Struggling with debt? Ask a debt advisor a question

marzom

Hi,

I have been struggling with debt for years, I can pay the minimum payments each month but unfortunately a couple of the credit cards have stopped their promotional rates and the interest is stopping me getting the debt down.

I have tried with a couple of card companies to get the interest down but they are just not interested and I do not seem to be succesfull in getting new cards.

Any tips, i owe about £40,000 over several cards and earn £32,000. I have disposal income of £400 a month and since the promotional rates that is all eaten up with interest.

cariadqueen

Hi

Me and my husband have got ourselves into some financial difficulties over recent years and are now considering a DMP.

We currently have a mortgage and a secured loan on the house, Would the secured loan affect us obtaining a DMP?

Many thanks
Amanda

maz1964

Thank you Sue for the reply earlier much appreciated.:)

FormandFunction

CCCS_Sue wrote: »

Hi F and F

Thank you for your message.

This is not a ridiculous question but an important one.

You would need to include all your debts in an IVA, or DMP, as paying off your overdraft separately could be seen a preferential treatment over your other creditors.
If an IVA is the best option for dealing with your debts, then before it can go ahead, there would have to be a meeting of creditors. They would not agree to the IVA if you were paying one of your creditors separately.

If you require any further clarification, then you can contact our Debt Remedy team who will be happy to discuss this with you.

Regards
Sue

Thank you Sue - I really do appreciate your expertise!

Just one last question if I may; I currently have no assets to speak of with the exception of a cheap second hand car. With no responsibilities of family or a mortgage etc. are there any obvious benefits you are able to summarise to going down the route of an IVA (suggested by debtremedy if I put my old salary back in) rather than bankruptcy?

Either way I am not looking for a mortgage in the future (as I more than likely will be emigrating within ten years) and certainly not in the next ten years either way. I also do not wish to obtain anymore credit after this experience so those perceived problems are not an issue for me. My intended career path also does not require declaration of bankruptcy.

I am currently jobseeking after being made redundant last month and understand the courts would need me to be able to support myself which if I get rid of my debts I can do by living with my partner etc. right now - I'm just aware that an IVA can take months to set up and even then creditors may not agree and 5 years vs. 1 (or 3 for Income payments) with bankruptcy. I am obviously taking this step very seriously but just need to look at which is the preferred route for my circumstances and can lead to the quickest "clean start".

The main concern would be that I am hoping to get a reasonable job in the next few months (although I would still struggle to keep up on a DMP or anything like that so would need to still look at an IVA or bankruptcy) and I wonder how each may affect my ability to, for example, move back out to my own flat etc. when I am reemployed.

Hope that makes sense and thanks again for your help!
FandF

footprint_2

hello I dont know if im in the right place here but I need some help ?

My boyfriend was declared bankrupt last year (October) and has been asked to pay £270+ a month to moonbeever. The insolvency service dealt with the case. When he was first bankrupt he was just split up from his ex therfore single. Now he is living with me and my 2 children and now has to pay child support to his 3 childrens mum. We have tried to contact moonbeever about reducing payments and they were so unhelpful. Told us they would send a new means assssment form and never did anything about it.

His repayments are killing us what can we do ??

Also how long do these payments last because he is not sure he thinks its until 2012.

Any help or advice on how to deal with this please ??

Thank you

RubySewSew

Hi, I'm on the CCCS website using the online tool. I have entered my details twice but both times it has failed to store my debt details. Am I doing something wrong?

StepChange_Pavan

BEAT_THE_DEBT wrote: »

Hello, i started a dmp in July payments of £207 the first payment i couldnt make in full so paid £20 as cccs advised me , Aug paid £207 (struggled) then Sept because of school uniform i paid £107. I have revised my budget and i have tp pay £20 extra to c tax arrears and arrears on gas and elec £20 per month and i do more milage now for work so extra £10 per month. I have emailed them this as i cant get them on phone always busy and i am aware its an 0845 num. What will happen do i just have to carry on or could it be reduced by the £50?
Thanks for reading i look forward to your reply

Hi and thank you for your message.

Without knowing the details of your situation, it’s difficult to say what advice you will be given. Your deposit might be reduced or there may different options available to you.

Hopefully someone should have responded to your email by now but if not, send us your client reference number details in a private message and I will arrange for someone to call you back.

Kind regards
Pavan

StepChange_Pavan

marzom wrote: »

Hi,

I have been struggling with debt for years, I can pay the minimum payments each month but unfortunately a couple of the credit cards have stopped their promotional rates and the interest is stopping me getting the debt down.

I have tried with a couple of card companies to get the interest down but they are just not interested and I do not seem to be succesfull in getting new cards.

Any tips, i owe about £40,000 over several cards and earn £32,000. I have disposal income of £400 a month and since the promotional rates that is all eaten up with interest.

Hi marzom and thank you for your message.

Unfortunately creditors have the right to add charges and interest. All charges that can be added are stated upfront in the terms and conditions of the credit application which you are required to sign to take out credit.

If you believe a creditor has added the charges unfairly, you may be able to claim these back but in most cases, there is nothing you can do to stop interest and charges being added.

Work out a realistic income and expenditure and try to identify any areas which you could cut back on. Additionally, could you maximise your income by renting out a spare room or getting a second part time job for example?

If you can find extra money by saving on your priorities or get any bonuses, focus on reducing the cards with the highest interest rates first. But never sacrifice your essentials to pay off your debts.

Kind regards
Pavan

StepChange_Pavan

cariadqueen wrote: »

Hi

Me and my husband have got ourselves into some financial difficulties over recent years and are now considering a DMP.

We currently have a mortgage and a secured loan on the house, Would the secured loan affect us obtaining a DMP?

Many thanks
Amanda

Hi Amanda and thank you for your message.

Your eligibility for a DMP will depend on your income and expenditure, your surplus and your levels of debt. Having a secured loan in itself does not rule you out for a DMP as we would class it as a priority along with your other essential outgoings.

I hope this answers your question.

Kind regards
Pavan

StepChange_Pavan

FormandFunction wrote: »

Thank you Sue - I really do appreciate your expertise!

Just one last question if I may; I currently have no assets to speak of with the exception of a cheap second hand car. With no responsibilities of family or a mortgage etc. are there any obvious benefits you are able to summarise to going down the route of an IVA (suggested by debtremedy if I put my old salary back in) rather than bankruptcy?

Either way I am not looking for a mortgage in the future (as I more than likely will be emigrating within ten years) and certainly not in the next ten years either way. I also do not wish to obtain anymore credit after this experience so those perceived problems are not an issue for me. My intended career path also does not require declaration of bankruptcy.

I am currently jobseeking after being made redundant last month and understand the courts would need me to be able to support myself which if I get rid of my debts I can do by living with my partner etc. right now - I'm just aware that an IVA can take months to set up and even then creditors may not agree and 5 years vs. 1 (or 3 for Income payments) with bankruptcy. I am obviously taking this step very seriously but just need to look at which is the preferred route for my circumstances and can lead to the quickest "clean start".

The main concern would be that I am hoping to get a reasonable job in the next few months (although I would still struggle to keep up on a DMP or anything like that so would need to still look at an IVA or bankruptcy) and I wonder how each may affect my ability to, for example, move back out to my own flat etc. when I am reemployed.

Hope that makes sense and thanks again for your help!
FandF

Hi FandF,

It’s difficult to say which would be your best option without knowing what will happen in the future! Your new income will affect the options that are available to you.

If you think that it’s likely that you’ll find work fairly soon, I would recommend that you put off making your decision until you know what your new salary will be. You could offer your creditors token payments in the mean time.

Alternatively, you could ring our Debt Remedy support team who will be able to discuss the pros and cons of each option. They will have your details on file so will be able to be specific with their advice.

Hope this helps.

Kind regards
Pavan