Struggling with debt? Ask a debt advisor a question

WildeToBe

Hello,
I have a credit card with visa vanquis and seem to be getting nowhere with them. I owe £450 and pay my monthly repayments ( the minimum) they constantly keep phoning me and they always seem to apply charges so if im paying of £20 a month they are adding a "late payment charge" even though it wasnt of £12. I have tried talking to them and they are always so rude and wont help.
So please help

sedakensearch

I have racked up total debt of 10,000(7000 credit card & 3000 payday loans) . i have been borrowing due to various reason in past. I am in pretty dire situation. i cannot afford to pay minimum payment to all these lenders. I have calculated i can only afford to pay 150 to 200 per month comfortably. May be in future if my situation improve i can pay more I have checked CCCS but i have been informed that they cannot help as i am not UK Citizen .

Please advice what will be best for me to do? I have contacted couple of debt management companies & their charges are very high and i feel uneasy about the fact that they would not pay to lenders for 1st two months. I would not mind to pay small fee for working in behalf of me if they could really negotiate with lender to froze interest or reduce charges.

sedak

StepChange_Pavan

gunnapaul2 wrote: »

Hi Pavan,

I have applied to a couple of credit agencies and just waiting for my pin from one of them so hopefully I can get a better picture of things.

When you say things drop off after 6 years does this mean I can't trace them? I presume the debt will still affect my credit score after 6 years?

I'm really hoping to get these debts clear, I've been saving for a while now and feel I have the funds to clear them, my main concern is if I do clear certain debts will this actually improve my credit score or is it possible I could just be paying a collection agency these funds to keep them happy and in actual fact it has no affect on my credit score at all?

Thanks for your info.

Paul.

Hi Paul,

If there have been no updates, the information will drop off after 6 years. However, if it’s an active account it will drop off 6 years after it’s been settled and paid in full.

Clearing your debts should help with your credit rating if the debts are showing on there – debt collection agencies use credit files too.

I’d recommend that you read the article about improving credit files that I posted earlier which should help. If you’re in a position to pay the debts and you admit liability it’s best to clear them so you’re not chased further down the line (even if they drop off your credit file it doesn’t wipe the debt clear).

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

WildeToBe wrote: »

Hello,
I have a credit card with visa vanquis and seem to be getting nowhere with them. I owe £450 and pay my monthly repayments ( the minimum) they constantly keep phoning me and they always seem to apply charges so if im paying of £20 a month they are adding a "late payment charge" even though it wasnt of £12. I have tried talking to them and they are always so rude and wont help.
So please help

Hi WildeToBe and welcome to the forum.

It could be that if you made your payment slightly earlier you wouldn’t receive the late payment charge. It’s worth checking your agreement or statement to see when the payment is due each month.

If they’re not responding to you properly you could follow their complaints procedure and follow it up with the Financial Ombudsman if they won’t help.

You don’t mention whether you’re struggling with the repayments, so if you can, try and pay a little more than the minimum payment to get on top of things. If you have a good credit rating you could also consider switching to a 0% credit card: http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

sedakensearch wrote: »

I have racked up total debt of 10,000(7000 credit card & 3000 payday loans) . i have been borrowing due to various reason in past. I am in pretty dire situation. i cannot afford to pay minimum payment to all these lenders. I have calculated i can only afford to pay 150 to 200 per month comfortably. May be in future if my situation improve i can pay more I have checked CCCS but i have been informed that they cannot help as i am not UK Citizen .

Please advice what will be best for me to do? I have contacted couple of debt management companies & their charges are very high and i feel uneasy about the fact that they would not pay to lenders for 1st two months. I would not mind to pay small fee for working in behalf of me if they could really negotiate with lender to froze interest or reduce charges.

sedak

Hi Sedak and thanks for your question,

We can help you, but you’d need to call our helpline rather than using our online Debt Remedy.

You can call us on 0800 138 1111 (free including from mobiles). We’re open Monday to Friday 8am - 8pm and Saturdays 9am – 3pm.

I hope this helps.

Kind regards,
Pavan

sadperiface10

Hi everyone,

I'm desperate for some advice. I'll list my current issues with finance, and the situation behind it in the hope that someone out there can help (I'd be so grateful)



- In September 2010, I moved to Sheffield from Coventry to study BA English Language at Sheffield Hallam University (I was debt free at this point)

- I moved into university managed accommodation, which is ran by a private landlord, Liberty Living Plc.

- Within the same month, I was attacked during an attempted robbery and because I did not want to live in the place I was in because it was so close to the site
of the attack, I asked Liberty Living Plc if I could move residence to be at a site which was more secure and closer to university, and not as close to the place
the attack happened.

- The only room they told me they had available was more expensive and I felt as though I had no choice but to take the room and sign a new contract with them.

- I was extremely distressed and depressed during this time, I went to the counselling services at my University who told me they could discuss my homesickness
but not the attack as there was an impending court case due with the person that attacked me and they did not want to influence anything. I felt trapped and alone and
nearly 100 miles from home and my loved ones.

- I began to travel home to be with my family every weekend, as I stopped attending university and did not leave my room because I was too scared to go out. This cost
me £40+ every weekend.

- I was severely depressed at this point and during December I spoke with my family about returning home, as they felt I was unfit to continue with my first year
at university.

- I wrote to my landlord (Liberty Living) and moved my possessions out of the room at the start of January, and left the room as it was let to me.

- Liberty Living wrote to me and informed me that I would be charged for the remainder of my tenancy and would not release me on grounds of compassion.

- Upon returning home, I got a temporary job and moved in with my partner as there was no room for me at my parents home. During the period of January - May 2011,
I was so depressed and scared and I had no idea how to handle the problems with my outstanding tenancy fees. I spent my wages on bills at the address I was now living at
and I splurged on clothes to make myself feel better. (I know this was the wrong way to deal with it, but I was so depressed and I tried to distract myself from what
was happening)

- During May 2011, I went through a very, very bitter breakup and my ex moved out of the house I shared with him. He left me to pay all of the bills (Which I fell into
debt with) and he said he would only pay for his half of the rent. My hands were tied as the bills were naively put in my name so I could not argue.

- From August 2011 - June 2012, I have been living in cheap student accommodation which was through a friend I worked with, this worked out well and I have recently
moved into my mother's home briefly for a few weeks before entering halls of residence again for the year whilst at university in Coventry.

- In November 2011, High Court Enforcement Officers turned up at my mother's home to demand I make payment to the court, as the court had issued a CCJ against me.
I had been too depressed to deal with the forms, and I was too scared to face them. They issued me with a debt of £3162 and interest daily to stop them coming back
to my mother's home. The debt had been £2,100, so they have put over £1,000 in fees on the debt.


- I returned to university in September 2011, and stopped working. My only income is now student finance and I am being ordered to pay £100 per month to High Court
Enforcement Group.


- I have other debts, that I have fallen into since leaving university, and I have worked out that I now owe £4800 in total to around 8 creditors. I am at my lowest point
at the moment and I feel I have nothing left to give. I'm just so depressed

I have the most wonderful partner who listens and tries to help me when he can, but I fear that I will lose him the longer this goes on. I'm frustrated that I'm in such
a bad way (I know there are worse off people, but to me it feels huge) and I want to be free from all this stress.

My partner has been saying that I should fight to get the case taken back to court, as he argues I was in an unfit state to sign for a more expensive room, and the university
should have done more to help in this scenario. I notice on this site there isn't a forum for students, but I'm a mature student at 23 years old, and I'm concerned that the longer
this goes on, the worse off my health is going to become. I feel like I'm going to have a breakdown.


If there is anyone that can help, please reply or private message me.
(I'm aware that I should have liaised with the landlord properly regarding my debt with them, but as I said I was so depressed that I could not deal with the issues at the time)

gunnapaul2

CCCS_Pavan wrote: »

Hi Paul,

If there have been no updates, the information will drop off after 6 years. However, if it’s an active account it will drop off 6 years after it’s been settled and paid in full.

Clearing your debts should help with your credit rating if the debts are showing on there – debt collection agencies use credit files too.

I’d recommend that you read the article about improving credit files that I posted earlier which should help. If you’re in a position to pay the debts and you admit liability it’s best to clear them so you’re not chased further down the line (even if they drop off your credit file it doesn’t wipe the debt clear).

I hope this helps.

Kind regards,
Pavan

Thanks again for all your info.

If I was to be accepted for a short term loan (payday loan) from a company such as Wonga would this improve my credit rating after paying it back?

I've looked at their cash calculator and I could borrow £100 today and pay it back tomorrow with a £6 fee on top. Obviously I don't want to be paying out pointless fees as that's just a waste of money but if it can boost my credit file that would be a step in the right direction. Is it worth doing this or is a short term loan not really going to have any positive effect on my credit due to it being so short term and for a small rate of money?

Paul.

StepChange_Pavan

sadperiface10 wrote: »

Hi everyone,

I'm desperate for some advice. I'll list my current issues with finance, and the situation behind it in the hope that someone out there can help (I'd be so grateful)



- In September 2010, I moved to Sheffield from Coventry to study BA English Language at Sheffield Hallam University (I was debt free at this point)

- I moved into university managed accommodation, which is ran by a private landlord, Liberty Living Plc.

- Within the same month, I was attacked during an attempted robbery and because I did not want to live in the place I was in because it was so close to the site
of the attack, I asked Liberty Living Plc if I could move residence to be at a site which was more secure and closer to university, and not as close to the place
the attack happened.

- The only room they told me they had available was more expensive and I felt as though I had no choice but to take the room and sign a new contract with them.

- I was extremely distressed and depressed during this time, I went to the counselling services at my University who told me they could discuss my homesickness
but not the attack as there was an impending court case due with the person that attacked me and they did not want to influence anything. I felt trapped and alone and
nearly 100 miles from home and my loved ones.

- I began to travel home to be with my family every weekend, as I stopped attending university and did not leave my room because I was too scared to go out. This cost
me £40+ every weekend.

- I was severely depressed at this point and during December I spoke with my family about returning home, as they felt I was unfit to continue with my first year
at university.

- I wrote to my landlord (Liberty Living) and moved my possessions out of the room at the start of January, and left the room as it was let to me.

- Liberty Living wrote to me and informed me that I would be charged for the remainder of my tenancy and would not release me on grounds of compassion.

- Upon returning home, I got a temporary job and moved in with my partner as there was no room for me at my parents home. During the period of January - May 2011,
I was so depressed and scared and I had no idea how to handle the problems with my outstanding tenancy fees. I spent my wages on bills at the address I was now living at
and I splurged on clothes to make myself feel better. (I know this was the wrong way to deal with it, but I was so depressed and I tried to distract myself from what
was happening)

- During May 2011, I went through a very, very bitter breakup and my ex moved out of the house I shared with him. He left me to pay all of the bills (Which I fell into
debt with) and he said he would only pay for his half of the rent. My hands were tied as the bills were naively put in my name so I could not argue.

- From August 2011 - June 2012, I have been living in cheap student accommodation which was through a friend I worked with, this worked out well and I have recently
moved into my mother's home briefly for a few weeks before entering halls of residence again for the year whilst at university in Coventry.

- In November 2011, High Court Enforcement Officers turned up at my mother's home to demand I make payment to the court, as the court had issued a CCJ against me.
I had been too depressed to deal with the forms, and I was too scared to face them. They issued me with a debt of £3162 and interest daily to stop them coming back
to my mother's home. The debt had been £2,100, so they have put over £1,000 in fees on the debt.


- I returned to university in September 2011, and stopped working. My only income is now student finance and I am being ordered to pay £100 per month to High Court
Enforcement Group.


- I have other debts, that I have fallen into since leaving university, and I have worked out that I now owe £4800 in total to around 8 creditors. I am at my lowest point
at the moment and I feel I have nothing left to give. I'm just so depressed

I have the most wonderful partner who listens and tries to help me when he can, but I fear that I will lose him the longer this goes on. I'm frustrated that I'm in such
a bad way (I know there are worse off people, but to me it feels huge) and I want to be free from all this stress.

My partner has been saying that I should fight to get the case taken back to court, as he argues I was in an unfit state to sign for a more expensive room, and the university
should have done more to help in this scenario. I notice on this site there isn't a forum for students, but I'm a mature student at 23 years old, and I'm concerned that the longer
this goes on, the worse off my health is going to become. I feel like I'm going to have a breakdown.


If there is anyone that can help, please reply or private message me.
(I'm aware that I should have liaised with the landlord properly regarding my debt with them, but as I said I was so depressed that I could not deal with the issues at the time)

Hi there and thanks for your post.

I’m sorry to hear about your circumstances – it certainly sounds as though you’ve been through a tough time. The good thing is that you’re facing up to your debt situation which will help.

I’d really recommend that you give us a call to talk through your solutions as it sounds as you have a lot on your plate and that way we can get all the information we need.

You can ring our Helpline on 0800 138 1111 (free including from mobiles). We’re open Monday to Friday 8am - 8pm and Saturdays 9am – 3pm.

Like I said, it’s great that you’re looking for help and the sooner we are able to talk through your options the better it will feel.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

gunnapaul2 wrote: »

Thanks again for all your info.

If I was to be accepted for a short term loan (payday loan) from a company such as Wonga would this improve my credit rating after paying it back?

I've looked at their cash calculator and I could borrow £100 today and pay it back tomorrow with a £6 fee on top. Obviously I don't want to be paying out pointless fees as that's just a waste of money but if it can boost my credit file that would be a step in the right direction. Is it worth doing this or is a short term loan not really going to have any positive effect on my credit due to it being so short term and for a small rate of money?

Paul.

Hi Paul,

I can’t guarantee that taking out a payday loan will help your credit file – it could be worth asking a credit reference agency for clarification as we’re not experts on credit files.

It could actually negatively affect your mortgage application as we read in the news last week: http://www.dailymail.co.uk/money/mortgageshome/article-2173443/Payday-loans-Worrying-news-million-needed-fast-cash.html.

Like I’ve mentioned before, this article gives you lots of useful ways to improve your credit file: http://www.moneysavingexpert.com/loans/credit-rating-credit-score.

Kind regards,
Pavan

gunnapaul2

Hello again Pavan,

I've all but given up any hope of getting a mortgage, although I know I'm doing what's right now in trying to pay off debts and save it's taken quite a while to get here. I've decided that saving money for my kids futures is my best option now and will live the rest of my life as a tenant, I don't believe I have a good enough income or enough time (Probably sounds silly at 32 years old) to ever fully own my own house, if I can stop my kids from messing things up like I did then that'll be good enough for me.

Thanks for all your replies and information Pavan