Struggling with debt? Ask a debt advisor a question

vix1977

Hi, I have recently contacted StepChange and have been sent the forms to sign and send back. I need to change bank accounts do I need to do this before sending the forms back?
I'm worried that by doing this first my current bank will then try and get back the overdraft that we owe.
Thanks.

jasonwba

Pavan thanks for your reply the debt got passed on by Cahot Lloyds banking group to debt managers limited

picket_fence

StepChange_Rachel wrote: »

Hi there, thanks for getting in touch.

This second collection agency that's claiming to be pursuing the debt will need to send proof that they've actually taken ownership of it. It's common for debts to be passed from one collection agency to another. It's possible that this debt was sold on to another agency as the CCJ was in the process of being applied for.

It would be a good idea to request proof from the second collelction agency such as a copy of the credit agreement. Also, talk to the court and make them aware of what's going on, just in case there has been a change of hands. There won't be two CCJs for just one debt so please don't worry about that.

Kind regards

Rachel

Thanks for your response. I'll pass on your advice.:)

StepChange_James

vix1977 wrote: »

Hi, I have recently contacted StepChange and have been sent the forms to sign and send back. I need to change bank accounts do I need to do this before sending the forms back?
I'm worried that by doing this first my current bank will then try and get back the overdraft that we owe.
Thanks.

Hi Vix,

To be on the safe side I'd recommend changing banks first then sending back the forms. That way there's no risk of your old bank making a grab for the money you need for living costs.

If you'd already sent back your paperwork then I'd say that it's a fairly small chance that the bank call in the overdraft straight away but I do occasionally hear of this happening.

All the best.

James

vix1977

StepChange_James wrote: »

Hi Vix,

To be on the safe side I'd recommend changing banks first then sending back the forms. That way there's no risk of your old bank making a grab for the money you need for living costs.

If you'd already sent back your paperwork then I'd say that it's a fairly small chance that the bank call in the overdraft straight away but I do occasionally hear of this happening.

All the best.

James

Thanks James

yhalwtgl

Hi

I have a combined debt of just under £40k (loan, several credit cards) that I need to reduce but it doesn't seem to go away. My salary is upwards of £35k however my monthly wage just about covers my outgoings, based on paying the card minimums - I appreciate I need to pay off more each month, but there's nothing left.

I have worked out that if I had an all consuming loan of £40k paying £1000 per month (affordable) and paid a high 20% interest on the £40k, I could pay back £48k over 4 years and would be debt free. Less interest would see a quicker return.

What options are out there for a debt reduction loan of this size given that I have the potential to pay off large chunks each month?

I have a mortgage but am pretty much on negative equity. My cards are on fairly low interest rates and in don't use my overdraft. I'm wary of going to my bank as they'll no doubt just look at my outstanding debt and turn me down, thus affecting my credit rating. I'm also wary of the repercussions of an IVA and unfortunately have no rich relatives!

Thanks

Natkd

Hi all,
this is my first post as im a newbie, looking for advice on DRO's. We are a young very low income family barely getting by due to our growing debts, almost £7k on payday loans and easy credit like catalogues but we also have mounting utility debts. We have tried and tried to clear our debts ourselves and ive made payment plan after payment plan with our creditors but at the end of the day we barely have enough to cover basic living expenses, i worked out our income and expenditure and after basics we are left with £3 a month towards debts! i want to apply for a DRO but wonder whether realistically we would be accepted, we hav no assets other than a car worth £600, can anyone offer advice???sick and tired of living with debts crushing us!

System

yhalwtgl wrote: »

Hi

I have a combined debt of just under £40k (loan, several credit cards) that I need to reduce but it doesn't seem to go away. My salary is upwards of £35k however my monthly wage just about covers my outgoings, based on paying the card minimums - I appreciate I need to pay off more each month, but there's nothing left.

I have worked out that if I had an all consuming loan of £40k paying £1000 per month (affordable) and paid a high 20% interest on the £40k, I could pay back £48k over 4 years and would be debt free. Less interest would see a quicker return.

What options are out there for a debt reduction loan of this size given that I have the potential to pay off large chunks each month?

I have a mortgage but am pretty much on negative equity. My cards are on fairly low interest rates and in don't use my overdraft. I'm wary of going to my bank as they'll no doubt just look at my outstanding debt and turn me down, thus affecting my credit rating. I'm also wary of the repercussions of an IVA and unfortunately have no rich relatives!

Thanks

Hi,

Our area of specialty is debt advice – we can’t advise on lending options to reduce debt.

MSE have an article on cheap loans http://www.moneysavingexpert.com/loans/cheap-personal-loans or reducing your credit card debt http://www.moneysavingexpert.com/credit-cards/cut-credit-card-interest

If you’re considering your options in terms of debt solutions (bankruptcy or an IVA) you would be best to get some free debt advice. We can help you with that. Use our confidential online Debt Remedy advice tool – you input your budget details and it will recommend the best way to deal with your situation. You can always call us too if you’d prefer to speak to someone.

I will say that bankruptcy or an IVA are suitable options for people who can’t pay their minimum payments – that’s not really the situation you’re in. Despite that if you’re finding the payments hard to cover you would benefit from getting some debt advice. Use Debt Remedy or call us.

Thanks,
Jess

System

Natkd wrote: »

Hi all,
this is my first post as im a newbie, looking for advice on DRO's. We are a young very low income family barely getting by due to our growing debts, almost £7k on payday loans and easy credit like catalogues but we also have mounting utility debts. We have tried and tried to clear our debts ourselves and ive made payment plan after payment plan with our creditors but at the end of the day we barely have enough to cover basic living expenses, i worked out our income and expenditure and after basics we are left with £3 a month towards debts! i want to apply for a DRO but wonder whether realistically we would be accepted, we hav no assets other than a car worth £600, can anyone offer advice???sick and tired of living with debts crushing us!

Hi there,

Welcome to the forum.

We can provide the free debt help you need to decide if a DRO is your best option and then help you apply to the Insolvency Service. You can’t apply alone – you need to go through an approved intermediary. It’s free to do it through us as we don’t charge a fee (there is a £90 fee to pay to the Insolvency Service).

To apply for a DRO you should owe less than £15,000, have no more than £300 in assets (£1000 for a car) and no more than £50 surplus a month. Considering what you’ve told me a DRO may benefit you and your family.

To get the advice you need you can use our online Debt Remedy advice tool – simply put in your budget details and it’ll recommend the best solution. Or call us to speak to a debt advisor.

Thanks,
Jess

yhalwtgl

Thanks Jess

I'll look at contacting StepChange. Do you think a secured loan is a sensible option for my situation?

Kind regards
Yhalwtgl