Struggling with debt? Ask a debt advisor a question

fatface88

Hi ...looking for some help please? We are currently one year into dmp with yourself and due a review. However we have made bad decisions. .. our car broke beyond repair so had to get another on hp but before it broke we spend bad money after good trying to maintain it so we could get work (this was money we didn't have and was put on cc) I have been worrying myself to the point I am ill and can't sleep. Wonder if we should now go bankrupt although or consider trust deed as in scotland. Can you advise what best to do? I cant really discuss it without tears and worry.
many thanks for reading from a silly person who cant manage money or life.

StepChange_James

crazylady6 wrote: »

Hi I wonder if you have any advise my husband and myself got into difficulty with debt a few years ago (overdrafts loans credit cards) when I had to stop work due to health. Anyway we made payment arrangements with all concerned and have pretty much kept up to date with these arrangements gradually most of the debt have been sold on and we have then made the same arrangements with the new co. We have now been given a lifeline in the form of an inheritance
and are in the position where we can pay about 50% of all outstanding debts. How do i approach the companies we owe money to and suggest that we pay this amount as settlement and should it be by phone or by letter

Hello,

Thanks for posting.

We've got a little bit of information about negotiating settlements on our website here: http://www.stepchange.org/Debtinformationandadvice/Debtsolutions/Settlementoffers.aspx.

The above page recommends you make offers in writing but I can't see a lot of harm with talking on the phone if that was your preference. The most important thing is to get any arrangement confirmed in writing before sending payment, so you've got proof if the company ever tries to enforce the bit of the debt they should be writing off.

Another thing that can often be handy is to show them an up to date copy of your income and expenditure. I guess you'll have already given most of them this information but if it's been a while you can do an updated budget using our Debt Remedy advice tool, http://www.stepchange.org/msehelp.

This then helps to show them how long the debt will take to pay back if they don't agree to the offer. So it's a choice of getting half of the debt now or the whole amount stretched out over many years they'll hopefully be more inclined towards accepting the settlement.

I hope this helps and good luck with the negotiations.

Kind regards

James

StepChange_James

fatface88 wrote: »

Hi ...looking for some help please? We are currently one year into dmp with yourself and due a review. However we have made bad decisions. .. our car broke beyond repair so had to get another on hp but before it broke we spend bad money after good trying to maintain it so we could get work (this was money we didn't have and was put on cc) I have been worrying myself to the point I am ill and can't sleep. Wonder if we should now go bankrupt although or consider trust deed as in scotland. Can you advise what best to do? I cant really discuss it without tears and worry.
many thanks for reading from a silly person who cant manage money or life.

Hi there,

I'm sorry to hear you're struggling at the moment. Debt can be very stressful but your health should always come first. Hopefully we'll be able to give you advice and support with the debt side of things but if you're still not feeling well it might be worth seeing your GP.

I don't know enough about your circumstances to be able to say if bankruptcy or a trust deed would suit your situation but it's always best to consider all the options. If one of them is right for you we can talk you through the process.

I'd recommend you call us up and do your review, so we can get a fresh look at your circumstances and give you advice about how best to move forward.

Don't worry about getting upset when you call either, we're here to help not make judgements about people.

Kind regards

James

fatface88

StepChange_James wrote: »

Hi there,

I'm sorry to hear you're struggling at the moment. Debt can be very stressful but your health should always come first. Hopefully we'll be able to give you advice and support with the debt side of things but if you're still not feeling well it might be worth seeing your GP.

I don't know enough about your circumstances to be able to say if bankruptcy or a trust deed would suit your situation but it's always best to consider all the options. If one of them is right for you we can talk you through the process.

I'd recommend you call us up and do your review, so we can get a fresh look at your circumstances and give you advice about how best to move forward.

Don't worry about getting upset when you call either, we're here to help not make judgements about people.

Kind regards

James

Hi james
Thankyou so much for kind words and reply. I will try and muster up courage to call yourself next week.
Just feeling in such a rutt that we can not get out of. I know its our own fault we are in this bad place but cant seem to find way out.
Again many thanks
Fatface88

Dragon75

I had a credit card with Barclaycard for over 12 years and for the first 10 years had been making the monthly payments, however about 6 years ago I started to miss payments and it all got a bit out of hand by the sum of £4250. When my card expired I was not issued a new on. I tried different avenues to pay Barclaycard what I owed them by applying for a loan and another credit card, however to no avail. So I did a credit card :eek:.
It was at this point I decided to sort my finances out. I started by paying the minimum payment and when possible paid back a little extra. After a year I was accepted for a CapitalOne credit card and I kept that in check by paying of the balance in full each month whilst keeping up my payments with Barclaycard. In the last 3 years I have not missed a payment :A and my credit score has improved :j. I have now been accepted for a lower rate card than the CapitalOne credit card which has the option of 0% on balance transfers. I had previously tried Barclaycard but they will not issue me a card until my debt to them is paid up.

I have tried to put my old Barclaycard card number details on the online transfer form for the new credit card and it is asking for the expiry date of the card which I do not have.

Finally the question (if you haven't fallen a sleep) is there a way for me to put my old Barclaycard debt on to my shiny new 0% balance transfer card?

Thank-you for your time.

D

hopeful74

We currently have about £28k od debt, £25 of which is a DMP. we pay £350 a month off that £62 of that each month is their fee as well as a c/c and a large overdraft. Although we have not missed any mortgage payments we have recently missed a few d/d or c/c payments which then in turn makes the next month even harder. We have two small children that I want to keep safe and secure otherwise I would sell the house to pay it all off but then we would not get another mortgage and have to rent!!So we have continued to struggle on but now my husband's job has recently changed which means a reduced salary but I have started working full time and some but I'm stressed all the time, tired all the time and feel the effects are on my children. Advice of which way to turn next? Do I go to a company that doesnt charge and they take on the whole debt, o/d etc but then I need to get everything changed like the bank accounts etc?If I stay with who we are our debt is about £4 or £5k more than it need be?Help anyone before it really gets out of my control????:(

mum2one

hopeful74 wrote: »

We currently have about £28k od debt, £25 of which is a DMP. we pay £350 a month off that £62 of that each month is their fee as well as a c/c and a large overdraft. Although we have not missed any mortgage payments we have recently missed a few d/d or c/c payments which then in turn makes the next month even harder. We have two small children that I want to keep safe and secure otherwise I would sell the house to pay it all off but then we would not get another mortgage and have to rent!!So we have continued to struggle on but now my husband's job has recently changed which means a reduced salary but I have started working full time and some but I'm stressed all the time, tired all the time and feel the effects are on my children. Advice of which way to turn next? Do I go to a company that doesnt charge and they take on the whole debt, o/d etc but then I need to get everything changed like the bank accounts etc?If I stay with who we are our debt is about £4 or £5k more than it need be?Help anyone before it really gets out of my control????:(

i would def say look at stepchange as every penny goes to the debts, based on your payments at the mo , £744 a year to the company, £7440 over 10 years thats a 1/4 of your debt.

When you do the budget planner on stepchange, your need to add your overdraft and your credit card that your using now, as if a creditor on the dmp found that they were taking reduced payment and the "new" credit card was getting more money they could potentially cause probs.

If you do open a new bank account make sure that you don't have any debts with that bank or its not joined to one you have
eg - halifax and lloyds are together.

Your get there, then look at budgeting and take into account birthday and xmas and plan these throughout the year, sounds mad to some, but its the only real way to balance it out xx

Lolly237

Hi there wondering if anyone can me please. Due to unforeseen circumstances this year iv managed to get behind in payments for my car. I contacted the company Citroen finance to make them aware if my situation but they were most unhelpful and told me there was nothing they could do. As it was between paying my rent or my car I obviously had to pay the rent to keep a roof over mine and my little ones head. I'm about 4 payments behind iv been paying it periodically when I can throughout the year. I'm finally starting to get on top of things and have paid 2 consecutive payments one of my original payment (£141) and last one a bit more of £220 however the other day I got a call from a recovery company who told me I had to pay £460 upfront as in today! Then a further £250 every month or they'll get a court order to repossess my car! Iv only got another 6 months finance on the car I really can't hand it back iv been paying it religiously for over 4 years! The £460 upfront payment is for the debt agency fees! Can anyone tell me if I don't pay this and accept their debt management arrangement and continue making payments of £220 to Citroen direct can they still obtain a court order to take my car? If I pay £220 until the end of april this will cover all finance and arrears without going out with the original finance agreement timescale. I'm terrified I'll lose my car.
Ps I live in scotland.

Former_StepChange_Rachel

fatface88 wrote: »

Hi james
Thankyou so much for kind words and reply. I will try and muster up courage to call yourself next week.
Just feeling in such a rutt that we can not get out of. I know its our own fault we are in this bad place but cant seem to find way out.
Again many thanks
Fatface88

Hi there

Just to reiterate what James said, please know that we'll do all we can to help.

Best of luck with everything.

Rachel

Former_StepChange_Rachel

Dragon75 wrote: »

I had a credit card with Barclaycard for over 12 years and for the first 10 years had been making the monthly payments, however about 6 years ago I started to miss payments and it all got a bit out of hand by the sum of £4250. When my card expired I was not issued a new on. I tried different avenues to pay Barclaycard what I owed them by applying for a loan and another credit card, however to no avail. So I did a credit card :eek:.
It was at this point I decided to sort my finances out. I started by paying the minimum payment and when possible paid back a little extra. After a year I was accepted for a CapitalOne credit card and I kept that in check by paying of the balance in full each month whilst keeping up my payments with Barclaycard. In the last 3 years I have not missed a payment :A and my credit score has improved :j. I have now been accepted for a lower rate card than the CapitalOne credit card which has the option of 0% on balance transfers. I had previously tried Barclaycard but they will not issue me a card until my debt to them is paid up.

I have tried to put my old Barclaycard card number details on the online transfer form for the new credit card and it is asking for the expiry date of the card which I do not have.

Finally the question (if you haven't fallen a sleep) is there a way for me to put my old Barclaycard debt on to my shiny new 0% balance transfer card?

Thank-you for your time.

D

Hi there,

Thanks for posting.

As we specify more in debt advice, we can’t competently advise on the transferring of balances from one card to another. If you talk to Barclaycard they should be able to provide the information you need so you can go ahead and transfer it to a Capital One card.

If you find down the line that you’re in need of debt advice, please do post again and we’ll do our best to help.

Kind regards

Rachel