Struggling with debt? Ask a debt advisor a question

Mom2D

Hi. I'm new to the forum.

I currently have credit card and overdraft debt of around £20k always make minimum payments, never missed a payment. Monthly interest repayments are around 700pcm which has always been affordable.

I am currently on maternity leave due to finish in September and i have found out I'm going to be made redundant. My redundancy package will be around 5k.

This 5k will cover monthly payments for a few months but will soon run out.

Due to the cost of childcare and finding alternative employment. I fear that I will be unable to repay these debts.

What can I do?

I want to be prepared and know what I should do before I get into trouble and it's to late.

loopylou30

Hi,
I have a DMP in place and have done since 2006. We pay £475.00 a month to two creditors, 1st Credit who we owe £11k to and AIC who we owe nearly £2.5K to.

My question is should I try and offer them settlement figures and pay them off on a credit card and then continue paying the higher amount off the credit card so that I am no longer in the DMP?

Any advice welcomed.
Thanks

System

Dawdler wrote: »

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

Hi there,

Welcome to the forum.

The very best thing you can do is get in touch for some free debt advice. We can have a look at your budget and recommend the best way forward. You may just need some budgeting advice.

Please don’t consolidate before getting expert advice on your options. Read this debt consolidation advice.

Then contact us or use our confidential Debt Remedy advice tool to get a budget assessment and personal action plan.

Thanks,
Jess

System

Mom2D wrote: »

Hi. I'm new to the forum.

I currently have credit card and overdraft debt of around £20k always make minimum payments, never missed a payment. Monthly interest repayments are around 700pcm which has always been affordable.

I am currently on maternity leave due to finish in September and i have found out I'm going to be made redundant. My redundancy package will be around 5k.

This 5k will cover monthly payments for a few months but will soon run out.

Due to the cost of childcare and finding alternative employment. I fear that I will be unable to repay these debts.

What can I do?

I want to be prepared and know what I should do before I get into trouble and it's to late.

Hi,

Welcome to the forum.

As your income is due to change in September it would be best for you to give us a call on 0800 138 111 (Mon-Fri 8am to 8pm, Sat 8am to 4pm). We can look at your situation and provide a personal action plan to deal with your debts.

We can advise about benefits you may be entitled to claim, how to budget on a reduced income and which payments you should make make first. I don’t know how much you owe, or if this would be possible in your case, but if you have a lump sum we have a settlements team you could speak to.

Get in touch and we'll give you the advice you need.

Thanks,
Jess

Bradleymcq91

I don't know if one of the people from stepchange assist me ?!.
I'm in my DMP and this month i will fall short of budget (reason been i was expecting money back from my deposit but my house mate has taken it all so i'm currently in talks with a solicitor to solve this) either wont have enough to pay full amount of my car finance monthly payment or my DMP is it worth speaking the car finance company to see how they can assist first ?

System

loopylou30 wrote: »

Hi,
I have a DMP in place and have done since 2006. We pay £475.00 a month to two creditors, 1st Credit who we owe £11k to and AIC who we owe nearly £2.5K to.

My question is should I try and offer them settlement figures and pay them off on a credit card and then continue paying the higher amount off the credit card so that I am no longer in the DMP?

Any advice welcomed.
Thanks

Hi,

Welcome to the forum.

My immediate answer would be no. As you’ve been making reduced payments on your credit your credit score will have been lowered – you are likely to be offered credit at a high interest rate.

Therefore if you pay a £13.5k debt off on a credit card the interest will be very high and you may struggle to keep on top of it, let alone reduce the debt down.

I don’t know if your DMP is with us, but if it is I’d suggest getting in touch so we can have a chat about your options. If your DMP is not with us and you’re paying a fee it would be worth getting in touch anyway – our DMP’s are fee-free. After a full debt advice session, if a DMP is right for you, we may recommend you switch your DMP over to us.

Give us a call or use our confidential online Debt Remedy advice tool.

Take care,
Jess

System

Bradleymcq91 wrote: »

I don't know if one of the people from stepchange assist me ?!.
I'm in my DMP and this month i will fall short of budget (reason been i was expecting money back from my deposit but my house mate has taken it all so i'm currently in talks with a solicitor to solve this) either wont have enough to pay full amount of my car finance monthly payment or my DMP is it worth speaking the car finance company to see how they can assist first ?

Hi there,

It would help to have a look at your budget. Are you able to give us a call with your reference number? The number for you to call should be in your information from us.

We could look at things for you and recommend the best way to deal with your DMP payment this month.

Many Thanks,
Jess

Bradleymcq91

StepChange_Jess wrote: »

Hi there,

It would help to have a look at your budget. Are you able to give us a call with your reference number? The number for you to call should be in your information from us.

We could look at things for you and recommend the best way to deal with your DMP payment this month.

Many Thanks,
Jess

Thanks i'll give them a call and inform them of my situation. I will be fine the following month it's just this problem which has came to light today.

System

Bradleymcq91 wrote: »

Thanks i'll give them a call and inform them of my situation. I will be fine the following month it's just this problem which has came to light today.

You're welcome, give us a ring tomorrow and one of our advisors can recommend what's best.

Take care,
Jess

farmeress

Hi, I am new to this forum and hoping for advice...
I divorced my husband 3 years ago, he stayed in the family home (refused to leave) and my son didnt want to move. I left with nothing and a part time job which didnt pay well, and so I ended up in debt and I've (stupidly) been trying to ignore it. I'm depressed, but determined I need to take control.
I have lived out of suitcases for 3 years, lost my job.
My new partner convinced me we couldn't survive in the uk, and asked me to move into his home in Spain.(he's got money problems too)
It sounds so underhand, but it felt like I was drowning, and I needed some peace.

Im not sure of exact debt figures, but:
Next - £330
Barclays O/D - £1080
Barclaycard - £7000
Natwest O/D - £4000
Tesco Mobile - £400
I feel ill just writing these down.
I have not made payments to these companies or given them a forwarding address since August 2013, although I did write to them in December 2013 telling them I had no income and was unable to pay.
My ex husband has promised numerous times to buy me out of the marital home, but has not yet followed through. He has now said he wants to sort out my payment, and Im hoping he will.
So, I will hopefully receive approximately £30k, with which Im hoping to regain my independence and clear all debts. £30k isnt a great deal, so should I contact DCA's/Banks etc regarding full and final settlement?
Any advice will be gratefully received.