Struggling with debt? Ask a debt advisor a question

allystar

Hi

Looking for some advice.

My DH lost his job almost 2 years ago and we have been struggling on a monthly basis to cover our bills. Our debts are spiralling and I can't see any light at the end of the tunnel.

Between credit cards/loans, our debt is around £56k - just typing that number makes me feel sick!

Last month, I had to use my CC for food shopping as there was no spare cash - it will be the same this month - HELP!

We live in Scotland - I know a little about the trust deed, but am concerned about the credit rating effect - We have a fixed rate mortgage, that expires in 3 years and I'm worried that we won't be able to re-mortgage having had a trust deed.

Any advice?

jdl93

StepChange_Mat wrote: »

Hi and welcome to the forum:)

If you’re thinking of taking out further credit the most important thing is to make sure you can afford it first.

I’d recommend putting together an accurate income and expenditure budget looking at what you can afford with your current debts and any new debts you take on.

Our online debt advice tool Debt Remedy

It’s also worth looking at your credit file to see if there are any defaults which could restrict your access to credit.

Getting interest frozen on the credit cards is up to the creditors, but doing this would mean that you've broken the terms of the credit agreement. And this could affect your credit rating.

You can learn more about how to improve your credit rating (and how credit ratings work) with this article.



I hope this helps.

Kind regards,

Mat

Thanks for your advice, yes i can afford credit repayment now,


So should i pay the pay day loan off or just start paying the credit cards?

Former_StepChange_Rachel

allystar wrote: »

Hi

Looking for some advice.

My DH lost his job almost 2 years ago and we have been struggling on a monthly basis to cover our bills. Our debts are spiralling and I can't see any light at the end of the tunnel.

Between credit cards/loans, our debt is around £56k - just typing that number makes me feel sick!

Last month, I had to use my CC for food shopping as there was no spare cash - it will be the same this month - HELP!

We live in Scotland - I know a little about the trust deed, but am concerned about the credit rating effect - We have a fixed rate mortgage, that expires in 3 years and I'm worried that we won't be able to re-mortgage having had a trust deed.

Any advice?

Hi there

Thank you for posting and welcome to the forum

Please rest assured that we'll do all we can to help you. We're a free and impartial debt advice charity and we help people all over the UK with very similar problems.

We can look into whether a trust deed is the right option for you. The way we do this is by having a look at your whole budget and considering all your options from there. We'll also give you any advice you need when it comes to mortgages and other things you may have to consider moving forward.

Our anonymous advice tool Debt Remedy can provide a solution for you in just 20 minutes: http://www.stepchange.org/debtremedy.aspx?domain=www.MoneyAware.co.uk

If you'd prefer to speak to one of our friendly advisors, visit our contact page to find out how: http://www.stepchange.org/Contactus.aspx

Dealing with debt is hardly ever easy but please know there's always something that can be done. We help thousands of people with problem debt every week and there'll be something we can do to help you too.

Best wishes

Rachel

System

jdl93 wrote: »

Thanks for your advice, yes i can afford credit repayment now,


So should i pay the pay day loan off or just start paying the credit cards?

Hi and thanks for getting back to me.

I'd expect the payday loan to have high interest and charges, so yes I'd recommend paying that off as soon as possible.

I hope this helps.

Kind regards,

Mat

jdl93

StepChange_Mat wrote: »

Hi and thanks for getting back to me.

I'd expect the payday loan to have high interest and charges, so yes I'd recommend paying that off as soon as possible.

I hope this helps.

Kind regards,

Mat

However the payday loan has had the interest frozen, but i wondered if it would be best to get that out the way,

I heard its a killer on a credit report?

xxlozxx

I have recently had my 12 month review with Stepchange and have managed to cut down my bills to enable me to pay a bit more each month off my debt. I have a cc debt with Barclays which I have been paying through Stepchange for the past 12 months and they have been informed that my payments to them will be increased by an extra £16 per month. Great I get a letter today saying they are now going to start charging me interest on the balance which is going to wipe out the extra that I am paying and add a bit more each month to the debt. Well thank you Barclays nice to know you are supportive in my efforts to reduce the debt :mad:

Uncle_Fester24

Hi All, I'm new to the site and wonder if any one can help. I have a default on my CRA file which is six years old on the 4th Oct 13 and will drop off my file, I've had no contact from the creditor since the default notice was issued on the 4th Oct 07. Arrow Global bought the debt in 2011, i ignored the first couple of letters and heard nothing since until i got a letter from Restons Solicitors two weeks ago. I sent a statute barred letter and they wrote back quoting BMW Financial v Hart. Only a vieled threat of court action, if they issue a claim after 4th Oct 13 is it to late ?

StepChange_Private_Messages

carol1963 wrote: »

Thanks Mat, I've seen that but I did ring yesterday and didn't really get a yes/no answer and I'm so indecisive at the moment I just don't know what/where to turn. Yes in my heart I want to defer but I'm scared of any additional 'hassle' that might entail but at least I will have paid my very good neighbours/friends some of there money.

Hi Carol and thanks for getting back to me.

I’m afraid we can’t make a decision for you. If you’d prefer to repay your friends and neighbours before starting the DMP you should do this. In the meantime I’d recommend making some sort of token payment to creditors until the DMP starts.

I hope this helps.

Kind regards,

Mat

System

jdl93 wrote: »

However the payday loan has had the interest frozen, but i wondered if it would be best to get that out the way,

I heard its a killer on a credit report?

Hi and thanks for getting back to me.

Yes, clear the payday loan first and double check your credit report to see how this is recorded.

I hope this helps.

Kind regards,

Mat

jdl93

StepChange_Mat wrote: »

Hi and thanks for getting back to me.

Yes, clear the payday loan first and double check your credit report to see how this is recorded.

I hope this helps.

Kind regards,

Mat

its wonga so id assume it shows quite clearly.

however once i paided off quick quid, im surprised it didn't show on the report.

Thanks for your help