Struggling with debt? Ask a debt advisor a question

penny_farthing

I'm not sure if i'm in the right thread but was looking advice on the issue below.
I have gotten into a fair amount of debt.

Existing Unsecured loan: 4,500 (about 25 out of 60 months remaining)
Credit Cards: 6,000 approx (all being charged interest)
Overdraft: 1,500

I have only ever missed three or four credit card payments (of which where just paid late) It was never a cashflow issue just a stupidity issue! due to the large balances i have only been paying the minimum payments recently which is basically all interest so the balance isn't reducing.
My income after tax is approx 1,200 per month.
My outgoings are - servicing the above debt - approx £380 (approx half of which is interest)
Other essential expenses - approx £180
Disposable Income (includes living exps etc) - approx £640

Now I have recently applied for a Credit Card for a balance transfer of at least some of the credit card debt so i could try and pay off the debt when there is no interest being charged but got refused. I didn't think my credit rating was that bad - but the missed payments must be still having effect. How long will it take to improve my credit rating sufficiently to try and get out of this hole? I signed up to experian to check my credit file and couldn't see much wrong!

I'm open to other ideas so i can pay off the debt. I really want to get it all paid off and not be charged so much interest. I'm committed to doing this. I don't want to affect my credit rating forever (as i am young and may need a mortgage in future years) by taking some deal of a dodgy financial company to write off some debt etc.

All thoughts would be recieved greatfully! Thanks

Megs17

Hi,
I took out a debt relief order in april 2009. But obviously my credit rating is now really bad. I really want to do something about this and imporve it but I don't know how. I keep gettin emails about vanquis cards and other such products, claiming they will improve my credit score,but I am unsure whether they will or not. Any help on what I can do will be a great help.

Thanks

Megan

lap1970

If a creditor takes you to Sherrif Court (Scotland) what counts as income? All unsecured debt is in my name only so I have been including my salary, child benefit, child tax credits, my 3 year old's DLA and my husband's Carers Allowance as he stays at home to look after her and cannot work. Should I just be using my salary to work out payments? One creditor is saying they don'g believe my income and want to take it to Sherrif Court (1st Credit). Would I be paying less if it went to Sherrif Court?

wangtao

We haven't had any correspondence from them at all.not been on one of these sites before, so not sure if I'm doing it right. I need help, unbeknown to me my husband has run up HUGE credit card debt (on the family etc). although with normal day to day living and expenses sometimes even these don't get paid. Is there anything we can do.Please help

StepChange_Pavan

needtofightback wrote: »

Hi
I am trying to get my finances on track & going through my debts prior to contacting a company re a DMP which my son advised as he has recently set one up.

I've only just realised that i can get one free from CCCS (who I will be contacting soon) as my son had paid for his. he was charged £2100, & is paying £700 a mth for 3 mths, I think he's paid 1 or 2. Seems to me he's being ripped off but he was happy as they got his debts down to £270 from around £1500 per mth. My question is could he change to cccs & get same dmp accepted & could he get a refund from the company he went to?

Be grateful for your help.

Hi needtofightback and thank you for your message.

We don’t have the facility to be able to simply transfer the Debt Management Plan from his existing provider as he would need to have an appointment with one of our debt counsellors first.

If the counsellor is happy to offer a DMP as a result of his appointment, we would then discuss with how to end the current arrangement he has and setting it up with ourselves. Like you mentioned, CCCS does not charge for setting up or administering a Debt Management Plan.

With regards to the charges, it is likely that your son will have agreed to them by signing an agreement. If he has been happy with the service so far, it may be difficult to get a refund but he could write to them and try.

Kind regards,
Pavan

StepChange_Pavan

Turnibull wrote: »

Hi,

My partner has a credit card with a balance of 10,000.00, over the last 18 months this has been paid through his insurance policy as he has been off work sick. He received a letter from the insurance company this week saying they have paid off the original balance. When he got in touch with the credit card company they say he still owes £4.000.00, He hasn't used the card. how can this be, it appears this is interest charged over the 18 month period, no-body explained he would still have a debt to pay he thought the insurance company paid off the debt on the card. Please help!!!!!!!!

Hi Turnibull and thank you for your message.

You would need to check the terms and conditions of his insurance policy as this will set out what they have agreed to pay.

If you feel that he has been treated unfairly, you could get further advice from Consumer Direct, and I have attached a link to their website here: http://www.consumerdirect.gov.uk/before_you_buy/think_of/unfair-contracts


Hope this helps.

Kind regards,
Pavan

StepChange_Pavan

croggy22 wrote: »

Afternoon,

I have debts of over 14,000, i meet the minimum payments but seem to be getting knowhere because of the high interest charged. I have been offered a DMP by Greggory Pennington. I dont mind paying a fee for the service but thought i'd check things out on here first. I looked at he CCCS website and filled in the debt remedy program, however it doesnt offer me a DMP, im not sure why becaus i dont have enough spare money to pay extra off my debts to reduce the balances, it seems i only just pay a few pounds off every month because of interest. Any help or advice would be greatly appreciated.

Hi Croggy22 and thank you for your message.

We answered this for you in ‘private messages’.

If you need any further advice, just let us know

Kind regards,
Pavan

StepChange_Pavan

winner12 wrote: »

Hi there from previous postings i am struggling with Capital one and Monument accepting my DMP I did complain to the Financial Ombudsmen but they refered me back to original creditors as above they have given final response letters and still have not agreed do i complain to the ombudsmen again they are asking for higher payments than offered National Debt Line suggested I complain I did complain to creditors first before the Ombudsmen is now harrasment

Hi Winner12 and thank you for your message.

Unfortunately, your creditors do not have to accept your offers. All you can do is send them a budget which demonstrates that you are paying them as much as you can reasonably afford and shows you are not overspending. If you are on a DMP with one of the free debt advice charities, your creditors should also receive details of payments being made to each of your other creditors to show they are all being dealt with fairly.

You should continue to make payments even if they don’t accept the offer as this shows that you want to clear the debt but you can’t offer them money that you can’t afford.

With regards to the harassment, I would recommend that you ask them to contact you by letter rather than by telephone. I have attached a sample letter that you can use to write to them:

To whom it may concern

Dear Sir/Madam

I am writing to ask that you no longer contact me by telephone as your calls are causing me considerable stress due to the frequency, and that they are being made at inappropriate times. Please remove my telephone number from your database and send all future communication in writing to my home address.

I have provided the most recent copy of my income and expenditure to make you aware of my current financial situation. I will continue to make my payment of x on the x of every month and will keep you informed of any changes in my circumstances as I am keen to resolve this issue as soon as possible.

I understand that following this request if you continue to call I can contact the Office of Fair Trading to make a formal complaint.

Please confirm in writing that your records have been amended.

Yours sincerely


Hope this helps.

Kind regards,
Pavan

CCCS_Sue

scott43 wrote: »

hi my name is scott and i need some advice i have around £5000 of debts to about 15 different creditors and i am unsure what to do i can only afford 2 pay back £150 per month which works out at £10 per month for each creditor i made each of tem an offer of £10 per month and every 1 refused and most have now started court action aganst me so i called a debt mangement company who said they would sort things out 4 me which they havent done because now all the creditors have refused the debt mangement plan and i feel now i only have 2 options 1 is to leave the country and the other is commit suicide i really dont know what 2 do because all these companys who say they can help cant and im only gettin around 1 and 2 hours sleep a night i currently live with my parents and they hate debt if they found out about the debts i would have no where 2 live apart from the streets i really cant stand tis pressure and all the phone callsn im getting at worl are causing my boss 2 lose his temper with me son i could end up with no job no home and no life please could you u advise me thank you 4 reading this and i am looking forward2 hearin from you

Hi Scott and thank you for your message

If any of the creditors refuse your offer, then you should continue to pay them what you can realistically afford. Don’t be pressured into paying money you do not have.
I have attached a link to our CCCS website which explains the debt collection procedure and what the creditors can and cannot do.

http://www.cccs.co.uk/InfoCentre/EnglandandWales/Creditoraction/Debtcollectionprocess.aspx

Are you with a company who charges you a fee for administering your DMP?
If so, it may be advisable to go to a non fee charger. At least this way all the money you are able to afford after paying your priority bills is going towards clearing your debts quickly.

If you would like some free advice on your options, you can call us for an appointment on 0800 138 1111. Lines are open from 08.00 until 20.00.
All our help is completely free and confidential.
The counsellor will put together a budget with you and then explore all the options available for your situation.

Alternatively, you can use our online Debt Remedy facility.
Debt Remedy would assist you in completing a financial statement and you would be provided with tailored advice on the best way to deal with your situation. This link will take you directly to Debt Remedy www.cccs.co.uk/ref/drcu


The Office of Fair Trading guidelines on debt collection state that a creditor cannot use phone calls to contact you “at unreasonable times and at unreasonable intervals”. If they do, you can make a complaint.

With regard to the creditors harassing you at work, you can write to them asking them to remove you from their telephone database and correspond by writing only.
I have attached a letter for you:

To whom it may concern

Dear Sir/Madam

I am writing to ask that you no longer contact me by telephone as your calls are causing me considerable stress due to the frequency, and that they are being made at inappropriate times. Please remove my telephone number from your database and send all future communication in writing to my home address.

I have provided the most recent copy of my income and expenditure to make you aware of my current financial situation. I will continue to make my payment of x on the x of every month and will keep you informed of any changes in my circumstances as I am keen to resolve this issue as soon as possible.

I understand that following this request if you continue to call I can contact the Office of Fair Trading to make a formal complaint.

Please confirm in writing that your records have been amended.

Yours sincerely

Hope this helps to reassures you that there are solutions to your situation!

Regards
Sue

StepChange_Pavan

penny_farthing wrote: »

I'm not sure if i'm in the right thread but was looking advice on the issue below.
I have gotten into a fair amount of debt.

Existing Unsecured loan: 4,500 (about 25 out of 60 months remaining)
Credit Cards: 6,000 approx (all being charged interest)
Overdraft: 1,500

I have only ever missed three or four credit card payments (of which where just paid late) It was never a cashflow issue just a stupidity issue! due to the large balances i have only been paying the minimum payments recently which is basically all interest so the balance isn't reducing.
My income after tax is approx 1,200 per month.
My outgoings are - servicing the above debt - approx £380 (approx half of which is interest)
Other essential expenses - approx £180
Disposable Income (includes living exps etc) - approx £640

Now I have recently applied for a Credit Card for a balance transfer of at least some of the credit card debt so i could try and pay off the debt when there is no interest being charged but got refused. I didn't think my credit rating was that bad - but the missed payments must be still having effect. How long will it take to improve my credit rating sufficiently to try and get out of this hole? I signed up to experian to check my credit file and couldn't see much wrong!

I'm open to other ideas so i can pay off the debt. I really want to get it all paid off and not be charged so much interest. I'm committed to doing this. I don't want to affect my credit rating forever (as i am young and may need a mortgage in future years) by taking some deal of a dodgy financial company to write off some debt etc.

All thoughts would be recieved greatfully! Thanks

Hi Penny_farthing and thank you for your message.

I’ve attached link to a really useful guide on this website on how to improve your credit rating: http://www.moneysavingexpert.com/loans/credit-rating-credit-score

If you want to see what is on your credit file, you should also apply to the other 2 reference agencies which are Call Credit and Equifax. The above article tells you how to do this as well.

From the information you have given, it’s difficult to tell whether or not you are struggling with your payments or you just want to stop the charges to get debt free quicker.

If you are struggling, you could contact the CCCS to give us more details and explore all of the options that might be available to you.

You could either use our online advice facility Debt Remedy, or ring our free Helpline to book a telephone appointment with a counsellor.

Debt Remedy will assist you in completing a financial statement which includes information on your household, employment, income, expenditure and debts. All this information is used as a basis to determine the options available to you to deal with your situation.

Once you’ve followed the process through and completed all the required information you will immediately be presented with an advice booklet, which will provide tailored advice for you based on your current circumstances. It will also provide advice on ways you may be able to improve your situation. If you would like to get immediate advice on your situation, follow the link to go directly to Debt Remedy: http://www.cccs.co.uk/ref/drcu

Alternatively if you would prefer to talk to a debt counsellor about your situation, you can book a telephone based appointment by calling our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00. If you do decide to call us, please have details ready regarding your income, expenditure and creditors, as this can help speed up the referral process. If you have all of the necessary information ready, 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.

Kind regards,
Pavan