Struggling with debt? Ask a debt advisor a question

Lilmiss_2

Hi, I filled out forms online last week for step change and they recommended a debt management plan and it said they would send the paperwork. I have since realised a couple of the figures were slightly wrong(not by much) will I get a chance to clarify the figures I gave online
How long does it take for the paperwork to come and what should I do in the meantime? I've contacted a couple of creditors to explain already but they wanted ref numbers and so on and of course I didn't have anything to give them.
I think the amounts given online aren't so realistic for my circumstances can I offer a slightly lower amount? Budgeting is hard as I have a disabled child and sometimes that throws things a lot so I would rather set a realistic level.. A friend told me I shouldn't have included my sons DLA in the income so that's maybe why it's high? If that's the case and that wasn't included I think I would manage payments better.. Any ideas?

Jonathan2002

I have circa 8 credit card debts with balances of between £500 to £8,000 on each and have been paying between £1 and £20 on each per month for the past 8 years or so. All manageable and under control. All except two have been sold on to debt buyers.

My question has to do with settlements, and FULL AND FINAL Three of the companies that bought debts have "agreed settlements" at circa 20% of the outstanding face amount. This still gives them a GOOD PROFIT as they bough the debt at around 10% of face value.

My issue is as follows: when I INSIST on the report to my credit file stating "Full and Final Settlement" the process breaks down and they will only agree to report a Partial Settlement. But why? Surely ALL they are interested in is making a profit on the debt they bought. What do they care what they report to the credit reporting agencies? If reporting a Full and Final Settlement gets them their money, so what? And, if the account is in DISPUTE, then parties can agree to resolve a dispute and AGREE an amount owing -which when paid is deemed paid in full. This happens ALL the time in business.

Finally, when debts are sold why are not the original debtors offered the chance to buy the debt? Why is market for second hand debt LIMITED so the people with the most interest in buying it, are locked out.

Facilitating full and final settlements and reporting such, plus allowing debtors access to buy their debt, would both go along way to resolving the debt burden in this country.

Anyway, any answers to my queries appreciated.

mum2one

Lilmiss wrote: »

Hi, I filled out forms online last week for step change and they recommended a debt management plan and it said they would send the paperwork. I have since realised a couple of the figures were slightly wrong(not by much) will I get a chance to clarify the figures I gave online
How long does it take for the paperwork to come and what should I do in the meantime? I've contacted a couple of creditors to explain already but they wanted ref numbers and so on and of course I didn't have anything to give them.
I think the amounts given online aren't so realistic for my circumstances can I offer a slightly lower amount? Budgeting is hard as I have a disabled child and sometimes that throws things a lot so I would rather set a realistic level.. A friend told me I shouldn't have included my sons DLA in the income so that's maybe why it's high? If that's the case and that wasn't included I think I would manage payments better.. Any ideas?

I can't remember how long the paperwork took, (sorry) I know that sounds daft even thou it was last year, I guess at the time my brain was in 1001 different situations.

There is a template letter that you send to your creditors saying your seeking debt advice with stepchange or if they ring, just say the plan is being set up and as soon as you have reference numbers your let them know.

As for the in between payments, I made a token payment to each of my creditors, even if it £1, £5, £10, - it shows good willing and that you are seeking help.

As for expenditures, I'm on DLA, I included mine in my income, as some of my expenses were higher than the recommended sum, such as petrol, parking as where someone could walk to the shop, I would need to drive, and laundry is high - again related to health, also heating - higher than some - so what stepchange did for me was put a little note by the sum to explain why they were higher, so the DLA money gets accounted for in expenditure, and it also reassures the creditors that not just bone idol in taking the car everywhere just for the fun of it, and I have had no problems.

I had to change my payments 6 months in when I originally set the income/expenditure, I was trying to cut to the bone, but it didn't work and I had to ring and say help, I reduced my payments by 1/4, although it extended my DMP, my creditors have been ok.

hope that helps xx

jod295

hi i have an old loan that was taken out in about 2007 time roughly with welcome finance. , i have had a company called cabot financial chasing me and now a firm of solicitors called ach shoosmiths are chasing me for the debt. I have been advised that the debt would now be statute barred and also have checked on my credit file and the original debt is showing as settled. what should i do?

amzmimi

Hi

I'm 28 and have a mortgage with my partner, and both have good jobs and a comfortable income. However, I currently have just under 15K debt which has been notched up over the space of about 8 years through credit card spending. 10k of this was turned into a loan to help me try and pay it back more quickly and regularly. However, once this had all been consolidated into the loan I managed to get myself into another 5k of credit card debt, I think just through impulse and compulsive spending.

I can afford to pay if back but really dont want to enter my 30s still in debt. I'm desperate to get it paid off but still want to create a savings pot at the same time so that I have my own savings to go to if I want something e.g. holidays/clothes etc and not have to turn to my CC.

How can I get myself out of this and make a fresh start without any credit cards?

StepChange_Private_Messages

amzmimi wrote: »

Hi

I'm 28 and have a mortgage with my partner, and both have good jobs and a comfortable income. However, I currently have just under 15K debt which has been notched up over the space of about 8 years through credit card spending. 10k of this was turned into a loan to help me try and pay it back more quickly and regularly. However, once this had all been consolidated into the loan I managed to get myself into another 5k of credit card debt, I think just through impulse and compulsive spending.

I can afford to pay if back but really dont want to enter my 30s still in debt. I'm desperate to get it paid off but still want to create a savings pot at the same time so that I have my own savings to go to if I want something e.g. holidays/clothes etc and not have to turn to my CC.

How can I get myself out of this and make a fresh start without any credit cards?

Hi,

Welcome to the forum!

If paying off your debts is your priority you would be best to do this before you save – I know it seems sensible to have a savings pot too but while you have debt you’re paying interest on top. MSE have a great article explaining this http://www.moneysavingexpert.com/savings/pay-off-debts

I know you said you’re not struggling with the payments but I suggest you use our online tool, Debt Remedy. Using your budget it will offer recommendations for reducing your spending and provide you with a tailored budget you can use going forward. It’s free and you don’t have to give your name.

I hope this helps.

Cheers,
Jess

StepChange_Private_Messages

jod295 wrote: »

hi i have an old loan that was taken out in about 2007 time roughly with welcome finance. , i have had a company called cabot financial chasing me and now a firm of solicitors called ach shoosmiths are chasing me for the debt. I have been advised that the debt would now be statute barred and also have checked on my credit file and the original debt is showing as settled. what should i do?

Hi there,

I've posted a reply to this through private messages - feel free to post back if you didn't receive it.

Cheers,
Jess

Susan_Sto_Helit

Hi

Apologies for the length of the thread

My son took out a mobile phone contract (via Carphone Warehouse) with Vodafone (November 2012) - 24 month contract, Iphone4 £30 per month.

He "helped" a friend out, by transferring the account to her - this was done by going back to Carphone Warehouse and both parties filling in the relevant paperwork. - Assuming he was given a copy of the transfer paperwork, he has lost it.

He has not received anything further from Vodafone or Carphone Warehouse regarding the phone or contract.

Until now.

He has now received a letter from a debt collection agency stating that due to the unpaid bills, he now owes over £200.

He has contacted Vodafone who have confirmed that the account is showing the transfer paperwork from him, but nothing from his friend.

So now I am stuck.

We have written a letter to the debt agency, requesting a copy of the contract and he has asked Vodafone for copies of the statements, which they have provided in his name at our address - hard copies of these have never been received, so I can only assume they were sent to his friend electronically.

Assuming that the debt agency provide a copy of the contract, regardless of his "ownership transfer", I take it he is fully responsible for the debt and has to pay.

Needless to say:
1) their friendship had already broken down and it is unlikely she is going to pay in good faith
2) he has realised the error of his ways, but is now worried about paying the bill

Any suggestions on how I can help him to resolve this?

In addition to the debt, there is still 12 months of the contract to run, (at £30 per month) or a one off payment of £346 to terminate the contract early. Either way he has no phone to use on the contract (and its unlikely that she would return it to him)

Any advice would be really helpful - I have also posted in the main forum, but not had any response, so apologies for the duplication

System

Susan_Sto_Helit wrote: »

Hi

Apologies for the length of the thread

My son took out a mobile phone contract (via Carphone Warehouse) with Vodafone (November 2012) - 24 month contract, Iphone4 £30 per month.

He "helped" a friend out, by transferring the account to her - this was done by going back to Carphone Warehouse and both parties filling in the relevant paperwork. - Assuming he was given a copy of the transfer paperwork, he has lost it.

He has not received anything further from Vodafone or Carphone Warehouse regarding the phone or contract.

Until now.

He has now received a letter from a debt collection agency stating that due to the unpaid bills, he now owes over £200.

He has contacted Vodafone who have confirmed that the account is showing the transfer paperwork from him, but nothing from his friend.

So now I am stuck.

We have written a letter to the debt agency, requesting a copy of the contract and he has asked Vodafone for copies of the statements, which they have provided in his name at our address - hard copies of these have never been received, so I can only assume they were sent to his friend electronically.

Assuming that the debt agency provide a copy of the contract, regardless of his "ownership transfer", I take it he is fully responsible for the debt and has to pay.

Needless to say:
1) their friendship had already broken down and it is unlikely she is going to pay in good faith
2) he has realised the error of his ways, but is now worried about paying the bill

Any suggestions on how I can help him to resolve this?

In addition to the debt, there is still 12 months of the contract to run, (at £30 per month) or a one off payment of £346 to terminate the contract early. Either way he has no phone to use on the contract (and its unlikely that she would return it to him)

Any advice would be really helpful - I have also posted in the main forum, but not had any response, so apologies for the duplication

Hi and welcome to the forum.

It would depend on what paperwork was signed but I’d expect that your son is responsible for this debt as he signed the original contract.

If he’s struggling with paying the bill, I’d recommend that he puts a budget together and works out what he can reasonably afford to pay (we can help with this if he wants to give us a call).

The important thing is to not pay more than he can afford and get himself into further difficulty. Our online advice tool Debt Remedy could also be useful to him http://www.stepchange.org/Debtremedy.aspx?hp=400

I hope this helps.

Kind regards,

Mat

ab3927

Hello

Okay i have around 7k debt and this has gone on for a fair few years now, i completely ignored but have finally settled down and want to get a mortgage in a couple of years time with my partner.

My debt now lies with several debt collection agencies i have sorted out my own financial problems and have enough money coming in every month to pay back a lot of these by 7-8 months, now here's my question?

I was going to ring them up when i get paid every month and pay the settled amount as i get discount it will lower the amount of creditors that i have around 10-12 in all....shall i do it like this and i have read around that i can get them to remove it from my credit file prior to handing the cash over to settle it? is this true?

thanks