Struggling with debt? Ask a debt advisor a question

PARDDU

CCCS_Pavan wrote: »

Hi PARDDU and welcome to the forum.

Our advice depends on how much you’re struggling – we don’t usually recommend taking out further debts to clear existing ones as it can make the situation worse in the long term if you’re already unable to maintain minimum payments. We wouldn’t advise that you secure the debt against the mortgage as this could put your house at risk if you can’t make the payments.

The debt solutions that we recommend would all affect your credit rating which would only be an issue if you were looking to take out further credit in the near future.

I’d recommend that you draw up a budget in the first instance to see if there are any changes you can make to your income/expenditure. Once you’ve done this you’ll be in a better position to see what you can afford.

If your husband is in a position to take out a card at a better rate and you can afford the repayments, this could be an option. It’s important that you cut up the old card and close the account to remove any temptation of spending on it again.

I hope this helps.

Kind regards,
Pavan

Thanks for the advice Pavan - I think we will be looking at transfering my debts to a credit card my husband can get. We've drawn up a budget and things will be ok hopefully.
One more question tho - Do you think it would be better for us to fix our mortgage before my husband takes out this credit card? Will this Credit Card effect his credit rating and therefore effect our chances of fixing our mortgage?

Thanks
:A

StepChange_Pavan

sandiejannorman wrote: »

Hi

I have finally got round to writing to all my creditors to reduce my debt.
I have been struggling big time and every month I have been getting charged fee's from my bank.

I have offered them token payments and sent the letters off nearly a week ago now and haven't heard anything.
I'm really worried about going through another month with no cash. I've had to get out a payday loan to help me through the month. They asked me if I wanted to defer the payment for a month and only pay £70 this month. I was happy to do this but I didnt realise this doesn't actually reduce the debt.

I suffer with anxiety and depression and I'm feeling very low at the min and so worried about being in all this debt and not being able to support my son who's only 2.

My questions are:
Can I reduce my payments now or do I have to wait to hear back from my creditors?
Can I claim back my bank charges now? They've refused the refund in the past.

Thanks for your time

Hi sandiejannorman and thanks for your post.

You’ve done the right thing by writing to your creditors and making them aware of your situation. Offering token payments is a short term solution if you can’t afford the minimum payments but it won’t help reduce the debt in the long term.

Start by offering them reduced payments of whatever you can afford but I’d recommend that you get in touch with us to see what your options are. I’m not sure what charges you might be eligible to reclaim but if you’re referring to PPI you can use this guide to help you: http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance.

You can visit our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu) or call our helpline on 0800 138 1111for some free and impartial debt advice. It’s free to call (including from mobiles) and we’re open Monday to Friday 8am - 8pm and Saturdays 9am – 3pm.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

win123 wrote: »

Dear CCCS

Just would like some advice for my mum who is 66 years old she has a credit card debt of about 5k and argos card 600 pound and is struggling to pay the 127 per month payments on card and argos going up to 56 pound this month and she just cant manage it -will she be able to go on a DMP - I am on a DMP with the CCCS and we live together - Just wanted advice can she go on a DMP at her age? thanks for the advice

Hi win123 and thanks for your question.

We’d need to look at her situation in a bit more detail to be able to say whether a DMP is the best solution for her. I’d recommend that she gets in touch and we can advise her on all her options. If she prefers, she can give us authority to speak to you on her behalf.

Kind regards,
Pavan

StepChange_Pavan

PARDDU wrote: »

Thanks for the advice Pavan - I think we will be looking at transfering my debts to a credit card my husband can get. We've drawn up a budget and things will be ok hopefully.
One more question tho - Do you think it would be better for us to fix our mortgage before my husband takes out this credit card? Will this Credit Card effect his credit rating and therefore effect our chances of fixing our mortgage?

Thanks
:A

Hi again,

It’s difficult to say whether it will affect your chances of fixing the mortgage. Taking out a credit card will affect his credit file but I can’t say to what extent so it may be best to fix the mortgage first if this is a bigger priority.

You could contact one of the credit reference agencies for more detailed advice on how it could affect you. There’s also a lot of information about how credit files work here: http://www.moneysavingexpert.com/loans/credit-rating-credit-score
I hope this helps.

Kind regards,
Pavan

win123

Hi Pavan

Thank you for your reply - just one more question my mum is thinking of going on DMP with CCCS but is on DLA most of this goes on her care etc like someone going with her to do her shopping and extra help at home etc - just a bit worried because of her age being 66 that the cccs wont be able to help her. If you can't help her does anyone know what her other options would be she owes about 6k thanks she is so worried and I am affraid it is making her ill

stickman

Hi All,
Son on DMP with cccs,brilliant support/advice from them thank-you.
Question, Son is thinking of going for full and final,now for this exercise say all agree and son pays 10k based on 25p in pound,all well again.
My problem as a Dad is if creditors are willing to accept the 10k in full and final NOW then why not let son continue paying his £500+ a month and clear in 2 years as opposed to current 7 years on DMP. Obviously creditors happy to settle for the 10k so what difference if it's paid immediately or over 2 years.
Bank of mum and dad helping here hence question
Thanks

mum2one

win123 wrote: »

Hi Pavan

Thank you for your reply - just one more question my mum is thinking of going on DMP with CCCS but is on DLA most of this goes on her care etc like someone going with her to do her shopping and extra help at home etc - just a bit worried because of her age being 66 that the cccs wont be able to help her. If you can't help her does anyone know what her other options would be she owes about 6k thanks she is so worried and I am affraid it is making her ill

I'm on DLA and I was worried that my petrol costs were excessive, as due to lack of mobility I have to go everywhere in the car, but I explained this to the advisor who put a note on as to why, I would say as long as there is a reasonable explanation as to expenses, for mine I had to increase glasses allowance, as even thou my daughter is under 16, the teenage frames don't fit her so she has adults frames and generally i pay £35 extra, - she has to have eye tests every 6 months and I wear glasses, I have to eye tests 12 months, - again, little note as to say why.

If I was going to Harrords for glasses or your mum fancied her shopping from Harrods as well, then that would be a different matter, but its normal living expenses.
(there just my thoughts from experience), xx

Gym_Addict

I have a credit card debt of £4300 and have just balanced transferred to a 0% card. My mortgage is £90000 with 13 years to go. It is a repayment mortgage with 2 different rates: 6.5% (this fixed rate deal expires Apr 2014 and 5.6% whihc expires next April. I pay £857/month. I pay around £150 to my cc/month and try to overpay my mortgae by £30-£40 month.
These are my only debts.

Advice needed: should I continue to overpay the mortgage or am I better bringing the cc down?

Thanks

mum2one

Gym_Addict wrote: »

I have a credit card debt of £4300 and have just balanced transferred to a 0% card. My mortgage is £90000 with 13 years to go. It is a repayment mortgage with 2 different rates: 6.5% (this fixed rate deal expires Apr 2014 and 5.6% whihc expires next April. I pay £857/month. I pay around £150 to my cc/month and try to overpay my mortgae by £30-£40 month.
These are my only debts.

Advice needed: should I continue to overpay the mortgage or am I better bringing the cc down?

Thanks

how long is the 0% for, maybe pay the min on the cc and put the difference in back account, incase you cant get 0% again, you would have a sum to pay the new card off with, also you mention your mortgage rate, is there liable to be much increase in the rate? xx

rita-rabbit

I have delayed this for some time as I had hoped to get to top of things.

I am a leaseholder of my ex-council flat. Whilst I am not ashamed of this fact I am somewhat peeved that this change has got me into debt - last year after 4 years battles resulted in a week long Leasehold Valuation Tribunal Hearing & am saddled with £6,000 worthless `refubishment' charge - less £300 for substandard work (I do not consider this a priority bill & keep leasehold charges payments completely separate from the `refurbishment charge' as I am hoping that time & community pressure will allow that to be written off)
My income has been unstable over the past few years however it has finally regularised (albeit I am still an agency worker my role is `safe' & I have been applying for fixed term positions as well as permanent: with both guaranteed sick & holiday pay, bank holidays etc all - office roles do not facilitate working then so not getting paid then unless sufficient hours accrued 2 qualify presently). Can I claim backdated benefits from years when there were gaps in employment or I was working part time hours - specifically income support, working tax credit, mortgage relief?
I am also in the process of chasing overpaid tax - I recently received a few £100 for tax years 2007-8 - how long does this take? I had started the process with Unison but they asked for SO much info & they go tired of waiting for all of it (despite charging 40p in every £1 they get for you!).
Over the years to `cover the gaps' I have taken out various credit cards with 0% & juggled them - however got stuck & now owe some £7,000 (I think) as well as as approx £2,000 in overdrafts. I am studying part time & this month is a stinger as the car tax, insurance & MOT are due as well as £1000 for this terms college fees.
NatWest regularly suggest having an account review meeting with them - is it worth it or will they try to sell me consolidation? My main bank account is with them, however I have a Santander current account with a £600 overdrawn.
Prior to buying the flat (I was a council tenant) I got various creditors to agree a fixed sum to clear debts (ie less than the total amount) by contacting them myself directly - is it worth me doing this again?
Lastly anxiety has got me itching to go out & buy some fags! I have started keying in on the CCCS debtremedy website - should I stick with them & will liaison with them affect me being able to move home in the future?