Struggling with debt? Ask a debt advisor a question

Rooster01

Really worried about starting dmp 1st January. I keep thinking have I done the correct thing? Worried about how creditors will react? The one thing that's making me sick with worry is a charging order against my property. I'm hearing more and more about it. Can they start one as soon as I enter dmp? Debts are in my name only but morgage is joint. We currently owe £28,000 but property worth around £177,000. This is what makes me think a charging order will definitely happen. I'm making myself ill with worry.

StepChange_James

Grangey wrote: »

Hello Everyone!

I am currently struggling with my monthly payments back to my loan/credit card companies, so only leaves me with £200 per month for daily living costs. My credit rating is fair so I am also struggling to get a new loan to put everything together.

I don't want to be someone who goes for an IVA and also has 6 years of "blacklisting" on my file. Is there a way I can condense my payments? I have tried speaking to my main lender but they are unwilling to increase the term of my loan in order to make my payments less.

Any help you can suggest would be most appreciated.

[FONT=&quot]Hi Grangey,

Please don’t worry too much about credit ratings, being ‘blacklisted’ is actually a myth and nothing on your credit report is permanent. [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]If you’re struggling to make payments it’s important to make sure you keep on top of your priority household bills and living costs. Falling behind with these could have a bigger impact on you in the long run. [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]You can use our free, anonymous, online Debt Remedy tool www.stepchange.org/msehelp_ which will help you put together a budget and offer you practical advice along with a debt solution to help you get back on track.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]If you would prefer to talk to us, you can call our free helpline by visiting:[/FONT]
[FONT=&quot]www.stepchange.org/contactus.aspx. [/FONT][FONT=&quot]There are a number of different solutions available for you and one of our advisors would be happy to talk these through.[/FONT]
[FONT=&quot]
I hope this helps,[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]James[/FONT]

StepChange_James

Rooster01 wrote: »

Really worried about starting dmp 1st January. I keep thinking have I done the correct thing? Worried about how creditors will react? The one thing that's making me sick with worry is a charging order against my property. I'm hearing more and more about it. Can they start one as soon as I enter dmp? Debts are in my name only but morgage is joint. We currently owe £28,000 but property worth around £177,000. This is what makes me think a charging order will definitely happen. I'm making myself ill with worry.

[FONT=&quot]Hi Rooster01,[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Well done on making the first steps to dealing with your debt. We understand that starting a DMP can be worrying at first however if you are having concerns and your DMP is with us, please feel free to give us a call to talk things through. One of our advisors would be happy to have a chat and you can find out how to contact them here: http://www.stepchange.org/Contactus.aspx [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Or, if your DMP is with another provider we suggest you get in touch with them too.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]We understand it can be stressful but please try not to worry too much about charging orders and the court process. We often hear from clients that have read into every part of the debt collection process from missed payments to court orders but in reality it’s usually never as complicated or worrying as it may seem. A charging order secures a debt to your property so that if the property is sold the debt is repaid from the proceeds. You can however have a charging order removed once you’ve repaid the debt.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]It’s very uncommon for creditors to apply for charging orders, they can only do this once a county court judgment (CCJ) has been taken. People often worry that a charging order means they will have to sell their home when in reality the creditor would have to apply for a further court order which is extremely rare. We often find that creditors are accepting of DMPs and although we can’t say for certain, some creditors might not even take any further action through the courts at all. [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]To give you some perspective about charging orders over 665,000 CCJs were taken out in 2013 and just under 48,000 of these resulted in a charging order. Out of this number only 222 resulted in an order for sale. You can read more about charging orders on our website.[/FONT]

[FONT=&quot]Please bear in mind that it’s not your debt management plan that starts any kind of court processes, it’s the fact that on a DMP you usually make reduced payments to your debts and it’s these reduced payments that have the impact of possible further action.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]I hope this helps and if you have any more worries you know where we are,[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]James[/FONT]

debsaway

thank you for your reply,I have a week off work this week and its my aim to get all my creditors informed of my situation myself,I will use your step change guide many thanks

Rooster01

StepChange_James wrote: »

[FONT=&quot]Hi Rooster01,[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Well done on making the first steps to dealing with your debt. We understand that starting a DMP can be worrying at first however if you are having concerns and your DMP is with us, please feel free to give us a call to talk things through. One of our advisors would be happy to have a chat and you can find out how to contact them here: http://www.stepchange.org/Contactus.aspx [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Or, if your DMP is with another provider we suggest you get in touch with them too.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]We understand it can be stressful but please try not to worry too much about charging orders and the court process. We often hear from clients that have read into every part of the debt collection process from missed payments to court orders but in reality it’s usually never as complicated or worrying as it may seem. A charging order secures a debt to your property so that if the property is sold the debt is repaid from the proceeds. You can however have a charging order removed once you’ve repaid the debt.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]It’s very uncommon for creditors to apply for charging orders, they can only do this once a county court judgment (CCJ) has been taken. People often worry that a charging order means they will have to sell their home when in reality the creditor would have to apply for a further court order which is extremely rare. We often find that creditors are accepting of DMPs and although we can’t say for certain, some creditors might not even take any further action through the courts at all. [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]To give you some perspective about charging orders over 665,000 CCJs were taken out in 2013 and just under 48,000 of these resulted in a charging order. Out of this number only 222 resulted in an order for sale. You can read more about charging orders on our website.[/FONT]

[FONT=&quot]Please bear in mind that it’s not your debt management plan that starts any kind of court processes, it’s the fact that on a DMP you usually make reduced payments to your debts and it’s these reduced payments that have the impact of possible further action.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]I hope this helps and if you have any more worries you know where we are,[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]James[/FONT]

Thanks.....It's Stepchange who I'm with. I requested pack to be sent out....been waiting now for nearly 9 days?

sourcrates

Rooster01 wrote: »

Thanks.....It's Stepchange who I'm with. I requested pack to be sent out....been waiting now for nearly 9 days?

Hi Rooster01,
You have made a few posts in which you advise you are worried about the possibility of a charging order been made against you.


Roo, there are millions of people, such as yourself, who owe money they cant afford to pay back.
Entering a DMP was your best bet at repaying your debts.
As you have been advised previously, a charging order is quiet rare, and an order for sale, even rarer than that.
It would simply be impossible for lenders to take court action on every defaulted debt, the system would literally grind to a halt.
You are just a number to your creditors, one of many, you seem to think the lender is taking this personally, they don't, all there decisions are made purely on a business basis, profit and loss, its that simple.


Stick to your DMP and all should be fine, even if the lender were to apply for a CO, you would have a good defence in court that you were making monthly payments to your debts, a judge would take all this into account.
You are worrying about something that may never happen, try to calm down and get on with your life, the chances of it happening are very slim, in fact about as rare as having a large Lottery win.
So crack on with the DMP, stop worrying, and get those debts paid off, good luck with it

bhp6636

Question: this may be obvious, but is it better to pay off the lower balances of credit cards or work on paying down the high balance high interest rate ones?

Former_StepChange_Rachel

Rooster01 wrote: »

Thanks.....It's Stepchange who I'm with. I requested pack to be sent out....been waiting now for nearly 9 days?

Hi there Rooster01,

Could you give us a quick call and we'll look into this for you?

Best regards

Rachel

Former_StepChange_Rachel

bhp6636 wrote: »

Question: this may be obvious, but is it better to pay off the lower balances of credit cards or work on paying down the high balance high interest rate ones?

Hi there, thanks for posting.

We advise people to first take a look at their budget and work out what is left over once they've paid all of their living costs. From there you can determine what surplus money is left over to pay to each of your creditors. In order to determine exactly what you should offer to each of them, it may be a good idea to prepare a budget and seek some free and confidential debt advice from us. Our anonymous advice tool Debt Remedy can help you do this in approximately 20 minutes.

Hope this helps

Best regards

Rachel

sunshineyday6

Heloo-I have received a default notice from creation even though they didn't return a correct cca and the ombudsman is dealing with my case-I am so confused,I stopped paying after not receiving the CCA and had so many calls which have now stopped thank goodness, is this correect whilst it is with the ombudsman ??