Struggling with debt? Ask a debt advisor a question

StepChange_Pavan

rhiannon888 wrote: »

Hi there, was hoping you could help with a question.
When I was 18 I was offered loads of credit, lived on my own and worked and thought it would be fine and I'd be able to pay it off, but as I wasn't very organised I was often late with payments and then charged late payment fees which put me over the limit and was then charged over limit fees. This happened a lot with simply be and viva la diva, and one of my accounts with them is now up to £900 from what was originally only a £300-£400 credit. These accounts are now with reliable collections and CAB arranged a repayment with them several years ago. Our local CAB has shut down, and so when the arrangement was recently due for review I was unable to go to them and am now paying about £15 a month off each. I want to know if there is any way of claiming charges back from these as with the banks. I've not claimed back personally before but I have heard other people talk about it and wondered if there was a similar option here, and the best way to deal with it? Also I was paying off a loan to natwest at an arranged amount again set by CAB, which I was paying into one of my bank natwest bank accounts as advised. (overdraft and loan, all account closed and payment was to go into one of the closed accounts) This went fine for a while, then quite a while ago the payment was rejected as the account didn't exist. I've not heard anything from Natwest for years. What do I do?

Thanks

Hi there and thanks for your question.

We don’t advise on reclaiming bank charges but you can read more information here: http://www.moneysavingexpert.com/reclaim/.

With regards to the Natwest loan, you would need to contact them to find out what’s happened with the debt – they may have passed it on to a collections agency for example but they should have informed you in writing.

Once you know what stage it’s at, if you’d like some help with reviewing your situation you can get in touch with us for some free and impartial advice.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

clare1076 wrote: »

Hi i'm wondering if you could help. Myself & my husband completed the form on the cccs website and it said we are able to meet our payments with the figures we entered however in reality this isn't happening, we are struggling at the moment. We have a payment plan set up with Capquest to pay a Natwest loan at £50.00 per month but all our other debts are beginning to be unmanagable. Would we be best letting all the debts going to a dca and then set up payment plans this way. I just can't see a way out at the moment. What would you suggest?? Thanks

Hi clare1076 and thanks for your post.

Have you checked through the figures to make sure they’re accurate? It’s difficult for me to say where the discrepancy could be as I can’t see your information.

You don’t have to wait for the debts to go to a DCA before setting up a payment plan but it’s important that everything is correct to make sure you’re getting the right advice.

As you’ve already entered all your information, it’s best to contact our support team as they’ll be able to access it and give you much more thorough advice than I can over the forum. The details of how you can get in touch will be in your advice booklet.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

mum2one wrote: »

sorry to ask I took some advice about 12 months ago from yourselves (CCCS), but managed to set myself up on self managed dmp - done that for 12 months, now hot sticky patch again, some of my debts are on agreements, (verbal not signed by me), the others there saying i've paid the amount and what I offered a few quid extra (gone upto £20) has taken back to normal, ie they say I can have the cards) and have stuck the interest back up, my one card wanted £60 payment, and est interest is £53.

With all the new figures ust at breaking point my debts are 23k - when I filled in CCCS before 1st option bankruptcy, as take too long on dmp to pay, I'm scared of what is involved with bankkruptcy.

I know I can't afford this months payments, I'm in ESA, its unlikely that I will be fit enough to return to work in the near or distant future,

I'm planning on getting new bank account this month going to try co-op cashminder got no debts with them.

What happens to any money that is in my daughters accounts as I'm her trustee, and its money that is hers (shes 9).

Apologies for all questions, just got to the point where i need to admit that i need help.

Thank you in advance x

Hi there and thanks for your question.

Unfortunately there’s no way of making them stop interest and charges but you can write to them explaining your situation and ask for their consideration.

Having said that, if we recommended bankruptcy as your best option and it’s unlikely that your situation will improve in the foreseeable future this could still be the best solution for you. It can be a very daunting prospect but it will rid you of all the stress and hassle you’re having at the moment and help you to move forward. If the money in your daughter’s account is hers they can’t look at this.

If you’d like to talk through your options, please give us a call. Hopefully we can help to put your mind at ease and answer any more questions that you might have

And remember that you don’t have to apologise for asking for advice; that’s what we’re here for

Kind regards,
Pavan

Luluz

CCCS_Pavan wrote: »

Hi and welcome to the forum.

It’s a good idea to focus on reducing the debt rather than maintaining a good credit file – like you say you probably won’t want to borrow any more in the near future in any case and it may already have been affected in some way of you were turned down for a consolidation loan.

I’d recommend that you start by putting together a budget so that you can see exactly where your money goes each month. If you’re relying on credit to help you get by you might need to make some adjustments to be able to balance your budget.

If you’d like us to look at your situation in a bit more detail to see what options are available to you, you can visit our online debt advice service Debt Remedy 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 Helpline on 0800 138 1111 (free including from mobiles). We’re open Monday to Friday 8am - 8pm and Saturdays 9am – 3pm.

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.

You’ve taken the first step to sorting out your money worries and we can support you with free and impartial advice along the way.

I hope this helps.

Kind regards,
Pavan

Hi Pavan,

Thank you so much for the reply and the reassurance.

I have completed the online debt remedy and the outcome was that a DMP is recommended. Couple of questions on this:

1) Once I enter into this how will my credit rating be affected? For example, if my financial situation was to improve (my job is bonus related and quite possible a significant sum expected next year) and I was thinking of trying for a mortgage - would a DMP affect this?

2) The report stated I should be able to keep one of my bank accounts (Barclays) yet they have been the most threatening with the latest letter saying all account facilities withdrawn, full debt now payable and the account will be terminated. I do not use this account but it has an overdraft balance sitting on it. I had set up and agreed a monthly payment with them, which I have honoured but it transpires that the monthly fixed amount I agreed of £100 per month was not the full story. They wanted me to keep it within a monthly balance of X amount which had there been no interest charges applied each month £100 would have been sufficient. They have advised I have defaulted on the arrangement, so its been cancelled and the full amount now due! Frustratingly some of the balance is made up of their excessive charges and not money I've spent!

3) The report recommends that I write to alert creditors of making reduced payments whilst the DMP is put in place - do you recommend I cancel the existing direct debits and set up a new one with them? The next payments are due on the 1st of the month and I certainly won't have sufficient funds to cover the minimum or agreed amounts.

4) The report recommends I change my bank account as an overdraft is included in the list of creditors, this bank haven't actually asked for the money to be repaid so should I have not included this in the creditors list? I'm also worried as this account works on the basis I pay a minimum of £1000 per month to be entitled to the overdraft and if I switch, then I won't be honouring that rule.

I think a DMP is the only way forward but would appreciate if you could respond to the above queries. I do hope it makes sense

Thank you!! I feel a sense of relief. The link to Debt Remedy is an excellent service :-)

StepChange_Pavan

xxlozxx wrote: »

Hi
I have recently entered into a DMP with CCCS to deal with my debt problem. I have informed my debtors of my situation. I am being constantly pursued by one particular payday lender whom I find particularly threatening. They call constantly (I no longer answer the phone to them) and text and email constantly I have today received another email from them as follows:

Dear XXXXXXXXX

Loan Ref : XXXXXXXXXXXXX

We have not received an offer we consider reasonable from your debt management company/advisor.
As per the OFT guidelines on Debt Management we are now entitled to, and will, pursue you directly for payment of your outstanding debt.

You need to contact us within 24 hours to come to an arrangement directly with us or we will pass your file onto Bailiffs to pursue.

We will seek a Court Judgment against you followed by a Warrant of Execution to seize goods and/or obtain an attachment of earnings.

We will shortly be registering a "default" on your national credit file which is shared between lenders. This will hinder obtaining any future credit.

We recommend you call us within 24 hours so we can come to an arrangement based on your circumstances.

WARNING: If you do not contact us this WILL be pursued by Bailiffs.

Yours sincerely,

Can you tell me how I should deal with this. Thank you.

Hi xxlozxx and thanks for your question.

Try not to worry as this is all part of the standard debt collection process (http://www.cccs.co.uk/InfoCentre/EnglandandWales/Creditoraction/Debtcollectionprocess.aspx).

They are just trying to get more money from you, but we will have already worked out a realistic offer of payment and whether they accept it or not we will continue to send it.

This blogpost (http://moneyaware.co.uk/2011/08/you%E2%80%99re-in-debt-but-what-can-your-creditors-actually-do/) should reassure you about what your creditors can and can’t do but if you have any concerns just give us a call.

I hope this helps.

Kind regards,
Pavan

s2kjames

Hi,

Myself and my wife this week decided to contact CCCS to try and get on top of our debts, and have completed the opening assessment and had a DMP recommended.

We are not in arrears on anything, and are not missing any payments, but we are paying minimum payments on Visa cards and effectively just treading water, and have been for some time. They are reducing by such a small amount, it will take us a lifetime to clear them, and spiralling childcare and living costs mean we have no other options I can see.

We have approx £12k debt each over a total of 6 visa cards, and both have a fairly small overdraft (£250 & £500)

In addition we have a HP agreement each for a car, along with a mortgage which is up to date, and we have approx 25% equity in the house.

Therefore our list of creditors is the 6 Visa cards, and our bank overdrafts.

My questions are:

1. I assume the HP agreements for the cars are unaffected by the DMP, and we won't lose the cars ?

2. Once our preferential mortgage rate expires (3.5 years), I assume we would struggle to move the mortgage to a more competitive rate with another lender, due to the damage to our credit file ?

3. One of the Visa cards is supplied from our bank, which I understand means they could take funds from our bank account to clear this once they are notified of the DMP ?

We have the option to transfer the balance on this card onto one of the other ones prior to the DMP starting - is this an option we should exercise ?

4. In much the same vain, I understand the bank can take funds from our account to clear the O/D's and remove the facility, and its recommended we change banks before starting a DMP. We could probably clear the overdrafts ourselves before officially starting the DMP - I assume this would mean we would no longer need to move banks ?

Thanks in advance.

****EDIT****

Just to further update, we have taken the decision to transfer the bank issued credit card to another one.

Are we able to not include our bank overdrafts in the DMP, and settle them ourselves over the next few months, leaving just the credit cards ?

This would mean our bank would not be a creditor, and hopefully we can stay with the same bank account ?

StepChange_Pavan

Luluz wrote: »

Hi Pavan,

Thank you so much for the reply and the reassurance.

I have completed the online debt remedy and the outcome was that a DMP is recommended. Couple of questions on this:

1) Once I enter into this how will my credit rating be affected? For example, if my financial situation was to improve (my job is bonus related and quite possible a significant sum expected next year) and I was thinking of trying for a mortgage - would a DMP affect this?

2) The report stated I should be able to keep one of my bank accounts (Barclays) yet they have been the most threatening with the latest letter saying all account facilities withdrawn, full debt now payable and the account will be terminated. I do not use this account but it has an overdraft balance sitting on it. I had set up and agreed a monthly payment with them, which I have honoured but it transpires that the monthly fixed amount I agreed of £100 per month was not the full story. They wanted me to keep it within a monthly balance of X amount which had there been no interest charges applied each month £100 would have been sufficient. They have advised I have defaulted on the arrangement, so its been cancelled and the full amount now due! Frustratingly some of the balance is made up of their excessive charges and not money I've spent!

3) The report recommends that I write to alert creditors of making reduced payments whilst the DMP is put in place - do you recommend I cancel the existing direct debits and set up a new one with them? The next payments are due on the 1st of the month and I certainly won't have sufficient funds to cover the minimum or agreed amounts.

4) The report recommends I change my bank account as an overdraft is included in the list of creditors, this bank haven't actually asked for the money to be repaid so should I have not included this in the creditors list? I'm also worried as this account works on the basis I pay a minimum of £1000 per month to be entitled to the overdraft and if I switch, then I won't be honouring that rule.

I think a DMP is the only way forward but would appreciate if you could respond to the above queries. I do hope it makes sense

Thank you!! I feel a sense of relief. The link to Debt Remedy is an excellent service :-)

Hi again,

A DMP will affect your credit file as you’ll be making reduced payments and therefore defaulting against the original terms and conditions of your agreement. Having said that it could take you some time to save up for a deposit for a house which will give you time to rebuild your credit file too.

With regards to your bank account, it’s best to open up a basic bank account away from any existing debts. You’ve done the right thing by including your overdraft in your list of creditors and it will mean that you break the agreement but you will no longer be using it as a banking facility.

Let your creditors know that you’re starting a DMP with us as the booklet suggests and cancel any direct debits. As you won’t be able to afford the minimum payments in the interim just offer a token payment of whatever you can afford.

I hope this helps but if I haven’t covered anything or you think of another question you can get in touch with our support team – they will have access to your information which makes it easier.

Kind regards,
Pavan

mum2one

CCCS_Pavan wrote: »

Hi there and thanks for your question.

Unfortunately there’s no way of making them stop interest and charges but you can write to them explaining your situation and ask for their consideration.

Having said that, if we recommended bankruptcy as your best option and it’s unlikely that your situation will improve in the foreseeable future this could still be the best solution for you. It can be a very daunting prospect but it will rid you of all the stress and hassle you’re having at the moment and help you to move forward. If the money in your daughter’s account is hers they can’t look at this.

If you’d like to talk through your options, please give us a call. Hopefully we can help to put your mind at ease and answer any more questions that you might have

And remember that you don’t have to apologise for asking for advice; that’s what we’re here for

Kind regards,
Pavan

Hi Pavan

I can't say thank you enough, done the budget etc, 1st choice dmp, 2nd bankrupt, so fingers crossed goig for 1st choice DMP. If you get my case your need a very strong large coffee, and gallons of it.

This may sound absolutely daft, but this is the 1st month that I have actually looked forward to getting my credit card statements, as know its a step closer to a new future.

Thank you x

xxlozxx

CCCS_Pavan wrote: »

Hi xxlozxx and thanks for your question.

Try not to worry as this is all part of the standard debt collection process (http://www.cccs.co.uk/InfoCentre/EnglandandWales/Creditoraction/Debtcollectionprocess.aspx).

They are just trying to get more money from you, but we will have already worked out a realistic offer of payment and whether they accept it or not we will continue to send it.

This blogpost (http://moneyaware.co.uk/2011/08/you%E2%80%99re-in-debt-but-what-can-your-creditors-actually-do/) should reassure you about what your creditors can and can’t do but if you have any concerns just give us a call.

I hope this helps.

Kind regards,
Pavan

Thank you for your response much appreciated

StepChange_Pavan

s2kjames wrote: »

Hi,

Myself and my wife this week decided to contact CCCS to try and get on top of our debts, and have completed the opening assessment and had a DMP recommended.

We are not in arrears on anything, and are not missing any payments, but we are paying minimum payments on Visa cards and effectively just treading water, and have been for some time. They are reducing by such a small amount, it will take us a lifetime to clear them, and spiralling childcare and living costs mean we have no other options I can see.

We have approx £12k debt each over a total of 6 visa cards, and both have a fairly small overdraft (£250 & £500)

In addition we have a HP agreement each for a car, along with a mortgage which is up to date, and we have approx 25% equity in the house.

Therefore our list of creditors is the 6 Visa cards, and our bank overdrafts.

My questions are:

1. I assume the HP agreements for the cars are unaffected by the DMP, and we won't lose the cars ?

2. Once our preferential mortgage rate expires (3.5 years), I assume we would struggle to move the mortgage to a more competitive rate with another lender, due to the damage to our credit file ?

3. One of the Visa cards is supplied from our bank, which I understand means they could take funds from our bank account to clear this once they are notified of the DMP ?

We have the option to transfer the balance on this card onto one of the other ones prior to the DMP starting - is this an option we should exercise ?

4. In much the same vain, I understand the bank can take funds from our account to clear the O/D's and remove the facility, and its recommended we change banks before starting a DMP. We could probably clear the overdrafts ourselves before officially starting the DMP - I assume this would mean we would no longer need to move banks ?

Thanks in advance.

****EDIT****

Just to further update, we have taken the decision to transfer the bank issued credit card to another one.

Are we able to not include our bank overdrafts in the DMP, and settle them ourselves over the next few months, leaving just the credit cards ?

This would mean our bank would not be a creditor, and hopefully we can stay with the same bank account ?

Hi s2kjames and thanks for your question.

You’re right that you won’t lose the cars provided that you have budgeted for them within your expenditure and can afford to keep these up to date. It’s likely that they term of your DMP will be reduced when these are repaid.

Your credit file will be affected by your DMP so you may struggle to get the best deal for your mortgage in the future.

We would recommend keeping all your creditors on your DMP and switching your account but I can see from your edit that you’ve switched your credit card. We wouldn’t advise you to clear your overdrafts before the DMP as this could be seen as preferential treatment and it’s not usually a good idea to open a new credit card when you know you can’t afford the repayments. If your creditors see that you have done this prior to your DMP they may be quicker to follow the debt collection process - http://www.cccs.co.uk/InfoCentre/EnglandandWales/Creditoraction/Debtcollectionprocess.aspx.

I’d strongly advise you to give our support team a call as they will have access to your information and can update your records – they’ll also be able to give you instant advice.

I hope this helps.

Kind regards,
Pavan