Struggling with debt? Ask a debt advisor a question

StepChange_Pavan

Jerome_122 wrote: »

Hi there,

I want to try sort out my credit card debts and I am unsure which way to go. I have two credit cards with debt. 1 card with about £5,500 and another card with £2000. So roughly about £7,500 in total.

I have tried to look at a way I could combine what i owe and get rid of the debt with a paying an affordable amount and all i have found at the moment is that I could possibly get a long term loan of £7,500 to be paid back over about 5 years or I could get a new balance transfer credit card to pay off the £7,500 transfered to it from both my old cards by paying roughly about £120 a month for approximately 60 months (I think). I really could do with some professional help as I am terrible with figures and banking but i feel it is getting a bit out of hand with all these minimum payents and I am worried about that.

The most i can afford to pay back a month is really about £150. My current credit cards debts are with Nationwide and Barclays.

Thank you in advance.

Hi there Jerome_122,

We wouldn't usually recommend that you take out a consolidation loan to pay off these debts. Consolidation loans often have an interest rate that’s higher than the combined interest rate of the debts in their current state. Also, you may find it difficult to convince a bank to consolidate it for you if the combined loan amount puts you over the threshold for responsible lending.

It’s very important that you get some professional – and most importantly free – debt advice on what you can truly afford. I think it would be a good idea for you to get in touch with us. We offer several debt solutions that are tailor-made to your current situation. All advice is free and confidential.

You can call our Helpline (free from loandlines and mobiles) on 0800 138 1111. We are open Mon to Fri 8 a.m to 8 p.m. and Saturdays 9 a.m. to 3 p.m.


If you prefer to work out a solution anonymously, you can try our online Debt Remedy service.

Thank you for posting and good luck,

Pav

StepChange_Pavan

matty2712 wrote: »

Received a letter from Barclaycard yesterday telling me that my repayment plan has been cancelled and they need the full monthly payments from now on, I was a bemused by this and contacted them explaining the situ about me being on a DMP, which they already knew. Apparently they have not received any confirmation from CCCS, is this normal practice by CCCS?? Anyhow the lady at BC noted the conversation and froze all interest on the account for 30 days. She finished off by telling me that they need all the documentation from CCCS. which they reckon they have sent.

By the way the 1st payment to CCCS was on the 1st of this month, Cant wait until they have finally started paying off the debts

Hi Matty2712

Thanks for posting

I just want to reassure you that once your paperwork came in we would have got in touch with your creditors and told them what you’d be doing moving forward. This sounds like another one of their tactics to pressure you into paying more money than they will be getting on the plan with ourselves. All of your creditors are aware that we distribute the money at the end of the month (on or around the 25th).

Please also be aware that you are more than welcome to ring us on the Aftercare number provided in your welcome pack should you have any more problems or questions.

Best wishes,

Pav

StepChange_Pavan

f0xsplit wrote: »

Just after a little bit of advice. I have two credit card debts that add to about £8600 in total plus an overdraft of £1800 which I usually hit the limit of by the end of the month. My overdraft only costs £11 a month in interest but the card debts cost £130! I really want to consolidate the debts into one payment but have been refused a consolidation loan on the grounds I have already loaned too much. I also have a car on finance for £15,000 which I pay back at £300 a month. For the other debts I could comfortably afford £300 a month repayments but I cannot get a loan to cover it! This means at the moment I am stuck with hefty interest payments! I have just got a pay rise to £37500 a year so the money is available to clear these debts, I am just struggling to find the best way to do it! Any advice would be greatly received!

Many thanks.

Hi f0xsplit,

Thank you for posting with your question.

I’m very happy for you that you’ve recently had your pay rise. This puts you in a much better position to start clearing your debts. I would still advise however that you seek some advice on what you can afford to your creditors. Chances are if you contact them directly with an offer, you’ll get caught in a ‘cat and mouse’ game of them insisting you can afford more and rejecting any offers you put forward. They’re less likely to do it if your offer is supported by a budget from us.

I’m also relieved to hear you’re no longer considering debt consolidation. Just so you know all the facts and you can rest assured that you’re wise to stay away, I’ve included a link to a blogpost about the pros and cons debt consolidation: (http://moneyaware.co.uk/2011/04/to-debt-consolidate-or-not-to-debt-consolidate/)

Just to let you know as well that we’re a free and confidential debt advice charity and we can help you demonstrate to your creditors what you can truly afford.

You can use our confidential online Debt Remedy service where you can identify the best debt solution for yourself in just 20 minutes. – (http://www.cccs.co.uk/ref/drcu)

If you would prefer 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.

Best wishes,

Pav

StepChange_Pavan

wordsfan wrote: »

Hi
Hope I dont bore you just wanna be clear so giving you some background.

I am a 40 year old single mum. Currently not working due to a mental health issue. 10 years ago I went back to uni as a mature student. Jan 2006 I had a breakdown. As a student I have incurred a fair bit of debt. Some but not all has been paid off. Have also lost some of the paperwork. I think I currently have hanging over me £1500 credit card debt, 2 overdrafts around £500-1000, student loan, mobile phone approx £400. I also have a ccj against me re council tax for the district I was living in whole time I was at uni, I never worked and was only ever a student and therefore not liable for council tax at any time I was living there. I provided the necessary documentation at the time.

As I'm not working and not likely to for at least a year I cannot pay anything towards these debts.

Whilst morally disgraceful, at this stage I am wondering ... what next?

My sis reckons debts are "written off" after 6 years but I don't know why she thinks this.

Also I live in scotland now but attended uni in england.

Can you please advise?

Hi wordsfan,

Thank you for posting (you could never bore us – we are the biggest debt geeks you could ever meet!)

I definitely think you should speak to the council again regarding this council tax bill. You’ve already provided the necessary documents to prove you weren’t liable so they should be able to clear things up on their side. It could just be a misunderstanding.

I believe your sister is referring to something called the Limitations Act. This is when your creditors have had opportunity to arrange payment with you on an unsecured debt. They have six years to do this from the last time you made a payment. If they fail to do this, the debt becomes statute barred, meaning no further action can be taken. The act may not apply however if the creditors had no way of establishing contact with you (e.g. you moved address and did not update your details).

I’ve posted a link to a blogpost that explains this a little further if you’d like to find out more (http://moneyaware.co.uk/2011/08/your-debts-written-off-is-it-too-good-to-be-true/)

I do honestly feel that you’re being a bit too hard on yourself. The fact is you’re here and you want to find a way to put everything right. We help thousands of people just like you to put their debts behind them for good, and I’m sure there’s something we can do to help you as well.

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.

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.

Regards,

Pavan

mum2one

CCCS_Pavan wrote: »

Hi Matty2712

Thanks for posting

I just want to reassure you that once your paperwork came in we would have got in touch with your creditors and told them what you’d be doing moving forward. This sounds like another one of their tactics to pressure you into paying more money than they will be getting on the plan with ourselves. All of your creditors are aware that we distribute the money at the end of the month (on or around the 25th).

Please also be aware that you are more than welcome to ring us on the Aftercare number provided in your welcome pack should you have any more problems or questions.

Best wishes,

Pav

Sorry to be cheeky, but can I say a thank you from me, I'm in same boat with 2 creditors, seemed suspicious to me that they were doing that when others have got it, they get the money Oct and can lump it, x

cool4door64

I have been recently thinking about doing and IVA as between me and my partner we have about £22,000 worth of debt, we have a mortgage on our house and 3 kids. My mrs only works part time and is looking for a better job so her income isnt great. I have been struggling to pay off the debts since I can remember, and up till moving into our new house had most of them being paid off at the bare minimum which as you know means you end up going no where with it.

debt is made up of the following

loan £6900
credit card 1 £1200
credit card 2 £2000
credit card 3 £3900
overdraft 1 £3500
overdraft 2 £3500
catalogue £600

I tried to get help from my bank 2 years ago and despite being a loyal customer for over 10 years they simply didnt want to know. I have a fairly good credit rating and have never missed a mortgage payment. Now we struggled for ages to get a new mortgage for our new property even with a fairly good credit rating.

We are now struggling to make ends meet money comes in and goes out I have work since I could and I consider myself very lucky to have everything I have today as I come from a background where children brought themselves up and have had no financial help whatsoever all my life, everything I own, (which isnt much bar the house), I have worked my butt off for. The credit cards and overdrafts became a buffer for when all bills were paid and nothing was left but they have spiralled out of control.

I have spoke with a government recommended IVA company and expressed my concerns about being a home owner and it affecting my property as its the only thing I have of value I can leave my kids when I go, (which I hope is a good while off yet).

NHs employees get fees wavered by the way with this company via nhs discounts. Anyway they said that nearing the end of the IVA they would ask for my property to be revalued and if they thought there was equity of 85% they would ask me to remortgage to pay off the remainder of the debt. Now this is where I go blonde, (sorry blondies).

the house purchase was £125,000 of which £13,000 was deposit, this was from the equity in my first house so the mortgage is £112,000 or so from july this year. payments per month are 637 over 31 years i think.

Can anyone help me with these sums, the IVA advisor said that most people are finding they reach this point and due to being on an IVa they cannot get a remortgage, (like I said it was extremely difficult to get one for our new property even with 10%) but who knows in 5/6 years time. She said if it didnt qualify for this the 5 year IVA becomes a 6 year.

She also said another option is a route which goes over 8 years this doesnt include any property re-evaluation but is obviously longer.

Can anyone advise with this or explain it so I get it? I think worrying about the payments is sending me loopy.

I have also applied for money back from charges and stuff expaling my financial circumstances will see what happens and post here when I do.

Thanks for the help
P

mum2one

cool4door64 wrote: »

I have been recently thinking about doing and IVA as between me and my partner we have about £22,000 worth of debt, we have a mortgage on our house and 3 kids. My mrs only works part time and is looking for a better job so her income isnt great. I have been struggling to pay off the debts since I can remember, and up till moving into our new house had most of them being paid off at the bare minimum which as you know means you end up going no where with it.

debt is made up of the following

loan £6900
credit card 1 £1200
credit card 2 £2000
credit card 3 £3900
overdraft 1 £3500
overdraft 2 £3500
catalogue £600

I tried to get help from my bank 2 years ago and despite being a loyal customer for over 10 years they simply didnt want to know. I have a fairly good credit rating and have never missed a mortgage payment. Now we struggled for ages to get a new mortgage for our new property even with a fairly good credit rating.

We are now struggling to make ends meet money comes in and goes out I have work since I could and I consider myself very lucky to have everything I have today as I come from a background where children brought themselves up and have had no financial help whatsoever all my life, everything I own, (which isnt much bar the house), I have worked my butt off for. The credit cards and overdrafts became a buffer for when all bills were paid and nothing was left but they have spiralled out of control.

I have spoke with a government recommended IVA company and expressed my concerns about being a home owner and it affecting my property as its the only thing I have of value I can leave my kids when I go, (which I hope is a good while off yet).

NHs employees get fees wavered by the way with this company via nhs discounts. Anyway they said that nearing the end of the IVA they would ask for my property to be revalued and if they thought there was equity of 85% they would ask me to remortgage to pay off the remainder of the debt. Now this is where I go blonde, (sorry blondies).

the house purchase was £125,000 of which £13,000 was deposit, this was from the equity in my first house so the mortgage is £112,000 or so from july this year. payments per month are 637 over 31 years i think.

Can anyone help me with these sums, the IVA advisor said that most people are finding they reach this point and due to being on an IVa they cannot get a remortgage, (like I said it was extremely difficult to get one for our new property even with 10%) but who knows in 5/6 years time. She said if it didnt qualify for this the 5 year IVA becomes a 6 year.

She also said another option is a route which goes over 8 years this doesnt include any property re-evaluation but is obviously longer.

Can anyone advise with this or explain it so I get it? I think worrying about the payments is sending me loopy.

I have also applied for money back from charges and stuff expaling my financial circumstances will see what happens and post here when I do.

Thanks for the help
P

I know that you get a discount with the IVA company, but please look at CCCS debt remedy, there a charity, so all money paid goes to the creditor, it may well be that you could get away with a debt management plan where you play less over a period of time, you can do the advice info online you don't have to give your name and its not tieing you into going with them.

They go through your budget, and accoutn for everything, things you pay but wouldn't think off,

I'm with CCCS on a DMP and for me its a massive weight off my mind, xx

mum2one

z_340 wrote: »

Hi,

I owe about £9,000 unsecured across various lenders (some high interest), have a poor credit rating (noddle 1/5) and earn £28k per year.

If I entered into IVA with CCCS or similar does my employer need to know? Also I am a private tenant so am worried that if I go down the IVA route I'll struggle to pass the checks that letting agents carry out.

Other route is consolidation but credit rating restricts that and I'm not sure it's wise anyway.

Thanks.

I would depend on the nature of your job, have you looked at a budget planner on CCCS first to see what your options are, ? x

mum2one

z_340 wrote: »

Work in a secure environment and am subject to security / crb checks etc. Debt is frowned upon as they look on it as it being a risk that you may have a reason to comit fraud!

Have just filled in all the CCCS questions and was recommended a DMP. Am waiting for them to ring me on Momday.

Cheers.

Thats brilliant, a DMP yes will affect your credit rating, but hopefully be ok with the job. CCCS will know more.

x

carlylcox

Hello,

I recently moved to Australia (may 2012) and left just over elevn thousand pounds on credit cards in the uk.

I am still paying them off, however I am struggling to commit to the 280+ pounds i need to send home every month to cover my minimum payments. Also, becuase I am only able to pay the minimum amount, some of my debts are going up not down.

I am wanting to know my options from abroad. I have heard stories about credit cards stopping all the interest on your debt and alloowing you to pay back what u can afford each month. is this something that I can do? If so, how would I go about it?

Also, would I be able to go bankrupt or is my debt too small?

Thanks
Carly