Struggling with debt? Ask a debt advisor a question

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FrugalMama wrote: »

Hi, apologies if this is not really the correct thread- I'm a complete newbie!
I have a question for you- my partner and I opened a joint account with NatWest approx 5-6 years ago and as part of their 'customer service' they offered to contact all our direct debit companies to inform them ofour change of bank details. At the time I thought this was a brill idea as it saved me time of trawling though all those bills/ phone calls.
What we realised soon after the bank switch , however was that the bank had arranged for all our d/ds to go out prior to our wages going in, they said this would be fine and even coerced us into having a £2000 overdraft (despite my reservations) which I now think was intentional as we are constantly overdrawn on that account because every household bill came out before anymoney had ever gone in and we have never been able to catch up with it!
On occasion we try to cut down our spending (tricky as that account is purely for bills) or try to put £200-300 in if we can spare it but we are still 'in a mess' with that account and now have three children so not much spare cash to get us out of the red.
So my question is- is there anything we could do to make the bank pay for this balls up so long after the event? I feel so cross that we were so niave to let it happen but can't see away out of it without paying more of ourmoney into the bank!
Thanks 😀

Hi there,

Welcome to the forum.

The first thing to do is to complain to the bank in writing explaining the situation that the dates of the D/Ds were not what you requested and you were encouraged to take an overdraft you didn’t ask for.

Give the bank time to respond (6 weeks I believe) and then if you’re not satisfied with their response you can complain to the Financial Ombudsman.

I know you’ve not had a good experience with bank account switching but you could move banks again to ensure you’re not going further into your O/D. You would still owe the overdrawn amount and the interest each month.

If you’d have trouble repaying this debt use our Debt Remedy advice tool for a budget assessment and solution recommendations.

I hope this helps,
Jess

StepChange_Private_Messages

ExDebt wrote: »

Hi Debt advisors,

I was wondering if a person gets a DMP, would costs towards paying for contact with children be seen as an essential cost?

I am a parent with residence but I have been paying towards the contact costs for the non-resident parent (this was agreed 8 years ago and is also a court order). However, circumstances have changed. The other parent moved far away 4 years ago and I have much less available income than I used to, and a lot of debt to clear. I still get demands to pay a 'fair share', regardless of ability to pay, which means I'm usually spending more than I earn in order to do so.

In a debt-management plan, what would your advice be?

Hi,

Everyone’s budget is different – essential costs for contact with children such as food, travel costs or petrol would be included. Other expenditures could be included if they are reasonable and essential. They would be budgeted before money is allocated to your credit debts.

If after your essential living costs you are still spending more than you earn a debt management plan would not be suitable as you need a surplus. There are likely to be other options open to you.

The best thing to do is get free, impartial debt advice. To do that you can use our online Debt Remedy advice tool or contact us. If it is a debt management plan we can provide one fee-free.

I hope this helps.

Thanks,
Jess

System

SkintStudentGirl wrote: »

Hi, I am looking for some advice regarding my overdraft.

I have a £3k student overdraft with Barclays from my undergraduate degree (I graduated in 2010) and have gone on to post-graduate study with the same account. However, now I am paying for the facility and being charged £42 per month. I spoke to Barclays some time ago regarding having a student account as I was back in education and was told that this would be possible but I would not be granted the full £3k, it was likely I would be permitted £1k and so the remainder would become immediately repayable. This panicked me and I plodded on paying the charges but am now wondering if there is anything I can do.. ?

I don't really use the overdraft as I live from a small amount of wages and my bursary so could I somehow relinquish £2k and repay this in small installments each month? Or is there simply a better way to manage this as I feel I'm being taken advantage of!

I would really appreciate any help and advice.

Thanks!

Hi,

Welcome to the forum.

If you were allowed a £1k overdraft on your current bank account and the other £2k became immediately repayable they couldn’t make you repay that a higher rate than you can afford. We could give you free debt advice and go through a budget to look at your options. You can do this online using Debt Remedy. The £2k would be a debt and repaying this would affect your credit rating.

If you can pay the O/D charges but you’re just looking for a quicker way to repay the balance Money Saving Expert have a great article on cutting overdraft costs.

It is worth noting a bank can recall an overdraft without warning so it’s not a good idea to put any money in there that you live on.

Thanks,
Jess

System

sparkovic wrote: »

My mum who passed away in November, stayed with my sister.They had bought my mum's council house some year's ago for £20k (approx value now £80k). This was done via an endowment mortgage but my sister informed me that they were having financial difficulties + had cashed in the endowment a few years ago + the mortgage is due to be paid in 4 year's. This was fine as i am able to help + will pay £445 into my sister's credit union account which will mean she will have the £20k to pay off the mortgage.
My sister has just informed me that her debt situation is much worse than she was admitting - she owes a further £38k in various credit cards + unsecured loans. She has used "Village Money" to set up a payment arrangement paying the creditors £5 / month which doesn't look enough to be agreed long term.
Unfortunately I am unable to help with any more than the £445 but I should be able to continue paying this even after the mortgage is paid off.
My sister would only be able to pay about £150 / month towards her debt but the main worry is the house. Even if she sold it, it would not give her enough money to buy a new place + pay off the debts.
Are you able to provide some advice on how she would be able to stay in her home + resolve her debt situation. The only options I can see are :-
(1) Sell House - wouldn't be enough left to buy anywhere else ?
(2) Bankruptcy - would that mean she would lose house ?
(3) Trust Deed (Scotland) - can you do this when you own house ?
(4) Long term payment arrangement - I would estimate 15 years at £200/mth ???

Any advice would be much appreciated.

Hi sparkovic,

I'm sorry to hear your Mum passed away - hopefully we can help your sister with her debt problem.

The most important thing for your sister is that the mortgage for the house is covered, this should be budgeted first before her £38k debts.

It’s difficult for me to say with any certainty what she should do without knowing more about her situation. The very best thing to do would be for her to get in touch for some free debt advice. We could tailor the advice for her situation and her options could be fully explained to her. We would look options including selling the house, insolvency or a debt management plan.

I’m not sure if Village Money charge a fee but if they do this could be money that could be going to pay her debts.

Ask your sister to give us a call, we would go through a budget and look at her options. She can also do this anonymously online using our Debt Remedy advice tool if she’d prefer.

Thanks,
Jess

hopskotching

Hi,

This is my first post here. Firstly thanks to the folks running this thread, it looks like you've helped a great many people!

I'm afraid I got myself into a bit of a snafu with debt over the course of a few years - I was in my 20's, working for the first time but lived well beyond my means.

Something clicked, and the last year has been spent rectifying it, and to be honest things were thankfully still at the stage where they were very much rectifiable. I've slowly been creeping towards paying everything I owe, a lot each month, but as much as I can manage to get there quicker.

The problem I now have is that some creditors are employing tactics that ultimately are not conducive to the debts being settled.

I have a debt collection company for missed council tax payments lifting £300 from my account each payday. When I originally phoned to arrange a repayment plan, they told me that they would not accept a payment plan of anything over six months. I reluctantly agreed to this.

Now, £300 would not be a problem but when my debt is with several companies and they are all now demanding certain amounts from me, and want it NOW and won't bend on their schedules, I'm facing next month not knowing how things are going to turn out - it seems this is the month where things are at their worst, because I have overextended myself in trying to pay things off early (and indeed wasn't given a choice in the council tax case).

I know I can pay everything off, I earn just about enough and that gives me some comfort (I had originally envisaged years and years in the wilderness) - I only need about 3 more months with the way things are going. But these companies are threatening charges, bailiffs and allsorts just because I won't be able to meet their demands THIS month.

Have I fallen for a scare tactic? What exactly were my rights, and what can I do now?

Many, many thanks in advance

StepChange_Pavan

hopskotching wrote: »

Hi,

This is my first post here. Firstly thanks to the folks running this thread, it looks like you've helped a great many people!

I'm afraid I got myself into a bit of a snafu with debt over the course of a few years - I was in my 20's, working for the first time but lived well beyond my means.

Something clicked, and the last year has been spent rectifying it, and to be honest things were thankfully still at the stage where they were very much rectifiable. I've slowly been creeping towards paying everything I owe, a lot each month, but as much as I can manage to get there quicker.

The problem I now have is that some creditors are employing tactics that ultimately are not conducive to the debts being settled.

I have a debt collection company for missed council tax payments lifting £300 from my account each payday. When I originally phoned to arrange a repayment plan, they told me that they would not accept a payment plan of anything over six months. I reluctantly agreed to this.

Now, £300 would not be a problem but when my debt is with several companies and they are all now demanding certain amounts from me, and want it NOW and won't bend on their schedules, I'm facing next month not knowing how things are going to turn out - it seems this is the month where things are at their worst, because I have overextended myself in trying to pay things off early (and indeed wasn't given a choice in the council tax case).

I know I can pay everything off, I earn just about enough and that gives me some comfort (I had originally envisaged years and years in the wilderness) - I only need about 3 more months with the way things are going. But these companies are threatening charges, bailiffs and allsorts just because I won't be able to meet their demands THIS month.

Have I fallen for a scare tactic? What exactly were my rights, and what can I do now?

Many, many thanks in advance

Hi there and welcome to the forum.

It sounds like you’ve made great headway with your debts already.

From what you’ve mentioned your council tax is your main priority. So if you can, stick to the arrangement you’ve made.

The rest of your unsecured creditors will continue to threaten further action to try and get you to make higher repayments. I’d recommend that you put together a budget to show them that you’re already paying them as much as you can afford and you will be able to pay more once your council tax debt is repaid. Have a read about what your creditors can and can’t do for more detailed information: http://moneyaware.co.uk/2011/08/you%E2%80%99re-in-debt-but-what-can-your-creditors-actually-do/.

If you’d like some more detailed advice or help with putting together a budget you can use our online debt advice service Debt Remedy (http://www.stepchange.org/msehelp) or call our Helpline on 0800 138 1111 (free including from mobiles). We’re open Monday to Friday 8am - 8pm and Saturdays 8am – 4pm.

I hope this helps,
Pavan

sandra-c_3

Hi, I'm really in need of some advice on what to do with my debts. Total sum of debts is around £18'000. I had worked out repayments plans with council tax, payday loans & 2 Nationwide loans and things were looking manageable. Then, my work hours got cut drastically and I have now missed 1 council tax repayment and although I managed to pay the Nationwide loans repayment I have missed payments on all my bills & payday loans. I have now found a new job, next payday 6th April however I will only get 2-3 weeks pay (paydate cute out date) and my car urgently needs work doing (approx £300) and I use my car for work. I have £5 to my name and am working everyday 12 hours to earn more. Luckily i have no mortgage/rent as I inherited the property from my late mother so I've been wondering if I should/could get a consolidation loan with just one monthly payment but my credit is so bad I don't think anyone would give me a loan? especially when I've only just started a new job. My worry is that Nationwide who I owe the most could try and take the house of me? I really don't know what to do. I have decided to take in a lodger and have advertised on a free website for this which would make an extra £300pm but this takes time. Any advise would be a huge help, thank you

System

sandra-c wrote: »

Hi, I'm really in need of some advice on what to do with my debts. Total sum of debts is around £18'000. I had worked out repayments plans with council tax, payday loans & 2 Nationwide loans and things were looking manageable. Then, my work hours got cut drastically and I have now missed 1 council tax repayment and although I managed to pay the Nationwide loans repayment I have missed payments on all my bills & payday loans. I have now found a new job, next payday 6th April however I will only get 2-3 weeks pay (paydate cute out date) and my car urgently needs work doing (approx £300) and I use my car for work. I have £5 to my name and am working everyday 12 hours to earn more. Luckily i have no mortgage/rent as I inherited the property from my late mother so I've been wondering if I should/could get a consolidation loan with just one monthly payment but my credit is so bad I don't think anyone would give me a loan? especially when I've only just started a new job. My worry is that Nationwide who I owe the most could try and take the house of me? I really don't know what to do. I have decided to take in a lodger and have advertised on a free website for this which would make an extra £300pm but this takes time. Any advise would be a huge help, thank you

Hi Sandra and welcome to the forum.

It sounds like you would benefit from some free and impartial advice.

The first step is always to put together an accurate income and expenditure budget. We can help you with this and out online debt advice tool Debt Remedy will be able to give you a hand http://www.stepchange.org/debtremedy.aspx?hp=400 – Debt Remedy will also suggest what the best debt solution is.

Council tax is a priority debt and should be paid before any credit debts like payday loans or bank loans.

For more advice on how to get control of payday loans try reading the following articles.

http://moneyaware.co.uk/2012/07/how-to-cancel-a-continuous-payment-authority-cpa-on-a-payday-loan/

http://moneyaware.co.uk/2013/01/payday-loan-debt-help-what-to-do-if-you-cant-afford-the-payment/

Taking additional lending such as consolidation loans can sometimes help, but often you’re borrowing more money over a longer period and we see that this can sometimes make the debt problem worse.

If you prefer you can call our helpline on 0800 138 1111. The number is free and we’re open 8am -8pm Monday to Friday and 8am 4pm on Saturdays.

I hope this helps.

Kind regards,

Mat

copperboom_2

Hi, I'd really appreciate some advice... I had a debt management plan with StepChange a couple of years ago and paid for a year or so without problems. However I have bad mental health issues and lost my job, buried my head in the sand and stopped paying so my plan got stopped. I got myself together after a couple of months and started again on a "last chance" as the advisor told me, but my depression flared up again, I lost my job again and stopped paying without telling them why. So my plan is closed for good now.

I am now in a better place mentally and have a stable job and the ability to start paying properly again. It has been almost a year since I last made a payment (I think) and I have one CCJ I am paying but the rest of my creditors don't seem to be pursuing me although I am scared I will suddenly get a lot of CCJs. I haven't told my creditors of any change in my circumstances and I have changed addresses a couple of times since I was last paying. I've also taken on some new debts (payday loans :S) and so have to add them into a plan when I start again.

I really would like to start again with StepChange they were so useful and understanding and easy to use but I am so overwhelmed I don't know where to start and even if I am allowed a third chance? Please advise!

Thank you.

hickles69

Hi debt advisors.
I am saving for a mortgage but worry that other people's debts in my name wil prevent this happening. My parents are a nightmare and I have bailed them out for yrs. Currently they have 2 loans to the tune of £6000 inn my name and i have a student loan.i am renting a bedroom to help with savings but I have to be out by end of year.i wonder if council accommodation and paying off their debts before applying for a mortgage will be the best option?

Thanks
hicks