Struggling with debt? Ask a debt advisor a question

alisonkee

Hi, Back in 2006 i had a student account where I had an overdraft. I have been paying this over draft off through RBS the company but moved to a different country and completely forgot for a few months, until a credit agency Triton started to contact I payed with them on time for 2 years and now recently my payments stopped and another agency Allied International have started ringing me i have never heard anything from triton again. I checked my credit report and i was defaulted in april 2011 although i have continued to pay on time since this my credit file has stopped at the default and is showing no further payments from me. It also says it was last update on 27 July 2012 however showing no payments have been made since April 2011!! What is going on, and why has this other agency now got my debt without being told? I need to apply for a mortgage soon and wont be able to. I can also now pay the full and final payment but i want to be sure im doing the right thing first.

maccymum

Hi
firstly i am so so sorry if this appears as i am a whinging! i am just looking for a wee bit help or support.
i am married with 2 dependants and an 18year old. we both work but stupidly have gotten in 2 alot of debt again (you would think we would learn from our mistakes but NO!!!:mad:) we currently have a consolidation loan taken out 2 years ago and runs for another 3 we pay 222 a month....but even more stupidly are now 17500 in debt! we r just managing to survive but there r no extras and it is now at the stage of affecting my health and relationships! i have never really suffered from depression but feel i could be heading there! we have no equity in our wee house so a remortgage is out the question> we r considering a secured loan but unsure if thats the right thing? i have done the switch suppliers and martins budget thingy :money:but it hasnt helped. there are 3 adults, 2 teenagers and a dog in my hme and i spend about 80-100 in shopping a week....is that 2 much?
i have tried 2 get another job but there is nothing
can any1 help? i hear about trust deeds, bankruptcy, ebt plans but do not know what to do or where to turn
thankyou so much 4 reading and sorry for moaning,

M

DarkKnight1

Hi,

I'm a newbie to the forum and would really appreciate some advice from people that have/ are going through this.

I owe a 5 figure sum to various creditors (some of which have been sold on to debt collection agencies). I have been in a plan with CCCS for several years now & have for the most part made the payments in time.

However with my salary & my outgoings every month is a struggle & I've reached the point where I feel life is passing me by & have this constant stress everyday that affects pretty much every part of my life. A family member has very kindly offered to help by lending me a small amount to see if I can get the debt drastically reduced & therefore improve my quality of life and happiness.

I have no assets apart from a run down car worth peanuts & don't own my own home. All my debts are unsecured.

I have been seriously considering bankruptcy but my family member wants me to avoid this is possible.

I want to approach my creditors with very low lump sum payment offers and if they're not willing to accept then I think bankruptcy will be the best choice as I'm sick of living with debt & my current quality of life & letting life pass me by.

Therefore can anyone who's either been through a similar process or is currently in a process offer me some useful advice, tactics or tips to negotiate with? Any help will be greatly received and appreciated!

Am I right in thinking that as all my debt is unsecured - the worst that they can do is to take me to court; which I feel is highly unlikely due to my lack of assets & the relatively (in the grand scheme of things) low amounts that I owe each creditor?

Am I therefore in a strong position to say 'that's my offer, take it or leave it or I will either simply cease payments to you, or will bankrupt myself & you'll get nothing'?

Any help and advice would be greatly appreciated. Thanks, from someone who has reached the end of the line...

(reading that back it makes me sound a bit suicidal but I can assure you that's not the case! )

I also read on a US site that debt collection agencies have a certain timeframe in which they have to collect the debt by or it simply closes, thereby eradicating the need to pay it. Has anyone else heard anything similar for the UK?

Thanks,

DarkKnight1

Luluz

CCCS_Pavan wrote: »

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

Hi,

In order to protect the credit relationship with some of my creditors, is it possible to set up a DMP to only include the troublesome debts. For example I have a Tesco credit with a low APR for the lifetime of the balance and currently pay £39 per month. This payment I could factor into my monthly expenditure as the amount is affordable rather than lump it together with all creditors. So could I exclude this and possibly others from the DMP?

Thanks
Lorreine

kat86_2

Hey I have two loans with two different banks and a large overdraft all adding up to 10000 and paying interest on all these seperately is adding up. I was wanting to combine these into one loan but I have a bad credit rating even though i have never missed a payment, even on small stuff like phone bills etc. What would be the best thing to do to save cash?

Thanks

StepChange_Pavan

alisonkee wrote: »

Hi, Back in 2006 i had a student account where I had an overdraft. I have been paying this over draft off through RBS the company but moved to a different country and completely forgot for a few months, until a credit agency Triton started to contact I payed with them on time for 2 years and now recently my payments stopped and another agency Allied International have started ringing me i have never heard anything from triton again. I checked my credit report and i was defaulted in april 2011 although i have continued to pay on time since this my credit file has stopped at the default and is showing no further payments from me. It also says it was last update on 27 July 2012 however showing no payments have been made since April 2011!! What is going on, and why has this other agency now got my debt without being told? I need to apply for a mortgage soon and wont be able to. I can also now pay the full and final payment but i want to be sure im doing the right thing first.

Hi alisonkee and thanks for your question.

It’s important to find out exactly who owns the debt so that you’re sending the money to the right place. It’s not unusual for debts to be passed from one agency to another but if you’ve made payments that aren’t showing on your credit file, I’d recommend that you look into this.

You can contact the agency that you’ve been making payments to and ask them to update your credit file. You can also ask them who they have passed the debt on to so you know you’re paying the right company.

I hope this helps.

Kind regards,
Pavan

visualaid

I’ve struggled with managing my personal finances for some time, and have been pretty irresponsible with money in the past. The main problem that I have at the moment is that I have serious trouble getting to the end of each month with any money left.

I’m currently paying off three separate debts, £50 to a debt collection for my failed MSc fees, £100 to my parents and £200 to repay company credit card debt. The company credit card debt arose when I lost my personal card whilst training in the US, and I ended up using that, which didn’t have a limit on and I ended up racking up over £2000 in spending in the time I was there.

I got scared about the debt when I got back to the UK and didn’t open any post or answer calls regarding it, which result in it being passed to the County Court. They now deduct £200 from my pay check directly each month and its really making me struggle. I wanted to ask whether or not it would be possible to arrange with them to get this amount lowered? As I can’t reduce my other debt repayments.

I recently got my credit report through Experian and the amount relating to the debt quoted in the Public Record section is £2,454. Is this the outstanding amount or the amount that is left to pay? As the payments started in last September, so is it possible for court fees etc to amount to over £2000 pounds?

I’m all a bit lost with it all, and have spent far too long with my head in the sand, and really want to get myself out of this mess.


Any advice would be greatly appreciated.

StepChange_Pavan

maccymum wrote: »

Hi
firstly i am so so sorry if this appears as i am a whinging! i am just looking for a wee bit help or support.
i am married with 2 dependants and an 18year old. we both work but stupidly have gotten in 2 alot of debt again (you would think we would learn from our mistakes but NO!!!:mad:) we currently have a consolidation loan taken out 2 years ago and runs for another 3 we pay 222 a month....but even more stupidly are now 17500 in debt! we r just managing to survive but there r no extras and it is now at the stage of affecting my health and relationships! i have never really suffered from depression but feel i could be heading there! we have no equity in our wee house so a remortgage is out the question> we r considering a secured loan but unsure if thats the right thing? i have done the switch suppliers and martins budget thingy :money:but it hasnt helped. there are 3 adults, 2 teenagers and a dog in my hme and i spend about 80-100 in shopping a week....is that 2 much?
i have tried 2 get another job but there is nothing
can any1 help? i hear about trust deeds, bankruptcy, ebt plans but do not know what to do or where to turn
thankyou so much 4 reading and sorry for moaning,

M

Hi M and welcome to the forum.
We don’t usually recommend taking out consolidation loans as they can often make the situation worse in the long term. You can read more about why we say this in our blogpost: http://moneyaware.co.uk/2011/04/to-debt-consolidate-or-not-to-debt-consolidate/

The amount you’re spending on groceries etc sounds about right for a family of your size but there could be other areas in your budget that could be adjusted to help.

You’re right that there are lots of different debt solutions available and we’d need to look at your situation in a bit more detail to be able to advise you on what’s best for you.

If you’d like some free and impartial advice you can 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 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

StepChange_Pavan

DarkKnight1 wrote: »

Hi,

I'm a newbie to the forum and would really appreciate some advice from people that have/ are going through this.

I owe a 5 figure sum to various creditors (some of which have been sold on to debt collection agencies). I have been in a plan with CCCS for several years now & have for the most part made the payments in time.

However with my salary & my outgoings every month is a struggle & I've reached the point where I feel life is passing me by & have this constant stress everyday that affects pretty much every part of my life. A family member has very kindly offered to help by lending me a small amount to see if I can get the debt drastically reduced & therefore improve my quality of life and happiness.

I have no assets apart from a run down car worth peanuts & don't own my own home. All my debts are unsecured.

I have been seriously considering bankruptcy but my family member wants me to avoid this is possible.

I want to approach my creditors with very low lump sum payment offers and if they're not willing to accept then I think bankruptcy will be the best choice as I'm sick of living with debt & my current quality of life & letting life pass me by.

Therefore can anyone who's either been through a similar process or is currently in a process offer me some useful advice, tactics or tips to negotiate with? Any help will be greatly received and appreciated!

Am I right in thinking that as all my debt is unsecured - the worst that they can do is to take me to court; which I feel is highly unlikely due to my lack of assets & the relatively (in the grand scheme of things) low amounts that I owe each creditor?

Am I therefore in a strong position to say 'that's my offer, take it or leave it or I will either simply cease payments to you, or will bankrupt myself & you'll get nothing'?

Any help and advice would be greatly appreciated. Thanks, from someone who has reached the end of the line...

(reading that back it makes me sound a bit suicidal but I can assure you that's not the case! )

I also read on a US site that debt collection agencies have a certain timeframe in which they have to collect the debt by or it simply closes, thereby eradicating the need to pay it. Has anyone else heard anything similar for the UK?

Thanks,

DarkKnight1

Hi DarkKnight1 and thanks for your post.

As you’re already a client of ours, it’s a good idea to give us a call so that we can go through your options with you. You’re right that if all your debts are unsecured, bankruptcy could be your best solution, but we’d need to look at your situation in a bit more detail to be able to say. We can also help you settlement offers if this is what you decide to do.

There is a legislation that gives creditors a timeframe in which they should collect the debt before it becomes legally unenforceable. However, as you’ve been making regular payments this wouldn’t apply to you.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

Luluz wrote: »

Hi,

In order to protect the credit relationship with some of my creditors, is it possible to set up a DMP to only include the troublesome debts. For example I have a Tesco credit with a low APR for the lifetime of the balance and currently pay £39 per month. This payment I could factor into my monthly expenditure as the amount is affordable rather than lump it together with all creditors. So could I exclude this and possibly others from the DMP?

Thanks
Lorreine

Hi Lorreine,
You would need to include all of your creditors in a DMP. If you decided to keep certain debts up to date, other creditors could follow the debt collection process (http://www.cccs.co.uk/InfoCentre/EnglandandWales/Creditoraction/Debtcollectionprocess.aspx) quicker as you’ve shown preferential treatment to some over others.

Although you would protect your relationship with the one creditor, your credit file will be affected either way and the other creditors could be encouraged to take enforcement action if they can see you’re showing preferential treatment.

I hope this helps.

Kind regards,
Pavan