unlawful credit limit rises. my credit limit was risen from approx £3000 to £7500 without my requesting it in 2002/3.
or could i perhaps write a letter to halifax (though presumably my debt now lies with moorcroft..?) explaining my circumstances or perhaps even detailing my original expenditure on the card and negotiating a writing off of the remaining sum? i have now been unemployed for two years and struggle/depend on my partner's generosity to make my monthly repayment (recently reduced from £40 to £20).
i'd be delighted to get any clear feedback on this as i am infinitely confused and not entirely sure where or how to start.
thanks

silentmike486

Hi,

Is the CCCS able to negotiate with HMRC re: self assessment income tax arrears? Last year I had a bill I was unable to pay immediately (3k) and have been paying approx. 90pcm since. This year the same again, for 4.5k. But the first plan was on the understanding that I would have no further arrears, which I now have. I owe them 6.5k and on the first phone call they said they are unlikely to offer me a payment plan, and if they did it would be way too much for me to afford (2k upfront then 400pcm). Their only suggestion was to file my next return now, as I have been paye for a year, so they know I won't get a further bill, and then make some token payments to show willing. I'm already in debts of about 10k, under a dmp with the CCCS.

Are they likely to offer a payment plan if I do what they suggested? Surely it's not in their interest to make me bankrupt. Would the CCCS have a bit more persuasion than me, since they hold a current copy of my budget and personal circumstances?

Thanks for your help

EmmaEliffe1980

Please help unsure what to do!!!!!!!!!!!!

7 years ago i went into an IVA to try and clear £16000 debt and student loans. I was dong really well for 2 years, but I fell pregnant, had my child and had to go part time. I had to cancel my IVA as I could no longer keep up the re-payments. As it turned out I payed over £5000 but that hardly touched the debts the company took most of it. I was then contacted by a solicitors who specilised in defaulted IVAs I paid them £350 to keep my debters at bay for 1 year. They then said they would look into reclaiming my PPI and any other charges. Cut a long story short this company had me over completly rubbish and have now left them. So dont know what to do??? I have £15000 still in debts which were all took out before 2006, I feel that its a too small of an amount to go bankrup? Is there anyway to avoid this?? I still work part time and have other untiliy bills to pay so a DMP is not an option??

rainbowboat_2

Hello
I've just been made redundant and have a small redundancy package. I was wondering if my creditors ( loan and credit cards) would accept a settlement payment as I can't see that I'll be able to keep up with re-payments. For example is it likely they'll accept £5k for a £13k loan?

If so, how do I do this? Will they accept an offer from me or should I go through a 3rd party?

Thanks

kirsty1253

Hi I am trying to set up reduced payment arrangements due to a hopefully very short term glitch in my financial situation.
All my creditors have been wonderful and accepted CCCS income/expenditure printouts and template letters and are truly being outstanding - all bar one.
Very catalogu seem to be doing all they can to STOP me sorting it out. I initially offered £1 a month which they refused, but then after sorting all my other debts was able to offer £5 a month which they still refused. They then phoned, trying to get my to pay £23 a month which I simply do not have, so I wrote again and asked them to review my account again re: £5 a month and to stop interest and late payment fees.
I then got a letter from them saying no but to call an 0844 number within 7 days if I still needed help - but 2 days later a debt recovery letter and phone calls started - I explained the situation (TWICE - as the first time the girl did not enter the notes on the system) and they said that the CCCS has to send them paperwork and should give me a reference?
I am confused! Can you advise? WHat annoys me is that they send me these leaflets about paying priority debts first (mortgage etc) and to speak to creditors for help - but then refuse point blank to help at all!! I dont need to send references to anyone else so how can one company be so different? My other catalogue have been great!!

System

Uptomyeyeballs wrote: »

I have an enormous amount of personal debt - almost £200K. A great deal of this is on credit cards. I have made a concerted effort to pay these down and have halved the amount I owe to them over the past two years. However, I am self-employed and have no income over the summer. I am trying to eek out the money I earned in the Spring but it isn't going to last long unless I can reduce the payments I have to make against my debts. I have heard that credit card providers will freeze your interest and let you pay extremely low amounts each month in situations like these. Words of wisdom and experience would be appreciated.

Hi and welcome to the forum.

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

Some credit card providers will sometimes freeze interest and allow you to pay reduced payments for a short period of time.

The most important thing is too look at what money you have available and make sure you can pay all priority bills during the period that you have no income. Any money left over once priority bills are paid can go towards your unsecured credit commitments.

There maybe other longer term debt solutions available to you that you haven’t considered. We can help you put together a budget and see what solution is best advice for you long term circumstances.

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 and Saturday 9am until 3.00pm.

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

Che75 wrote: »

Hi. I would love some help. I currently receive jobseekers having lost my job 6 months ago. The new benefit rules mean I have to use JSA to cover a shortfall in my rent and council tax. I'm on the housing list and looking for cheaper housing but no luck so far. In short, I'm struggling to pay anything towards utilities and certainly can't pay anything to my creditors.

I have two problems. 1) I have successfully negotiated reduced payments in the past but creditors don't seem open to a temporary nil payment arrangement, and several have instructed doorstep collectors to come to my home. How do I convince them this is necessary since I must prioritise rent and utilities?
2) I have a very several social anxiety disorder and get panic attacks when using the telephone. I have written to each creditor about my financial difficulties but they do not respond to my letters so there is still no arrangement in place. Is there anything that obligates them to communicate in writing if I ask them to e.g. DDA legislation? Calls and visits are a great source of additional stress and this seems unnecessary when I'm in treatment for depression and anxiety.

Thank you.

Hi and thanks for post.

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

Creditors can threaten doorstep collectors but these are rarely used. Doorstep collectors have no powers and in the unlikely event that anyone did turn up I’d recommend that you ignore them.

You should write to each creditor and ask them to remove your telephone number from their systems and that they should only communicate with you in writing (send this letter recorded delivery). Once you’ve asked the creditor to only contact you by letter you must keep on top of any paperwork the creditor sends and respond in writing if necessary. If the creditor continues to hassle you by phone you can make a complaint to the Office of Fair Trading (OFT).

We also wrote a blogpost on this subject –

http://moneyaware.co.uk/2011/06/what-to-do-when-creditors-keep-phoning-you-2/

You’re doing the right thing in prioritising your living costs over unsecured creditors; we may also be able to offer additional advice in regards Welfare Benefits and making sure that you are claiming everything that your current circumstances entitle you to. Our Welfare Benefits team are usually only available by telephone (which I understand you have difficulty with).

I’d recommend you use our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu) to help you find a longer term solution to your current situation. If Debt Remedy identifies that you can possibly claim further entitlements it will prompt you to call us. If you need assistance with this you can get in touch with us for more advice.

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. It will also be explained how to proceed with the solution should you wish to do so.

I hope this helps.

Kind regards,

Mat

System

silentmike486 wrote: »

Hi,

Is the CCCS able to negotiate with HMRC re: self assessment income tax arrears? Last year I had a bill I was unable to pay immediately (3k) and have been paying approx. 90pcm since. This year the same again, for 4.5k. But the first plan was on the understanding that I would have no further arrears, which I now have. I owe them 6.5k and on the first phone call they said they are unlikely to offer me a payment plan, and if they did it would be way too much for me to afford (2k upfront then 400pcm). Their only suggestion was to file my next return now, as I have been paye for a year, so they know I won't get a further bill, and then make some token payments to show willing. I'm already in debts of about 10k, under a dmp with the CCCS.

Are they likely to offer a payment plan if I do what they suggested? Surely it's not in their interest to make me bankrupt. Would the CCCS have a bit more persuasion than me, since they hold a current copy of my budget and personal circumstances?

Thanks for your help

Hi and thanks for your post.

As you’re already a client of ours I’d recommend that you give us a call so that we can look into this in more detail.

I hope this helps.

Kind regards,

Mat

StepChange_Pavan

lost_in_cybertape wrote: »

(hello, i'm not exactly sure whether i'm posting this in the right place, so apologies if i end up somewhere inexpected.)
my query is this, sorry if it's all too much information!
having frozen my halifax credit card debt roughly nine years ago i have been making regular repayments ranging from £5-50 per month (with the occasional big payment made as and when i get a little extra). for the majority of this time i have been living abroad and living off a yearly income of approx 8000 euros (at best). i have most recently been dealing with moorcroft, who i call each month to pay over the phone.
the debt started at my credit limit of around £7500 and is now at around £4500.

are they any routes i can take to see about getting this debt written off? i don't want to be doing this same thing for the next nine years plus..! i read recently about unlawful credit limit rises. my credit limit was risen from approx £3000 to £7500 without my requesting it in 2002/3.
or could i perhaps write a letter to halifax (though presumably my debt now lies with moorcroft..?) explaining my circumstances or perhaps even detailing my original expenditure on the card and negotiating a writing off of the remaining sum? i have now been unemployed for two years and struggle/depend on my partner's generosity to make my monthly repayment (recently reduced from £40 to £20).
i'd be delighted to get any clear feedback on this as i am infinitely confused and not entirely sure where or how to start.
thanks

Hi lost_in_cybertape and thanks for your post – you are in the right place

There could be debt solutions available to you but we’d need to look at your situation in a bit more detail to see what’s best for you.

I’d recommend that you call us on +44 113 297 0126 so that we can look at your situation as a whole and recommend your next best steps. We’re open Monday to Friday 8am - 8pm and Saturdays 9am – 3pm (UK time).

Kind regards,
Pavan