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StepChange_Private_Messages

Augustus_Haynes wrote: »

how often do the Step Changes PMs get answered? sent a really long one yesterday looking for some answers to a query.

Thanks

Hi there,

There seems to have been a problem sending your reply - apologies for the delay.

I've sent you a PM answer.

Many Thanks,
Jess

dazzypops

Realisation has dawned and I can't continue on the way I'm trying to manage my finances. They are not getting any better and I can't see a way forward.


I phoned up the CAB phone number yesterday and the recorded message gave me a number for MA, and a helpful chap went through a load of questions to try and build up a profile of my outgoings. I think it wasn't far off, but it's confirmed that my outgoings are more than what's coming in each month. My agreed overdraft has been slowly creeping up over the past year. I have only ever missed perhaps two payments on anything over the 15 years or so I have had anything to pay. Everything is paid for and up to date at the moment.


I have 3 credit cards with varying balances and a personal loan - they total just under £20k at the moment. I have a mortgage with negative equity.


From the telecom yesterday, it sounds like I need to go for a DMP, whether it's managed by myself or for free by a (presumably government funded) DMP company. Bankruptcy might solve the problem quicker but sounds rather drastic to me and I really don't want to put myself or my assets at risk. An IVA could do the job as, in the last year of the program, equity should be freed up enough to pay the last part of it off.


I guess the main worry is that I want to minimise any potential damage to my credit rating with any unknown things that crop up. I guess a DMP company would be best. I don't know why it bothers me, or even if it should really as I guess after having paid off everything it should be clean. I'm thinking along the lines of reaching the final payment, then if I ever need to apply for things involving money, i.e. rent, mortgage, (hopefully no more bleeding credit cards) there shouldn't be a problem.

Former_StepChange_Rachel

dazzypops wrote: »

Realisation has dawned and I can't continue on the way I'm trying to manage my finances. They are not getting any better and I can't see a way forward.


I phoned up the CAB phone number yesterday and the recorded message gave me a number for MA, and a helpful chap went through a load of questions to try and build up a profile of my outgoings. I think it wasn't far off, but it's confirmed that my outgoings are more than what's coming in each month. My agreed overdraft has been slowly creeping up over the past year. I have only ever missed perhaps two payments on anything over the 15 years or so I have had anything to pay. Everything is paid for and up to date at the moment.


I have 3 credit cards with varying balances and a personal loan - they total just under £20k at the moment. I have a mortgage with negative equity.


From the telecom yesterday, it sounds like I need to go for a DMP, whether it's managed by myself or for free by a (presumably government funded) DMP company. Bankruptcy might solve the problem quicker but sounds rather drastic to me and I really don't want to put myself or my assets at risk. An IVA could do the job as, in the last year of the program, equity should be freed up enough to pay the last part of it off.


I guess the main worry is that I want to minimise any potential damage to my credit rating with any unknown things that crop up. I guess a DMP company would be best. I don't know why it bothers me, or even if it should really as I guess after having paid off everything it should be clean. I'm thinking along the lines of reaching the final payment, then if I ever need to apply for things involving money, i.e. rent, mortgage, (hopefully no more bleeding credit cards) there shouldn't be a problem.

Hi there dazzypops, thanks for getting in touch.

From what you’ve told us, it certainly sounds like you would benefit from getting some free debt advice and taking a look at what your options are moving forward.

When a person finds themselves struggling with debt as you’ve described, we recommend that they have good look at their budget and figure out what they can truly afford once their most important living costs are covered. Your priority bills are things such as your mortgage, council tax, food, utilities, CCJs, fines etc. They’re priorities because the penalties can be high if you miss or delay payment.

When it comes to things such as loans, credit cards, overdrafts, catalogues and store cards, these are much less of a priority because they’re only entitled to what’s left over once all your living expenses and household bills are covered. As far as your credit rating goes, it will be affected if you have to pay a reduced payment, but once you pay the debt off, any defaults will eventually fall off your credit file altogether.

I’ve included a handy blogpost from our MoneyAware blog on credit ratings if you’d like to know more: http://moneyaware.co.uk/2011/06/i-don%E2%80%99t-want-my-credit-rating-to-be-affected/

I would advise that you let us take a look at things for you. We will need to understand your budget before we can advise you on what you need to do. You can either:

Put together a budget via our online advice tool Debt Remedy: http://www.stepchange.org/msehelp

Or call our free Helpline on 0800 138 1111

Please be assured that we’ll do all we can to help.

Best regards

Rachel

Scrimpers

Hi

I have debts of just under £15,000 and, in complete desperation, I am now considering a DPP through DAS Scotland. I could pay £125 per month but this would take me 10 years to repay the £15,000. Can a DPP last this long?

Thanks

StepChange_James

Scrimpers wrote: »

Hi

I have debts of just under £15,000 and, in complete desperation, I am now considering a DPP through DAS Scotland. I could pay £125 per month but this would take me 10 years to repay the £15,000. Can a DPP last this long?

Thanks

Hi there,

Thanks for posting. There aren't hard and fast criteria for whether a DPP (debt payment programme) would be approved under DAS (Debt Arrangement Scheme). As a general rule, the quicker you'll clear the debt the more likely you'll get it approved but a lot depends on the circumstances.

Ten years is probably a bit longer than average but the most important thing is whether your offer is considered "fair and reasonable" which is something the DAS Administrator would decide upon if your creditors didn't accept your application.

I had a brief chat with one of my colleagues in Glasgow who deals with these applications and he said that we only recommend DPPs if they are the best option, so there's a good chance of them being approved if we've submitted an application.

I'd recommend you get in touch with us for advice and we can tell you more about your options. We can help you apply for a DPP if it's your best way to get out of debt or tell you about the other available strategies too. Here's the link for our helpline details: http://www.stepchange.org/Contactus.aspx.

You could also use our online advice tool, Debt Remedy to see whether we'd recommend a DPP and get an application pack (http://www.stepchange.org/msehelp) but using the phone service for advice might be better, as you'll get more opportunity to ask questions about DPP.

Kind regards

James

ampersand

Not competing, James or Racel or any Stepchange advisors, but just want posters to consider CAPUK, also much commended by Martin.

scrimpers - check out my signature and I know you'll find caring help with CAP too.
It will transform your life - not in a proselytising way. That's Why they work so well: it's not an up-our-numbers crusade. They win best small business awards too - reputable ones:-)

Will you try?
https://www.capuk.org/i-want-help/cap-debt-help/cap-debt-help-in-scotland

dazzypops -
https://capuk.org/i-want-help/cap-debt-help/introduction

StepChange_James

ampersand wrote: »

Not competing, James or Racel or any Stepchange advisors, but just want posters to consider CAPUK, also much commended by Martin.

scrimpers - check out my signature and I know you'll find caring help with CAP too.
It will transform your life - not in a proselytising way. That's Why they work so well: it's not an up-our-numbers crusade. They win best small business awards too - reputable ones:-)

Will you try?
https://www.capuk.org/i-want-help/cap-debt-help/cap-debt-help-in-scotland

dazzypops -
https://capuk.org/i-want-help/cap-debt-help/introduction

Hi Ampersand,

We'd always hope that people would want to come to us for advice but if not then going to one of the other free agencies is a good move.

There's a handy list on the main MSE site of the best places to get debt help: http://www.moneysavingexpert.com/loans/debt-help-plan#help. Both StepChange Debt Charity and CAPUK are listed as recommended organisations.

Kind regards

James

HeartBunny

Hi
I have a question,
I was a student for 4 years during which time I ran up debt, which I didn't manage very well.
I used to use pay day loans most months to make ends meet. I have now sorted my situation out. I am paying off the last of my debt and my boyfriend has mentioned buying and house.

I'm worries that my history of payday loan usage will mean I will never be able to get a mortgage. How long should I leave before I start applying.

Many thanks

Bradleymcq91

HeartBunny wrote: »

Hi
I have a question,
I was a student for 4 years during which time I ran up debt, which I didn't manage very well.
I used to use pay day loans most months to make ends meet. I have now sorted my situation out. I am paying off the last of my debt and my boyfriend has mentioned buying and house.

I'm worries that my history of payday loan usage will mean I will never be able to get a mortgage. How long should I leave before I start applying.

Many thanks

Hi there !

I'm in the same boat as yourself ! I'm currently in a DMP which will end in 2016 so by that time i'll be 25 ! With the money that ill have after i finished paying into my DMP i'll be able to save for a deposit which would take me under 2 years to get around £10,000 so given that i'm hoping my credit score has improved over that time but i have roughly a time zone of 3+ years before applying ? maybe a step change advisor could give us more information

Dawdler

I'm struggling with debt - I owe £20k and earn around £26K after tax. My outgoings are around £1100 a month. I have a recent bad credit history. I am panicking but would prefer to consolidate if possible rather than do a DMA. I can comfortably afford to pay around £500 a month. Where do I start looking?

Dawdler