Struggling with debt? Ask a debt advisor a question

**tinkerfoos**

StepChange_Rachel wrote: »

Hi there Laura

Debt Remedy won’t recognise a debt to family and friends as a priority as your creditors will not usually be happy with something like this taking precedence over money you owe to them. We do however appreciate the difficult position you’re in in the sense that you don’t want to let your loved ones down, and we’ll do all we can to help.

Could you please give our Helpline a call? One of our advisors will be more than happy to go through your budget with you and look at some possible long term options for you moving forward. Our number is 0800 138 1111.

Hope this helps

Best regards

Rachel

Thank you Rachel - I will call later on or tomorrow x

Jam_Banjo

Might sound like a stupid question, but please bear with me!

I have had a DMP which has slowly been being paid off for about 8 years and next year, due to an upturn in my business I should be in a position to clear all debt if I get a reasonable settlement figure - however I have just checked my credit score and surprisingly it is very good, through being more careful with finances, overdraft, good banking etc. I also assume it is because over 6 years have elapsed since I started the DMP.

I am now worried that if I contact the lenders directly or through the DMP agency to settle, in some way this could 'reset the clock' on the debt and I would have 6 more years of bad credit, could someone advise me on the best course of action?

I am looking to buy a house in the next year and with my current Credit score this seems very possible, but I would hate to jeopardise that by trying to do the right thing paying off old debts first... when I could potentially pay off the old debts later.

Thanks very much for any advice you can offer.

fatface88

StepChange_Jess wrote: »

Hi
I wouldn't suggest you renew/ take out another car finance agreement as this would be another credit agreement. I suggest that you contact your DMP company and explain that the car may well need repairs. Be aware the DMP company could end your DMP, if they do you can contact another free provider like ourselves or Payplan.

As the car is on finance you own the car you are just repaying the money for the loan. The car finance payment should be added to your DMP as it is a credit payment – by adding it onto your DMP you are treating all of your creditors equally. The amount you pay towards the car could be a lower amount as you should only pay what you can afford. The car would not be taken off you if you lowered the payment.

With DMPs there is usually money allocated for car repairs/maintenance. You could then budget to repair the car rather than take out another agreement.





many thanks for reply, our dip is with ourself but car is not on it as if we miss or lower payment then it will be taken from us. we still owe on the car and the car needs alot (over £1000) to fix it! we have looked into car finance but dont think anyone will take us on. we did budget for repairs but it had to go on new cooker! as i say bad bad luck , feel like throwing in towel!

yours hopeful for advice....m

Former_StepChange_Rachel

Jam_Banjo wrote: »

Might sound like a stupid question, but please bear with me!

I have had a DMP which has slowly been being paid off for about 8 years and next year, due to an upturn in my business I should be in a position to clear all debt if I get a reasonable settlement figure - however I have just checked my credit score and surprisingly it is very good, through being more careful with finances, overdraft, good banking etc. I also assume it is because over 6 years have elapsed since I started the DMP.

I am now worried that if I contact the lenders directly or through the DMP agency to settle, in some way this could 'reset the clock' on the debt and I would have 6 more years of bad credit, could someone advise me on the best course of action?

I am looking to buy a house in the next year and with my current Credit score this seems very possible, but I would hate to jeopardise that by trying to do the right thing paying off old debts first... when I could potentially pay off the old debts later.

Thanks very much for any advice you can offer.

Hi there

Your credit file has been improving because you've made consistent payments to your debts via your DMP. Please don't worry about your creditors penalising you by you simply calling them to talk settlement figures.

I would advise that if you find yourself in a position to settle the debts, that you always get an agreed figure in writing off the creditors in question. It's hard to prove that a creditor agreed to a certain sum over the phone, and there have been occasions when a creditor has reneged on a settlement figure once the money is paid.

I would also suggest that you try and make your settlements as fair and equal as possible. If you only settle on one or a couple of your debts, your remaining creditors might not be happy about it. We have a settlements team here at StepChange who can deal with your creditors for you once settling becomes an option, and they don't charge a fee.

Hope this helps

Best regards

Rachel

Marvintheparanoidandroid

Hi advisors!

I recently received a letter from a debt collection company saying they were acting on behalf of a bank I have never held an account with. I wrote back asking for more details and a copy of the credit agreement, but all I was sent was a computer print out of my personal details and financial figures of credit limit/total outstanding etc. It is a debt that was transferred from a card I did have, so that is not in question.

Can I insist on seeing the credit agreement before I agree any repayment? The card was taken out in 2006 if that has any importance.

Thanks

R

Jam_Banjo

StepChange_Rachel wrote: »

Hi there

Your credit file has been improving because you've made consistent payments to your debts via your DMP. Please don't worry about your creditors penalising you by you simply calling them to talk settlement figures.

I would advise that if you find yourself in a position to settle the debts, that you always get an agreed figure in writing off the creditors in question. It's hard to prove that a creditor agreed to a certain sum over the phone, and there have been occasions when a creditor has reneged on a settlement figure once the money is paid.

I would also suggest that you try and make your settlements as fair and equal as possible. If you only settle on one or a couple of your debts, your remaining creditors might not be happy about it. We have a settlements team here at StepChange who can deal with your creditors for you once settling becomes an option, and they don't charge a fee.

Hope this helps

Best regards

Rachel

Ah great that's great advice and much appreciated. I know I definitely want to sort out a fair way for all creditors to settle, but will be doing it first half of next year all being well so I may well be in touch with you guys! Thanks so much for putting my mind at ease!

Thanks again Rachel!

fatface88

hi many thanks for reply, our dip is with ourself but car is not on it as if we miss or lower payment then it will be taken from us. we still owe on the car and the car needs alot (over £1000) to fix it! we have looked into car finance but dont think anyone will take us on. we did budget for repairs but it had to go on new cooker! as i say bad bad luck , feel like throwing in towel!

yours hopeful for advice....m

StepChange_James

Marvintheparanoidandroid wrote: »

Hi advisors!

I recently received a letter from a debt collection company saying they were acting on behalf of a bank I have never held an account with. I wrote back asking for more details and a copy of the credit agreement, but all I was sent was a computer print out of my personal details and financial figures of credit limit/total outstanding etc. It is a debt that was transferred from a card I did have, so that is not in question.

Can I insist on seeing the credit agreement before I agree any repayment? The card was taken out in 2006 if that has any importance.

Thanks

R

Hi R,

You can request a copy of the original agreement on these sorts of debts, but that's usually something that is done to prove that a debt is actually owed. It sounds like you accept you owe the money, so it might be of limited value to get a copy of the agreement.

The date the debt was taken out on doesn't affect debt collection much. However, if it's been six years since you last made a payment or acknowledged the debt in writing then the debt may be statute barred. This means that they aren't entitled to take you to court to force repayment (assuming you're based in England or Wales).

We've an article on our blog about what creditors can and can't do: http://moneyaware.co.uk/2011/08/you%E2%80%99re-in-debt-but-what-can-your-creditors-actually-do/ it might be useful.

Kind regards

James

StepChange_James

fatface88 wrote: »

hi many thanks for reply, our dip is with ourself but car is not on it as if we miss or lower payment then it will be taken from us. we still owe on the car and the car needs alot (over £1000) to fix it! we have looked into car finance but dont think anyone will take us on. we did budget for repairs but it had to go on new cooker! as i say bad bad luck , feel like throwing in towel!

yours hopeful for advice....m

Hello,

It sounds like a tough situation to be in but hopefully we can help.

I'd recommend giving us a call and talking to one of our advisors. It's hard to say what the best option is for you at the moment without knowing your full situation. If you ring up we'll look over your budget and see how to proceed.

There's the issue of having a car (I'm presuming you need one for getting about) and the issue of the finance on the car that is currently in need of repair.

So we'll want to help you address these two areas. There's never a situation that we can't give advice on, but we'll need to work with you to find the best solution.

Hope this helps.

James

babyfever

hi, new here. Have never admitted my debt problems to anyone at all so im just going to get it all out!!

So i owe about £6000 in total. I know for a fact more than half of that is interest as i have ignored it for so long. (years) ive moved alot, so its always taken time for companies to find me. I owe on a loan, a debt with e-on, n power, bt, talk talk, o2 and rent arrears (not from the property im in now). Im ready to put a stop to it all now, i admit ive just ignored it but i do want to sort it now. My husband shares 1 or 2 of these debts. He works, self employed and i stay at home with our kids who are 3 and 2months. He really doesnt bring home much money, so we get tax credits, and a bit of housing benefit, we have been really struggling to make ends meet, and thats without paying off any debts so i dont even know where to start with paying them. I did attempt to speak to some of the debt collectors but they all wanted £30+ a week and would not accept any less and we just cant do that.

any advice would be great, we have no savings and we rent our home, we dont have a car as cant affored one, and im not really sure where we can cut our spending.. Feeling miserable and i just want better for my kids.