Struggling with debt? Ask a debt advisor a question

Chardin

Hello,

I have just sent my details to DRA. They are going to set-up a Token Payment Plan in regards to my payday loan debts so I can clear my main priority debt, my rent.

I plan to complete the process, but my main worry is that the payday companies will take the full amount from me late next week and wipe out my entire wage. Does the TPP stop this from happening or will I need to cancel my debit card and get a new one?

My priority debt needs to be dealt with by late-Sept. I will then be able to pay my payday loans off one by one, whilst keeping DRA informed, so I hope to be debt free fairly soon, but the main worry is the idea that, come next week, the companies will have cleaned me out and I'll have to reapply for credit.

Has anyone been in a similar position?

Former_StepChange_Rory

Needsomehelp wrote: »

Hi

I have debt split over 3 credit cards, each of which are in their interest free period. When the interest free period for one comes to an end, in the past I have simply transferred it to another interest free offer and paid off what I can.
I have one (Tesco) coming to an end and applied for a Lloyd and bank of Scotland card, both of which I got rejected from. I looked up my credit reference info ad discovered that it is now really low due to an old current account.

I had an account with halifax and transferred it to a nationwide account. I was told nationwide would pay off the overdrafts transfer direct debits etc and the account would be closed. However I learnt through the credit check that 6.99 owed was left in the halifax account and therefore it has been in arrears for 2 months. I have now rectified this however it will still affected my rating. I have spoken to both banks and neither will take responsibility and contact the reference agency to explain.

I have two queries:

1. Is there anything I can do to get this removed from my credit history or some sort of note explaining it?
2. I am about to start getting charged a lot of interest on the credit card. If I have bad credit rating what is my best option to do with this balance to get interest free or at least reduce it?

Thanks for your help

Hi needsomehelp,

Welcome to the forum.

It really depends on who was at fault when the account went into arrears as to whether the creditor will remove this from your credit file. You could speak to the creditors and ask them to explain what’s happened and if you’re unhappy with the response you can make a complaint in writing to them.

If the creditor is at fault they will usually contact the credit reference agencies and have the information updated for you.

You should also be able to get more help from the credit reference agency themselves as this is really a question for them to answer.

If you find yourself struggling to repay the credit cards and are looking for ways to become debt free without taking out more credit then we can help you.

As a charity we offer free, impartial advice and solutions on how best to deal with your debts. Don’t feel that because of your credit rating this has to mean that you struggle to repay the credit cards on your own. It’s more important to that you pay what you can afford without struggling as your credit rating isn't permanent.

You can use our free, anonymous online Debt Remedy tool available here or visit our website for more information on how to contact us.

I hope this helps,

Rory

Former_StepChange_Rory

Chardin wrote: »

Hello,

I have just sent my details to DRA. They are going to set-up a Token Payment Plan in regards to my payday loan debts so I can clear my main priority debt, my rent.

I plan to complete the process, but my main worry is that the payday companies will take the full amount from me late next week and wipe out my entire wage. Does the TPP stop this from happening or will I need to cancel my debit card and get a new one?

My priority debt needs to be dealt with by late-Sept. I will then be able to pay my payday loans off one by one, whilst keeping DRA informed, so I hope to be debt free fairly soon, but the main worry is the idea that, come next week, the companies will have cleaned me out and I'll have to reapply for credit.

Has anyone been in a similar position?

Hi Chardin welcome to the forum,

The payments that your payday lenders will likely have set up are known as ‘continuous payment authority’ (CPA) payments.

This means that the payments are taken from your card and you will usually need to speak or write to your bank to have these payments cancelled.

It’s your right to have these payments cancelled without any difficulties and you might find it helpful to read a blogpost we’ve written about CPA payments available here. The article also links to a template letter you can use when contacting the bank to have the payments stopped.

If you need any further advice we offer free, impartial, confidential advice and debt solutions. Details of how to contact us are available on the StepChange website.

I hope this helps,

Rory

Chardin

Thanks, I had already registered with your company, the follow up email is due tomorrow, so will contact my bank to ask them to stop the payments. However, I’m with Natworst, “There is another wait”, so fingers crossed on that one. My main hope is to sort out my rent then, as my income’s increased, deal with the paydays one by one.

FrankProp

Hi
Standard Letter
We have been declared bankrupt ( voluntary bankruptcy) and the Bankruptcy Trustee is now sorting out the claims and the assets.
I have several times told Birmingham Midshires that the Buy-t-Let is now part of the Bankruptcy Estate but they still keep demanding arrears from me and threaten to put the BtL into LPA Receivership – even though I have told them that the property is now part of the Bankruptcy Estate.
Is there a standard legal letter that I can use to tell them that they need to present their claim to the Bankruptcy Trustee? I couldn’t find one such on the MoneyAware/StepChange website.
Would be grateful for comment. Thank you.

zoo25

zoo25 wrote:

hello,just need some help please,l owe £1800 on one credit card paying 39% interest,I also have a Capital one credit card 34% owing £60, but has a 0% 6 month credit card balance transfer,of about £850,I have asked if I could have a larger balance with Capital one,but being a new customer I would have to wait to December 2014,to request this,I have a lot of outgoings in September road tax, car mot, etc,from October 2014, l should be able to pay £200 a month towards my debt, my credit is poor, any advice would be great, thank you;):j

marina167

Hi everyone,

First of all, here's my issue laid bare (I know it's not as bad as some)

I am £10,600 in debt.
Lloyds current account - £1500 at 20% overdraft interest
Lloyds loan - £2600 at 16% interest
Natwest credit card - £5300 at 0% interest until December 2016
Housing Benefit error repayment - £1200 0% interest

Credit score is medium to low.

I'm meeting the minimum repayments and occasionally put extra towards the most expensive debts however a huge amount still goes towards the interest and it's been 2 1/2 years already and it's excruciating feeling I'm not shifting them.

I've used the MSE eligibility checker to see what cards I can get to use as a money transfer to clear the overdraft debt plus the loan but chances are low and I've been rejected by MBNA's 0% platinum money transfer credit card.

Do I have any options?
I'm not really sure where to start....could I apply for a new bank account that would give me a 0% overdraft for some breathing space?
Would it be worth applying for a peer-to-peer loan to consolidate that overdraft and Lloyds loan?

Honestly, you guys are the experts and I am struggling to find a solution yet I stay positive that there is one for me. I want to be out of this debt as quick as I can and be able to breathe again.

Any help, advice and support would be so very appreciated.

Kind regards
Marina

Former_StepChange_Laura

zoo25 wrote: »

zoo25 wrote:

hello,just need some help please,l owe £1800 on one credit card paying 39% interest,I also have a Capital one credit card 34% owing £60, but has a 0% 6 month credit card balance transfer,of about £850,I have asked if I could have a larger balance with Capital one,but being a new customer I would have to wait to December 2014,to request this,I have a lot of outgoings in September road tax, car mot, etc,from October 2014, l should be able to pay £200 a month towards my debt, my credit is poor, any advice would be great, thank you;):j

Hi zoo25,

Thanks for your message. Although asking for more credit from Capital One might help you meet payments in the short term, it’s likely to make your situation worse in the long term.

From what you say, I’d suggest you to get in touch with us. We’ll be able to look at your situation in more depth and find the best solution for you to deal with your debts. You can do this through our online Debt Remedy tool or by contacting us. Our helpline is free to call from landlines and most mobiles, and is open Monday to Friday 8am until 8pm and Saturdays from 8am until 4pm.

I hope this helps,

Laura

Former_StepChange_Rory

FrankProp wrote: »

Hi
Standard Letter
We have been declared bankrupt ( voluntary bankruptcy) and the Bankruptcy Trustee is now sorting out the claims and the assets.
I have several times told Birmingham Midshires that the Buy-t-Let is now part of the Bankruptcy Estate but they still keep demanding arrears from me and threaten to put the BtL into LPA Receivership – even though I have told them that the property is now part of the Bankruptcy Estate.
Is there a standard legal letter that I can use to tell them that they need to present their claim to the Bankruptcy Trustee? I couldn’t find one such on the MoneyAware/StepChange website.
Would be grateful for comment. Thank you.

Hi FrankProp

Welcome to the forum.

There isn't any specific forms that I could refer you to however these situations do happen sometimes and it might be due to a number of different reasons. You could have a chat with the trustee and they should be able to offer help and guidance.

You could also visit the Insolvency Service website for help and advice on who to contact.

I hope this helps,

Rory

Former_StepChange_Laura

marina167 wrote: »

Hi everyone,

First of all, here's my issue laid bare (I know it's not as bad as some)

I am £10,600 in debt.
Lloyds current account - £1500 at 20% overdraft interest
Lloyds loan - £2600 at 16% interest
Natwest credit card - £5300 at 0% interest until December 2016
Housing Benefit error repayment - £1200 0% interest

Credit score is medium to low.

I'm meeting the minimum repayments and occasionally put extra towards the most expensive debts however a huge amount still goes towards the interest and it's been 2 1/2 years already and it's excruciating feeling I'm not shifting them.

I've used the MSE eligibility checker to see what cards I can get to use as a money transfer to clear the overdraft debt plus the loan but chances are low and I've been rejected by MBNA's 0% platinum money transfer credit card.

Do I have any options?
I'm not really sure where to start....could I apply for a new bank account that would give me a 0% overdraft for some breathing space?
Would it be worth applying for a peer-to-peer loan to consolidate that overdraft and Lloyds loan?

Honestly, you guys are the experts and I am struggling to find a solution yet I stay positive that there is one for me. I want to be out of this debt as quick as I can and be able to breathe again.

Any help, advice and support would be so very appreciated.

Kind regards
Marina

Hi Marina,

I’m sorry to hear you’re struggling to find a solution, but there are ways to make your financial situation more manageable.

You mention that you’ve been rejected for another credit card and are looking into other ways to borrow money. We generally advise against taking out further credit to pay off your existing debts. Although the monthly repayments may be smaller, by consolidating your debts in this way you could end up paying back more through interest once the 0% interest offers end. You might find it useful to have a read through this blogpost, which explains a bit more about consolidating debt: http://moneyaware.co.uk/2013/01/to-debt-consolidate-or-not-to-debt-consolidate/

You also mention that you’re meeting the minimum monthly repayments, which can be a sign of problem debt. It could be that with some careful budgeting you would be able to put more towards your debts which could allow you to clear them more quickly. If you think this is something you’d like support with, you can use our online Debt Remedy tool http://www.stepchange.org/Debtremedy.aspx to put together a budget. Alternatively you could contact our helpline on 0800 138 1111 (free from landlines and most mobiles). We’re open from Monday to Friday from 8am until 8pm and Saturdays from 8am until 4pm.

I hope this helps,

Laura