Struggling with debt? Ask a debt advisor a question

blue_pixie

Hi there I hope someone can help, I have council tax arrears from a few years ago which I have been paying back through a monthly plan, I phoned in January and asked to reduce my monthly payment which they agreed to. I got in touch with them recently to find out my remaining balance and to increase my payments, and discovered that the balance had increased by over £100 due to charges being added, as they thought that the arrangement made in January was temporary for one month. So I emailed them and told them that I would pay the original amount from now on, and asked if anything could be done about the charges, as it was a mix up. They said they would review it and get back to me. Today they emailed me and told me they had reset the payment to the original amount but that they needed my employment and income details. Do I have to tell them where I work? I'm really worried about them getting in touch with my employer, and wish to avoid this very much. The debt will be payed in a few months or less and I don't want it to affect my work. Thanks for reafing,.

cjboo_2

Hi

I live abroad for 4.5 years, returning last Sept, and while I was abroad fell behind with my debts, having some written off and others go to credit collection agencies. One went to CCJ, unbeknown to me until I returned last year.

Since I returned I have been paying off the 2 debts that are outstanding with the collection agencies, but would like to repay everything, outstanding and written off, with a personal loan so that I can improve my credit score.

The amount I want to borrow is £10k. For the last 7 months I have been working full time earning £19k basic/£23k OTE. I have just accepted a new job earning £30k basic/£47k OTE. I am currently living with my parents but will be moving into a rented property in the coming months. I have 2 pay-monthly phone accounts with O2, one taken out last year, one this year, both with no missed payments.

Please can you let me know what you think would be the best way for me to get a loan to consolidate my outstanding debts and rebuild my credit score.

Many thanks!

Former_StepChange_Rachel

nitty wrote: »

I would like some advice please we are currently in a dmp with stepchange have been since dec 2013 everything was going ok until tsb took over lloyds and are now charging overdraft interest on the account which is never going to get paid if they carry on charging this any help would be appreicated because we are doing our best to pay off the debt but when tsb do this it is dishearting

Hi there, thank you for getting in touch.

Could you please give our DMP team a quick ring and tell them what's happening? They'll look into it for you.

Best regards

Rachel

Former_StepChange_Rachel

Historybuff wrote: »

Thanks sourcrates, I've got a new bank account all up and running the old account has nothing going in or out apart from the payment they agreed for me to make and the ridiculous interest and charges they are still applying.

Hi Historybuff, thank you for getting in touch.

Usually after a period of time, a creditor will eventually pass the debt on to a collection agency. Once this happens, the interest that's added tends to slow down or even stop altogether. The problem is that it's at the creditor's discretion when or if they decide to do this.

In the pack you were sent after speaking to us, it should explain how creditors usually deal with interest and charges once they know you've been seeking free and confidential debt advice from us. If you'd like to discuss this further however, please give us a call and we'll do what we can to address any concerns you may be having.

Kind regards

Rachel

Former_StepChange_Rachel

Mrs_Constant_Worry wrote: »

Can I just talk please? I have watched my son, since 2007, have a serious accident and me a serious illness all at the same time. He worked for himself but the business had to stop because he could not work. He is in his mid forties and had never worked for anyone else. He has his own house, mortgage, etc and when he had his accident he convinced himself he would start again but the drinking started and we hated seeing and hearing him beg on the phone for 'just £5, etc. He was getting married but that was called off by her when he had accident.


He kept everything from us because of my health problems and basically he was such a sad and lonely sight. We knew about it when bailiffs coming for re-possession. We had a family meeting and said we would support him. We loaned him the money and put a charge on his home so that it safeguarded us. (We are both retired and on basic pensions and own our own home.) So 2010 he finally admitted he needed to sign on. He had a council tenant in his home to help pay mortgage and lived with friends, family and a new off on girlfriend.


It took him to 2012 to get a job and work for someone else. It was really tough because he could only say he has been his own boss since leaving school. We thought with the drink he would find it hard to get up every day and also accept being told what to do. We are really proud that he has managed to get himself some pride again and keep working. Since he has had his wage I have helped him make sure his mortgage is paid on time. He has been to the council because there was a complete mess with the rates, etc and he has been paying this off as well in monthly instalments. He has our address as his main residence although he is now most of the time with his girlfriend but he stays with us when he wants to and he works away.


Suddenly out of the blue came a letter from a debt collection agency addressed to him and he told me to open any of his post. (He obviously wasn't expecting it.) This came on Friday and I have just not slept since. I have told him about it and he said not to worry. I think there has been other letters addressed to his home and he has ignored them like he has since probably 2007. I know he has several cards, etc asking for money when he didn't want any paperwork left in his house and we were trying to help him sort his mortgage out. He was in such a state and my brother and I went all through his unopened letters, demands made me feel physically sick like it does now, but at that time the mortgage was priority.


I am terrified that what he owes could mean he would loose his house, I just don't know how far I can go to get him to deal with all this. We are so proud of the way he has basically pulled himself up out of the gutter, has a car again and a wage that is far lower than what it should be for his skills. His mortgage has been paid on time since he started working and the mess with the Council Tax as I said is being dealt with in payments.


Now what happens with this letter? He seems to feel he should ignore it and it will go away. I am scared bailiffs will come to our home. I have been getting a lot of unavailable number calls. So are they phoning here to chase him? I cannot talk to my husband about this he will just fly off the deep end.

Thank you for your time I just cannot think straight. My son says 'I don't want you to worry Mum' I have left a text to tell him we need to talk.


I am so scared for him as it looked like he was on the way to pulling himself back again. He did say to me once 'I lost my way for several years but I am back again' Well the next stage looks like it is here and how can I help him deal with it?

Hi there, thank you for posting.

I'm very sorry to hear of the difficulties your son has been facing over the years and the resulting worry and stress you have also experienced.

Due to data protection, we're very limited on how we can advise on your son's situation on this forum. That said, please know that we are a free, non-judgmental and confidential debt advice charity and we can offer realistic solutions to his debt problems should he get in touch with us.

I would advise that you have a chat to your son and explain to him that no matter how much he owes or the stage his debts may be at, we can help. It's never wise to ignore letters such as the one you've mentioned as it doesn't make the problem go away. Once he feels up to it, please advise him to get together any information on his current income and expenditure so he can go through a budget with us. We need to understand what he brings in and what his living costs are so we can give him the long-term debt advice he needs.

There's two ways we can advise him - he can call us on our freephone number -0800 138 1111 open Mon-Fri 8am to 8pm or Sat 8am - 4pm. If he would feel better to have you take the call for him, he can phone to get himself registered with a reference number, then ask to have you added to the file as an authorised 3rd party to speak on his behalf.

We also have an anonymous advice tool called Debt Remedy that can help build an action plan and offer him a debt solution in just 20 minutes: http://www.stepchange.org/debtremedy.aspx?domain=www.MoneyAware.co.uk

Please know that we'll do all we can to provide your son with the help and support he needs.

Kind regards

Rachel

Former_StepChange_Rachel

blue_pixie wrote: »

Hi there I hope someone can help, I have council tax arrears from a few years ago which I have been paying back through a monthly plan, I phoned in January and asked to reduce my monthly payment which they agreed to. I got in touch with them recently to find out my remaining balance and to increase my payments, and discovered that the balance had increased by over £100 due to charges being added, as they thought that the arrangement made in January was temporary for one month. So I emailed them and told them that I would pay the original amount from now on, and asked if anything could be done about the charges, as it was a mix up. They said they would review it and get back to me. Today they emailed me and told me they had reset the payment to the original amount but that they needed my employment and income details. Do I have to tell them where I work? I'm really worried about them getting in touch with my employer, and wish to avoid this very much. The debt will be payed in a few months or less and I don't want it to affect my work. Thanks for reafing,.

Hi there, thanks for getting in touch.

For what you've told us, it sounds like the council simply want a better understanding of what your income and expenditure looks like at the moment. This is just so they have an idea of what you can realistically afford to these arrears at the moment.

With your council tax arrears being a priority expense, I would advise that you maintain the payments you've been making - by debit card, by girobank payment, however you choose - and keep communication open with them.

We can help you prepare an income and expenditure form and give you any free and confidential debt advice you may need. Our online advice tool Debt Remedy can help you put together a budget in just 20 minutes: http://www.stepchange.org/debtremedy.aspx?domain=www.MoneyAware.co.uk you can then forward this on to the council. It should hopefully demonstrate to them that you're doing all you can to keep on top of the arrears you owe.

Hope this helps. Please write again if you have further questions.

Kind regards

Rachel

Former_StepChange_Rachel

cjboo wrote: »

Hi

I live abroad for 4.5 years, returning last Sept, and while I was abroad fell behind with my debts, having some written off and others go to credit collection agencies. One went to CCJ, unbeknown to me until I returned last year.

Since I returned I have been paying off the 2 debts that are outstanding with the collection agencies, but would like to repay everything, outstanding and written off, with a personal loan so that I can improve my credit score.

The amount I want to borrow is £10k. For the last 7 months I have been working full time earning £19k basic/£23k OTE. I have just accepted a new job earning £30k basic/£47k OTE. I am currently living with my parents but will be moving into a rented property in the coming months. I have 2 pay-monthly phone accounts with O2, one taken out last year, one this year, both with no missed payments.

Please can you let me know what you think would be the best way for me to get a loan to consolidate my outstanding debts and rebuild my credit score.

Many thanks!

Hi there, thanks for posting.

We as a charity would not usually recommend taking out a consolidation loan to pay debts that you already owe at present. Rolling all your debts into one might make finances easier to manage but is not always cost effective, as it often involves higher interest rates or a longer repayment period.

We have an article on our blog that goes into this in more detail:
http://moneyaware.co.uk/2013/01/to-debt-consolidate-or-not-to-debt-consolidate/

From what you've told us, I would recommend that you get in touch with us. We can have a look at all of the debts you're dealing with and see what can be done moving forward.

Our online advice tool Debt Remedy will help you put together a plan that's tailored to your individual circumstances: http://www.stepchange.org/debtremedy.aspx?domain=www.MoneyAware.co.uk

Hope this helps

Kind regards

Rachel

vix1977

Hi

I am about to send back my DMP paperwork back to Stepchange was just wondering how long would it take to set up?

Thanks

Historybuff

StepChange_Rachel wrote: »

Hi Historybuff, thank you for getting in touch.

Usually after a period of time, a creditor will eventually pass the debt on to a collection agency. Once this happens, the interest that's added tends to slow down or even stop altogether. The problem is that it's at the creditor's discretion when or if they decide to do this.

In the pack you were sent after speaking to us, it should explain how creditors usually deal with interest and charges once they know you've been seeking free and confidential debt advice from us. If you'd like to discuss this further however, please give us a call and we'll do what we can to address any concerns you may be having.

Kind regards

Rachel

Thanks. I spoke to the bank and they are refunding the charges and interest. They also confirmed that they are suppressing interest and charges for the duration of the payment plan. They said it would take up to seven days to show on the account. Feeling a whole lot better now.

cjboo_2

StepChange_Rachel wrote: »

Hi there, thanks for posting.

We as a charity would not usually recommend taking out a consolidation loan to pay debts that you already owe at present. Rolling all your debts into one might make finances easier to manage but is not always cost effective, as it often involves higher interest rates or a longer repayment period.

We have an article on our blog that goes into this in more detail:

From what you've told us, I would recommend that you get in touch with us. We can have a look at all of the debts you're dealing with and see what can be done moving forward.

Our online advice tool Debt Remedy will help you put together a plan that's tailored to your individual circumstances:

Hope this helps

Kind regards

Rachell

Thanks Rachel, but affordability is not the issue, I would like to apply for a mortgage next year but will have very little or no options to do so until I can improve my credit score, hence why I would like a personal loan to consolidate all.

Please can you advise my options.

Thanks!