Struggling with debt? Ask a debt advisor a question

Former_StepChange_Rory

Shorti wrote: »

Hi I am new to this site but I thought I might be able to get some advice.

My current credit score is bad for a number of reasons but I have been trying extremely hard the last few months to improve it. I have paid all bills on time for the last 5 months and I am seeing an improvement. I still have one outstanding credit card with my bank but I am unsure if I should pay this in full as I am trying to save to move out of the family home. Do you have any advice on how to improve my credit score? Should I pay my loan or save?

Any advice would be welcome.

Thanks.

Hi Shorti,

As long as you continue to make regular payments to your credit cards, loans and other debts in line with the agreements you have then this shouldn’t affect your credit report negatively. It’s usually only when you make missed or reduced payments that this usually impacts your score.

The best place to get advice on your credit report would be from one of the three main credit reference agencies who should be able to offer tips and advice on how to continue improving your report.

Experian, Equifax and Call Credit are the three most common credit reference agencies you could use for more information.

I hope this helps,

Rory

RobbieM073

Hi,

Has anyone heard of total debt relief? They are offering a scheme to wipe out my debts and it all seems very good as it means £16k will be wiped out. Is this a good company? I am currently with Harrington Brooks in a debt management plan as my debt is approx. £41k and i dont want to be in it for 8 years. This scheme with total debt relief is 3 years and that everything paid. They are linked by solicitors Madison Legal again in Stockport.

Any ideas anyone? Thanks

mum2one

RobbieM073 wrote: »

Hi,

Has anyone heard of total debt relief? They are offering a scheme to wipe out my debts and it all seems very good as it means £16k will be wiped out. Is this a good company? I am currently with Harrington Brooks in a debt management plan as my debt is approx. £41k and i dont want to be in it for 8 years. This scheme with total debt relief is 3 years and that everything paid. They are linked by solicitors Madison Legal again in Stockport.

Any ideas anyone? Thanks

as they say if it sounds too good to be true then it probably is, - at the mo I'm guessing your paying a chunk of your repayment money for Harrington Brooks to manage your account, if you were with Stepchange (or payplan) then every penny you pay goes to your creditor...
x

RobbieM073

I pay them £60 a month

mum2one

RobbieM073 wrote: »

I pay them £60 a month

base that over 12 months that £720 extra that could go off your debts, and 8 yrs that you currently have left £5760....... now I bet a penny to a pound that money would reduce your debt by a good few months......

RobbieM073

You are correct yes.... But is there a way to get the debts reduced? Is total debt relief a way? They have all the accreditations and if the save £16k that's massive. Has anyone ever used them? Any ideas?

stressed_out_dad

hi looking for help i live in scotland and earn 3600 after tax monthly ,
i have 3 kids and wife that doesnt work due to kids age 2,4 & 6 and me working away 188 days a year.
i have the following debts,
barclaycard, £7000 (minimum payment £180)
bOS card £5300 (minimum payment £180)
Halifax, £1000 (minimum payment £30)
overdrafts totaling £4800 (£90 fees monthly)
catalogue £2300 (minimum payment £120)

my mortgage is £1200 per month
car and insurance £200
council tax 250
management fee £30
gas £70
electric £80
tv, internet,insurance, mobile, sofa nuresry kids dinners etc. £350

i also owe my father £20,000 which he keeps telling me not to worry about but is all i do worry about as he retires in 5 years and i want to have the money back to him by then.

the above leaves approx.820 per month for fuel , food clothes hair cuts etc. by the end of the month we find that we are really struggling

my mortgage is fixed until jan 2019 and car relatively new we cut old payment in half and is financed until 2018.

my question is i had an incident last year at work where i was off for the majority of the year hence the credit card debt but i am now back to work.during my time off i went into arranged arears on my mortgage so my credit rating is ruined now anyway, i see no way out just now as all we can make is minimum payments.

Would it be worth while getting a debt management plan or similair up here in scotland or should i plod on paying the debt as i was daft enough to build it in first place ?

it really is effecting home life now and causing problems as we have to rely on our parents (who are very helpful).

hopefully someone can give me some assistance on this as im totally in the dark on what to do here.

Thanks in advance

Former_StepChange_Rory

RobbieM073 wrote: »

You are correct yes.... But is there a way to get the debts reduced? Is total debt relief a way? They have all the accreditations and if the save £16k that's massive. Has anyone ever used them? Any ideas?

Hi Robbie,

It's always best to make sure you know exactly what kind of solution you're entering into. We sometimes speak to people who are desperate to deal with their debts as quickly as possible and it can be quite tempting to take up the first offer that you come across.

We covered these type of situations on a blogpost we wrote about legal ways to write debt off.

If something sounds too good to be true then sometimes it is. Although there are legitimate debt solutions that involve reduced payments or settling debts, they should only be recommended if they're right for you.

If you'd like us to help we can offer you free, impartial and confidential debt advice and solutions. We can take a detailed look at your circumstances and use this to offer tailored advice and a debt solution.

You can get in touch by visiting the StepChange website or use our free, anonymous Debt Remedy tool available here.

Hope this helps,

Rory

Former_StepChange_Rory

stressed_out_dad wrote: »

hi looking for help i live in scotland and earn 3600 after tax monthly ,
i have 3 kids and wife that doesnt work due to kids age 2,4 & 6 and me working away 188 days a year.
i have the following debts,
barclaycard, £7000 (minimum payment £180)
bOS card £5300 (minimum payment £180)
Halifax, £1000 (minimum payment £30)
overdrafts totaling £4800 (£90 fees monthly)
catalogue £2300 (minimum payment £120)

my mortgage is £1200 per month
car and insurance £200
council tax 250
management fee £30
gas £70
electric £80
tv, internet,insurance, mobile, sofa nuresry kids dinners etc. £350

i also owe my father £20,000 which he keeps telling me not to worry about but is all i do worry about as he retires in 5 years and i want to have the money back to him by then.

the above leaves approx.820 per month for fuel , food clothes hair cuts etc. by the end of the month we find that we are really struggling

my mortgage is fixed until jan 2019 and car relatively new we cut old payment in half and is financed until 2018.

my question is i had an incident last year at work where i was off for the majority of the year hence the credit card debt but i am now back to work.during my time off i went into arranged arears on my mortgage so my credit rating is ruined now anyway, i see no way out just now as all we can make is minimum payments.

Would it be worth while getting a debt management plan or similair up here in scotland or should i plod on paying the debt as i was daft enough to build it in first place ?

it really is effecting home life now and causing problems as we have to rely on our parents (who are very helpful).

hopefully someone can give me some assistance on this as im totally in the dark on what to do here.

Thanks in advance

Hi there,

It can be very difficult after redundancy or unemployment to get yourself back on track, based on what you've said about your credit rating it looks like consolidating might also be out of the question.

There are solutions to help you manage debts, some are specific to Scotland too and that's something we can help you with.

It looks like you've got together a budget which is a great start. If you'd like us to help then as a charity we offer free, impartial and confidential debt advice and solutions based on what's right for you.

If you'd like us to help you can visit the StepChange website for our phone number or you can use our anonymous, free Debt Remedy tool available here.

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

Rory

Former_StepChange_Rory

Hi everyone,

We're going to be in training on Monday and Tuesday next week (27th & 28th October). We'll be back in on Wednesday and will answer any questions then.

If you've got an urgent query then please call our Helpline on 0800 138 1111 (Mon-Fri 8am-8pm; Sat 8am-4pm) or use our online Debt Remedy tool (http://www.stepchange.org/Debtremedy.aspx) for full debt advice.

Thanks

Rory