Struggling with debt? Ask a debt advisor a question

CCCS_Sue

newstudent24 wrote: »

Hi I'm new here so if this question has been asked before then I apologise...

I have a flat for sale at 93,000 (my keyboard doesn't do pound signs!), which has been on the market since May. I am about to start a degree course at University as a mature student, and have been unemployed for three months after being made redundant. I have been looking for work but it's not been easy.

In January I phoned my bank, HSBC (who are also my mortgage lender) and asked if I could consolidate all my small loans with them to make it one easy manageable payment each month. I spent the best part of an hour on the phone, with this bloke from HSBC who made it sound so good - I could save 200pounds a month!! So of course I went along with it. This was obviously before I knew I (along with 200 other people where I worked) was going to be made redundant. The loan also meant I could pay off my HSBC credit card, which had about 4000 on it at the time (my limit was 7000). It turned out that I was in fact borrowing 18000 - one and a half times my salary.

So now I'm stuck with a 300pound a month repayment on my loan which I simply can't afford. The mortgage payment protection has paid my mortgage for the last two months, so that's made things a little easier, but now that I'm starting Uni, I obviously can't claim on that anymore. So that's another 300 a month I have to find. On top of all that, I also have the bank charges that HSBC are taking every month because a direct debit gets bounced, or I go overdrawn. I don't have the luxury of an overdraft because I don't have a regular income.

I'm expecting my student loan at the end of this month, but I really don't want to spend all that on loans and mortgage repayments - it'll leave me with very little to actually live on.

So I went to see the Citizens Advice Bureau yesterday and they recommended writing to all my utility companies and offering to pay one pound a month until the flat gets sold, however long that may be, and then repay the full amount on completion. I'm hoping to pay off the mortgage as well and go into rented accommodation as it will be cheaper. They also told me to write to the bank offering to pay as much as I can until the flat gets sold, but I'm just not sure HSBC will be that flexible.

Has anyone ever done this before and did it work?

Hi newstudent24 and thank you for your message

Your flat may take a while to sell, so you should try to continue paying all your priority bills as far as possible. If you are struggling with this then you could write to explain your situation and come to an arrangement with them.

Your mortgage payments, utility bills, council tax and food costs etc should be paid first out any money you have available. If there is nothing left after paying these bills, then you could offer £1 token payments to any unsecured non priority bills such as credit cards, loans, store cards, catalogues etc.
You could also change your current bank account to a basic bank account elsewhere.
This puts you back in charge of your finances and stops the bank taking money from your account to pay off their debts without your permission.

If you would like further help, you can use our online debt advice facility Debt Remedy http://www.cccs.co.uk/ref/drcu
Alternatively, you can call free to speak to a counsellor on 0800 138 1111.

Regards
Sue

rose2011

Hi

I have just completed the CCCS debt management questionnaire online and it has recommended I apply for a DMP. This would be a huge relief for me as I just want to get out of all this pressure I am under. I got into this debt from being on maternity leave twice in the past three years and no budget planning properly.

We currently live in HM Forces accommodation but hope to save for a deposit for our own house once we have repaid all our debt. Will we still be eligible to apply for a mortgage when we have been on a DMP?

Many thanks

CCCS_Sue

del_steel wrote: »

Hi there, I'm looking for a little bit of advice.

A few years ago, my fiancee and I took out a £2000 loan with Blackhorse. Soon afterwards, our monthly income was drastically reduced due to redundancy and we sought help from the CAB. They talked to our creditors and arranged reduced payments.

Despite an agreement to pay £5 a month, Blackhorse have continued to add interest and collection fees. About a year ago we started paying back the loan at double the original monthly payment and have over the last couple of months been paying back £250 per month.

All this time we have had statements sent through from Blackhorse showing our outstanding balance, payments, fees etc etc. Now according to the lastest statement, we only have just over £100 left to pay. My fiancee phoned Blackhorse to confirm the outstanding balance and they have now quoted us a completely different figure from that on the statement.

They claim we owe another £260 on top of the £100 showing on the statement which consists of collection fees over ther years as we have been in arrears!!!! These are in addition to the fees on our statement!!!

Is this legal???? Surley they are obliged to give an accurate statement of account??? Can they set up a side account for charges, fees etc.

I would like to know where I stand before I make the call to argue my case and any help or advice would be much appreciated

Hi del steel and thank you for your message

You could request a break down of all the charges and fees that have been added.

Send a ‘subject access request’ and ask to see copies of statements showing all payments and charges.

Under the Data protection act individuals can ask to see information about themselves that is held on computer and in some paper records.

I have attached a link to a booklet which gives you further information regarding this and a sample letter you could use. There is usually a fee which could be up to £10.
click here

If the lender does not comply with the request you could then complain to the Information Commissioner.

Regards
Sue

StepChange_Pavan

josephinems wrote: »

Hi

Can I have some general advice from anyone who cares to help. I retrained recently and work for myself and am not earning much. I have 2 flats that I rent out that were meant to be an asset and for my pension, but which have proved to be a mistake and actually a liability. They both have mortgages on them as does the flat I live in. I owe a lot on credit cards and my idea was to put the two rental flats on the market as there is enough cash in them to pay my debts off, but of course no one is coming to look at them. I have written to the mortgage company and said could I have a 2 month holday and they said no. I feel trapped and just dont know what to do. Is it worth writing to my credit card companies to ask if I can reduce my payments for a while? I am paying out much more each month than I earn and I am scared. can anyone help?

Hi Josephinems and thank you for your message.

You’ve come to the right place for advice. It’s important that you try and keep up to date with your mortgages in order to avoid repossession. Are you on interest only mortgages? If not could you ask your lender if you can switch until your circumstances improve or you manage to sell the flats?

Offering your creditors reduced payments is one option and I recommend that you call our free helpline to discuss your options with one of our trained debt counsellors. You can call free on 0800 138 1111 and lines are open Monday to Friday 08:00-20:00. It would be helpful that when you call you have details ready regarding your income, expenditure and creditors, as this can help speed up the referral process. If you have this information ready it may be possible to refer you directly to a counsellor if one is available, otherwise we will arrange a time that is convenient for you to be called back for an appointment.

Kind regards
Pavan

CCCS_Sue

marriedworriedmum wrote: »

Hi all,
I dont post on here v often but I 'lurk' on here most days just looking for a bit of help please!

I've been on a DMP with cccs since Jan so far things have been ticking along ok, however we have had a letter from hubby's Halifax current a/c which he owes £303.83 on: It has now apparently been passed to Blair Oliver and Scott which I am led to believe are an in house debt collection agency? We are going to ring cccs as soon as he comes home but I keep reading and re reading the lettter and everytime I see the threat of "we can instruct one of our local door to door agents to call on you" I feel physically sick.

I have googled them and I believe they can be v difficult to deal with, can any one advise what to do please? to avoid them coming to our home, I know we've been silly in the past and I am paying for it dearly, I probably have no right to whine but the idea of them coming to our home, touching our things especially our little ones and having our neighbours see what mess we've got ourselves into, well its making me feel physically sick
very many thanks - sorry for the dramatics but im feeling particualry low about it all today! xxx

Hi marriedworriedmum and thank you for your message

First of all, debt collectors who call at your house are not bailiffs.
It is possible for a debt collector to call at your house in person, however this is rare as home visits are more costly for the collection agency than letters or telephone calls. It may just be a threat.

Debt collectors cannot:

• Enter your house or take any goods. You do not have to open the door to them or speak to them if you do not want to
• Discuss your account with anyone else in your house and they must leave if you ask them
• Act in a way that is threatening or intimidating and should always carry photographic identification

You can arrange to make a payment over the phone or by letter and you do not have to open the door to debt collectors if you prefer to pay another way.
Home visits are more likely from debt collectors who provide doorstep loans or other forms of credit where you are dealing with an agent or local branch rather than a national collection department.
More information on how debt collectors must conduct themselves when visiting your home can be found in the Office of Fair Trading (OFT) guidelines. If you feel a debt collector has treated you unfairly, you can make a complaint.
Do not be pressured into paying more than you already are in your DMP.
If you need any further help, please contact our client support team.

Hope this helps to put your mind at ease!

Regards
Sue

StepChange_Pavan

london2008 wrote: »

Hi there

My partner has been offered a new job in the USA. I will be going with them but under the rules of the visa I will not be allowed to work.

I'm currently on a DMP via CCCS and pay £570 per month and as I'm unable to work my partner has said he will continue to pay this amount for me. The DMP is only in my name as it all relates to my own debts before I met him. We do not have joint finances.

As I'm sure you can appriocate I would rather continue to work but I don't really have an option.

The questions I have are - Do I have to tell CCCS that I i'm going aboard and can they stop me if I'm going to continue to make the repayments

Hi London2008 and thank you for your message.

I recommend that you call our client support department to update us with your situation – we won’t stop you from moving!

It’s important that you do this so we know how to contact you if we need to. I would also keep us updated with your circumstances once you move. Don’t struggle to maintain the payments if you can’t afford them, but on the other hand if you can afford more, you will get debt free quicker.

Hope this helps.

Kind regards
Pavan

CCCS_Sue

rose2011 wrote: »

Hi

I have just completed the CCCS debt management questionnaire online and it has recommended I apply for a DMP. This would be a huge relief for me as I just want to get out of all this pressure I am under. I got into this debt from being on maternity leave twice in the past three years and no budget planning properly.

We currently live in HM Forces accommodation but hope to save for a deposit for our own house once we have repaid all our debt. Will we still be eligible to apply for a mortgage when we have been on a DMP?

Many thanks

Hi Rose2011 and thank you for your message

It's great to hear that you have found a recommended solution to your debt situation.

If you have been making reduced payments to your creditors, then your credit file could already be affected whether you have been on a DMP or not.
Normally, once your debts are paid off, there shouldn’t be a problem applying for a mortgage, unless there was anything still showing on your credit file, such as a CCJ. I have attached a link to a booklet which gives further advice on your credit file which may help.
http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/credit_explained_leaflet_2005.pdf

Different mortgage lenders have different criteria when agreeing loans for house purchase, so I am not able to say if you would be able to get a mortgage in the future as things may change again.

Regards
Sue

SadieM_2

I have all the paperwork completed to send back to you but would be grateful if you could advise how long it is before you normally contact the creditors. One of our main creditors is our bank and so we are trying to 'pace' things withdrawing cash to put into a new account and are worried that they may stop the overdraft facility leaving us without anything. However, we would like to get the DMP started from October if possible.

Thank you.

amonag68

Hello Guys,

I wonder if someone could offer me some advice?

I have 4 charging orders on my former marital home. My ex wife still lives in it. These were put in place before I became bankrupt in Feb 2009. I am now discharged.

Since this I have transfered my beneficial interest to my ex wife as she is keeping the house. This was done through the Official Receiver as they owned my interest. As there was no equity it only cost £1 plus £211 solicitor fee to do so.

As the charging orders were to my beneficial interest only can these now be removed? If so how?

I have also read on here that as the property was jointly owned when the charging orders were made they cannot be classed as full charging orders and only a restriction?

I am getting letters off one solicitor dealing with one of them threatening an order of sale.

Sorry for the information overload!!!

Hope you can advise accordingly.

Regards

Andy

CCCS_Sue

SadieM wrote: »

I have all the paperwork completed to send back to you but would be grateful if you could advise how long it is before you normally contact the creditors. One of our main creditors is our bank and so we are trying to 'pace' things withdrawing cash to put into a new account and are worried that they may stop the overdraft facility leaving us without anything. However, we would like to get the DMP started from October if possible.

Thank you.

Hi Sadiem and thank you for your message

As soon as we receive all the necessary paperwork ,we will check to make sure we have everything we need, and we will then contact your creditors with the offers of payment. So the quicker you send everything to us, the sooner your plan can go ahead.

If you have any concerns, then please contact our client support team who will be able to advise you further.

Regards
Sue