Struggling with debt? Ask a debt advisor a question

System

fabz wrote: »

Hi,

I have an account with TMOBILE which went into default 20 months ago. I tried to pay the debt the other day they told me they couldn`t process the payment since the debt was sold to an agency called Westcot DCA, rang them up today to pay for it, got told they don`t have any records of my debt on their data base and tey wouldnn`t take the payment. What to do now if neither companies are willing to process my payment and amend my credit file?
Is there any company i could contact to help me with this matter?
Thank you.

Hi fabz,

Welcome to the forum.

It’s unusual. First thing I would do is contact Westcot one more time, maybe it takes time for records of the transfer to show on their records?

I would then contact TMobile and ask if they can send you any proof the debt has been sold on. I’m not sure what records they keep but I suspect it is tracked and documented.

They only other option beyond that is to contact the Financial Ombudsman and make a complaint, they have the power to enforce action. There is no company that can chase the debt for you, you are the best person to chase it up. Hopefully it’s just crossed wires and Wescot can accept the payment.

PS. you suggested you can afford to clear the debt off which you sould do if you can but if you find you struggle to manage at we can offer free debt advice. Just because it's been passed to Westcot doesn't mean you have to pay above what you can afford. For a personal action plan use our Debt Remedy debt advice tool.

Thanks,
Jess

System

bettyruth wrote: »

Thank you so much for this woodypuddy, It has made me cry... I will do as you advised so fed up having sleepless nights. He is still not really speaking to me...mabey if I can show him I am taking steps to sort it, it might be better.... thank you once again x

Hi bettyruth,

I just wanted to echo woodypuddy’s advice – it may seem an impossible situation but it’s not, you just need someone to look at your budget and see what the best way forward is. But please don’t pay for advice, some companies charge fees for advice and solutions like debt management plan.

– contact ourselves (StepChange Debt Charity) or National Debtline

You’ll get a budget assessment and personal action plan with clear advice and debt solution recommendations. You can also do this online using our [URL="(http://www.stepchange.org/msehelp"]Debt Remedy[/URL] tool. It’s confidential and available anytime.

I hope this helps, woodypuddy is a great example of how getting debt advice can turn a situation around.

Take care,
Jess

bettyruth

Hi jess.
I have done tne online dept remedy...with step change, and the advice seems to be a d.m.p. usingthe advice, I have opened a basic bank account with a different bank, what other steps do I need to do before proceeding with yourselves for the d.m.p..?
do I need toinstruct my payroll with the new bank details? I only have d.d for my bank loan with tsb....other debts are paid at the begining of the month( min payments) just by transfering my bill from my on line bank account.
I do have d.d for my monthly union fee, life insurance and mobile phone, would these need to be stopped and new d.d put in place at new bank before d.m.p up and running?
I am really worried about telling my bank...and obviously expect things to hit the fan, once they know... would step change approach my creditors (catalogue companies, credit cards etc...?) Thank you.

System

bettyruth wrote: »

Hi jess.
I have done tne online dept remedy...with step change, and the advice seems to be a d.m.p. usingthe advice, I have opened a basic bank account with a different bank, what other steps do I need to do before proceeding with yourselves for the d.m.p..?
do I need toinstruct my payroll with the new bank details? I only have d.d for my bank loan with tsb....other debts are paid at the begining of the month( min payments) just by transfering my bill from my on line bank account.
I do have d.d for my monthly union fee, life insurance and mobile phone, would these need to be stopped and new d.d put in place at new bank before d.m.p up and running?
I am really worried about telling my bank...and obviously expect things to hit the fan, once they know... would step change approach my creditors (catalogue companies, credit cards etc...?) Thank you.

Hi bettyruth,

Good, glad you’ve used Debt Remedy and received a recommendation. In your PDF pack you’ll have a form you need to fill in and return to us.

We then set you up your DMP and notify you about setting up your monthly payment – your creditors will get all of the money you send, the DMP is fee-free.

In the meantime:

1. Yes, give your new bank details to your payroll at work
   
2. When you have money going in you can set up your D/Ds for your priority bills (union fee, mobile phone, life insurance and any household bills etc) to be paid out of your new bank – don’t do this now as they’ll bounce
   
3. There is a letter in your DMP pack explaining you are going on a DMP with us and we’ll be in touch. Cancel any D/Ds for your creditors and send them this letter
   
4. There is something called the ‘right of offset’ which gives any bank (not just Lloyds) the right to take money from one of their accounts if you owe it them – because of that if your wages are in a Lloyds account it’s best not to tell them you’re moving or going on a DMP just yet. Wait until you’ve moved banks.

If you need any more help or advice feel free to give us a call, the number is in your pack.

Take care,
Jess

bettyruth

Thanks so much for the advice, jess!

cheeseoatcake

Hi,
After years of juggling my credit cards around it's time to try and sort things out.
I have just over £40,000 on credit cards, £7000 Overdrafts and £2,500 on a loan. All unsecured.
I have about £60k equity in my house and a mortgage on it for £113,000.
I,m self employed, but trade as a ltd company.
1. The company has no debts and Banks with Lloyds but I have £15k on my lloyds CC, Will lloyds bank access my ltd co account for funds?2. My wife is only on a low wage so I don't want her in the plan but she is named on a joint account with barclays which is overdrawn will this cause a problem? Should I transfer money from a CC to pay the overdraft off before my plan is in place?

Kind regards

notechno

I've filled in the Debt Remedy tool on Step Change, but am wondering if I've done something wrong. It's suggesting I should only be spending £9 a month on clothing and shoes - this is for two people, so that only works out at £54 per person for the whole year. The food, clothes and toiletries was similarly very low

mum2one

notechno wrote: »

I've filled in the Debt Remedy tool on Step Change, but am wondering if I've done something wrong. It's suggesting I should only be spending £9 a month on clothing and shoes - this is for two people, so that only works out at £54 per person for the whole year. The food, clothes and toiletries was similarly very low

Thats really low - if your not sure there is a suggestion, (from memory what I did was put in a really high figure say £300 for clothes (not that I spend that much!!) it then comes up at the side with green writing suggesting a budget amount, eg it may be £39 to £64 a month for clothes,) this then give you a more accurate figure. Same for food etc..

in my budget (myself and DD - includes school uniform etc) our budget is £59 a month. I would go back in with your web number and see if you can alter the figures,

nervousnelly_2

Hi there, my husband got sacked for gross misconduct last Tuesday and his career is not looking good because of that bad mark on his record. We are now looking at earning minimum wage to get by, with 3 children to raise. We have tried claiming all the benefits we can at the moment with no income, but were told we may be sanctioned for 13 weeks because he was sacked for gross misconduct. It is a very precarious situation indeed.

Problem is I've still got £1700 to pay off on my credit card, with a minimum payment of around £50 a month at present. I'm not quite sure what to do with it. We still have some cash on us - about £750. But with a £540 rent and utility companies deducting a total of nearly £100 a month from his bank account by Direct Debit, I really can't see how I'm going to be able to pay this month's minimum payment on my card.

This past week, we have both sent of lots of CVs and asked at local restaurants and takeaways if they need help. Not had even a single call back from them and it's starting to look like it will be really difficult to find a job now. I haven't been working for 11 years nearly, because I was a stay at home mum for 3 children, so that makes it worse.

I'm worried about getting a bad credit score as that might affect our chances of renting a new place in future - I know lots of letting agencies do a credit check first before letting to you.

So what would you advise we do at the moment?

mum2one

nervousnelly wrote: »

Hi there, my husband got sacked for gross misconduct last Tuesday and his career is not looking good because of that bad mark on his record. We are now looking at earning minimum wage to get by, with 3 children to raise. We have tried claiming all the benefits we can at the moment with no income, but were told we may be sanctioned for 13 weeks because he was sacked for gross misconduct. It is a very precarious situation indeed.

Problem is I've still got £1700 to pay off on my credit card, with a minimum payment of around £50 a month at present. I'm not quite sure what to do with it. We still have some cash on us - about £750. But with a £540 rent and utility companies deducting a total of nearly £100 a month from his bank account by Direct Debit, I really can't see how I'm going to be able to pay this month's minimum payment on my card.

This past week, we have both sent of lots of CVs and asked at local restaurants and takeaways if they need help. Not had even a single call back from them and it's starting to look like it will be really difficult to find a job now. I haven't been working for 11 years nearly, because I was a stay at home mum for 3 children, so that makes it worse.

I'm worried about getting a bad credit score as that might affect our chances of renting a new place in future - I know lots of letting agencies do a credit check first before letting to you.

So what would you advise we do at the moment?

sorry to hear about your husband and the job, - a question is he in a union - just incase there is a chance he can fight it.

As for the bills, the prority is essentials, house, council tax, water, gas, elec, - have you tried to get housing benefit / council tax benefit.

As for credit cards etc - ring them and explain there are financial difficulties, and come to an arrangement to pay a token amount - even if it is £1 a month, - this buy 3 months, it will show on credit file as arrangement to pay - but generally - not as bad as a default.

Have you notified tac credits - it may be that you lose any working tax credit, but you may get child tax credit.

Sorry about everything, - hopefully a few tips to help xxxx