Struggling with debt? Ask a debt advisor a question

Former_StepChange_Rachel

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????:(

Hi there

From what you’ve told us, it certainly sounds like you would benefit from some free debt advice.

It may be a good idea to give yourself a fresh start with a basic bank account with someone you don’t have a debt with. The bank you’re with can cancel or withdraw that overdraft facility at any time which can cause you more problems.

The other issue is that your creditors can all see your credit file. Every time your wages go into that overdraft, it’s recorded as a payment in full on that debt. This can be interpreted as ‘unfair treatment’ by your other creditors which may make them less willing to cooperate with the terms of your DMP.

We also offer DMPs but we do not charge any fees for them like this current DMP provider is charging you. We would suggest in this situation that you consider looking at your budget with us. It may be possible to bring you on board with us. Creditors on the whole also prefer our DMPs because we treat everyone as fairly as possible.

In order for us to help, we will need to have a look at your budget. Our online advice tool Debt Remedy can provide you with a personal action plan and a debt solution in just 20 minutes - http://www.stepchange.org/msehelp


You can also go through your budget over the phone. Visit our contact us page for more information - http://www.stepchange.org/Contactus.aspx

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

Best regards

Rachel

Former_StepChange_Rachel

mum2one wrote: »

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

Also meant to say thank you to mum2one for her great advice and support of people posting on the forum. We're sure they appreciate it

Best regards

Rachel

Former_StepChange_Rachel

Lolly237 wrote: »

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.

Hi there,

I've sent you a private message regarding this, hope it all made sense. Write again if you have any further questions.

Best regards

Rachel

RedRobbo

can anyone tell me if anyone knows if my default date is that the DCA has informed me off or my credit reference agency has assigned to the account?

also when is the best time to negotiate with DCA as they can't provide me with the CCA in the last 2 months and the Default date is 2007. I would like to push for a Full and final settlement to close this case and finally be debt free.

thank you for your help?

StepChange_James

RedRobbo wrote: »

can anyone tell me if anyone knows if my default date is that the DCA has informed me off or my credit reference agency has assigned to the account?

also when is the best time to negotiate with DCA as they can't provide me with the CCA in the last 2 months and the Default date is 2007. I would like to push for a Full and final settlement to close this case and finally be debt free.

thank you for your help?

Hi Robbo,

I'd expect the default dates to be the same as the debt collector would have been the one to report that information to the credit reference agencies. It might be that they've made a mistake when sending information over, you could check this with the company if this discrepancy in dates is causing you problems.

The best time to negotiate a full and final settlement would vary depending on the company involved. Generally, I'd say it's more likely a debt collector will be more willing to negotiate if a debt is quite old and they think it's going to be a struggle to get the money back by monthly payments.

I'm not sure about how making a request for a copy of the original agreement would impact on a settlement negotiation. This is something we'd only usually recommend for situations where a company is chasing you for a debt you don't think you owe.

When negotiating it can help to have an up to date income and expenditure budget to show what your finances are like. This tends to help because it will show them what you can/can't afford to pay them on a monthly basis if they don't agree a settlement.

Our Debt Remedy advice tool can help you plan a monthly budget (http://www.stepchange.org/msehelp) and it will also give you advice about your options to deal with the debt.

I hope this helps.

James

RedRobbo

thanks James, I requested the CCA as had dealt with this case 5 years ago, but has since been pasted onto a DCA in January this year. No I don't have any of the documentation left from when I made a settlement, so this is why I request the documentation of which the DCA does not have a copy. I just want this final debt finished with Hence I am looking for a full and final settlement, so I can move on with life and save for a deposit.

horti1

I am being hounded /harrassed by capquest. Upto 4calls a day between 8am & 9pm . I have been paying capquest £40.00 monthly by cheque for 25months never missing a payment. I am self employed and have made big losses the past two years with the recession, and cannot afford to increase payments. When I answer the calls I tell them they have the wrong number as I do not want to speak to them.Can they insist I increase my payments/ send in bailliffs ? Pleasd advise and help me

loanqual

Hello,
You can simply download this DTI Calculator app from your iPhone/android app. It lets you calculate your debt ratio in just one click. Its really helpful in case of debt reduction too.




Regards:
Steven Woods

Former_StepChange_Rachel

horti1 wrote: »

I am being hounded /harrassed by capquest. Upto 4calls a day between 8am & 9pm . I have been paying capquest £40.00 monthly by cheque for 25months never missing a payment. I am self employed and have made big losses the past two years with the recession, and cannot afford to increase payments. When I answer the calls I tell them they have the wrong number as I do not want to speak to them.Can they insist I increase my payments/ send in bailliffs ? Pleasd advise and help me

Hi there, thanks for posting.

Capquest (or any unsecured creditor for that matter) do not have the power to instruct bailiffs to visit your house. They also cannot force you to pay more than you can truly afford.

That said, if you're paying less than the minimum amount each month, they can eventually take the debt to county court who do have enforcement powers such as bailiffs (the court will do their best to work a reasonable payment plan out with you before it progresses to this stage however)

It sounds like you may benefit from some free and impartial debt advice. We are a debt advice charity and we help thousands of people every week with very similar problems to what you described.

Our Debt Remedy online advice tool can give you a solution to your debts in just 20 minutes: http://www.stepchange.org/msehelp

Best regards

Rachel

Turmoil

Hi All

Just after a little bit of advice. My house was repossessed 12 months ago and i am now in rented accommodation. The mortgage lenders have finally put the house on the market after 12 months and it looks like it may have neqative equity of £50-£60 000. When they have sold it what options do i have for repaying this. Bankruptcy? IVA? I have no other debts and would be able to pay back approx £200/month.

Thanks in advance