Struggling with debt? Ask a debt advisor a question

coffeehound

Hello, would appreciate an opinion on this please:

I have £2300 debt on a credit card and a further £1200 debt in my current account overdraft.

The interest rates are both quite high and I've incurred extra fees by bouncing off the limits of each recently.

I'm now long-term unemployed, so don't stand a chance of obtaining a 0% credit card.

Could anyone suggest what might be the best way(s) to go with this please?

Thanks
Phil

Former_StepChange_Rachel

kazza169 wrote: »

That's great thanks. I'm going to pay today or tomorrow, will I have to do let the court know I've paid it or will restons solicitors do this?

Hi there

Just to cover all bases, it might be worth giving the court a ring and just letting them know when you've paid it.

kind regards

Rachel

Former_StepChange_Rachel

coffeehound wrote: »

Hello, would appreciate an opinion on this please:

I have £2300 debt on a credit card and a further £1200 debt in my current account overdraft.

The interest rates are both quite high and I've incurred extra fees by bouncing off the limits of each recently.

I'm now long-term unemployed, so don't stand a chance of obtaining a 0% credit card.

Could anyone suggest what might be the best way(s) to go with this please?

Thanks
Phil

Hi there, thanks for posting.

Based on what you've told us, I think it would be a good idea for you to get in touch with us and get some free and confidential debt advice on your situation. as you are long-term unemployed, we need to make sure you have enough to cover your living expenses and then advise you on what you can realistically do about these debts you've mentioned.

Our online advice tool Debt Remedy can help you put together a personal action plan in just 20 minutes: http://www.stepchange.org/debtremedy.aspx?domain=www.MoneyAware.co.uk

You can also call our free Helpline (inc. from mobiles) and speak to one of our friendly advisors on 0800 138 1111

Kind regards

Rachel

coffeehound

^ thanks very much for your reply, Rachel, I will follow up those suggestions.

Regards
Phil

skye_blue

Hi

i have a dmp in place and ive read that you can make additional payments, i don't want to commit to a specific regular amount but dont know how to do this and if small £10 here and there would help

thanks

fatbelly

skye_blue wrote: »

Hi

i have a dmp in place and ive read that you can make additional payments, i don't want to commit to a specific regular amount but dont know how to do this and if small £10 here and there would help

thanks

If it's irregular small amounts, I'd save them in a separate pot with a view to trying full & final settlement offers somewhere down the line.

Kli1

Hello

I am a 25 year old compulsive gambler trying to get my life back on track.I have got myself into some serious debt from this addiction. I currently have 3 personal loans I need to pay. I did have an additional loan of £15000 but I am fortunate enough to have an understanding family which helped me pay that off.

My loans are : 1) sainburys- £7500 (9.1% APR) 30months @ £279.22
2) Tescos - £7500 (6.4% APR) 48months @ £178.73
3) Nationwide- £15000 (12.5% APR) 60months @ £332.43

I get paid monthly and after tax , receive ~£1500.
I worked out my monthly essential spendings are around £750-800, leaving me with just enough or just under what I need to pay off the loans.
Is there any other options for me, as I probably wont get accepted for a consolidation loan and do not wish to go bankrupt?

sourcrates

Kli1 wrote: »

Hello

I am a 25 year old compulsive gambler trying to get my life back on track.I have got myself into some serious debt from this addiction. I currently have 3 personal loans I need to pay. I did have an additional loan of £15000 but I am fortunate enough to have an understanding family which helped me pay that off.

My loans are : 1) sainburys- £7500 (9.1% APR) 30months @ £279.22
2) Tescos - £7500 (6.4% APR) 48months @ £178.73
3) Nationwide- £15000 (12.5% APR) 60months @ £332.43

I get paid monthly and after tax , receive ~£1500.
I worked out my monthly essential spendings are around £750-800, leaving me with just enough or just under what I need to pay off the loans.
Is there any other options for me, as I probably wont get accepted for a consolidation loan and do not wish to go bankrupt?

Individual voluntary arrangement (IVA) may be the only other option for you, a DMP will take too long when you have 30 grand outstanding, I suggest you contact one of the free debt charities to get some more definite advice on this.

sickasachip13

Hi,

I'm a bit puzzled...my OH and I have been on a DMP for a few years. We recently had our review and our payment had to be lowered (for various reasons). So, the new lowered payment, as agreed, went out of our account last month (by DD) and we then got this email telling us we have not paid enough and we should consider using DD.....??

We haven’t received your full payment this month.

As we’ve been unable to make a full payment to your
creditors
they may contact you directly and they may start adding
interest and charges to your debts. To avoid this
happening it’s important that you make your full
payment.

If you’re struggling to do this or you need any extra
help and support please call us on 0844 264 6407 to
get your DMP back on track. We’re open Monday to
Friday 8.00am to 8.00pm.

You might find it easier to pay by Direct Debit.
It’s completely free and gives you one less thing to
worry about as we take the payment straight from your
bank account. If you’d like to set up a Direct Debit
for future payments please call us and we can talk you
through this

Former_StepChange_Rachel

skye_blue wrote: »

Hi

i have a dmp in place and ive read that you can make additional payments, i don't want to commit to a specific regular amount but dont know how to do this and if small £10 here and there would help

thanks

Hi there, thank you for posting.

We would advise that you continue paying the amount set up for your DMP, and put aside any extra cash you're noticing each month. Your DMP payment is based on what you can afford after all your living costs are covered. The problem with paying extra here and there is that your creditors may feel that you can afford more than the amount worked out in your DMP, and may ask that you increase the DMP payment. This might not really be feasible for you at the moment.

As Fatbelly previously suggested, it might be a better idea to simply put that money aside. It's always good to have a financial cushion ready should you have any emergency one-off expenses to cover, or want to consider full and final settlements down the line. If you find however that your surplus increases significantly month on month, it would be a good idea to review your budget and see if the DMP payment can be increased so you can get these debts paid off quicker.

Kind regards

Rachel