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StepChange_James

worried-me wrote: »

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

Hi there,

I wouldn't call it stupidity, it sounds like you were in a difficult position and did what you thought was best. Treating these new debts alongside the older ones is the best way to move forward with them, so you're already doing the right thing.

In your message you mention having several DMPs, by the sounds of it these are agreements you've made directly with your creditors. So I'm guessing you currently deal with each individual company yourself, which people on here often call a self administered DMP(Debt Management Plan).

To answer your main concerns...

1) Making lower payment offers - Your older creditors may pick up on the fact that there are new debts listed and the money is being divided up between more companies now.

It also sounds like due your tax credits going down you'll have less to offer them anyway. Both of these factors may contribute to your creditors being less likely to accept payment offers but not always.

If your budget shows you're keeping your living costs as low as you can and are dividing up your payments between debts proportionately then I'd hope they'd still agree.

If any creditors refuse your offer then it's best to send them the payment every month anyway and ignore their requests for extra. They can't force you into making payments you can't afford.

2) It's worth thinking about bailiffs and debt collectors as two separate things. Debt collectors are just people who work for the company you owe money to, bailiffs are acting out court instructions to collect debts.

So bailiffs will only be sent for credit debts if you've had a CCJ (County Court Judgment) and for these types of debts they'll only be able to force entry if they've been in your property on a previous visit.

Debt collectors have about as much power as the milkman does when he comes to collect the bill (not sure many people have milkmen anymore, but I hope you see my point).

I suspect that the people you saw at your neighbour's house the other day were probably bailiffs collecting a different type of debt (council tax, court fines, hire purchase) as there are different rules for other types of debt which often means the bailiffs have more power than if they were collecting an unpaid credit card debt.

I hope this clears things up. It might be worth completing our online advice tool, Debt Remedy - http://www.stepchange.org/msehelp, which can give you a personal action plan in about 20 minutes. It sounds like you've been struggling with these debts for a while, so a second opinion on how best to deal with them might help.

Kind regards

James

MissKG

Hi there

I hope I'm doing this right as I am a newbie so please be gentle with me I have a question that may or may not be able to be answered simply but its worth a shot.

I currently hold approx 12k worth of unsecured debt. My long term partner and I split up some time ago and I have struggled on alone with the rent (I rent from my mum - my rent pays the mortgage basically) and all the other household bills plus the bills for our two dogs. I have taken everything down to the bare minimum that I can so there is very little room left to maneouver there. I am currently paying the minimum on my unsecured debts plus a few pounds so I am not behind with anything currently but obviously the fact I have used up most of my credit is not a particularly good thing to have on a credit record. I have spoken to my creditors and this month two of my three credit cards have given me either a half payment or a payment holiday for a month which is very much appreciated and helpful. Going forward however I am looking at a total of about £300 left per month after my debts and priority bills are paid off and out of that I have to pay for fuel (at least £80 a month), food, clothing and entertainment etc. Its not really a whole lot and whilst I do believe I could struggle on like this for a few years it is a bit of a miserable existence. It also leaves me with nothing if I have to pay vets bills (claimed back on insurance but have to pay up first), repairs to the house, if anything happens to my car etc). I am starting to wonder if a Debt Management Plan may be the way to go but I am concerned that it will have a very negative effect on my credit rating for a long time. I do not intend to apply for credit for anything but I suppose because I am not at a point where I can't afford minimum repayments I wonder if it is worth it or if I should just cut the cards up and struggle on as I am for a few years? Then again a DMP may just free up enough cash for me to put a little bit into an account for any emergencies as well as hopefully freezing interest so I can make some in-roads into getting the debt down. I freely admit that it is not a terrible situation to be and there are millions a lot worse off than I so I am grateful that I am able to make my minimum payments, it's more just about making life a little more comfortable for me and psychologically feeling like I am getting my debts down as opposed to treading water.

I would be very grateful for an opinion on this situation if anyone can provide one? Thank you

StepChange_James

MissKG wrote: »

Hi there

I hope I'm doing this right as I am a newbie so please be gentle with me I have a question that may or may not be able to be answered simply but its worth a shot.

I currently hold approx 12k worth of unsecured debt. My long term partner and I split up some time ago and I have struggled on alone with the rent (I rent from my mum - my rent pays the mortgage basically) and all the other household bills plus the bills for our two dogs. I have taken everything down to the bare minimum that I can so there is very little room left to maneouver there. I am currently paying the minimum on my unsecured debts plus a few pounds so I am not behind with anything currently but obviously the fact I have used up most of my credit is not a particularly good thing to have on a credit record. I have spoken to my creditors and this month two of my three credit cards have given me either a half payment or a payment holiday for a month which is very much appreciated and helpful. Going forward however I am looking at a total of about £300 left per month after my debts and priority bills are paid off and out of that I have to pay for fuel (at least £80 a month), food, clothing and entertainment etc. Its not really a whole lot and whilst I do believe I could struggle on like this for a few years it is a bit of a miserable existence. It also leaves me with nothing if I have to pay vets bills (claimed back on insurance but have to pay up first), repairs to the house, if anything happens to my car etc). I am starting to wonder if a Debt Management Plan may be the way to go but I am concerned that it will have a very negative effect on my credit rating for a long time. I do not intend to apply for credit for anything but I suppose because I am not at a point where I can't afford minimum repayments I wonder if it is worth it or if I should just cut the cards up and struggle on as I am for a few years? Then again a DMP may just free up enough cash for me to put a little bit into an account for any emergencies as well as hopefully freezing interest so I can make some in-roads into getting the debt down. I freely admit that it is not a terrible situation to be and there are millions a lot worse off than I so I am grateful that I am able to make my minimum payments, it's more just about making life a little more comfortable for me and psychologically feeling like I am getting my debts down as opposed to treading water.

I would be very grateful for an opinion on this situation if anyone can provide one? Thank you

Hi Miss KG,

Thanks for posting. I see what you mean about how things could be worse, but it still sounds like quite a stressful situation. Hopefully we can help a little bit.

From reading your post I get the feeling that you are somewhere close to that borderline between being able to maintain payments or not.

Even though you mention that the payments are currently just about manageable, I wonder if it's a case of them being manageable if absolutely everything in your finances goes to plan and there are no additional costs.

When we plan out budgets with our clients we try to plan for all the likely costs you'll have over a typical year and then work out what's left for debt. If there's still enough spare for debts payments then you might be able to manage but if not then it might be worth looking at reducing payments.

It's great that you've already taken steps to reduce your costs wherever possible. This will help you regardless of the long term plan for dealing with the debts.

I'd suggest going through our Debt Remedy tool http://www.stepchange.org/msehelp, putting in your details and looking at the personal action plan it produces. It's free, takes about 20 minutes and should give you an idea about how manageable your debts are and if you need to do something like a DMP we can help you set up a free one.

I hope this helps.

James

MissKG

Many thanks James. Your assessment is very accurate in that everything is manageable *as long as* everything goes to plan. Any unexpected bills and I could end up stuck. It would be very nice to have a little bit of breathing space now and again. I will go through the Debt Management tool and go from there. Thank you for your help, it is most appreciated

megandz

Hi

I was wondering if I could get some advice please. I have three debts being

Natwest - current balance £2500 - defaulted in 2009 (£39!!) and been repaying £140pm since. Frozen interest and charges

MBNA - 10k never defaulted but passed onto another company Idem - repaying at £200pm since 2009. frozen interest and charges

Northern Rock - £13k on personal loan - have been paying £100pm since 2009 rather than the £300 due - made arrangement with NR and have stuck to it but they defaulted account in Jan 13.

My question is that I cannot pay these payments anymore. I have moved to Ireland and my eldest son has just been diagnosed with special needs which require full time care. I will have to give up my job and cannot afford payments at the above levels while on benefits.

I have no assets - dont own a car, have a property in UK which is in negative equity and cannot sell it or even rent it out - another nightmare but one my husband is dealing with thankfully.

My father has offered to give me £3000 to clear all the above unsecured debts. Is this likely to be accepted?

Can the companies involved take legal action against me as I dont live in the UK anymore?

Any advice gratefully received. I had planned on repaying every cent as I have done on other debts but my son needs me now and his needs are paramount.

Thanks

RoxRoxBling

Hi, I would like to ask a question.

If a DCA send over a doorstep collector, can they take items from the house if I do not own the house, (live with parents), because most non-essential items do not belong to me.

Is it only bailiffs who are entitled to gain peaceful entry in the house, or can doorstep collectors do the same?

Thanks.

sasja1000

Hi !
Im really hoping for some advice with my situation ....hope i have posted in the right place ?!

So , i have 3 large and rather ancient debts ( 8 - 10 years old ).

I had great difficultly in paying them for a while and they were handed around to various debt companies. I have , frankly, been through hell with them and they have destroyed my credit rating ( unsurprisingly)

Around 3 years ago i got a bit more onto my feet and I managed to arrange payment plans with all companies and have stuck to them religiously, despite the small impact of my payments, they have at least been adhered to.
I am so very keen to improve me credit score.
I have an opportunity of borrowing some money and want to use it to clear this debt.
Please can you advise me the best way of going around this as there isnt enough to clear the full amounts.
Will the companies do a deal on a " full and final settlement"? If so how and what am i best offering?
Will it affect my credit even more ?
Thanks so so much for your help, in advance.

The debts are -

Halifax ( originally ) been with debt company for years- £ 6754.15
Lloyds ( originally) been with debt company for years - £ 7300
Egg " " " " " " - £ 5670

StepChange_James

megandz wrote: »

Hi

I was wondering if I could get some advice please. I have three debts being

Natwest - current balance £2500 - defaulted in 2009 (£39!!) and been repaying £140pm since. Frozen interest and charges

MBNA - 10k never defaulted but passed onto another company Idem - repaying at £200pm since 2009. frozen interest and charges

Northern Rock - £13k on personal loan - have been paying £100pm since 2009 rather than the £300 due - made arrangement with NR and have stuck to it but they defaulted account in Jan 13.

My question is that I cannot pay these payments anymore. I have moved to Ireland and my eldest son has just been diagnosed with special needs which require full time care. I will have to give up my job and cannot afford payments at the above levels while on benefits.

I have no assets - dont own a car, have a property in UK which is in negative equity and cannot sell it or even rent it out - another nightmare but one my husband is dealing with thankfully.

My father has offered to give me £3000 to clear all the above unsecured debts. Is this likely to be accepted?

Can the companies involved take legal action against me as I dont live in the UK anymore?

Any advice gratefully received. I had planned on repaying every cent as I have done on other debts but my son needs me now and his needs are paramount.

Thanks

Hi Megan,

Thanks for posting. I'd agree with you, family has to come first in these situations.

While it'd be great if you could get the debts sorted out with a full and final settlement, a £3,000 lump sum is probably unlikely to be enough to clear them all. It won't cost you anything to ask the question of them though, so it's worth a shot.

If you update this debts with your new address then they won't be able to enforce them through the English legal system as you'll be out of their jurisdiction. However, the debt can be pursued through the Irish legal system while you are living there.

Usually companies would prefer to set up arrangements directly with you instead of going down that route though (whether you're based in the UK or not).

I'd suggest giving us a call and getting some advice about the best way to deal with these debts. Here's the contact details to call from another country: http://www.stepchange.org/LivingoutsidetheUK.aspx.

Kind regards

James

StepChange_James

RoxRoxBling wrote: »

Hi, I would like to ask a question.

If a DCA send over a doorstep collector, can they take items from the house if I do not own the house, (live with parents), because most non-essential items do not belong to me.

Is it only bailiffs who are entitled to gain peaceful entry in the house, or can doorstep collectors do the same?

Thanks.

Hello,

A doorstep debt collector would only be looking to get payments from you, not take away your stuff. So whether the things are yours or not doesn't really come into it, only bailiffs have the right to take things away.

A doorstep debt collector has about the same amount of power to enter your property as I would. If I knocked on your door and you invited me in then I could come in; if you told me to go away then I'd have have to respect your request. It's the same rules for doorstep debt collectors.

I hope this clears things up.

James

p.s. I've not plans to visit your house, it was just to provide an example

StepChange_James

sasja1000 wrote: »

Hi !
Im really hoping for some advice with my situation ....hope i have posted in the right place ?!

So , i have 3 large and rather ancient debts ( 8 - 10 years old ).

I had great difficultly in paying them for a while and they were handed around to various debt companies. I have , frankly, been through hell with them and they have destroyed my credit rating ( unsurprisingly)

Around 3 years ago i got a bit more onto my feet and I managed to arrange payment plans with all companies and have stuck to them religiously, despite the small impact of my payments, they have at least been adhered to.
I am so very keen to improve me credit score.
I have an opportunity of borrowing some money and want to use it to clear this debt.
Please can you advise me the best way of going around this as there isnt enough to clear the full amounts.
Will the companies do a deal on a " full and final settlement"? If so how and what am i best offering?
Will it affect my credit even more ?
Thanks so so much for your help, in advance.

The debts are -

Halifax ( originally ) been with debt company for years- £ 6754.15
Lloyds ( originally) been with debt company for years - £ 7300
Egg " " " " " " - £ 5670

Hello,

If these debts have been around for a long time and have been passed around quite a bit then I'd say that gives you a better chance of being able to get a full and final settlement agreed.

You can make offers in writing or over the phone, but it's really important to get any agreements confirmed in writing so you've got proof.

We generally recommend dividing your money up proportionately between your creditors, so everyone gets a fair share. Some people will actually show their workings out to their creditors too, to help them to see that nobody is getting special treatment.

If you make full and final settlements then your credit file should be updated to show the debts have been cleared (though sometimes it will leave a mark saying they were partially settled). It will almost certainly make you look like a better prospect to potential lenders if these debts have been cleared instead of still owing money on them.

I'd suggest using our advice tool, Debt Remedy - http://www.stepchange.org/msehelp. It'll guide you through making a budget (sometimes called a SOA) and if we recommend settlement offers the advice booklet will include template letters that you could use.

I hope this helps.

James