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rara879

Hi,

To cut a long story short, over the last couple of years Ive managed to run up about £12k of debt, due to being young and stupid and renting a flat that I couldn't afford due to being desperate for independence! Payday loans, credit cards, borrowing money from parents e.t.c
Buried my head in the sand for a while which only caused things to get worse but now I'm trying to do the smart thing and sort myself out.
Ive moved back to my parents and opened a new bank account so that I can start fresh and the next thing that I'm planning to do is to work out my finances and send all of my creditors a financial statement and an offer of a payment plan.
Just got a couple of questions about the financial statement though -
- I live with my parents but still have to pay £400 rent, but obviously I have no tenancy agreement or anything - will they accept this?
- My dad took out a loan for me for a car as I couldn't get the finance, on the understanding that every month without fail I would pay him back the payments of £207. Ive kept up with this so far and have to keep these payments up as it would cause huge huge problems if I didn't but how can I put this on a financial statement?
- I also owe my mum a lot of money so need to include her in the payments every month, how do I put this on the financial statement?
- I can make a very small token payment to each creditor this month but just paid £400 as the last payment on a loan I really wanted to get rid of so now I wont be able to afford to start any repayment plans until 25th Sept. How can I get them to accept this?
-Any other advice anyone can give?

I would be grateful for any help!

Thanks!

StepChange_Private_Messages

rara879 wrote: »

Hi,

To cut a long story short, over the last couple of years Ive managed to run up about £12k of debt, due to being young and stupid and renting a flat that I couldn't afford due to being desperate for independence! Payday loans, credit cards, borrowing money from parents e.t.c
Buried my head in the sand for a while which only caused things to get worse but now I'm trying to do the smart thing and sort myself out.
Ive moved back to my parents and opened a new bank account so that I can start fresh and the next thing that I'm planning to do is to work out my finances and send all of my creditors a financial statement and an offer of a payment plan.
Just got a couple of questions about the financial statement though -
- I live with my parents but still have to pay £400 rent, but obviously I have no tenancy agreement or anything - will they accept this?
- My dad took out a loan for me for a car as I couldn't get the finance, on the understanding that every month without fail I would pay him back the payments of £207. Ive kept up with this so far and have to keep these payments up as it would cause huge huge problems if I didn't but how can I put this on a financial statement?
- I also owe my mum a lot of money so need to include her in the payments every month, how do I put this on the financial statement?
- I can make a very small token payment to each creditor this month but just paid £400 as the last payment on a loan I really wanted to get rid of so now I wont be able to afford to start any repayment plans until 25th Sept. How can I get them to accept this?
-Any other advice anyone can give?

I would be grateful for any help!

Thanks!

Hi rara879,

The most important thing is that you’ve drawn a line under over spending and are looking to get back on track – we can help you to do this.

• You should include the rent to your parents in the section for rent payments. If you are transferring the money using online banking even if there is no tenancy agreement you could prove you are making the payment. Although you are under no obligation to show your bank statements to creditors.

• The loan payment for the finance car can be included in loans or money owed to family and friends. It is a priority debt as if you were to offer less your father would be affected.

• Again the money you owe to your mother should be included as a separate payment towards the money you owe her. If you are asking your creditors to accept reduced or minimum payments then it would be better to offer as little as possible to your mother. Again this is a priority payment.

• As a one off payment for this month you are best to offer the creditors a pound if that is all you can afford for this month. Explain to them why you are doing this and that from the 25th September you will be a able to start a repayment plan. Pay the money for this month even if they say they will not accept it.

It sounds like you would benefit from independent financial advice. Our online tool Debt Remedy could build you a budget and tell you the best way to deal with the debts. You would then have a financial statement you can show your creditors which would help prove your situation. Debt Remedy is free, completely confidential and available 24 hours a day.

I hope this helps.

Thanks,
Jess

ev029

Hi all,

Ive been in a iva for the last 2 years with Money debt and credit and have just received a pack from a company called Grant thornton saying that they are taking over my Iva, while in my IVA I took a 6 month payment break as was going self employed and when it came around to start paying again I couldn't make my payments of £230 a month and was paying £100, now they have handed it over to this other company and I can never get in touch with anyone to speak to them as they have sent me all the original paperwork with all old figures on. they close at 5 of a day and promise someone will ring me back the next day but no one ever does. Do I look for another company to go with so I can get this cleared asap ?

Thanks

dogloverjo

Help! Just checking i have done this correctly before rambling on...

dogloverjo

It looks like I have... am having issues with QuickQuid and would value some advice - all due to a change of payroll and only receiving less than half pay this month - they are being most unhelpful and trying to force me into arrangements I cannot afford - I have logged a complaint with them - I am also concerned at how to pay them as I will not allow a CCA I do not trust them... what do I do now?

Former_StepChange_Rachel

ev029 wrote: »

Hi all,

Ive been in a iva for the last 2 years with Money debt and credit and have just received a pack from a company called Grant thornton saying that they are taking over my Iva, while in my IVA I took a 6 month payment break as was going self employed and when it came around to start paying again I couldn't make my payments of £230 a month and was paying £100, now they have handed it over to this other company and I can never get in touch with anyone to speak to them as they have sent me all the original paperwork with all old figures on. they close at 5 of a day and promise someone will ring me back the next day but no one ever does. Do I look for another company to go with so I can get this cleared asap ?

Thanks

Hi there,

Thank you for getting in touch with us.

It's quite common for an IVA company to pass on your file to another Insolvency Practitioner. With an IVA being legally binding, it's important to find out who is actually handling your IVA right now and contact them directly. If you find that you're still not getting your problem resolved by the IP handling your IVA, you can put a complaint in about them here: http://www.bis.gov.uk/insolvency/insolvency-profession/professional%20conduct/how-complain-against-an-ip

Hope this helps. Write again if you have any further questions.

Best regards

Rachel

Former_StepChange_Rachel

dogloverjo wrote: »

It looks like I have... am having issues with QuickQuid and would value some advice - all due to a change of payroll and only receiving less than half pay this month - they are being most unhelpful and trying to force me into arrangements I cannot afford - I have logged a complaint with them - I am also concerned at how to pay them as I will not allow a CCA I do not trust them... what do I do now?

Hi there

Thanks for posting.

usually we advise people who are struggling with payday loans to cancel the continuous payment authority the lender has to take money out of their bank account so they can negotiate lower payment. If you have already done this, then you can write to them with a breakdown on your budget and an offer of reduced payment until your situation improves.

We have an blogpost that talks all about how to deal with a payday loan you cannot afford at the moment. It also gives a guide on how to cancel continuous payment authority: http://moneyaware.co.uk/2013/01/payday-loan-debt-help-what-to-do-if-you-cant-afford-the-payment/

If you feel that with the recent drop in income that you will struggle to keep up on living expenses and debts, we can help. We are a free and impartial debt advice charity. Our anonymous advice tool Debt Remedy can give you a solution for your debts in just 20 minutes: http://www.stepchange.org/msehelp

Hope this helps. Please write again if you have any further questions.

Best regards

Rachel

JellyDel

looking at entering into a dmp.
some of the debt is with my bank but the account has extras (phone insurance for 2 mobiles, aa cover and home emergency cover)
I will need to change accounts but do i have to have just a basic account?
I would like to get another account with these covers if i can or i will have to pay extra for these elsewhere.

Also would i be better switching accounts and direct debits before starting a dmp

All my min payments are uptodate and always have been (always pay but then have to do supermarket shop on cc) should i keep paying till any reduction is decided or cancel the dd and default?

I also have an interest free loan (for my sofa) which has only 5 or 6 payments left,would this need to be included on a dmp or can i just carry on with the payments I have left?

StepChange_James

JellyDel wrote: »

looking at entering into a dmp.
some of the debt is with my bank but the account has extras (phone insurance for 2 mobiles, aa cover and home emergency cover)
I will need to change accounts but do i have to have just a basic account?
I would like to get another account with these covers if i can or i will have to pay extra for these elsewhere.

Also would i be better switching accounts and direct debits before starting a dmp

All my min payments are uptodate and always have been (always pay but then have to do supermarket shop on cc) should i keep paying till any reduction is decidedor cancel the dd and default?

Hello,

The most important thing when changing bank account is to make sure you avoid getting any new borrowing with the new bank - you don't want to get into debt with them. Generally we advise going for a basic account because they don't have overdrafts.

I'd recommend reading Martin Lewis' article about package bank accounts: http://www.moneysavingexpert.com/banking/best-fee-charging-current-accounts?utm_source=MSE_Newsletter&utm_medium=Email&utm_term=06-Aug-13&utm_campaign=reclaim&utm_content=0.

When I've given advice to people with packaged bank accounts, it's usually been the case that they weren't getting good value. It's probably a matter of seeing if you really need the cover you get from the policy and if you can get it elsewhere for cheaper.

It's definitely best to switch bank accounts before starting a DMP. As your debts with your current bank would go into a DMP, it's important to make sure they no longer have access to your income when you start making reduced payments.

Whether to drop payments now or wait would depend on your circumstances. If you're not in a position to keep everything going, then it's most important to maintain your essential living expenses and household bills. If that means you've not enough to pay your debts, then it's usually best to make a reduced payment of what you can afford.

If you've not had any advice from us yet, I'd suggest using our online advice tool Debt Remedy - http://www.stepchange.org/msehelp. It will take details of your situation and give advice about all the available debt solutions. If a DMP is your best option then it will guide you through our setup process.

All the best.

James

JellyDel

thank you. i have done the deby remedy and have the email ready to sign and return for dmp.
will set up a new bank acc first.

I also have an interest free loan (for my sofa) which has only 5 or 6 payments left,would this need to be included on a dmp or can i just carry on with the payments I have left? (forgot to put this in debt remedy)