Struggling with debt? Ask a debt advisor a question

Chillyears36

Hi All


Please could someone advise me?


I have a DMP with Step Change but have since taken out further payday loans and am now in the same position again.....


I secured a new job with higher salary, but now my Tax Credits and Housing Benefit have been reduced,, meaning I am not actually receiving the benefit of my pay rise, but am working harder and longer and have more responsibility.


Am seriously considering being on full time benefits as can't cope with the stress and unfairness of it all :-(


I am afraid to contact Step Change in light of these new debts for fear of them cancelling my current DMP.


Anyone have any ideas or had experience of this before?


Many thanks
in advance

Former_StepChange_Laura

Chillyears36 wrote: »

Hi All


Please could someone advise me?


I have a DMP with Step Change but have since taken out further payday loans and am now in the same position again.....


I secured a new job with higher salary, but now my Tax Credits and Housing Benefit have been reduced,, meaning I am not actually receiving the benefit of my pay rise, but am working harder and longer and have more responsibility.


Am seriously considering being on full time benefits as can't cope with the stress and unfairness of it all :-(


I am afraid to contact Step Change in light of these new debts for fear of them cancelling my current DMP.


Anyone have any ideas or had experience of this before?


Many thanks
in advance

Hi Chillyears36,

Thanks for getting in touch and I’m sorry to hear you’re finding your situation stressful.

I understand your concerns, but please don’t be afraid to get in contact with us. Our advisors are impartial and non-judgemental, and want to help you to deal with your debts in the way that’s right for you. As your financial situation has changed, it might be that your current DMP isn’t the best way for you to deal with your debts. However the only way we will know this for sure is if we have a chat with you and find out more about your new circumstances.

I’d suggest you give us a call on 08442 643 643 and speak to an advisor. The line is open from Monday to Friday from 8am until 6pm.

We look forward to speaking to you soon.

Kind regards,

Laura

coolcait

StepChange_Rachel wrote: »

Hi there, thank you for posting.

If you're considering applying for a new HP agreement, you would need to talk this over with the money advisor who set up your DAS. Any changes to your budget & therefore overall surplus need to be discussed before you can enter into any new finance agreement.

You might also be asked to undergo what’s known as a ‘fair & reasonable’ test by the AiB (Accountant in Bankruptcy), and any change to your budget has to be approved by them.

Hope this helps

Best regards

Rachel

I think StepChange Rachel is correct in saying that this is likely to end up with AiB.


If you want to get new/further credit then you generally have to apply for a variation (for essential credit), and that will go to AiB and the 'fair and reasonable' test.


It's probably best to have a chat with your money adviser about this - and they can apply for the variation for you!

GOLFER

coolcait wrote: »

I think StepChange Rachel is correct in saying that this is likely to end up with AiB.


If you want to get new/further credit then you generally have to apply for a variation (for essential credit), and that will go to AiB and the 'fair and reasonable' test.


It's probably best to have a chat with your money adviser about this - and they can apply for the variation for you!

do I have to do this even if my budget wont change

I will still be paying the same monthly payment to my creditors and the HP payment will be the same as it was before I went into the DAS

StepChange_James

GOLFER wrote: »

do I have to do this even if my budget wont change

I will still be paying the same monthly payment to my creditors and the HP payment will be the same as it was before I went into the DAS

Hi GOLFER,

I'd recommend getting in touch with your money advisor, even if your overrall budget situation won't change. It's still a change to your sitaution, so worth talking things through.

Thanks

James

GOLFER

stepchange_james wrote: »

hi golfer,

i'd recommend getting in touch with your money advisor, even if your overrall budget situation won't change. It's still a change to your sitaution, so worth talking things through.

Thanks

james

thanks james

What will happen if I have already been approved for the car, and the finance is in place.

Will I just talk to my money advisor and then hopefully they can sort it out with the DAS

I will contact them today and see what they say

thanks

coolcait

GOLFER wrote: »

do I have to do this even if my budget wont change

I will still be paying the same monthly payment to my creditors and the HP payment will be the same as it was before I went into the DAS

GOLFER wrote: »

thanks james

What will happen if I have already been approved for the car, and the finance is in place.

Will I just talk to my money advisor and then hopefully they can sort it out with the DAS

I will contact them today and see what they say

thanks

I hope that your money adviser was able to help, Golfer.


The reason I mentioned a variation is that, when you're in a DAS, you're not supposed to apply for or get credit except in certain circumstances.


Some of those circumstances don't need a variation - such as money for an emergency repair, or funeral expenses for a close family member.


Apart from that, you're supposed to apply for a variation for "credit to meet an essential requirement". If it's not going to make any difference to your payments, your money adviser will probably point that out in the variation!


Hopefully, by the time you read this, it will all be well on the way to getting sorted out.

sarahfaith399

Good morning, I hope that nobody takes offense to me posting here but I thought you would be the best people to ask.

I have gotten through to the final rounds of interview to be a trainee Debt Caseworker with Citizens Advice.

Firstly I would love any help regarding the interview- such as what questions to expect etc, secondly I would like to know the type of person that you would like to meet who will help you with your debts, for example would it be someone who is non judgemental and understanding and empathetic or would it be someone who would just get stuff done quickly minus the empathetic approach?

I really would appreciate any help

Thank you in advance

Mature-Student

Hi

I started getting letters from a dca (Arrow Global) around 2 years ago re a M&S £15K loan I had supposedly taken out early 2011. Was mentally unwell at that time (family illness, bereavement and redundancy took their toll on me trying to be everything to everyone else), memory is not great for that time, hence the 'supposedly taken out'. So took a template letter and requested copy info with £1 PO. No reply. Checked credit file and there was a default in AG's name from Sept 11.

Continue to get statements from AG and then in late 2013 I notice the statement says I need to speak to a lawyers called Shoosmiths if I want to discuss the debt. Soon after start getting letters from them. So again requested copy info. No reply. But letters keep coming every couple of months or so. So I take another template letter re debt being in dispute as they have not supplied info so cannot chase, etc. Letters get stronger then last month they served court papers for me to respond by 14/11.

Work has a policy of no CCJs / Decrees for staff (common in this industry sector), so decide to bite the bullet and see what I can pay. Phone up S, explain all and make offer. They do offer to look into 'in dispute' issue but at the moment I just need to sort the current situation. They ask for some income & expense info, then phone back later and confirm offer ok, will be reviewed in 6 months and they will suspend court proceedings (Sist) as long as I keep to payments agreed. Got them to send email too.

So arranged to pay lump sum £1k as agreed, and asked if proceedings now halted. They claim this can only be done after the date I'm due to respond. Have I been naive? Are they having their cake and eating it i.e. getting money out of me then having proceedings carry on with me not responding to papers as they advised (verbally only I've just realised) so likely to go against me.

Sorry for the length of this post. I hope you can help. Thanks.

PS Not sure if relevant but advised S I was planning to pay them in priority of other CC debts (min payments to them), stopping pension contributions and making other financial changes in order to pay them off in around 18 months which they said was an acceptable time frame.

Scrimpers

Hi

I am 2 years into a 3 year bank loan and completely up to date with payments. However, my job has gone part-time and I'm really struggling financially. My biggest outlay apart from rent is a bank loan so my hope was to spread the bank loan over a longer period of time and reduce the monthly payment that way. On contacting the bank the only option offered was to take out another loan but as my credit rating is not good enough I was unable to get the extended loan. I was then passed through to their Money Management section where the only help available was something called a No Offer Loan where the loan is apparently frozen but destroys your credit rating for 6 years. Just wondering if anyone had heard of this and what the implications are for going down this route?

Many thanks.