Struggling with debt? Ask a debt advisor a question

changeforbetter

Hello again,

I have posted a couple of questions here before (so apologies) but I am really trying to sort a complicated position out (with several difficult aspects, to me anyway).

I am in a position where I may soon lose my current income (i.e. job) however, I may still be earning something through freelance work.

Any advice about two questions below much appreciated, thanks!

1/ If I were currently looking at a DMP, what would I say about my income - i.e. give my current/recent monthly pay or should I be stating that this is likely soon to be lower/variable per month? i.e. how does a likely change (but not yet realised) get represented in a DMP?

2/ I am also a little confused as to how to sum up income if it were based only on a variable amount of freelance work? There doesn't seem anyway I can say a guaranteed amount for that (or a minimum either if there's a really good month for example)?

Any experience with previous similar cases would be great, and all advice appreciated, thank you!

timeforaction_2

Hi I feel like a headless chicken I have un secured debts of about 34 thousand pounds we have a mortgage and my dh knows nothing about the extent of the debts the cc are all in my name so is the b loan is a dmp best way to go and been on step change we are both self employed can I do dmp myself ?

Former_StepChange_Rory

changeforbetter wrote: »

Hello again,

I have posted a couple of questions here before (so apologies) but I am really trying to sort a complicated position out (with several difficult aspects, to me anyway).

I am in a position where I may soon lose my current income (i.e. job) however, I may still be earning something through freelance work.

Any advice about two questions below much appreciated, thanks!

1/ If I were currently looking at a DMP, what would I say about my income - i.e. give my current/recent monthly pay or should I be stating that this is likely soon to be lower/variable per month? i.e. how does a likely change (but not yet realised) get represented in a DMP?

2/ I am also a little confused as to how to sum up income if it were based only on a variable amount of freelance work? There doesn't seem anyway I can say a guaranteed amount for that (or a minimum either if there's a really good month for example)?

Any experience with previous similar cases would be great, and all advice appreciated, thank you!

Hi changeforbetter

I understand that income can be tricky to work out sometimes, hopefully I can make things clear for you.

If I your income is variable then it's best to work out an average of what your take-home pay is, this way we can account for any minor changes to your pay each month. Look back over wage slips, accounts or bank statements to get an idea on your average each month.

What we're looking at is how much you have left over from your income once you've paid your priority bills and living costs so it's best to try and be as accurate as you can given the circumstances.

Debt management plans are flexible so if your income changes a lot then we can always review this with you as we want to make sure you're not paying more than you can afford.

We do often come across these situations so try not to worry, just work out an average over the last few months and then have a think about any changes to your income going forward.

Any debt solutions we look at are always based on your individual situation so if you want to speak to us about this then please don't hesitate to contact us as we can explain this in more detail for you.

You can visit the StepChange website by visiting www.stepchange.org/contactus.aspx

I hope this helps,

Rory

Former_StepChange_Rory

timeforaction wrote: »

Hi I feel like a headless chicken I have un secured debts of about 34 thousand pounds we have a mortgage and my dh knows nothing about the extent of the debts the cc are all in my name so is the b loan is a dmp best way to go and been on step change we are both self employed can I do dmp myself ?

Hi timeforaction

I'm sorry to hear about your situation, I can understand your need to get things back on track. You've come to the right place though and we'll be happy to help you.

You can enter into a debt management plan (DMP) if you are self-employed and you can also do this in your own name only. Our advice is free, impartial and confidential so we wouldn't disclose any information to your partner if you didn't want us to.

It's important to remember that while we will keep your information confidential, your creditors can send letters and make phone calls if you reduce or miss payments to your debts.

Before looking at a DMP specifically, we would first look at your whole situation and budget so that we can look at offering you the best advice. You can get help by using our Debt Remedy tool online or by speaking to us over the phone in confidence by visiting the StepChange website.

We'll be able to discuss things with you in more detail, offer reassurance and advice and look at the best solution to move forward.

People often tell us that the making the first step to getting help is the hardest but please feel free to contact us if you need any advice.

I hope this helps, we look forward to hearing from you soon.

Rory

NuttyClaire

Hello,

Looking for some advice regarding a DWP debt I have. Sometime ago I was on income support and due to a genuine mistake on my part I did not tick the box that said I was receiving some child maintenance for my son (mutual agreement not through csa). It all came to light after I had a routine review and I went through the normal questions and said yes to the one asking if I was receiving maintenence etc. Next thing I know I was sent a letter saying I owed around £9000 due to not declaring the money for my son and over payment of income support. I disputed it at the time because I was certain I'd always told them but when they sent me copies of every form I'd filled in I see my mistake there in black and white.

That was around 2007 and I have been paying it back since then. I have recently discovered that in 2010 the law changed and child maintenence was disregarded from any benefit payments so my question is ..... Does my debt still stand because of the law change in 2010?
I hope that all made sense and any help would be gratefully received.

treshamgirl

Hi, at the beginning of this year I didn't have any debt but then my car failed its MOT and I had to buy a new one which I bought on my credit card as I had no savings. 6 months on and I have hardly cleared any of the debt. Then my clutch went costing £280. Last month when I was still burying my head in the sand about my debts I went away for a weekend but after a mix up with flights it cost me an extra £200. Today I sat down to look at the situation and i'm £500 into my overdraft and have £1500 on my credit card.

I looked into doing a balance transfer and was eligible for an MBNA credit card but they would only offer me 0% for 18 months with a limit of £1200 which isn't enough. I want to put my debts in one place set up a direct debit for around £80 and pay it off in two years. During that time I want to get to grips with a proper budget and start saving too. I just don't know where to start? Or what to do if I can't get enough on a balance transfer credit card. I've heard of consolidation loans, are they any good?

I bring home 1200 a month and should have about £400 each month after bills but it never works out like that as I don't have a budget.

Your advice on how to get going would really help.

Louise

Former_StepChange_Rory

NuttyClaire wrote: »

Hello,

Looking for some advice regarding a DWP debt I have. Sometime ago I was on income support and due to a genuine mistake on my part I did not tick the box that said I was receiving some child maintenance for my son (mutual agreement not through csa). It all came to light after I had a routine review and I went through the normal questions and said yes to the one asking if I was receiving maintenence etc. Next thing I know I was sent a letter saying I owed around £9000 due to not declaring the money for my son and over payment of income support. I disputed it at the time because I was certain I'd always told them but when they sent me copies of every form I'd filled in I see my mistake there in black and white.

That was around 2007 and I have been paying it back since then. I have recently discovered that in 2010 the law changed and child maintenence was disregarded from any benefit payments so my question is ..... Does my debt still stand because of the law change in 2010?
I hope that all made sense and any help would be gratefully received.

Hi NuttyClaire, welcome to the forum.

I wouldn't be able to confirm whether or not you are liable for the debt but you could speak to the DWP directly about this to find out some more information. There is contact information for the DWP available here https://www.gov.uk/benefit-overpayments/overview

If you are liable for the debt then we can help you find solutions and advice on how best to deal with your debts. We can look at putting together a budget with you and offering our advice and support.

Hope this is helpful,

Rory

Former_StepChange_Rory

treshamgirl wrote: »

Hi, at the beginning of this year I didn't have any debt but then my car failed its MOT and I had to buy a new one which I bought on my credit card as I had no savings. 6 months on and I have hardly cleared any of the debt. Then my clutch went costing £280. Last month when I was still burying my head in the sand about my debts I went away for a weekend but after a mix up with flights it cost me an extra £200. Today I sat down to look at the situation and i'm £500 into my overdraft and have £1500 on my credit card.

I looked into doing a balance transfer and was eligible for an MBNA credit card but they would only offer me 0% for 18 months with a limit of £1200 which isn't enough. I want to put my debts in one place set up a direct debit for around £80 and pay it off in two years. During that time I want to get to grips with a proper budget and start saving too. I just don't know where to start? Or what to do if I can't get enough on a balance transfer credit card. I've heard of consolidation loans, are they any good?

I bring home 1200 a month and should have about £400 each month after bills but it never works out like that as I don't have a budget.

Your advice on how to get going would really help.

Louise

Hi Louise

Thanks for getting in touch with us.

I’m sorry to hear about your recent money troubles, often these one-off costs crop up and can cause difficulties.

Refinancing debts isn't something we would recommend because although the monthly repayments can be more manageable, sometimes you end up repaying more in total through interest payments. We wrote a blogpost on debt consolidation which you might find helpful, it’s available to read here.

We would recommend putting together a budget first so you can prioritise your household bills and living costs and then see how much money you have left over each month to help clear the debts. We can also offer you tailored advice using our free, anonymous Debt Remedy tool.

You can also speak to us over the phone by visiting the StepChange website and we’ll be happy to help offer our support.

I hope this is helpful,

Rory

Finn_72

Hi,

I have had a DMP with Stepchange now for 4 years, there is still some way to go but am getting there.

Anyway, currently I am unemployed and I have learned that I am being movied to Universal Credit. I have also discovered that my 1st payment from UC is not till the 28th of August.This has put me in a very difficult postion as I have no money coming in now till then, and it will mean that I miss not only my stepchange payment but my phone, internet bill, living etc.

Am really desperate for some advice.

changeforbetter

Many thanks for the previous advice,

This is (I hope!) my last important question I wanted to ask about the implications of the DMP I'm planning.

Will my taking out a DMP for my debts (all CC and overdraft in my own name) have any effect on my partner's (we are not married but live together and have a joint mortgage) credit rating and/or ability to have credit such as any applications or loans she requests with credit.

I truly hope not, as I would hate to have effected her credit, given that she is exemplary in all her own credit dealings (much unlike me, sadly).

Hopefully my final question! Many thanks!