Struggling with debt? Ask a debt advisor a question

StepChange_James

1RandomMind wrote: »

Cheers James,

This has helped a great deal, and opened up some more questions.

I'm going to get my credit rating (off the Noddle link) when they fix their technical issues. In the mean time, I was hoping some could answer a few questions.

Its been 7, if not 8 years since I have made any payment on this debt, so I would think this makes it Unenforceable, right?

The company chasing the debt has offered me to pay 5% writing off the 95%.

If the debt is now unenforceable, what does that mean to my credit rating if I have a statute barred debt on it, compared to if I take the deal and get it written off? Even if its written off as a 'Partially Settled'.

Could I request from the debt company a 'type' of settlement if I was to take the offer. Thus bettering my position in rebuilding my credit?

Cheers again

Hello,

Really pleased my previous message was useful.

If it was definitely more than 6 years since you've made any kind of payment towards this debt then I think you've no need to make a settlement, as the debt is unenforceable.

We've recently published an article that covers how to deal with debts in this situation, including a template letter that you can use to write to this company: http://moneyaware.co.uk/2013/10/statute-barred-debt/.

If you follow the instructions you shouldn't have any more bother about this debt and no need to make any payments.

Your credit history holds six years worth of history about your debts, so there's a pretty good chance there'll be no record of this account on there. If you check your noddle report you'll know one way or another.

Cheers

James

wishing4kissing

just a quickie....ive been gradually getting in more of a hole debt wise and I know its going to come to a head next year when I change jobs.
My question is is it worth me going to citizens advice for debt help as I own my own home at the moment and all the info I have read on their page seems to be aimed at people in rented property.
The home I own, is owned along with an ex partner who I havent been with for 10 years and who is paying off a charging order against the property, for something that was unknown to me.
My total debt is approx 11.000 aside from the mortgage.
Thankyou

StepChange_James

wishing4kissing wrote: »

just a quickie....ive been gradually getting in more of a hole debt wise and I know its going to come to a head next year when I change jobs.
My question is is it worth me going to citizens advice for debt help as I own my own home at the moment and all the info I have read on their page seems to be aimed at people in rented property.
The home I own, is owned along with an ex partner who I havent been with for 10 years and who is paying off a charging order against the property, for something that was unknown to me.
My total debt is approx 11.000 aside from the mortgage.
Thankyou

Hello,

You could go to your local Citizen's Advice for help. Whether someone is able to see you will depend on their policies and how busy they are. I can't see that owning a house would be a barrier to getting advice from them, but I'm afraid I'm not particularly clued up on their policies.

Alternatively, you could look to get advice from StepChange Debt Charity, the place I work at. We give free and impartial advice to people over the phone or via the internet.

We'll help you plan out a realistic income and expenditure budget and give you debt advice tailored to your circumstances.

You can use our online Debt Remedy advice tool 24 hours a day by following this link: http://www.stepchange.org/msehelp and it will guide you through our process or otherwise you can give us a call and speak to an advisor: http://www.stepchange.org/Contactus.aspx.

Of course, there's nothing wrong on getting a second opinion, so you could get advice from both us and the CAB.

Kind regards

James

wishing4kissing

Thanks James, I just didnt want to waste my time if all the advice they offered seemed to be aimed at people in rented properties. As I work full time its hard making time to get there, especially if its going to be a wasted trip if that makes sense. DRO and IVA seem aimed at people in rented places

mandyh42

Hi I hope u can help. We r on a dmp with stepchange and have been since 2011 all going good. Have recently applied to call credit for r individual credit files. As expected they were poor 1 out of 5 fir both of us lots of defaults and a ccj for my husband. Heres the question r neighbours have just recently sold there house very quickly and at a very good price. This made us start thinking - we have 6 years left on r mortgage, we owe 45k on the dmp and 75 on the mortgage r house is worth 180k .....could we get out of r situation, get a new mortgage, be debt free and start again in a new home ???? Who do we speak to ??? The last thing we want is not to b able 2 get a mortgage. .......weve come thru a lot and r working hard for what weve got.

Avenger666

I could do with some advice as I have nowhere else to turn.

I have maxed out 1850 on my nationwide credit card
I have maxed out 3800 on my barclays credit card
I have upped my overdraft on my current account to 1250 and have now maxed that out too.
I pay £95 a month to laser eye surgery, but I only have 3 payments left of this until the account is settled.

I suffer from depression which has become very bad over the last few months resulting in me doing reduced hours at work, this has not helped matters and I'm in a bit of a pickle often resorting to payday loans and recently applied for a loan at the provident.

I have not missed any payments on any of my accounts but I have been living in my overdraft for the best part of 3 years, I have tried to apply for a loan with my bank (who I had a loan with in the past and didnt miss a single payment I might add) but they refused me due to how bad my credit is.

As I said I'm making all of my payments but I'm left with very little for myself and I feel like life is passing me by, I cannot afford to buy clothes, socialise and sometimes even struggle to buy food.

Some advice is definitely needed, I just don't know what to do anymore.

mum2one

Avenger666 wrote: »

I could do with some advice as I have nowhere else to turn.

I have maxed out 1850 on my nationwide credit card
I have maxed out 3800 on my barclays credit card
I have upped my overdraft on my current account to 1250 and have now maxed that out too.
I pay £95 a month to laser eye surgery, but I only have 3 payments left of this until the account is settled.

I suffer from depression which has become very bad over the last few months resulting in me doing reduced hours at work, this has not helped matters and I'm in a bit of a pickle often resorting to payday loans and recently applied for a loan at the provident.

I have not missed any payments on any of my accounts but I have been living in my overdraft for the best part of 3 years, I have tried to apply for a loan with my bank (who I had a loan with in the past and didnt miss a single payment I might add) but they refused me due to how bad my credit is.

As I said I'm making all of my payments but I'm left with very little for myself and I feel like life is passing me by, I cannot afford to buy clothes, socialise and sometimes even struggle to buy food.

Some advice is definitely needed, I just don't know what to do anymore.

Youve taken the first and what most people find is the hardest thing, the first thing I would suggets is do the debt remedy tool from stepchange, as this give you the best way to move forward.

Its also worth opening a new bank account with a bank that you dont have debts with, but check as some banks operate under the same big name, eg Halifax and rbos,

As for depression, please speak to your doctor, and they can suggest best remedy whether that be councelling, cbt, anti-depressants, - once you get the debt plan sorted will lift a weight off your shoulder.

Please seek help on both accounts, stepchange have been amazing for me, and I can't recommend them highly enough xx

Avenger666

mum2one wrote: »

Youve taken the first and what most people find is the hardest thing, the first thing I would suggets is do the debt remedy tool from stepchange, as this give you the best way to move forward.

Its also worth opening a new bank account with a bank that you dont have debts with, but check as some banks operate under the same big name, eg Halifax and rbos,

As for depression, please speak to your doctor, and they can suggest best remedy whether that be councelling, cbt, anti-depressants, - once you get the debt plan sorted will lift a weight off your shoulder.

Please seek help on both accounts, stepchange have been amazing for me, and I can't recommend them highly enough xx

Thanks for the reply, I actually have started on a course of anti depressants which I have been taking for the best part of a month, not really feeling any improvement but there's a lot of other factors at the moment, my job is an absolute nightmare I broke up with someone I was deeply in love with last week and I just don't know what to do with myself.

Attempting to go back to basics and sort things out one at a time starting with my money issues, quite fancied a debt management plan but worried about the length it might affect my credit score as I hear it can affect chances of getting a mortgage for a very long time and also things like applying to rent places or even jobs within the financial sector.

I'm not a great risk taker, I need some good advice to take me out of my comfort zone.

Pickle29

Hi
Me again! Can anyone tell me the following?
Will I get confirmation from each creditor that they have accepted my plan/payment or will I only hear if they don't accept it (like Santander)?

As stepchange are now paying them (they should get their first payment any day now), do I need to contact them? (as I haven't- left it all to stepchange)

When I get default notices (another one today) do I need to do anything or leave it as stepchange are paying them and have written to them (but I haven't)?

I know I ask lots of questions and I am probably being impatient but I don't want to keep bothering stepchange when I know how busy they are ( and how valuable they are) but I'm worried sick and keep thinking should I be doing something ( although I haven't been told to!)

Thank you for being patient with me x

mum2one

Pickle29 wrote: »

Hi
Me again! Can anyone tell me the following?
Will I get confirmation from each creditor that they have accepted my plan/payment or will I only hear if they don't accept it (like Santander)?

with mine, I dont think all of them wrote to me, it just dribbled off with the contact, it was more a silent yes

As stepchange are now paying them (they should get their first payment any day now), do I need to contact them? (as I haven't- left it all to stepchange)

For me once they get the 1st payment from stepchange it felt easier as I they were getting money, stepchange would have contacted them, sit back and relax

When I get default notices (another one today) do I need to do anything or leave it as stepchange are paying them and have written to them (but I haven't)?
Again for me, I still get default notices from 1 company, but its there way to remind you your not meeting their full payments, unless its moved to a debt collection agency, its paperwork.


I know I ask lots of questions and I am probably being impatient but I don't want to keep bothering stepchange when I know how busy they are ( and how valuable they are) but I'm worried sick and keep thinking should I be doing something ( although I haven't been told to!)

I always think the key is ask questions as someone else may be thinking the same but is to shy to ask. Youve taken the hardest step and thats admiting the debt and the next step getting a dmp in place

Thank you for being patient with me x

Hi, hope you don't mind I've just put a few thoughts in as to how I've done my dmp, just over a year in, big relief.
Its usually around 25th they pay the debts out just incase any creditors ring, xx