Struggling with debt? Ask a debt advisor a question

Greenstuff_2

StepChange_Private_Messages wrote: »

Hi and thanks for your post.

The best article on credit ratings, how they work and how to improve them is on this site and is written by Martin http://www.moneysavingexpert.com/loans/credit-rating-credit-score

It’s worth noting that if you weren’t paying the full contractual repayments on the overdraft then Barclays would default you as standard procedure.

It’s still worth following up if this wasn’t explained to you at the time.

You could ask for a notice of correction to be added or take it up with the Financial Ombudsman – Martin’s article will explain more.

I hope this helps.

Kind regards,

Mat

Hi Matt,

Thanks for that, the problem is that as it was an overdraft there was no repayment agreement, as I was organising this with them they registered the default for the whole sum.

StepChange_Pavan

daydream_believer wrote: »

Myself and my OH have spent the last 10 days trying to work out the best way to sort out our debts with the minimum long term damage.

We currently have 5 cc debts (2 mine, 3 his) and 2 joint account overdrafts.

My questions are,

Can I just do a DMP, as we can probably manage repayments on his cards if we can get payment reductions on mine.

My biggest debt is on a Nationwide credit card. We have a joint account with them, that we can probably get back into credit soon. Can we keep a small balance in this to pay bills, his credit cards etc, without Nationwide taking the money to pay towards my debt?

We have a larger overdraft on a joint account with Natwest, if I take a DMP, will Natwest call in the overdraft because of my credit score? We cannot afford to put this one back into credit.

We have a property in USA that we are trying to sell. It will give us very little, if any money back, but if it does, we can start getting back on track, as we also will not be paying for this either.

Therefor, this is (hopefully) a temporary cashflow blip, which is why we don't want to both do a DMP if possible.

Please can you advise, many thanks.

Hi there and thanks for your question.

It is possible to do a DMP to include your debts and exclude your partners provided that you each contribute a fair amount to the household budget. You will pay an agreed amount through your DMP to your debts and your partner may have to make extra payments to any joint debts to maintain those accounts.

As you have a bank account which is connected to your credit card there is always a risk that they will take any money in there to pay towards your debt. We’d recommend that you open up a basic bank account away from any existing debts and use this to put money in and pay your bills from.

There is always a chance that your bank can recall your overdraft facility at any time so I can’t guarantee whether this will happen or not.

If you do get some money from the sale of your property which helps you get back on track you can always cancel your DMP.

It’s best to give us a call so that we can go through your options in more detail. There may even be other solutions available that you haven’t considered. You can call our Helpline on 0800 138 1111 (free including from mobiles). We’re open Monday to Friday 8am - 8pm and Saturdays 9am – 3pm.

I hope this helps,
Pavan

StepChange_Pavan

TM100 wrote: »

Really need some sound advice, have some debt, some already in hands of baliffs, what is the best way to sort out all the debt, is it best to contact everybody separately or is it best to lump all debt together and pay out 1 payment only,

Hi there and thanks for your question.

It’s difficult to say what your best option is without looking at your situation in more detail.

If some of your debts are already with bailiffs I’d really recommend that you call us as soon as possible so we can advise you on your next best steps. You might find this article useful in the meantime as it explains your rights when dealing with bailiffs: http://moneyaware.co.uk/2012/10/bailiffs-know-your-rights/

You can call our Helpline on 0800 138 1111 (free including from mobiles). We’re open Monday to Friday 8am - 8pm and Saturdays 9am – 3pm.

Kind regards,
Pavan

StepChange_Pavan

Greenstuff wrote: »

Hi Matt,

Thanks for that, the problem is that as it was an overdraft there was no repayment agreement, as I was organising this with them they registered the default for the whole sum.

Hi again,

This leaflet gives you more information on what to do if the bank isn’t responding to your letters: http://ico.org.uk/for_the_public/topic_specific_guides/~/media/documents/library/Data_Protection/Practical_application/credit-explained-dp-guidance.pdf

Hope this helps,
Pavan

changeforbetter

Hi,

I've posted about this on another thread, but wondered if anyone could answer a specific query about my possible (not yet) DMP, thanks.

If I've never missed payments/defaulted previously, would this be a problem in setting up a DMP at all (i.e. can creditors argue that I'm not in difficulty with that as evidence)?

Many thanks.

mum2one

changeforbetter wrote: »

Hi,

I've posted about this on another thread, but wondered if anyone could answer a specific query about my possible (not yet) DMP, thanks.

If I've never missed payments/defaulted previously, would this be a problem in setting up a DMP at all (i.e. can creditors argue that I'm not in difficulty with that as evidence)?

Many thanks.

Things do change so when you do your SOA it may well be that your incomings dont leave enough for debts, - it could be that your robbing Peter to pay Paul, the creditors wont know that although you will. x

Woodypuddy

changeforbetter wrote: »

Hi,

I've posted about this on another thread, but wondered if anyone could answer a specific query about my possible (not yet) DMP, thanks.

If I've never missed payments/defaulted previously, would this be a problem in setting up a DMP at all (i.e. can creditors argue that I'm not in difficulty with that as evidence)?

Many thanks.

Hi Changeforbetter,

I was in exactly the same position, never defaulted, always paid the requested amount but just came to the point where I was drawing cash off one card to pay another. Had my LBM in January that had to do something. I start my DMP on 1st March and have just heard back from MBNA that they are accepting my vastly reduced payments on 2 cards and freezing interest. Not saying my others will be this good but it is certainly a start.

Blueskies2014

I am very upset and stressed. I was told by Step Change to advise all of my creditors I am in financial difficulty. I didn't realise that by advising my bank that they would immediately withdraw my overdraft facility, which has happened.

I realised I had my facility withdrawn when I needed to withdraw some cash for a bus fare and could not withdraw any money. Then when I got home the letter from Sandanter was waiting.

It's left me with no money whatsoever and my Jobseekers Allowance payment which I was depending on has now been swallowed up by my overdraft and my balance is now £2335-. My overdraft allowance is now zero, they have stopped me using my card, my cheque book and cancelled my direct debit to my phone company and my standing orders to pay my rent arrears and other creditors.

I do have another unused bank account, which I will use now, but I can't get back my JSA payment and I have no money at all to live on for the time being. I think Step Change should be much clearer about what will happen when you advise your bank you are in financial difficulty.

My debt problem escalated after I was made redundant 2 years agao and I was already in debt. I have just done on and off temp work ever since, which has never been enough to pay the debt I owe. I had to move from my flat last year due to not being able to pay the rent. I have £18K of debt altogether over credit cards and 2 overdrafts.

MHW

Looking for a bit of assistance. I am probably a bit of an oddity here in the fact I have been abroad for over 6 years. But when I left I had debts left (mainly accumulative debts from my ex partner). I have no idea how much is still owed and don't have a credit card to sign up with Experian to check. I have a few questions I am hoping someone can help me with.

1. How do i get a credit check with no credit card?
2. Are most of my debts likely to be impossible to chase through courts as they are all now older than 6 years but one?
3. The one debt that is under 6 years was Santander buying up Alliance and Leicester. They changed my account from £500 minimum balance to gain interest to £500 before they bill me for not using the account. I never signed a contract for this or agreed that they could do it. What can I do about this as they overdrew the account, refused to close it even prior to excess billing.

Any help on this matter is appreciated as right now I have 2 options -
1. I am looking to come back to the UK full-time with my wife and would like to rebuild our life here.
2. I just continue to appear and disappear as I work globally but seems a bit excessive with small debts (if they are small I can't see what I owe).

When I split with my ex I lost all mail contact as she cancelled me off the lease and mailing list. I had no residency even before I left the UK as I only needed roots for a family life. As most of the time I am living in hotels due to working in different areas constantly (Its why i have no idea what is owed).

Blueskies2014

This is a reply to MHW in post above. I don't know why it doesn't put the reply underneath the person's post when I am on their profile and click quick reply.

Hi there, if you google Experian you can get a free copy of your credit report. Regarding Santander, this has happened to me. I am having financial problems and I advised them, as instructed to by Step Change. They have instantly withdrawn my overdraft facility and stopped my account. My Jobseekeers Allowance payment has been swallowed up too. Just wanted to say I know what it feels like. I'm so upset!!