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pigeon15_2

Can someone please help me.

I split up with my ex husband in August 2006. One year later, he took the house on as he could afford to pay the mortgage and secured loan. He lived there for 3 years with his girlfriend and then the house was repossessed in 2010. The mortgage company and secured loan company have constantly been hassling me for money to the point I was off sick with stress due to the debts and an on-going court case for ancillary relief.

I am paying them a small amount each month as, despite winning the ancillary relief case, I am still fighting my ex in court to obtain any payment. I have said to them that I am happy to pay my share as we are both liable but I am not willing to pay his share. I looked into getting a debt management plan but they said I would have to take on the whole debt for both the mortgage and secured loan totalling £60,000. I am really not prepared to do this as I do not think it is fair that he should get away with paying nothing.

Is there anything I can do to get the debt split. I was told on the phone a couple of years ago that they would be able to split it but now both companies are refusing.

PLEASE HELP!!

System

pigeon15 wrote: »

Can someone please help me.

I split up with my ex husband in August 2006. One year later, he took the house on as he could afford to pay the mortgage and secured loan. He lived there for 3 years with his girlfriend and then the house was repossessed in 2010. The mortgage company and secured loan company have constantly been hassling me for money to the point I was off sick with stress due to the debts and an on-going court case for ancillary relief.

I am paying them a small amount each month as, despite winning the ancillary relief case, I am still fighting my ex in court to obtain any payment. I have said to them that I am happy to pay my share as we are both liable but I am not willing to pay his share. I looked into getting a debt management plan but they said I would have to take on the whole debt for both the mortgage and secured loan totalling £60,000. I am really not prepared to do this as I do not think it is fair that he should get away with paying nothing.

Is there anything I can do to get the debt split. I was told on the phone a couple of years ago that they would be able to split it but now both companies are refusing.

PLEASE HELP!!

Hi,

With joint mortgage debts you are jointly liable – if the lender cannot gain payment from your ex-husband they can chase you for the full amount and vice versa. So having the debt split is not possible.

However the mortgage shortfall is a non-priority debt. This means that the lender cannot make you repay the money in installments greater than you can afford. They are only entitled to money left over once you've paid your priorities – current rent/mortgage, household bills, food and living costs.

We can give you free, impartial advice on the best way to deal with the debt. You can use Debt Remedy – our confidential online tool. From your budget details it can give you tailored advice and a personal action plan.

If you’d prefer to speak to someone you can also contact us.

I hope this helps

Thanks,
Jess

CazzaJ

Hi all

I am still in turmoil over which way to turn with debts etc and know I must take out a DMP at the very least. We are taking a big step however on Tues by opening up a new bank account which means we could make some progress. I know in my head it's the right thing to do but I have so many worries and reservations.

For instance - what happens over the next few years when we need to be credit checked ie when paying for car insurance and the like by monthly direct debit - how does the terrible credit rating that will invariably occur with a DMP affect that. Likewise with mobile phone contracts - what happens when we come to renew?

Hope you don't think these are minute worries in the great scheme of things! But it's just one of those little items stopping me from sleeping at night!

Thanks so much for your help!

mum2one

CazzaJ wrote: »

Hi all

I am still in turmoil over which way to turn with debts etc and know I must take out a DMP at the very least. We are taking a big step however on Tues by opening up a new bank account which means we could make some progress. I know in my head it's the right thing to do but I have so many worries and reservations.

Youve taken the first and the hardest step thats by saying I must do something about it, it takes a lot of courage to get to that first post, I should know I spent 12 months trying to self manage my debts, than another 2 months plucking up the courage to speak to stepchange, - but I did it, and now 12 months later, it was the best thing that I ever did. Its understandable to have reserverations, and 1001 questions, but ask and there will be someone to help, you didn't see the daft questions I asked stepshange!

The other good step is you have a new bank account in process, I would just say make sure its not tied to any of your creditors,
eg - Halifax - there in with Lloyds TSB, Bank of Scotland.

I did my new account online with natwest (got no debts with them)

For instance - what happens over the next few years when we need to be credit checked ie when paying for car insurance and the like by monthly direct debit - how does the terrible credit rating that will invariably occur with a DMP affect that. Likewise with mobile phone contracts - what happens when we come to renew?

[COLOR="rgb(65, 105, 225)"]During your plan, you have money put aside each month to cover your car insurance, I do my car ins yearly, but I have had no probs getting car insurance, I even changed my provider, and I only been on the dmp for 3 mths then. Once the plan is set up you have an allowance for car insurance, - what I do is put that in a spare account, and have a spreadsheet with what each bit of the money belongs to (car ins, car tax, servicing, house ins etc)[/COLOR]

Mobile Phone contracts - Some people go on to pay and go, but at the moment, if your on contract, and at the end of the contract unless you want to change then it will continue, - that would be something you would need to cross at the time, - your existing provider may offer you an upgrade based on your existing contract and may bypass some of the credit checks, - I don't really know (sorry), I changed a few years ago from contract to pay and go as for me it was a lot cheaper

Hope you don't think these are minute worries in the great scheme of things!
[COLOR="rgb(65, 105, 225)"]There are going to be questions, and your going to want answers, its a big step, but one that is the first run of the ladder.[/COLOR]

But it's just one of those little items stopping me from sleeping at night!

Thanks so much for your help!

Hope I have been some help, but the way i see it, if its a niggle or w worry for you, ask as its better to get it in the open as someone may have already had the same issue, and can help.

Personally I can't thank stepchange enough for what they have done, for me the DMP has given me a new fresh start, xx

StepChange_James

CazzaJ wrote: »

Hi all

I am still in turmoil over which way to turn with debts etc and know I must take out a DMP at the very least. We are taking a big step however on Tues by opening up a new bank account which means we could make some progress. I know in my head it's the right thing to do but I have so many worries and reservations.

For instance - what happens over the next few years when we need to be credit checked ie when paying for car insurance and the like by monthly direct debit - how does the terrible credit rating that will invariably occur with a DMP affect that. Likewise with mobile phone contracts - what happens when we come to renew?

Hope you don't think these are minute worries in the great scheme of things! But it's just one of those little items stopping me from sleeping at night!

Thanks so much for your help!

Hi CazzaJ,

I think it's completely understandable to worry about these kind of things before working out the best debt solution for you. It shows that you're thinking practically and want to move forward in the best way possible.

Mum2one's response is great, I'd agree with everything she's put.

A lot of people on DMPs do have car insurance that they pay monthly for and mobiles on monthly contracts (though I'd agree that pay as you go or sim-only contracts can work out a lot cheaper).

Your credit rating usually takes quite a knock when you're on a DMP but if you don't want to take out more credit then there aren't that many other things that this affects.

Like Mum2one says, comapanies that you already have a relationship with are less likely to bother with credit checks if you've already got a good track record with them. If you paid your car insurance every month for the last year then they'd think there's a good chance you'll continue to pay it for the next year's premium too.

Having said all this, I'd suggest getting advice before deciding a DMP is the best option because it's worth looking at all the available debt solutions to see which fits your circumstances best.

Our online advice tool, Debt Remedy -http://www.stepchange.org/msehelp - can help you work this out. It'll help you work out a realistic budget and provide a personal action plan.

All the best.

James

hannah29_2

Hi I need some help on how to talk to Halifax to reduce my credit card.

I have 10500 owing on a Halifax credit card, I have had it for years and for the past 6 years I have paid a regular 250 a month a few pounds over the minimum payment which has barely reduced the balance. 2 months ago my husband lost his job and we missed a payment. we called to speak to them to explain but they were no help whatsoever. we asked to convert it to a lower rate or to a loan but they outright refused. we are now in arrears by 3 payments approx. 750.
thanks to my husband now working again we can now pay off the arrears but don't want to continue down the same road we have been on for the last 6 years of paying the minimum and getting nowhere.
is there a standard letter or a way of asking for them to help without getting a simple no? they have had masses of interest off us over the years and up until the last few months we have paid regularly.
we have thought about getting it transferred elsewhere to a loan or another interest free card but have now got a bad credit rating so pretty sure we wont get anything.
Hannah

Financial-Comeback

I have a debt of over 40K and finally decided I can no longer turn an blind eye and hope it is going to fix itself! I had no knowledge of Debt Management Plans, until I came across StepChange! They have been very helpful and taken care of all the communication with my 7 creditors! most of which seem to have accepted the reduced payment offer and will stop charging me interest. StepChange does all this for free, which is incredible considering how much some private Debt Managements charge.

Wish I knew about StepChange earlier. Thank you!

Former_StepChange_Rachel

hannah29 wrote: »

Hi I need some help on how to talk to Halifax to reduce my credit card.

I have 10500 owing on a Halifax credit card, I have had it for years and for the past 6 years I have paid a regular 250 a month a few pounds over the minimum payment which has barely reduced the balance. 2 months ago my husband lost his job and we missed a payment. we called to speak to them to explain but they were no help whatsoever. we asked to convert it to a lower rate or to a loan but they outright refused. we are now in arrears by 3 payments approx. 750.
thanks to my husband now working again we can now pay off the arrears but don't want to continue down the same road we have been on for the last 6 years of paying the minimum and getting nowhere.
is there a standard letter or a way of asking for them to help without getting a simple no? they have had masses of interest off us over the years and up until the last few months we have paid regularly.
we have thought about getting it transferred elsewhere to a loan or another interest free card but have now got a bad credit rating so pretty sure we wont get anything.
Hannah

Hi there Hannah

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

There’s no letter unfortunately that can force Halifax’s hand on this, but they cannot make you pay more than you can afford. If you were struggling to pay £250 a month it may be that you should be offering less or would benefit from a debt solution. If you were to do a budget, get some impartial debt advice you could be advised on the best way to deal with the debt. Halifax may then be more willing to look at options open to you.

If you currently bank with Halifax, it might be good idea to open yourself a basic bank account with a bank you have no connection to and get your money and household bills moved to this new account. This is because of something called the Right of Offset (also known as the Right to Set-Off, depending on who you speak to).

This means that if you owe your bank money on a debt they have 'first dibs' and can take payment towards that debt regardless of how much you can afford realistically. They're also less likely to accept reduced payments if they have this Right of Offset. Getting moved into a brand new account puts you in a much better position to negotiate payments.

We wouldn’t usually recommend consolidating your credit card and other debts into a loan, as quite often that can result in you paying a higher payment or more interest than you are at the moment. Instead, it would be more beneficial to look at your whole budget and work out what you and your husband can truly afford to pay right now. Halifax may also have refused because they may have felt you’re a bit ‘over-committed’ at present. Under banking guidelines, Halifax can only lend further credit to you if they’re confident you can afford to pay it back.

We have a blogpost that goes into this in a bit more detail if you’d like to take a look: http://moneyaware.co.uk/2013/01/to-debt-consolidate-or-not-to-debt-consolidate/

We also have an anonymous advice tool called Debt Remedy that can give you a debt solution in just 20 minutes. If you’re struggling with debt in addition to this one with Halifax, we can look at everything you’re dealing with and see if there’s some better long term options for you.

Hope this helps

Best wishes

Rachel

Former_StepChange_Rachel

Financial-Comeback wrote: »

I have a debt of over 40K and finally decided I can no longer turn an blind eye and hope it is going to fix itself! I had no knowledge of Debt Management Plans, until I came across StepChange! They have been very helpful and taken care of all the communication with my 7 creditors! most of which seem to have accepted the reduced payment offer and will stop charging me interest. StepChange does all this for free, which is incredible considering how much some private Debt Managements charge.

Wish I knew about StepChange earlier. Thank you!

Hi there,

That's great to hear we were able to help! it takes a lot of courage to take action on your debt, so you should be very proud of yourself. Here's to your debt-free future!

All the best

Rachel

fedupofhiding

Hi
This is the first time I've ever sought help about my debts which have been hanging round my neck for more years than I care to remember...the only person I have ever told is my sister.

All my debts are unsecured & I no longer know exactly how much they are, just somewhere in the region of £40,000......more than a years salary & so I'm in debt crisis. I was in an abusive relationship & when I finally broke free, I spent & spent on credit cards & ended p using one card to pay the minimum payment on another, until I maxed out all of them. At the worst, I had ELEVEN credit cards...so totally stupid.

I have looked into getting an IVA, but I'm too embarrassed by the whole thing to talk to anyone! I'm on anti-depressants & can't face being in a relationship because I'd have to honestly tell someone how stupid I've been, & I couldn't stand the embarrassment...even writing this post is raising my heart rate & make me feel like crying!

Please point me in the right direction! I'm a single 50 yr old woman who wants to be debt free!

P