Struggling with debt? Ask a debt advisor a question

grayie10

hi , i got myself in trouble with money , i owe £29500 pound out to 4 different creditors , i couldnt afford to pay , so for some reason got in touch with debt advisory line , to help me out , it cost me £600 before any money was given to my creditors , i have made two monthly payments now to D.A.L of £200, when looking at my statments every £200 i pay £39.95 goes to D.A.L ,£160 to my creditors , is this right, or am i being ripped off ?? Am i in a fixed contract now ?? 15 years to pay my debt off they tell me so they will get (15*12)=180payments , 180 *£39.95 =£7191 pound ,,,,plus the 600 they already took off me , help please !!!:eek:

mum2one

grayie10 wrote: »

hi , i got myself in trouble with money , i owe £29500 pound out to 4 different creditors , i couldnt afford to pay , so for some reason got in touch with debt advisory line , to help me out , it cost me £600 before any money was given to my creditors , i have made two monthly payments now to D.A.L of £200, when looking at my statments every £200 i pay £39.95 goes to D.A.L ,£160 to my creditors , is this right, or am i being ripped off ?? Am i in a fixed contract now ?? 15 years to pay my debt off they tell me so they will get (15*12)=180payments , 180 *£39.95 =£7191 pound ,,,,plus the 600 they already took off me , help please !!!:eek:

You did the right thing seeking advice re debt management, just unfortunatly you ended up with a fee paying company, if you go through stepchange - every penny you pay go to that creditor, so based on the payments that would be an extra £480 a year and would soon make a difference.

I would speak to someone at stepchange and see if you move across, I would be surprised if your tied in for 15 years.

Good luck with it all xx

StormBlonde

Hi, not sure if I am in the right place so sorry in advance! I have contacted StepChange about setting up a DMP and have been emailed information. I am hesitant about doing it and keep thinking well maybe I can sort things out myself. Realistically I know I can't, although that is mostly because I fell into the payday loan trap. The thing that worries me the most is will I always have to declare I was on a DMP? I thought that doing a DMP meant it was informal so once it was off my credit report it was as if it never happened. I know that will take 7 years but I thought with bankruptcy you always had to declare no matter how long ago but DMP you didnt. Sorry for the rambling but I am trying to convince myself to own up to my debt problems and want to make an informed leap!

mum2one

StormBlonde wrote: »

Hi, not sure if I am in the right place so sorry in advance! I have contacted StepChange about setting up a DMP and have been emailed information.

You've taken the first and the hardest step. I'm guessing it has suggested a DMP?

I am hesitant about doing it and keep thinking well maybe I can sort things out myself.
I know exactly where your coming from, been there done that brought the tshirt - for me it didn't work, (see end link)

Realistically I know I can't, although that is mostly because I fell into the payday loan trap.
For what ever reason it happened, but you have made the hardest way in the world and realised there was a problem which you are facing

The thing that worries me the most is will I always have to declare I was on a DMP?
Declare to who, my family don't know I am on a DMP,a couple of close friends do thats only because I choose to tell them, nearly everyone on here, (my choice - but thats because I am pround I have seeked help - as for who else - no-one really, my new bank account doesn't know I'm on a DMP, for various reasons not working at the mo, but my employer wouldn't need to know. So really bar your creditors, and who you want to tell (unless your in job position then thats different)

I thought that doing a DMP meant it was informal so once it was off my credit report it was as if it never happened.
A DMP is informal in terms of not being legally binding, but yes your creditors may default your account, but it will show up as some payment, in time it will become better

I know that will take 7 years but I thought with bankruptcy you always had to declare no matter how long ago but DMP you didnt. Sorry for the rambling but I am trying to convince myself to own up to my debt problems and want to make an informed leap!

Hi
I've just put some of my thoughts in as i've gone through your post, but think of it like a lightbulb.
Switched off - your spending money like water
Flickering - You know you have debt problems and your looking at your options but your dipping your big toe in to the water
On- Wow youve had the lightbulb moment - ur onbaord with a plan.

This was me 12 months ago I was where u are now
http://moneyaware.co.uk/2012/09/facing-up-to-my-debts/#more-3805

this is me now
http://moneyaware.co.uk/2013/09/cheryls-debt-free-story-a-year-on-2/

These appeared on stepchange website - I did it in the hope that if just one person was able to say that's me or I'm not the only one and seeked help it would help someone. For me I really couldn't have done this without the help from everyone at stepchange.

xx

System

gamby111 wrote: »

not sure wether im in the right place?
im in arrears of
£2,300 council tax and im paying my council tax and an extra £40.00 per month for the arrears they have now sent me a letter saying i have to pay £50.00 per week as i did an expendure form and ive made a terrible mistake on it and put that i had £50.00 left a week for personnal expendure but i carnt even remember putting this as i didnt really understand the form i dont have n anything to live on after all my priority debts are paid could some one advise me on what to do please x

Hi and thanks for your post.

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

We can assist you with a budget and look at any debts.
It’s worth noting that council tax is a priority debt (i.e. it should be paid before other debts such as credit cards or unsecured loans etc).

I’d recommend that you try our online debt advice tool Debt Remedy http://www.stepchange.org/Debtremedy.aspx?hp=400 or give us a call on 0800 138 1111.

I hope this helps.

Kind regards,

Mat

System

RachDFW2010 wrote: »

Hi All

Myself and my husband have been on a DMP for around 2 years. I unfortunately let Credit cards and loans get out of hand by keep borrowing to pay for general living. (I am not a spender really). However, I was under the impression that after a year or two we could maybe borrow money from family to get the debt paid off in order for us to move house. Our house is too small now as we only have a 2 bedroomed house and have a son and daughter.

My husband has been working hard ever since, working all overtime offered including weekends to save some money in order for us to make some settlement offers also asking family for help. (Overtime is never guaranteed) However, on contacting our DM Company they asked for some wage slips to send to our creditors. We sent these but unfortunately for the first 3 months of this this year (April - June) my husband was earning a good wage (due to overtime only), then in July he had to have an operation so now is back to basic wage (July - present). I say "unfortunately" because apparently it does not look good that he is earning more money - even if it is overtime. So now we are in a catch 22 situation. We have asked our DM Company to ask for settlement figures but they say they cant because the creditors may ask for wage slips and will see our income has increased and may increase our monthly payment and put this in jepardy.
I know the DM Company usually have our best interests at heart, but how are we able to move on and move house if we are not allowed to get extra money together to pay off the debt ??

I always presumed non-guaranteed income would not be counted (we have wage slips with and without overtime).

Are we only able to move on if we pay the full amount back (which is 25,000) and this is not possible. We were looking at around maybe paying back £10,000 in settlement figures, I know that's cheeky but it is realistic).

Can we ask for settlement figures without giving up to date income ?

Any advice would be helpful, I know some of you are the total opposite and cannot pay off debts, but it is still depressing having the DMP stopping us from moving on.

Hi and thanks for your post.

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

Is the debt management company you are using charging you a fee for their service? It’s worth mentioning that we offer debt management plans free of charge (so all your money goes towards reducing your debts), and if you did have a lump sum of money we do have a free full and final settlements service that negotiate on your behalf free of charge.

If you are offer a settlement figure it’s up to the creditor as to what they’d accept, and the terms that they’d allow you to make a reduced full and final settlement.

If you are paying a fee for debt help I’d recommend that you try our online debt advice tool Debt Remedy http://www.stepchange.org/Debtremedy.aspx?hp=400 or give us a call on 0800 138 1111.

I hope this helps.

Kind regards,

Mat

System

grayie10 wrote: »

hi , i got myself in trouble with money , i owe £29500 pound out to 4 different creditors , i couldnt afford to pay , so for some reason got in touch with debt advisory line , to help me out , it cost me £600 before any money was given to my creditors , i have made two monthly payments now to D.A.L of £200, when looking at my statments every £200 i pay £39.95 goes to D.A.L ,£160 to my creditors , is this right, or am i being ripped off ?? Am i in a fixed contract now ?? 15 years to pay my debt off they tell me so they will get (15*12)=180payments , 180 *£39.95 =£7191 pound ,,,,plus the 600 they already took off me , help please !!!:eek:

Hi and welcome to the forum.

I can see you’ve already had some good advice from mum2one.

If you are paying a fee for debt help I’d recommend that you gather details of your income expenditure and debts and try our online debt advice tool Debt Remedy http://www.stepchange.org/Debtremedy.aspx?hp=400 or give us a call on 0800 138 1111.

All our advice is free and impartial and if a debt management plan is the best advice for you we offer these free of charge.
I hope this helps.

Kind regards,

Mat

System

StormBlonde wrote: »

Hi, not sure if I am in the right place so sorry in advance! I have contacted StepChange about setting up a DMP and have been emailed information. I am hesitant about doing it and keep thinking well maybe I can sort things out myself. Realistically I know I can't, although that is mostly because I fell into the payday loan trap. The thing that worries me the most is will I always have to declare I was on a DMP? I thought that doing a DMP meant it was informal so once it was off my credit report it was as if it never happened. I know that will take 7 years but I thought with bankruptcy you always had to declare no matter how long ago but DMP you didnt. Sorry for the rambling but I am trying to convince myself to own up to my debt problems and want to make an informed leap!

Hi and thanks for your post,

This is a good question to ask.

Your credit rating will be affected by not making full contractual payments to your creditors. Your creditor rating will repair itself over time (everything listed on your credit report is there for 6 years).

Bankruptcy is a form of insolvency where as a DMP is just an informal way to repay debts. You don’t have mention the DMP later down the line.

I hope this helps and I hope you do start your DMP, you’ll get lots of support and help from us.

Kind regards,

Mat

StormBlonde

mum2one wrote: »

Hi
I've just put some of my thoughts in as i've gone through your post, but think of it like a lightbulb.
Switched off - your spending money like water
Flickering - You know you have debt problems and your looking at your options but your dipping your big toe in to the water
On- Wow youve had the lightbulb moment - ur onbaord with a plan.

This was me 12 months ago I was where u are now


this is me now


These appeared on stepchange website - I did it in the hope that if just one person was able to say that's me or I'm not the only one and seeked help it would help someone. For me I really couldn't have done this without the help from everyone at stepchange.

xx

Thank you so much for taking the time to reply. Yes, StepChange recommended the DMP. The stupid thing is I know exactly why I got into this mess and it is my 'attitude' to money. I worry that I will do this DMP and end up right back where I started, but maybe that is me just making excuses to myself. I am sure that subconciously I am trying to find excuses because then I can just bury my head in the sand and pretend everything is fine!

They say the first step is always the hardest.....*gulp* Thank you for the links. I just read the first one and I am going to keep reading it every time I think I can sort things out myself until I have submitted the paperwork to StepChange.

Thank you again. x

StormBlonde

StepChange_Mat wrote: »

Hi and thanks for your post,

This is a good question to ask.

Your credit rating will be affected by not making full contractual payments to your creditors. Your creditor rating will repair itself over time (everything listed on your credit report is there for 6 years).

Bankruptcy is a form of insolvency where as a DMP is just an informal way to repay debts. You don’t have mention the DMP later down the line.

I hope this helps and I hope you do start your DMP, you’ll get lots of support and help from us.

Kind regards,

Mat

Hi Matt

Thank you for your reply. It is reassuring to know that I won't have to declare it down the line. I am going ahead with the DMP and sending in the paperwork on monday.

Thanks again