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Struggling with debt? Ask a debt advisor a question

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  • StepChange_James
    StepChange_James Posts: 861 Organisation Representative
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    loopylu36 wrote: »
    Hi

    I wonder if you would be able to help me please? I have been paying HCE Group £150 per month for a debt that was originally with EON. I thought I had just about paid if off but they say I still owe them £527! They say that they are adding interest to the balance. I have been struggling to pay the £150 and this month it will be a real (if not impossible) struggle to pay it. Are they allowed to add interest and can I renegotiate the payments with them - They were very forceful in the first instance and frankly made me agree to £150 per month with the usual bailiff style threats. Any help or advice would be great, thanks.

    Hello,

    Debt collectors are allowed to add interest to debts but often will freeze this if they agree to a payment with you. As you've found, it makes it much harder to bring a debt down when you're having to pay interest.

    It's possible to get lower payments agreed on this type of debt but you will more than likely need to give them an up to date income and expenditure budget. We can help you put one of these together and give you advice on how best to proceed with our Debt Remedy advice tool (http://www.stepchange.org/msehelp).

    It usually takes about 20 minutes and will give you a customised advice booklet, including your income and expenditure budget, with details on how best to move forward.

    Hope this helps.

    James
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

  • kjglen24
    kjglen24 Posts: 40 Forumite
    Options
    Hi there, I am need of some desperate help.

    If I admit it, I am in debt.... and I need to get out!

    I have just paid £2 online for a copy of my credit report, as I don't even know all of my debts......

    What do I do now, how to do I go about clearing them. I haven't spoken to the companies for years and I just buried my head in the sand being a young student and all that stupid I know.

    I have very good relations with my bank at present so don't want to mess that up so wouldn't go bankrupt or anything, on the other hand I don't have much spare monies after bills/food e.t.c. go out either.

    Thanks for the help in advance

    Kerry
  • StepChange_James
    StepChange_James Posts: 861 Organisation Representative
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    kjglen24 wrote: »
    Hi there, I am need of some desperate help.

    If I admit it, I am in debt.... and I need to get out!

    I have just paid £2 online for a copy of my credit report, as I don't even know all of my debts......

    What do I do now, how to do I go about clearing them. I haven't spoken to the companies for years and I just buried my head in the sand being a young student and all that stupid I know.

    I have very good relations with my bank at present so don't want to mess that up so wouldn't go bankrupt or anything, on the other hand I don't have much spare monies after bills/food e.t.c. go out either.

    Thanks for the help in advance

    Kerry

    Hi Kerry,

    Thanks for posting. It must've taken a lot of courage to face up to these debts. Getting a copy of your credit file was a good idea and it should tell you who is currently dealing with your debts and show a balance (though this isn't guaranteed to be up to date).

    Once you've got these figures I'ld suggest you get in touch with us for advice. The easiest way to do this is to use our online advice tool Debt Remedy (http://www.stepchange.org/msehelp). It will ask you for information about your finances and give you expert advice on how to sort out the debts.

    If you'd prefer you could call our helpline or request a call back, details here: http://www.stepchange.org/Contactus.aspx.

    Even if you need most of your money for living costs there will be options available to deal with your debts, it's just a matter of working out what suits you best.

    Kind regards

    James
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

  • feekerry
    feekerry Posts: 76 Forumite
    Options
    hello,

    i'm in desperate need of some advice. I'll outline my situation without rambiling on (hopefully!)

    i have unsecured debts of about £27k with about 6 creditors. all credit cards or loans (no pay day loans or anything like that) all are paid on time every month (min payment) and i've never missed a payment on anything.
    i am just managing to pay everything every month but things are very tight.
    i've just been advised that my work is relocating my office to over 30 miles away. this will increase my petrol bill by £200 a month and my childcare costs too as travel to work will now take over an hour and 15 mins each way. i cannot afford this.
    i tried to get a consolodation loan but i've been declined due to my level of existing debt ratio to my income.
    i have considered a dmp but my major problems are that i work for a company that about half my debts are with (building soc!!) so i obv cannot default on those debts as i'd lose my job. in fact, my company often do financial checks on employees so if i defaulted on anything i'd be in trouble.
    i have considered leaving my job and getting a local job that would mean less traveling and less childcare and looking a dmp then but i'd be looking at a job with a considerably lower income as i have no qualifications but have a relitively high salary at present due to being with the company for over 15 years. if i found a job with a lower salary it would leave very little for my debts

    my other major concern is i live with my partner and we have a joint mortgage with the company i work for so i'm really worried if i did a dmp they would get funny about the mortgage and it would affect my partner. we have totally seperate finances apart from the mortgage so i wouldnt want my partner to be affected in any way. I'm also really worried if i did a dmp about threatening letters and telephone calls as i wouldnt want my partner to have to deal with these.
    i just dont know what to do.
  • StepChange_James
    StepChange_James Posts: 861 Organisation Representative
    Options
    feekerry wrote: »
    hello,

    i'm in desperate need of some advice. I'll outline my situation without rambiling on (hopefully!)

    i have unsecured debts of about £27k with about 6 creditors. all credit cards or loans (no pay day loans or anything like that) all are paid on time every month (min payment) and i've never missed a payment on anything.
    i am just managing to pay everything every month but things are very tight.
    i've just been advised that my work is relocating my office to over 30 miles away. this will increase my petrol bill by £200 a month and my childcare costs too as travel to work will now take over an hour and 15 mins each way. i cannot afford this.
    i tried to get a consolodation loan but i've been declined due to my level of existing debt ratio to my income.
    i have considered a dmp but my major problems are that i work for a company that about half my debts are with (building soc!!) so i obv cannot default on those debts as i'd lose my job. in fact, my company often do financial checks on employees so if i defaulted on anything i'd be in trouble.
    i have considered leaving my job and getting a local job that would mean less traveling and less childcare and looking a dmp then but i'd be looking at a job with a considerably lower income as i have no qualifications but have a relitively high salary at present due to being with the company for over 15 years. if i found a job with a lower salary it would leave very little for my debts

    my other major concern is i live with my partner and we have a joint mortgage with the company i work for so i'm really worried if i did a dmp they would get funny about the mortgage and it would affect my partner. we have totally seperate finances apart from the mortgage so i wouldnt want my partner to be affected in any way. I'm also really worried if i did a dmp about threatening letters and telephone calls as i wouldnt want my partner to have to deal with these.
    i just dont know what to do.

    Hello,

    Thanks for getting in touch. This relocation sounds to have made things much harder for you, when things were already pretty stretched.

    If there is someone at your work that you know you can talk to about these things it might be worth checking how the land lies about staff members with debt problems. This might be a line manager or someone in HR that you can talk to in confidence.

    Most financial institutions have a hard line policy written into contracts but often in practice they are willing to allow staff members to do DMPs (and include their own debts within the DMP), provided they can see that things are being dealt with.

    From what you have said, you are unlikely to be able to maintain full payments to your debts at the moment, so I would recommend getting in touch with us for advice anyway.

    With you and your partner keeping your finances separate, we can give advice based purely on your financial situation. If you were to do something like a DMP then it could affect your ability to get some mortgages in the future but I can't see why it would do anything to the current mortgage you have.

    The first thing to do is visit our online debt advice service Debt Remedy (http://www.stepchange.org/msehelp) to help you find a solution to your debt problem quickly.

    Debt Remedy will assist you in completing a financial statement with information on your household, employment, income, expenditure and debts. From this the service will automatically determine your options.

    To help you fill in the form, it’s best to gather together information about:
    • Your income
    • Your expenditure
    • The creditors you owe money to

    You’ll receive a downloadable advice booklet providing a tailored solution for you based on your current circumstances and advice on ways you may be able to improve your situation.

    If you’re not confident with computers or would like to speak to an advisor then you’re welcome to ring our Helpline on 0800 138 1111 (free including from mobiles). We’re open Monday to Friday 8am - 8pm and Saturdays 9am – 3pm.

    If you phone us it may be possible to refer you directly to a counsellor for immediate advice. Alternatively, we will arrange for an appointment to be booked at a time convenient for you.

    All the best.

    James
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

  • I_spent_my_pennies
    I_spent_my_pennies Posts: 6 Forumite
    edited 10 November 2012 at 7:05PM
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    Hi, I am seeking some advise on my possible soon to be difficult financial situation. To give a brief outline my wife and I have stuggled with debt for a number of years and recentley she has had to set up a dmp with yourselfs which starts in 1 week. On the dmp is a joint loan to the sum of £9k. It is in arrears of £1622. Although whats mine is hers ect we had seperate bills with me taking on more of the household bills as her debts increased. I have been paying mine all on time and they are decreasing slowly but with no spare money at the end of the month. I fear when the joint bank loan which is on the dmp it will not be enough and they will be chasing me for the full payment which I fully expect and could have paid when it was taken out but now unaffordable since taking on more bills. We have a default notice served on the loan in writing stating they want the arrears or it will taken further. I'm not sure what to do next but guess as I cannot afford to take in on myself would have to maybe have a dmp set up for myself or change hers to a joint 1. My wife was told that the bank may not chase me up but it is a joint loan. I haven't looked at my credit rating but assume it is rock bottom. Any suggestions what to do next most welcome.
    Thanks
    Dan
  • Gem2012_2
    Options
    Hi
    We are looking for help...

    Currently in around £30,000 worth of debt most my husbands before my time...
    We've tried an iva with debt free debt that failed as we couldn't keep up the £250 guide price
    Now with a company called bright oak debt help, they charge, think its about £23 in our £123 payments, but I'm still getting all the letters off creditors and I don't get any monthly statements off her to explain where our money is going and I'm a bit worried incase she isn't paying people
    Also I have a load of debt listed that came off his iva, that we have included in the debt management plan as well but looking on hubby's credit file today some of them aren't even showing...so is there a way to find out if they've been wrote off or what?.
    Also did a statement of affairs and it says that we have no surplus funds but I have included all the debts even the ones that weren't showing on the credit file and I can change our expenditure
    We were thinking of doing it ourselves instead, contacting the creditors and arranging payments, I have files from a national debt line also from this site that we can fill in and send but a. I'm not sure where some debts have gone? And b. I'm not sure whether we could get rid of the little debts and then tackle the big one or do we have do they all together?

    Can someone help us please

    Thanks
    Gemma
  • Firstly i am on an ipod so bad gramma. I am in big trouble. I have so many debts including payday loans i cant pay back my hubby has left me i am a nurse and cant wirk as my car has broken down noone to help me. I have no mortgage but noone will lend me money to consoladte . What can i di i have less than a quid and cant get to work
  • System
    System Posts: 178,117 Community Admin
    Photogenic Name Dropper First Post
    Options
    Hi, I am seeking some advise on my possible soon to be difficult financial situation. To give a brief outline my wife and I have stuggled with debt for a number of years and recentley she has had to set up a dmp with yourselfs which starts in 1 week. On the dmp is a joint loan to the sum of £9k. It is in arrears of £1622. Although whats mine is hers ect we had seperate bills with me taking on more of the household bills as her debts increased. I have been paying mine all on time and they are decreasing slowly but with no spare money at the end of the month. I fear when the joint bank loan which is on the dmp it will not be enough and they will be chasing me for the full payment which I fully expect and could have paid when it was taken out but now unaffordable since taking on more bills. We have a default notice served on the loan in writing stating they want the arrears or it will taken further. I'm not sure what to do next but guess as I cannot afford to take in on myself would have to maybe have a dmp set up for myself or change hers to a joint 1. My wife was told that the bank may not chase me up but it is a joint loan. I haven't looked at my credit rating but assume it is rock bottom. Any suggestions what to do next most welcome.
    Thanks
    Dan

    Hi Dan and welcome to the forum.:)

    It sounds like you would benefit from some free and impartial advice.


    I’d recommend that both you and your wife call us so that we can look at the situation as a whole. It could be that you would both be better off on a joint DMP or there could be other solutions available.

    We’ve got a blogpost about joint loans that should explain more about joint liabilty –

    http://moneyaware.co.uk/2011/09/we-got-a-joint-loan-now-weve-split-who-has-to-pay/

    It’s usually a lot better to look at household budgets as a whole rather than separately, and this should ease your situation.

    You’re welcome to ring our free Helpline on 0800 138 1111.

    We’re open Monday to Friday 8am - 8pm and Saturday 9am until 3.00pm, if your wife is with you can quote her details and we can look at the household situation from there.

    I hope this helps.

    Kind regards,

    Mat
  • System
    System Posts: 178,117 Community Admin
    Photogenic Name Dropper First Post
    Options
    Gem2012 wrote: »
    Hi
    We are looking for help...

    Currently in around £30,000 worth of debt most my husbands before my time...
    We've tried an iva with debt free debt that failed as we couldn't keep up the £250 guide price
    Now with a company called bright oak debt help, they charge, think its about £23 in our £123 payments, but I'm still getting all the letters off creditors and I don't get any monthly statements off her to explain where our money is going and I'm a bit worried incase she isn't paying people
    Also I have a load of debt listed that came off his iva, that we have included in the debt management plan as well but looking on hubby's credit file today some of them aren't even showing...so is there a way to find out if they've been wrote off or what?.
    Also did a statement of affairs and it says that we have no surplus funds but I have included all the debts even the ones that weren't showing on the credit file and I can change our expenditure
    We were thinking of doing it ourselves instead, contacting the creditors and arranging payments, I have files from a national debt line also from this site that we can fill in and send but a. I'm not sure where some debts have gone? And b. I'm not sure whether we could get rid of the little debts and then tackle the big one or do we have do they all together?

    Can someone help us please

    Thanks
    Gemma

    Hi Gemma and welcome to the forum.:)

    It sounds like you would benefit from some free and impartial advice.

    If you’re on a debt management plan (DMP) there is no need to pay any sort of fee. We administrate DMPs free of charge so that all the money you pay goes towards repaying your debt.

    I’d recommend that you contact us so that we can look at what is best advice for your situation. We can also look at your credit file and see what the situation with the debts not showing is.
    (They may have come off of the credit file, but may still be enforceable).

    You can put together a budget and get suggestions for solutions using our online service Debt Remedy.

    The first thing to do is visit our online debt advice service Debt Remedy (http://www.stepchange.org/msehelp) to help you find a solution to your debt problem quickly.

    Debt Remedy will assist you in completing a financial statement with information on your household, employment, income, expenditure and debts. From this the service will automatically determine your options.

    To help you fill in the form, it’s best to gather together information about:

    • Your income

    • Your expenditure

    • The creditors you owe money to

    You’ll receive a downloadable advice booklet providing a tailored solution for you based on your current circumstances and advice on ways you may be able to improve your situation.

    If you’re not confident with computers or would like to speak to an advisor then you’re welcome to ring our free Helpline on 0800 138 1111. We’re open Monday to Friday 8am - 8pm and Saturday 9am until 3.00pm.

    If you phone us it may be possible to refer you directly to a counsellor for immediate advice. Alternatively, we will arrange for an appointment to be booked at a time convenient for you.

    I hope this helps.

    Kind regards,

    Mat
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