Struggling with debt? Ask a debt advisor a question

longtermplanner

cjboo wrote: »

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!

I think you may have misunderstood what 'affordablility' means when you are applying for a mortgage.

Under the new mortgage lending rules that came in in July, the lender is going to look at all your debts and other expenses, not just your credit score and your loan-to-value ratio. The chance of you being able to "improve" your overall situation for getting a mortgage by taking a consolidation loan is virtually non existent. Not to mention that with a bad credit record you are simply not going to get the loan that you want.

With an income of only 30k, you are going to need to have cleared all your debts - not refinanced them in a consolidation loan - and saved up a deposit. As you do these, your credit score is naturally going to improve. You don't have to worry about the credit score, just clearing the debts.

StepChange_Pavan

vix1977 wrote: »

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

Hi vix1977,

Provided that we receive everything we need it’ll usually be set up within a few working days, ready for you to start making payments the following month. As we’re so close to the end of the month now, it’s likely to be a July start, but you can give us a call once you've sent it to make sure.

Hope this helps,
Pavan

StepChange_Pavan

cjboo wrote: »

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!

Hi again,

longtermplanner has given some useful advice above in terms of what is required to get a mortgage.

Like Rachel mentioned we don’t advise on how to get further credit, but here’s a great article which gives you information on how to improve your credit file which might improve your chances of getting a consolidation loan: http://www.moneysavingexpert.com/loans/credit-rating-credit-score.

Hope this helps,
Pavan

Kellsmc1

Hi all

I have got myself into a pickle with my credit cards, hit my limit and I am paying off the interest every month and not a great deal more. At present I am shelling out £650 per month to cover these as I dont want to miss a payment however I see no end in sight.

I was hoping to get a loan to cover the amount of both cards, pay them off and scrap them, (I don't even need them anymore) and pay off my debt in a manageable monthly payment. Problem is I am struggling to get anyone to give me a loan and to make matters that little bit more messy I have just moved house and have no history there.

Any advice would be greatfully accepted.

vix1977

StepChange_Pavan wrote: »

Hi vix1977,

Provided that we receive everything we need it’ll usually be set up within a few working days, ready for you to start making payments the following month. As we’re so close to the end of the month now, it’s likely to be a July start, but you can give us a call once you've sent it to make sure.

Hope this helps,
Pavan

Thanks Pavan, that's great.

StepChange_Pavan

Kellsmc1 wrote: »

Hi all

I have got myself into a pickle with my credit cards, hit my limit and I am paying off the interest every month and not a great deal more. At present I am shelling out £650 per month to cover these as I dont want to miss a payment however I see no end in sight.

I was hoping to get a loan to cover the amount of both cards, pay them off and scrap them, (I don't even need them anymore) and pay off my debt in a manageable monthly payment. Problem is I am struggling to get anyone to give me a loan and to make matters that little bit more messy I have just moved house and have no history there.

Any advice would be greatfully accepted.

Hi there and welcome to the forum.

If you’ve already been declined for a loan it may be difficult to get one elsewhere. 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. There’s also the temptation to keep spending on the credit cards which can make your situation worse in the long term.

Transferring to a 0% interest credit card could be an option provided that you don’t continue spending. However, you might need to look at improving your credit file first.

These articles might help:
http://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards
http://www.moneysavingexpert.com/loans/credit-rating-credit-score.

I know you mentioned that you don’t want to miss a payment but if the £650 is unaffordable, a debt solution could be an option for you. If you want to explore what would be best for you, you can use our online debt advice service Debt Remedy (http://www.stepchange.org/msehelp) or ring our Helpline on 0800 138 1111 (free including from mobiles). We’re open Monday to Friday 8am - 8pm and Saturdays 8am – 4pm.

I hope this helps,
Pavan

Kellsmc1

StepChange_Pavan wrote: »

Hi there and welcome to the forum.

If you’ve already been declined for a loan it may be difficult to get one elsewhere. 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. There’s also the temptation to keep spending on the credit cards which can make your situation worse in the long term.

Transferring to a 0% interest credit card could be an option provided that you don’t continue spending. However, you might need to look at improving your credit file first.

These articles might help:


I know you mentioned that you don’t want to miss a payment but if the £650 is unaffordable, a debt solution could be an option for you. If you want to explore what would be best for you, you can use our online debt advice service Debt Remedy or ring our Helpline on 0800 138 1111 (free including from mobiles). We’re open Monday to Friday 8am - 8pm and Saturdays 8am – 4pm.

I hope this helps,
Pavan

Hi Pavan

Thanks for the links. Problem is my credit rating is currently showing as fair and I can afford the repayments its just not going anywhere.

I ideally would like a loan to consolidate and believe me cards are already cut up and tossed!

kaybee15

Hi all, I've been registered for a while but haven't posted (don't quite know why to be honest) and am at a stage where I could do with some help if possible.

Back in 2009 my wife and I remortgaged through First Active, who stopped offering mortgages a week after we had completed ours and are now part of RBS. At the same time, our broker sold us PPI through PaymentShield and utilities through Utility Warehouse.

It's been a disaster quite frankly, and after I lost my job in Feb 2012 we have spiralled into such debt that we were subject to a Repossession Order in December 2012, suspended for 3 months, that took effect at the end of February 2013. We put up quite a spirited defence in the court case, and we are aware that the bank were not happy with the amount the judge decreed was outstanding. It was noted by the court however that RBS had done virtually nothing to help us, the mortgage terms were in some cases unreasonable, and that the PPI sold by the broker was worthless.

Since then, RBS have continued to try and take the monthly mortgage payment from our discontinued current account. They have ignored our requests for an update on the situation, and most bizarrely, they haven't repo'ed the house. We are trying to sell the property, but it is an uphill battle. And now, after fourteen months of near-silence, we have received two communications - the first from RBS' solicitors, containing a small cheque for each of us because RBS had overpaid them (!?), the second a letter from Excel Counselling wanting to discuss the account.

None of this seems normal - the lack of repossession, the lack of contact, the sudden sending of cheques - it just seems odd. Can anyone shed any light on whether this is standard behaviour? Is there a time limit on repo orders and the bank are now winding matters up? Could there have been a problem with the original mortgage which caused them not to repossess?

Sorry to rattle off questions, but we are truly baffled. Any advice will be gratefully received, thanks in advance.

claire0788

Hey

I applied for a DPP (as I live in scotland I was advised that this is my best option) through stepchange and it has taken nearly 2 months and nothing has happened with my paperwork.

When I called the other day I was told that they hadn't even looked at my application ! I am seriously having difficulties with everything. Is there anyway that I can chase this up ?

Thanx, Claire

StepChange_James

kaybee15 wrote: »

Hi all, I've been registered for a while but haven't posted (don't quite know why to be honest) and am at a stage where I could do with some help if possible.

Back in 2009 my wife and I remortgaged through First Active, who stopped offering mortgages a week after we had completed ours and are now part of RBS. At the same time, our broker sold us PPI through PaymentShield and utilities through Utility Warehouse.

It's been a disaster quite frankly, and after I lost my job in Feb 2012 we have spiralled into such debt that we were subject to a Repossession Order in December 2012, suspended for 3 months, that took effect at the end of February 2013. We put up quite a spirited defence in the court case, and we are aware that the bank were not happy with the amount the judge decreed was outstanding. It was noted by the court however that RBS had done virtually nothing to help us, the mortgage terms were in some cases unreasonable, and that the PPI sold by the broker was worthless.

Since then, RBS have continued to try and take the monthly mortgage payment from our discontinued current account. They have ignored our requests for an update on the situation, and most bizarrely, they haven't repo'ed the house. We are trying to sell the property, but it is an uphill battle. And now, after fourteen months of near-silence, we have received two communications - the first from RBS' solicitors, containing a small cheque for each of us because RBS had overpaid them (!?), the second a letter from Excel Counselling wanting to discuss the account.

None of this seems normal - the lack of repossession, the lack of contact, the sudden sending of cheques - it just seems odd. Can anyone shed any light on whether this is standard behaviour? Is there a time limit on repo orders and the bank are now winding matters up? Could there have been a problem with the original mortgage which caused them not to repossess?

Sorry to rattle off questions, but we are truly baffled. Any advice will be gratefully received, thanks in advance.

Hi kaybee15,

Thanks for posting. It does seem strange that a mortgage company would go through the repossession process but then actually follow through with the repossession.

I'm not aware of any legislation that mean they have to follow through with the repossession but if that's what you're wanting them to do, I can see how it must be frustrating that they've not taken possession yet.

It may be easiest to speak to them and ask them directly what it going on. The cheque from the solicitors seems very strange, I don't see why you'd be entitled to money that they were overpaid by RBS. Speaking to them might help to make sense of it.

I googled Excel Counselling and this website came up: http://www.xlco.co.uk/index.php/services/1. Assuming this is the company you're dealing with then it looks like they'll want to talk to you about dealing with the mortgage and possibly see if they can arrange something to avoid the property being repossessed.

It's hard to say exactly what's gone on without knowing more about your situation but if you'd like more in depth advice you could call our helpline and arrange to speak with one of our debt advisors. Here's the contact details: http://www.stepchange.org/Contactus.aspx.

Kind regards

James