Struggling with debt? Ask a debt advisor a question

CCCS_Sue

ljcraigboy wrote: »

if you are on a DMP can you still get a loan for a car from the dealler?

Hi ljcraigboy

If the car was a priority and essential for work, then obviously you would need to look at ways of raising finance for a basic car for your needs.
However, this may mean that a DMP was no longer an option, as there may be no surplus left to offer your creditors until the car was paid for.
You would need to speak to your DMP provider for further advice.

Regards
Sue

chichi128_2

Hi this is my 1st post on the site and I'm hopeful that someone may be able to help as my MBNA debt is driving me crazy!!
About 3 years ago I did a 0% balance transfer to MBNA from Egg of £7000 set up to repay at £500 a month.
I don't have the best of memories but know that I missed the 1st payment by direct debit, but I'm sure I paid it well before the next payment was due. MBNA then changed their T&C's to only take minimum payments by direct debit, if you wanted to pay more this had to be set up by standing order which I meant to do but actually never did, so for the last 3 years I have been paying the minimum per month, assuming that every penny of my monthly payment was coming off my debt of £7k.

At some time not long after I took the card out MBNA called me to sell me PPI. I did take it out but did not realise that this had put me over the credit limit on my account as I had not been given the 0% interest rate, but charged between 25% and 28%, so instead of coming down my debt was increasing.

I have 2 real issues with MBNA, firstly I believe that they mis sold me the PPI as they knew that this would put me over my credit limit, yet went ahead and did it, not mentioning that this would put me over. I also believe that their systems should not have allowed a purchase to have gone through on the same basis; knowing it would put me over my limit and start the incurring of charges.

MBNA have sent me statements, but as I assumed in my ignorance that as my payments were being met, (I knew that if they weren't they'd be on the phone asap) I never bothered opening them until last week when I got the shock of my life in seeing that my debt is now a £1000 more than it was when I transferred my £7k over, and is now infact over my 8k limit.

I have paid off the £38 to bring me to my credit limit so am now stuck at owing £8k.

My 2nd issue is obviously the fact that I didn't ever benefit from the 0% interest, and have been charged nearly 30% on the debt over the last 3 years.
I am sure that I was never told and it was not made clear to me that if I were to miss a payment that the 0% would not apply and it would be hammered a much higher rate. If I'd known this obviously I'd have shifted it to another 0% card, not left it with MBNA for 3 years allowing them to shaft me every which way they can.

8k may not sound a lot compared to the debts mentioned by other forum members but when I was told by an MBNA staff member on Friday that out of my payments of just under £200 per month, just £5 was going towards the debt, I burst out crying and have been beside myself ever since.

I asked them if they would move me to a lower rate, which they refused, they then put me through to a subsiduary company of theirs to see if I would qualify for a secured loan at a lower rate, I passed the initial test but when I mentioned "self employed" the doors slammed shut.
I then spoke to my bank who I have banked with for over 20 years and who I have a 7 year loan with for 5k and have never missed a payment, I was looking to consolidate, but again the words "self employed" meant another no.

I have since been contacted by a company called The Claims Centre supposedly by "chance" based in Birmingham today asking if I have ever been mis sold PPI, I went through all of the above with them and they said that they thought that i had a claim for at least the PPI and possibly the increase in the rate of the balance transfer etc. they work on a no win no fee basis, and take between 25-30%. I haven't agreed to anything yet and will be speaking to their solicitors next week, but am highly sceptical as I know that firms that specialise in this have a very bad reputation.

I'm really not sure what to do. I'm struggling to pay off any more to MBNA than I already am at the moment, and feel that what they have done to me while it may be legal (probably only just) is morally wrong, and am curious if what they have done falls under "sharp practice".

Would I be better off going to the CAB to see if they can do anything for me, for example negotiating to freeze the interest rate, get the PPI refunded, should I go with this no win no fee company, or just swallow it and knuckle down and pay it as fast as I can.

All replies will be gratefully recieved

Cheers Chichi128

Douggy

Hello, I wonder if you can advise me.

I have debts of about £13'000 across 3 credit cards, 3 bank Overdrafts and a loan. (Not including student loan which I know is a whole other matter)

I am from Wales but moved to Scotland for a job just over one year ago.

I am on a casual contract job low wage, and my contract just ended so am now unemployed. There is the possibility of going back to the same job, but not until October when they need me again.I am looking for work all over Britain as I am happy to move for the right job, but again this will cost money.

Every month I have been paid, the account I'm paid into looks good for about a day then I am poor again, so end up having to use my credit card to buy food and pay bills etc. There seems to be no escape and i have been struggling like this for as long as I know.

I've gone onto the CCCS website and filled in the questionairre and the outcome is to open a new account (have just applied online) write to everyone I owe money to and offer £1. I have printed out letters etc to send and will do so once my new bank account is open and I can set up Standing orders etc.

A couple of Q's... I know I sound terrible. I have not been on crazy holidays or madly shopping. Real life is expensive. I don't want to run away from the mess and it's embarassing never being able to tag along with others for fun things, and having to beg parents who also don't have any money but it's drowning me and up until now it has been a necessity to stay alive. Melodramatic!

Q1... does only paying a pound totally screw up my credit? So far it's ok. But having a good credit rating due to massive struggle and gaining more debt to keep it ok has done me no good so far.

Q2....I'm wondering if I should/ can do the DRO as I have only lived in Scotland a short time (I don't know entirely if i can?)

Q3....I have a car I am rather fond of. I did an online valuation and it is under £800. But how is it valued if I go the DRO way, what proof do I need to show? I don't want to lose it. Ridiculous sentimental nonsense. But i would rather it be under a grand for these reasons.

Phew. I'm glad I can come on here and let off steam. I'm rather tired of it and new to the forum, so your advice and help is so welcome. Many thanks! Sorry too for the long winded writing

suziq5001

Hi, I'm new to forums and am not sure if I'm posting this question in the right place! Sorry if I'm not!!

My question is about a CCJ that I have against me for a huge amount of money - £28,000. I went to court about this three years ago and my creditor (the RBS) suceeded in getting a charging order on my house. I have an agreement with them now to pay £124 monthly which I have kept up. My question is, will this disappear from my credit file after 6 years - even though the debt is unsettled? Or will it remain until the debt is paid off.

Thanks in advance for any advice!!

shaken_not_stirred_2

Hello,

I wanted to get other people's opinions and advice on a situation my wife is faced with. She ran up a Credit card bill with Virgin Credit Card and went over her £9000 limit. I discovered this in Feb 09 and made her call Virgin to sort this out. The problem is because she is over her credit limit they are charging ridiculous amounts of interest. She has since called them 6 times in an effort to come to some sort of arrangement to reduce the problem for her however they do not help her or offer a solution. She pays between £300-400pcm to Virgin and despite this her balance has risen from £10400 in Feb 09 to £11200 last month. Surely they have some moral obligation to help her - especially as she called several times to ask for help as she couldnt afford to pay more. She has paid over £6500 since Feb 09 and yet her balance has increased £800. What can she do?
kind regards
s.n.s

CCCS_Sue

Millie321 wrote: »

Hi

Can you please tell me if i go ahead with a dmp how long once the debts are cleared will i have to wait before being able to get a mortgage?

Hi Millie321,

Thank you for your message,

There are no set rules on how long you will have to wait. It would depend on the mortgage lender’s criteria and your circumstances at the time of applying.

If you're concerned about your credit rating, I have attached a link to an article on this website which explains how they work and how to improve them which you may find useful. http://www.moneysavingexpert.com/loans/credit-rating-credit-score

Hope this helps.

Regards,
Sue.

CCCS_Sue

snitchifer wrote: »

Hi there,

I was made bankrupt on Friday afternoon, and am currently in the process of waiting for the OR to contact me. I have stopped using all of my bank accounts, but I was wondering if I should open a new basic account now, or wait until after I have spoken to the OR?

Thanks,

C

Hi Snitchifer,

Thank you for your message,

You can apply for a basic bank account after the Bankruptcy Order, but you must tell the bank that you are bankrupt.

I have attached a booklet from the Insolvency Service website which will give you further information regarding bank accounts when you are bankrupt. http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/bankaccount.pdf

Hope this helps.

Regards,
Sue

CCCS_Sue

bhoy1976 wrote: »

I am currently on a DMP with CCCS and I will also be due a review at some time in the near future.

Since my DMP commenced about 2 years ago (still many more to go) I've had a pretty uneventful lifestyle. Not easy as a single guy. I admit, its my debt, its my problem, but the last two years have not been fun at all. My original DMP did not factor in any activities like the gym, cinema, or even money for emergencies but I feel after all this time I really need to include something in my life as all I do is go to work and come home every day. Don't go clubbing, pubbing but I do need to go to things once in a while. As it is I am even more house bound since I had to move out of my last place with friends into my own place. Pricey.

Is it unreasonable to reduce my monthly amount because of such things or am I being irresponsible and selfish? I think I've really done well to sit this out for so long/QUOTE]


Hi bhoy1976 and thank you for your message.

No, you are not being selfish or irresponsible

Since you have had a change in circumstances and moved to another property, your expenditure may have changed.
I would recommend that you call our client support team before the review and ask for an appointment to update your budget.
They will be able to advise you further.

Regards
Sue

CCCS_Sue

kingston_2730 wrote: »

Sorry forgot to ask, is it possible to start out on a DMP and if things aren't going well switch to an IVA?

Hi kingston2730


In reply to your previous message also,this may be something you could look at if you are not sure of how much your mortgage payments are going to be and you want to wait to confirm this before entering into an IVA

An IVA is a legally binding agreement between you and your creditors. It is important that you make sure you are going to be able to afford the monthly payments agreed over the 5 year period.
If there are changes in your expenditure whilst you are doing an IVA, you would need to contact your IP who would update your budget and then send out a copy to your creditors with a revised offer.
If the creditors did not accept, then your IVA could fail.

Regards
Sue

CCCS_Sue

wastermoney wrote: »

Hi there, this is my first post. Please help.
we are living day to day and topping up our credit cards and overdrafts, despite already owing in excess of 60,000. We are a married couple with a young family and both work extremely hard, we bring in around 2800 a month and pay out atleast 1500 on Loans, credit cards , store cards etc, which doesn't include the mortgage and other basic outgoings. ie council tax, living expences etc.... We have tried for a secured Loan, but due to house prices we will not even get half the amount which will not make us any better off in the long run... Really don't know what to do , really don't want to sell or lose the family home, then again most of our neighbours have had their houses on the market for over a year at rock bottom prices. The best way forward and who you recommend will be appreciated.Thanks inadvance...

Hi wastermoney and thank you for your message

Taking out further secured loans to pay off existing debt is not always the best option, as you would be putting your home at risk if you were unable to meet the repayments in the future.
It is difficult to give you detailed advice via the forum.
I would recommend that you call us for an appointment to speak to one of our debt counsellors about your situation.
The free helpline number is 0800 138 1111. Lines are open from 08.00 until 20.00 Monday to Friday.
Regards
Sue