Struggling with debt? Ask a debt advisor a question

StepChange_Pavan

chinesedeli wrote: »

Hi there, a few years a go I managed to get help from the CAB to reduce my debts to £1 a month. This has been going really well until recently and I am hoping that someone can help me.

I owe £450 to Evans (Lewis Group) and have been happily paying the £1 a month by standing order and have never missed a payment. A couple of months a go, they wrote to me saying that they are taking me to court as I missed a payment. I looked through all of my bank statements and was pleased to find that I have never missed a payment. I phoned them and they told me to send my statements to them so that they could see- which I did.


Anyway I have just received another letter from them saying that they are taking me to court etc etc. What do I do? I have never missed a payment and they have been adding extra charges to my bill. I feel so scared by all of this as nobody is listening to me. Please help x

Hi chinesedeli and thanks for your post.

Although you’ve never missed a £1 payment, you’ve been making token payments for the last few years which are less than the amount in your original agreement.

Because you’ve defaulted, they can apply for a CCJ at any time – don’t worry though; this won’t mean that you have to pay any more if you can’t afford it. They may just be threatening court action to try and pressure you into making extra payments but it’s important that you stick to paying the £1 if that’s all you can afford.

You can write to your creditor explaining your situation and attach a copy of your budget as proof of your circumstances.
This blogpost explains what you would need to do if you receive CCJ claim forms: http://moneyaware.co.uk/ccj.
If you’d like some more detailed advice on your options, you can call us on 0800 138 1111.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

Mrsmcdee wrote: »

I am in need of urgent financial assistance. I have just discovered we have 5 cards totaling 30000 worth of debt (approx). We do not own a home and need help sorting it. Minimum monthly payments are now being made after a default of 5 months. Direct debits were being refused due to lack of funds and bank charges added into it. How do we go about fixing this? Any assistance is gratefully received

Hi Mrsmcdee and welcome to the forum

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 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.

Kind regards,
Pavan

Anne5

Hello

I am in a bit of trouble with a bank owing them nearly 1k in bank charges/interest.

I had a joint account with me ex-husband and havent used the account in a couple of years. I had received a call in December saying that I was a few pounds over the £250 overdraft limit so i paid £10 to put it back in within the limit (as they suggested to avoid any charges etc) I did mean to get around to sorting paying the overdraft back however since I've been on my own its been a struggle for money, I had to move house. Last night i received call from the bank saying that I owe just under 1K in interest and bank charges as they charge per day for being over the overdraft. If I had known then i could have arranged something to make sure it was still within the limit as i previously did. They said that they tried to contact me by mail and sending txt messages (which i dont understand why they would sent a txt for a banking issue) however i havent received anything. Long story short as a gesture of goodwill they said they would take the last charge of £174 off leaving the balance at £888.

I have no way of paying this back, they said that the other party will also be liable but I have no contact details for my exhusband, i have no idea where he is.

I could now set up some sort of payment plan for the £250 which would take some time to pay off I know but just cant afford this £888 which will no doubt generate more interest and charges (although they said they would put a 30 day hold on this but not on the interest charges for the £250)

I though about getting a 1k loan or credit card pay it off but realise i would be substituting one debt for another.

Is there anyway I can get around this?

Thank you for your time.

Anne

Gueld

Hi

I have around 7.5K in unsecured debts, I am 25 and will be losing my jobseekers allowance due to being out of work for over 6 months. (Can only seem to get unpaid internships with my degree, sigh)

I have been considering using a Trust Deed as I am in Scotland. It would be £165 a month (which my mother can help with).

My question is, what are the disadvantages of this? Are there any other options? Are Trust Deeds worth it? I am cautious as obviously the companies doing this get something out of it so I'm worried they might not tell me everything.

chinesedeli

CCCS_Pavan wrote: »

Hi chinesedeli and thanks for your post.

Although you’ve never missed a £1 payment, you’ve been making token payments for the last few years which are less than the amount in your original agreement.

Because you’ve defaulted, they can apply for a CCJ at any time – don’t worry though; this won’t mean that you have to pay any more if you can’t afford it. They may just be threatening court action to try and pressure you into making extra payments but it’s important that you stick to paying the £1 if that’s all you can afford.

You can write to your creditor explaining your situation and attach a copy of your budget as proof of your circumstances.
This blogpost explains what you would need to do if you receive CCJ claim forms: http://moneyaware.co.uk/ccj.
If you’d like some more detailed advice on your options, you can call us on 0800 138 1111.

I hope this helps.

Kind regards,
Pavan

Hi Pavan, thank you for replying to me I really appreciate it.

I have never defaulted on paying the 'token payment' of £1 a month, but they are saying that I didn't pay for June and July's. I have my bank statements which show that I have never missed a payment, and is just paid automatically each month. The guy on the phone was really rude to me and I just ended up crying, I know it is silly but I just hate being in this situation.

Thanks again x

Miley88

Hi,

I'm doing this on behalf of my mother-in-law so please bear with me whilst i take you through all the facts!

About 7/8 years ago her husband (my husbands stepd dad) had a business which was going slightly belly up so to help make ends meat they took out credit cards in (in her name) as their outgoings were more than their incomings with 4 children.

About 2 years laters he went bankrupt and they had close to £11000 between 2 credit cards and they'd been told they owed money back to DWP due to an over payment on child tax credits for her 2 children and his 2 children from a previous marriage. The over payment was over £2000.

Fast forward to the november 2011 and she had another credit card in her name which she used to put tyres, tax and mot for his car on it.

March 2012 they split up - he leaves her with all the debt which currently stands at £7400 for the 2 credit cards which is with a debt management agency so interest has been frozen. £700 for child tax credits and £1500 on her current credit card (approx £600 of which was for his car). Her estranged husband hasn't paid any money to her for the debts even though the child tax credits are for his kids as well, the credit cards were used to pay for food, bills ( water, sewage, electrics, gas etc) clothes for all the kids as well as them.

My mother in law is currently 58 and only brings in £900 a month working full time. Shes had to move from a 3 bed semi to a studio flat (luckily costing £350/month in rent) but after shes paid her utilities, food, running costs for car (which she needs due an elderly relative) and paying £50 towards big debt, £10 to child tax and £50 to current credit card shes left with £50 a month with no money going into savings. She doesnt qualify fora debt relief order and unfortunately none of the children can help - weve only just remortgaged prior to this happening to redo windows, another child is in the process of buying her first house, another child owes a lot of money to his dad and the other 2 children cant afford to help.

Is there any way in which some of this debt can be transferred into his name especially as it was for both of them?

Thanks for any advice/help you can give.

Miley88

mum2one

Miley88 wrote: »

Hi,

I'm doing this on behalf of my mother-in-law so please bear with me whilst i take you through all the facts!

About 7/8 years ago her husband (my husbands stepd dad) had a business which was going slightly belly up so to help make ends meat they took out credit cards in (in her name) as their outgoings were more than their incomings with 4 children.

About 2 years laters he went bankrupt and they had close to £11000 between 2 credit cards and they'd been told they owed money back to DWP due to an over payment on child tax credits for her 2 children and his 2 children from a previous marriage. The over payment was over £2000.

Fast forward to the november 2011 and she had another credit card in her name which she used to put tyres, tax and mot for his car on it.

March 2012 they split up - he leaves her with all the debt which currently stands at £7400 for the 2 credit cards which is with a debt management agency so interest has been frozen. £700 for child tax credits and £1500 on her current credit card (approx £600 of which was for his car). Her estranged husband hasn't paid any money to her for the debts even though the child tax credits are for his kids as well, the credit cards were used to pay for food, bills ( water, sewage, electrics, gas etc) clothes for all the kids as well as them.

My mother in law is currently 58 and only brings in £900 a month working full time. Shes had to move from a 3 bed semi to a studio flat (luckily costing £350/month in rent) but after shes paid her utilities, food, running costs for car (which she needs due an elderly relative) and paying £50 towards big debt, £10 to child tax and £50 to current credit card shes left with £50 a month with no money going into savings. She doesnt qualify fora debt relief order and unfortunately none of the children can help - weve only just remortgaged prior to this happening to redo windows, another child is in the process of buying her first house, another child owes a lot of money to his dad and the other 2 children cant afford to help.

Is there any way in which some of this debt can be transferred into his name especially as it was for both of them?

Thanks for any advice/help you can give.

Miley88

from what I can see unless the credit cards were in joint names, your mum is liable for all the costs run up on it, even if the purchases were to keep roof over their head and items for the gentleman, (sorry).

Has your mum filled in the debt remedy on CCCS website, and see what they say, it lists the what must be paid ie rent is more important than a credit card payment.

Hope you get things sorted, at least your mum has support from yourselves, x

StepChange_Pavan

Anne5 wrote: »

Hello

I am in a bit of trouble with a bank owing them nearly 1k in bank charges/interest.

I had a joint account with me ex-husband and havent used the account in a couple of years. I had received a call in December saying that I was a few pounds over the £250 overdraft limit so i paid £10 to put it back in within the limit (as they suggested to avoid any charges etc) I did mean to get around to sorting paying the overdraft back however since I've been on my own its been a struggle for money, I had to move house. Last night i received call from the bank saying that I owe just under 1K in interest and bank charges as they charge per day for being over the overdraft. If I had known then i could have arranged something to make sure it was still within the limit as i previously did. They said that they tried to contact me by mail and sending txt messages (which i dont understand why they would sent a txt for a banking issue) however i havent received anything. Long story short as a gesture of goodwill they said they would take the last charge of £174 off leaving the balance at £888.

I have no way of paying this back, they said that the other party will also be liable but I have no contact details for my exhusband, i have no idea where he is.

I could now set up some sort of payment plan for the £250 which would take some time to pay off I know but just cant afford this £888 which will no doubt generate more interest and charges (although they said they would put a 30 day hold on this but not on the interest charges for the £250)

I though about getting a 1k loan or credit card pay it off but realise i would be substituting one debt for another.

Is there anyway I can get around this?

Thank you for your time.

Anne

Hi Anne and thanks for your post.

It’s best to speak with the bank and come to an arrangement to pay it at a rate that you can afford. They may be willing to freeze or at least reduce the interest and charges to help you repay it.

We don’t usually recommend taking out another debt to clear an existing one as you’re right that it’s just substituting one for the other and can make the situation worse in the long term. However, if the bank won’t agree to reducing the charges and you have access to cheaper or interest free credit you could transfer the debt so at least it will be reducing with every payment you make.

I hope this helps, but if you need any more detailed advice please give us a call (0800 138 1111).

Kind regards,
Pavan

StepChange_Pavan

Gueld wrote: »

Hi

I have around 7.5K in unsecured debts, I am 25 and will be losing my jobseekers allowance due to being out of work for over 6 months. (Can only seem to get unpaid internships with my degree, sigh)

I have been considering using a Trust Deed as I am in Scotland. It would be £165 a month (which my mother can help with).

My question is, what are the disadvantages of this? Are there any other options? Are Trust Deeds worth it? I am cautious as obviously the companies doing this get something out of it so I'm worried they might not tell me everything.

Hi Gueld and thanks for your post.

A Trust Deed can be a fantastic debt solution but It’s difficult to say whether this is the best solution for you or if there are any other options available without knowing more about your situation. I’d recommend that you get in touch with us so that we can look at your circumstances thoroughly and see what options you have. We give completely free and impartial advice so we’d only recommend a Trust Deed if it was best for you.

You can visit our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu) or call our free helpline on 0800 138 1111.

Kind regards,
Pavan

StepChange_Pavan

chinesedeli wrote: »

Hi Pavan, thank you for replying to me I really appreciate it.

I have never defaulted on paying the 'token payment' of £1 a month, but they are saying that I didn't pay for June and July's. I have my bank statements which show that I have never missed a payment, and is just paid automatically each month. The guy on the phone was really rude to me and I just ended up crying, I know it is silly but I just hate being in this situation.

Thanks again x

Hi again,

Although you’ve never missed the token payment, you defaulted when you stopped making the minimum payments – there’s more information about what a default is here: http://moneyaware.co.uk/default.

Try not to worry and if you find the calls upsetting it’s best not to speak to them over the phone and only correspond with them in writing instead. This blogpost gives you a bit more information about what you can do to stop them if you feel that they’re harassing you: http://moneyaware.co.uk/2011/06/what-to-do-when-creditors-keep-phoning-you-2/.

Like I mentioned before, it’s best to give us a call if you’d like some more detailed advice so that we can go through your options and try and reassure you.

Kind regards,
Pavan