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Former_StepChange_Rory

Happy_Beluga wrote: »

Hello,

I'm currently in debt of just under £4,000 to a number of different creditors including credit cards, catalogues and banks.

I'm pleased to say I am now able to pay the amount in full but have no idea how to go about it and also how to build my credit rating once the debts are paid.

1. How do I pay the debt? Can I go through a charity and pay it all off as a lump sum? Or is it perhaps better to contact each creditor, or rather debt collector (many of these are defaulted), to pay individually and also see if it's possible to get the final amount reduced as I'll be paying in full?

2. Once the debts are finally paid, how do I know the creditor will mark the debt as paid? Do I need to contact them myself in order to make sure my credit rating is updated? I know because they are defaults I will have to wait 5 years for my credit to be clear - is this true? In 5 years time, will I have trouble getting credit? Or a mortgage for example?

I have read a lot but still can't seem to find the right answers.

Thanks so much for your help.

Hi there,

Thanks for getting touch.

We would be happy to discuss the settlements with you and offer our advice. We would look over your budget and situation with you first and we can also explain how to approach creditors and repay the debts.

It’s the creditor’s responsibility to make sure they update the debts on your credit report and they should do this once you’ve repaid the debts, whether in full or as a partial settlement.

It’s also important to remember that your credit file isn’t permanent and the defaults won’t show forever. We have a blogpost we wrote about this which is specific to helping your credit file after being on a debt management plan but also has useful information for anyone looking for ways of improving their credit rating.

If you’d like us to help, you can use our completely free, anonymous Debt Remedy tool available on our website for specific advice and solutions on dealing with your debts. You can also enter in the lump-sum you have available into Debt Remedy and we’ll take everything into account.

Alternatively you can talk to us by visiting the StepChange website. All of our advice is free, impartial and confidential.

I hope this helps,

Rory

Former_StepChange_Rory

Sparklestar1127 wrote: »

Hi I could really do with a bit of direction
Here is our position, me and my Hubby owe around 15k on a Santander OD, Santander CC, Santander UPL and Barclays UPL. We started making reduced payments through Step change in March 2011 as my Husband was medically dismissed from his employment. At the time I was on maternity leave (we have 2 young children) so money was really really tight

Anyway, we have continually made our reduced payments to Step change, of around £70-90 pm depending on each review and now my husbands Nan has died My MIL has said that she is prepared to clear at least some of the debt for us with her inheritance.

What I'd really like to know is the difference between partial and Full and final and what impact it will have on our credit files. The last time I spoke with Santander they said to offer 80% but I don't want I offer a lower amount if it's going to hang around for the next 10 years in our reports. I'm a bit clueless to all this having never been in a bad position until 2011. Our very first non payment was feb 2011, none of these debts have been sold on (I still contact the banks for balances ect but all accounts have defaulted) I don't really know the best way to go about this I'm so confused! Should I just pay the full amounts owing and be done with it after 6 years? Help please

Thanks in advance x x

Hi there,

Welcome to the forum.

This is something that we’ll be more than happy to talk to you about. We’ll also be able to offer more specific advice for you in this situation.

If you’re already a client with us then all you need to do is get in touch. You can visit our website for details of how to contact us and we’ll get you speaking to one of the team who’ll answer all of the questions you have.

Hope this helps, we look forward to speaking to you

Rory

CU_5393

Thank you all for your advice; I found the wording of the lending code particularly interesting and may try to incorporate that into my correspondence.

My wife and I are in this together; we both have separate Barclaycards though our DMP reflects our combined debt. Should we send two letters, one for each account albeit the same with a change of name/account number?

Or should we send a joint letter, that incorporated both account numbers and signed by us both?

Again, thank you in advance.

mum2one

Hi cu -that's gd that you can some clout to the letter if there separate accounts then you need to do separate letters otherwise they may turn round and quote data protection act that they can't discuss the account with anyone bar the account holder if it was me when I send the letters I would send them both by recorded delivery as this way you got a tracking device in effect that a signature will show up as proof of being recieved xx

StepChange_James

CU_5393 wrote: »

Thank you all for your advice; I found the wording of the lending code particularly interesting and may try to incorporate that into my correspondence.

My wife and I are in this together; we both have separate Barclaycards though our DMP reflects our combined debt. Should we send two letters, one for each account albeit the same with a change of name/account number?

Or should we send a joint letter, that incorporated both account numbers and signed by us both?

Again, thank you in advance.

Hi CU,

I think Mum2one's right on this one. As the Barclaycards are separate accounts then it'll be better to send two letters. This means that there's less chance for confusion.

You don't have to send the letters recorded delivery but I know a lot of people prefer to when they write to creditors, just to be sure they're received.

One thing I'd suggest double checking with your DMP is that we've got the details of both Barclaycard accounts. I'd normally expect the two accounts to show separately not as one consolidated amount. As long as we've had details of both it should be fine but it never hurts to check.

Kind regards

James

pma13

hi hope this ok to post in here iam on a plan already but i have some money from overtime and want to clear a debt i have with barclays I only owe 140. on this account but I cant seem to find a relevant number all the correspondence I have on this account is old and no.s are out of date. It was a barclays current account and hasnt been passed over to a collections

mum2one

pma13 wrote: »

hi hope this ok to post in here iam on a plan already but i have some money from overtime and want to clear a debt i have with barclays I only owe 140. on this account but I cant seem to find a relevant number all the correspondence I have on this account is old and no.s are out of date. It was a barclays current account and hasnt been passed over to a collections

if the account is with a collections agency, and you know who they are then they will be able to trace your account for you - just need your postcode and name and they should be able to locate it for you x

pma13

thanks it hasn't been passed over to a collections agency though

mum2one

Hi
i've already got a dmp with stepchange - asking on behalf of my parents, - my dad has been admitted to hospital seriously ill, the trouble is he's 75 miles away from home, any money is now being diverted to the petrol tank, up till now they have managed their bills, with the additional petrol costs thats eating into the budget, last week we did an extra 750 miles (5 journeys) got 4 this week (600 miles) week after not sure...


He has 2 credit cards, I've spoke to the one card (they have me on file as authorised to deal with the account - he gets confused when it goes option 1, 2 etc) theyve been great there freezing interest for 3 months and said instead of payments c£100 just to pay £10 per month now the other one are saying he has to pay full amounts.

Card 2 - I'm having problems getting to them as although I have spoken to them previously they now want to deal with the account holder only - bit difficult when he as been in intensive care... I'm at brick wall at moment - thinking of asking hospital for a letter confirming the situ so can go from there.

I'm in process of getting third party to his bank accounts so that I can help with the payments and managing the account (even thou joint with my mum, shes almost housebound and gets muddled up with accounts as there the traditional family man does all financies) plan is to set up online banking so I can access account and guide mum along.

My "I need help" - am I going the right way in getting around the accounts also by getting this third party access - is that going to show up on my credit files or course any problems with my dmp as i'm not benefiting from his money just managing it.

Cheers for any help in advance xxx

mum2one

pma13 wrote: »

thanks it hasn't been passed over to a collections agency though

apologies - teach me to speed read - it may be worth going into a local branch with 2 sets of id and ask them if they can trace the account, xx