Struggling with debt? Ask a debt advisor a question

System

idiotod wrote: »

I was allowed to raise my Overdraft limits to £15,000 on two seperate accounts with RBS despite only earning £24,000p/a. I ended up over spending and used up the overdraft limits and with interest I am now £38,000 in debt unsecured.
I know this is my fault, but is there any blame with RBS here with giving me access to this amount of money unsecured? I have spoken with them and they just tell me it is my fault and I must pay all back. I understand this but I also feel that should have stopped me from getting into such a bad position.
Any comments would be appreciated

Hi and welcome to the forum.

It sounds like you would benefit from some free and impartial advice.

We can’t comment on individual creditor policies, but it does sound like you may need some help setting up a realistic budget.

I’d recommend that you try our online debt advice tool Debt Remedy, it will help you put together a budget and possibly recommend some debt solutions that you may have not considered.

I hope this helps.

Kind regards,

Mat

System

jaynelynn wrote: »

Today I have received a summons for repossession...I am 1800 in arrears with my mortgage and have broken past payment arrangements. We are both out of work and are really struggling....what are our options or is this it? We are in Northern Ireland xx:(

Hi and thanks for your message.

I’d recommend that you gather details of your income, expenditure and debts and give our free helpline a call on 0800 138 1111.

We’ll be able to assist you with this.

Kind regards,

Mat

System

amjack wrote: »

Hello,

I have racked up a debt with Very/Shop Direct at around £1100. I am just managing to pay the minimum monthly amount back each month (around £70), but with interest etc this is making no dent in the debt. I have an overdraft of £300 which is am always eating into each month.

After household bills, I have £550 per month. £200 goes on car fuel, £22 on my phone and £8 on pet insurance. How much should I be offering to pay Very? I want to set up a monthly standing order but am unsure how much I should be paying, as well as trying to save so I can clear my overdraft.

Thanks.

Hi and thanks for your post.

It sounds like you would benefit from some free and impartial advice.

We can help you put together an accurate income and expenditure budget, we may also be able to offer other solutions to clearing the debts that you hadn’t yet considered.

I’d recommend that you try our online debt advice tool Debt Remedy. It will assist you with budgeting and offer a tailored personal action plan. It takes about 20 minutes to fill in and is totally confidential.

I hope this helps.

Kind regards,

Mat

stupidboy74

Hi all.
Mine won't be an unfamiliar story I'm sure,but here goes...
I have around £35k unsecured debt-mostly with 1 creditor.I think there are 3 in total but the main one is owed around £30k.
I'm really unsure where to go next.I haven't paid a thing for at least 6 years and a friend told me that there's a statute that means I don't need to pay now,as a limit has been passed for them to get hold of me?
I'm also looking at a possible bankruptcy if this statute doesn't apply to me.
When calculating your repayments in a bankruptcy,do they take your flat,normal pay rate into consideration,or is everything you earn taken into consideration,i.e overtime,bonuses etc?
I almost went into an IVA a few years back,but decided against it,due to the relatively high payments they were saying I'd pay.
I'm in a new relationship and my partner is a homeowner.We live together.How would any of these possible courses of action affect her credit status-which is immaculate!?

System

stupidboy74 wrote: »

Hi all.
Mine won't be an unfamiliar story I'm sure,but here goes...
I have around £35k unsecured debt-mostly with 1 creditor.I think there are 3 in total but the main one is owed around £30k.
I'm really unsure where to go next.I haven't paid a thing for at least 6 years and a friend told me that there's a statute that means I don't need to pay now,as a limit has been passed for them to get hold of me?
I'm also looking at a possible bankruptcy if this statute doesn't apply to me.
When calculating your repayments in a bankruptcy,do they take your flat,normal pay rate into consideration,or is everything you earn taken into consideration,i.e overtime,bonuses etc?
I almost went into an IVA a few years back,but decided against it,due to the relatively high payments they were saying I'd pay.
I'm in a new relationship and my partner is a homeowner.We live together.How would any of these possible courses of action affect her credit status-which is immaculate!?

Hi there,

Welcome to the forum!

The statute your friend is referring to is the Limitations Act where debts can be statute barred and so ‘unenforceable’ if there has been no payment made by yourself in 6 years and a CCJ has not been registered in that time.

It’s best to write to the creditor asking for “proof of the debt or of the last payment made.” They must then send you proof of either a registered CCJ or proof that you have made a payment in the last 6 years. If they still pursue you without that proof you can complain to the financial ombudsman.

It is VERY important that you write “without prejudice” at the top of the letter – that way it cannot be used as written admittance of the debt. I also suggest you send it reordered delivery so you have proof that they have received the letter.

To answer your questions about bankruptcy the Official Receiver would take income/bonus on a case by case basis. If you have a way to boost your income bankruptcy may not be the debt solution for you. You can use our confidential tool – Debt Remedy – it uses your budget details to recommend the best solution to deal with your debts.

With your partner – it is best to include a joint income on a budget so that whole household costs are accounted for. Each of you could have a separate solution, she may not need one. Her credit status would be unaffected by action you took – even though you live in the same house you each have a separate credit file.

So, I would send the letter (“without prejudice” at the top) then use Debt Remedy or contact us if you need advice about the best way to deal with the debts.

Thanks,

Jess

jakesmum

Hi

I have a problem with my fuel bills (doesn't everybody these days!!), about 3/4 months ago I got an email saying that due to my usage over the winter my dual fuel direct debit of £77 per month had to increase in order to cover the excess used over that period, it was to go up to £116.. me being the type to bury my head in the sand panicked and stopped the direct debit as I have no way of paying that kind of money.

I am a single parent to a 6 year old, currently on JSA, and the problem has arisen mainly as I no longer get any maintenance for my son (previously got £300 month) as his father has moved to Norway and all attempts to go through the norwegian courts have resulted in them declaring that he doesn't earn enough to pay us anything.

I now owe BG £699 (excess and dd's not paid since then *hangs head in shame*) and phoned them today to ask about coming up with a plan, I really don't want a prepayment meter as I have heard they cost more and I don't want to run out at a time when I have NO money (which due to the timing of some bill payments happens quite alot).. I have paid them £77 but they wanted to do a payment plan which was around £240 now and then monthly payments of £134 (the first instalment to be paid in just over 2 weeks) which I simply can't afford. I have borrowed from the DWP (tho that is not currently being deducted from my JSA since I switched from IS in November) to the max of £800, our outgoings each month easily are in excess of our incomings and whilst we were receiving maintenance, bills were doable but since I get nothing from my sons father things have gone downhill and there has been an accumulation of debt and owing family/companies money.. what can I do about the BG debt now as they are saying they will disconnect our supply?

I told the guy at BG what I could afford to pay i.e. £77 now and £50 in 10 days times (and then set up a reasonably level DD for my monthly usage during the summer) and he said they didn't work like that, it had to be the repayment terms they suggested which sort of goes against everything they are supposedly meant to do to help you get the debt sorted, at least I was offering to pay something... I really can't pay much more as whatever is paid to them means a shortfall on the money left at the end of the month for rent.

Any suggestions most welcome..... thanks in advance.

Sarah

StepChange_James

jakesmum wrote: »

Hi

I have a problem with my fuel bills (doesn't everybody these days!!), about 3/4 months ago I got an email saying that due to my usage over the winter my dual fuel direct debit of £77 per month had to increase in order to cover the excess used over that period, it was to go up to £116.. me being the type to bury my head in the sand panicked and stopped the direct debit as I have no way of paying that kind of money.

I am a single parent to a 6 year old, currently on JSA, and the problem has arisen mainly as I no longer get any maintenance for my son (previously got £300 month) as his father has moved to Norway and all attempts to go through the norwegian courts have resulted in them declaring that he doesn't earn enough to pay us anything.

I now owe BG £699 (excess and dd's not paid since then *hangs head in shame*) and phoned them today to ask about coming up with a plan, I really don't want a prepayment meter as I have heard they cost more and I don't want to run out at a time when I have NO money (which due to the timing of some bill payments happens quite alot).. I have paid them £77 but they wanted to do a payment plan which was around £240 now and then monthly payments of £134 (the first instalment to be paid in just over 2 weeks) which I simply can't afford. I have borrowed from the DWP (tho that is not currently being deducted from my JSA since I switched from IS in November) to the max of £800, our outgoings each month easily are in excess of our incomings and whilst we were receiving maintenance, bills were doable but since I get nothing from my sons father things have gone downhill and there has been an accumulation of debt and owing family/companies money.. what can I do about the BG debt now as they are saying they will disconnect our supply?

I told the guy at BG what I could afford to pay i.e. £77 now and £50 in 10 days times (and then set up a reasonably level DD for my monthly usage during the summer) and he said they didn't work like that, it had to be the repayment terms they suggested which sort of goes against everything they are supposedly meant to do to help you get the debt sorted, at least I was offering to pay something... I really can't pay much more as whatever is paid to them means a shortfall on the money left at the end of the month for rent.

Any suggestions most welcome..... thanks in advance.

Sarah

Hi Sarah,

Dealing with debts with your current energy supplier is a bit trickier than other sorts of debts, as they control your energy supply. For this reason we treat them as "priority debts" meaning they should go in front of paying other debts like credit cards and overdrafts (though you don't mention having those types of debt).

One thing it might be worth investigating would be the British Gas Energy Trust - http://www.britishgasenergytrust.org.uk/. They provide grants to help people deal with fuel bills when they are struggling.

They usually have more applications for help than they have money to give out, so it's not a guaranteed solution but it's something worth looking into.

The alternative would be to go back to British Gas and try to agree a compromise on the arrangement to catch up. These type of negotiations usually go better when you can provide them with a detailed breakdown of your monthly budget.

Our online advice tool, Debt Remedy can help you put together a monthly budget and will provide advice on how to proceed. Here's the link: http://www.stepchange.org/msehelp.

You don't have to give them a copy of your budget but it's an easy way to show them that you're offering them as much as you can afford and will prove that you are planning your money carefully.

I hope this helps.

James

stupidboy74

StepChange_Jess wrote: »

Hi there,

Welcome to the forum!

The statute your friend is referring to is the Limitations Act where debts can be statute barred and so ‘unenforceable’ if there has been no payment made by yourself in 6 years and a CCJ has not been registered in that time.

It’s best to write to the creditor asking for “proof of the debt or of the last payment made.” They must then send you proof of either a registered CCJ or proof that you have made a payment in the last 6 years. If they still pursue you without that proof you can complain to the financial ombudsman.

It is VERY important that you write “without prejudice” at the top of the letter – that way it cannot be used as written admittance of the debt. I also suggest you send it reordered delivery so you have proof that they have received the letter.

To answer your questions about bankruptcy the Official Receiver would take income/bonus on a case by case basis. If you have a way to boost your income bankruptcy may not be the debt solution for you. You can use our confidential tool – it uses your budget details to recommend the best solution to deal with your debts.

With your partner – it is best to include a joint income on a budget so that whole household costs are accounted for. Each of you could have a separate solution, she may not need one. Her credit status would be unaffected by action you took – even though you live in the same house you each have a separate credit file.

So, I would send the letter (“without prejudice” at the top) then use Debt Remedy or contact us if you need advice about the best way to deal with the debts.

Thanks,

Jess

Hi Jess.
Thanks for the welcome and the great reply.
I have a couple more questions,if I may?
If I have debts that are 'unenforcable' this surely doesn't mean they just disappear?!
Will they show up on my credit file and will I be judged a bad risk as I have not repaid them?

Thanks for your help


stupidboy74

System

stupidboy74 wrote: »

Hi Jess.
Thanks for the welcome and the great reply.
I have a couple more questions,if I may?
If I have debts that are 'unenforcable' this surely doesn't mean they just disappear?!
Will they show up on my credit file and will I be judged a bad risk as I have not repaid them?

Thanks for your help


stupidboy74

Hello,

The debts would be 'unenforceable' if it has been 6 years since you made a payment and no CCJ has been registered. A credit file is only a record from the last 6 years. After that things do 'drop-off'. So if the debt is statute barred it would not show on your credit file.

Hope this helps,
Jess

worried-me

Hi,

I have been on DMP with multiple companies for years and was making steady progress (very slow but steady) but then freezer went, needed new car etc and only was to use existing cards I had no debt on and one new one I was offered by Argos!

I have been paying the minium payments on these "cards" as I did not want yet more defaults and DMP's but have recently had my WFTC cut by £125 per month which means I can not afford the minium payments and have to be realistic.

I have therefore re-done my SOA with proposed agreements for the new creditors and will be sending letters for interest freeze and agreements next week.

I am not proud of myself for using cards again but being a single dad, I have to have a fridge and car for food and school runs etc.


I have two worries :-

1.
I would hope that when my existing DMP's find out that I have more creditors (which I was paying the original agreement terms - unlike them) which they will at my next review for each one and court if it ever comes to it, will understand that it was the only way at the time.

2.
I know the law on bailiff's/debt collectors etc is under review, it was my understanding that bailiff's/DC's could not remove anything from your property unless you have defaulted on a CCJ which they had to apply for before hand. As long as you had no CCJ's in place or had not defaulted on the actual CCJ I thought bailiff's /dc's could not be sent ?

Even if they were then send I thought they could not force entry even with police ?

I ask this as I recently noticed one of my neighbours recently had some people, accompanied by the police actually got a locksmith to break into their house and removed TV's and stereo equipment ; I hope it was actually the council noise team who have different laws as this person did always have loud music etc but do not know.

Sorry for the rambling; I know I am doing the right thing straight away but regret the knock on reprecussions from existing DMP's when they find out I've been meeting min payments on new accounts and if the new creditors actually agree to agreements with me; I just did not want anymore defaults and debt plans and was actually trying to do the right thing.

So after years of stability, I am no very worried again; all because of my stupidity!

I hope you can offer inside to all my queries.

Many thanks