Struggling with debt? Ask a debt advisor a question

raspberry22

Hello,

I posted here before and everyone was very helpful.

Due to further illness and me again not handling our finances very well, we are now in the process of setting up at DMP with Stepchange.

While setting this up I'm being bombarded with phone calls etc as we have fallen behind, and as things were very tight, it's been impossible to catch up again.

We have a child and our tax credits and child benefit are paid into my account. Those are this accounts only source of funding. I've been buying very small items on ebay (60p - £2.00) for a birthday, knowing there was money in the account to cover it. However, my funding has changed from my debit card on this account to direct debit. The problem being that the bank charged me £50 which I hadn't realised was coming off and the paypal DDs have been refused. I'm expecting to get a £25 for each one now, and there are 6 transactions. I really wish I noticed the funding change on paypal at the time, but hindsight is wonderful I suppose.

I'm now really worried about managing until the DMP is set up. We're in the middle of getting a new bank account set up, which should take no more than a week. Can anyone tell me roughly how long things take to get sorted once Stepchange start the process?

Thanks.

StepChange_James

LittleAoife wrote: »

hi there, i have just split with my husband.
I have some debts that have been aquired during our relationship that i need to sort out, all in my married name/ maiden name but not joint.
we have no joint accounts now as all closed. what is the best way to start on this, to phone/email you guys??

Hi LittleAoife and thank you for your question.

I’m sorry to hear about your separation. We can help you with free and impartial advice, and luckily it’ll be easier to look at your situation if all your debts are in your sole name.

The best place to start is our online advice tool Debt Remedy. You can use this link to get started: http://www.stepchange.org/msehelp. By taking your income, expenditure and details of your creditors it’ll determine your options based on your situation.

I hope this helps, you’ve done the right thing by contacting us.

Thanks,
James

StepChange_James

789caroline wrote: »

Hi

I am new to forums. I am trying to prevent myself from ever getting into debt crisis. I have read about problem debt and debt crisis and I just want to arrange my money in the best way possible.

I have problem debts but I am able to pay them but have no money to ourselves. We have three credit cards totalling just under 16,000. We have a loan that has got 12,911 left on it. I don't know whether to consolidate. I looked into re-mortgaging but don't have enough unless I get my house valued. I'd like to pay one payment but don't want to be fleeced!

Can anyone advise what is the best way for me to organise this debt?

I would really appreciate any help. Feeling quite confused. We are not very savvy with money.

xx

Hi there and welcome to the forum.

The best way to get organised is to put together a budget to see exactly where your money goes each month. This will make it easier to see whether you can make any changes to afford your debts or if you’re struggling more than you realise.

We don’t usually recommend debt consolidation as it can often make your situation worse. If you’re tempted then I’d recommend trying our debt consolidation calculator first: http://www.stepchange.org/Debtinformationandadvice/Debtsolutions/Debtconsolidation/Debtconsolidationcalculator.aspx.

Quite often it’s better to get debt advice instead of taking out a new loan. Our online advice tool Debt Remedy will help you to compile a budget and determine whether there are any other debt solutions available to you. You can use this link to get started: http://www.stepchange.org/msehelp.

You’ve done the right thing by contacting us before you reach crisis point and hopefully we can help to put your money worries at ease.

Thanks,
James

Wizardoffoz

I'm a newbie on here but I do have a big debt. Currently have £27k outstanding and on a DMP paying £216 PCM. If I carry on as I am it'll be 2023 before I pay it off.

I'm currently downsizing everything, already reduced mobile phone contract, switched utility companies, am changing tv/phone/broadband to a cheaper option and being more frugal full stop. But should I be looking at an IVA rather than a DMP? I have a mortgage and pay maintenance to my ex which eats into my income.

Any thoughts very welcome!!

mum2one

Wizardoffoz wrote: »

I'm a newbie on here but I do have a big debt. Currently have £27k outstanding and on a DMP paying £216 PCM. If I carry on as I am it'll be 2023 before I pay it off.

I'm currently downsizing everything, already reduced mobile phone contract, switched utility companies, am changing tv/phone/broadband to a cheaper option and being more frugal full stop. But should I be looking at an IVA rather than a DMP? I have a mortgage and pay maintenance to my ex which eats into my income.

Any thoughts very welcome!!

I'm the same as you at the mo a 2023 debt free date, but on a positive things can change and you might have another few quid spare for the debts. Just a thought are you with stepchange or another debt free charity as every £1 you pay goes to the creditors.

I don't know much about IVA - but it is stricter and there can be restrictions and remortaging to pay some equity off the debts, so it may be worth holding tight and perservering.. There also maybe not enough in your % of payment to the debt for an IVA.

(there just my thoughts) xx

lewpster

Am desperate for help..... What's the best way to pay off a £20,000 (I feel sick writing that) debt...... I am living a lie and can't go on anymore like this. My debts are getting higher and even though I am budgeting I am going round in circles.....

I have a mortgage and need the best way so my husband ( he doesn't know and I don't want him to know) and our house aren't affected.... : (

Katet

Hi all. Since splitting with my husband 3 years ago and struggling financially I have run up 30k of credit card debt!! Up to now I have been shuffling the debt around using interest free credit cards but I am now unable to get any more cards and at the end of this month the interest will start. So far I have missed no payments and have been able to make minimum payments on all. I am really struggling to make ends meet though and am considering starting a dmp. I am wondering if I should stop making payments now till I start my plan. Any advice would be very much appreciated.

StepChange_James

Wizardoffoz wrote: »

I'm a newbie on here but I do have a big debt. Currently have £27k outstanding and on a DMP paying £216 PCM. If I carry on as I am it'll be 2023 before I pay it off.

I'm currently downsizing everything, already reduced mobile phone contract, switched utility companies, am changing tv/phone/broadband to a cheaper option and being more frugal full stop. But should I be looking at an IVA rather than a DMP? I have a mortgage and pay maintenance to my ex which eats into my income.

Any thoughts very welcome!!

Hi there,

Thanks for posting. Either DMP or IVA could be good options depending on your situation now and what might happen in the future.

We've an article on our blog which covers some of the differences between IVA and DMP. A very long DMP isn't a great option but if you're expecting improvements in the future then a DMP means you could increase payments and pay back all the debt.

If it's unlikely your finances will improve then it's worse exploring other options. Most home-owners taking out IVAs will nearly always have to include a condition in their IVA that they'll try to remortgage their property to release a lump into the IVA.

Currently it's very hard to actually get a remortgage if you're on an IVA so if it's not possible to get a lump sum an extra year of payments are made instead.

So it's not exactly clear if an IVA or DMP would be your best option (or if something completely different would be best). The easiest way to have a look at what options are available would be to complete our online Debt Remedy tool: http://www.stepchange.org/msehelp.

It'll give you a personal action plan based on your circumstances and advise you on what things will work best.

To answer the original question, I'd recommend looking at all the possible options before deciding on what suits you best. Getting out of debt can be a long journey and it's a matter of picking the option that works best for you.

Cheers

James

StepChange_James

lewpylew wrote: »

Am desperate for help..... What's the best way to pay off a £20,000 (I feel sick writing that) debt...... I am living a lie and can't go on anymore like this. My debts are getting higher and even though I am budgeting I am going round in circles.....

I have a mortgage and need the best way so my husband ( he doesn't know and I don't want him to know) and our house aren't affected.... : (

Hi there,

Thanks for posting.

There are quite a few ways to deal with debt and it'll depend on your circumstances which option suits you best. Our Debt Remedy tool can take your details and give you more specific suggestions about how to deal with the debt: http://www.stepchange.org/msehelp.

We speak to other people in a similar situations, where they don't want their partner to know about their debts, so we are very careful to respect confidentiality.

I would add that keeping debt secret can add a lot of pressure, so it may be worth considering talking to your husband. You'll know better than me if that's a good idea but I thought I'd mention it.

Either way, we can support you and offer you advice about the available options.

Kind regards

James

StepChange_James

Katet wrote: »

Hi all. Since splitting with my husband 3 years ago and struggling financially I have run up 30k of credit card debt!! Up to now I have been shuffling the debt around using interest free credit cards but I am now unable to get any more cards and at the end of this month the interest will start. So far I have missed no payments and have been able to make minimum payments on all. I am really struggling to make ends meet though and am considering starting a dmp. I am wondering if I should stop making payments now till I start my plan. Any advice would be very much appreciated.

Hi Katet,

Firstly I'd recommend getting some advice to make sure a DMP is your best option (if you've not already). Sorry if I sound like a broken record, but our Debt Remedy tool can help you with this: http://www.stepchange.org/msehelp.

If a DMP is your best option then there'll be some paperwork for you to send back to us (nothing too drastic though). Once we get this back we set everything up and then confirm your start date.

For the time in between us recommending a DMP and you actually starting to make payments we'll usually suggest that you make a small gesture payment to the debts. This means there shouldn't be a large gap between payments.

We also provide a template letter to send to creditors to let them know you're applying for a DMP. It's no guarantee that they'll leave you alone but many companies will back off if they know you're setting up a payment plan.

All the best.

James