Struggling with debt? Ask a debt advisor a question

Former_StepChange_Rory

flis21 wrote: »

Hello,


I am having some problems at the moment trying to sort out my financial statement. I get most of my money 4 weekly, but all the financial statement tools round it up to monthly. I understand that this shows how much I receive accurately over a year, but it means it is showing I have more available spare income a month that I actually get in my bank. I am worried if I sign up to a DMP on this basis I won't be able to keep up with the payments. Is there any way around this? Can you do a DMP on a 4weekly basis instead of a calendar month basis?


Thanks,
Flis

Hi Flis21,

This is really about managing your money to make sure that you have the right amount available each month to make payments.

You could put money to one side for the payment each week by dividing the amount up and hopefully it will soon be something you get used to doing.

I wouldn't let this worry you, speak to the advisor and discuss the best way to manage the payments and your money and I'm sure they'll be happy to help.

Rory

56978

Hi all,

Really helping someone can help me. I've been paying a debt collector for about 6 years. They have offered me a full and final settlement which would write off about £3k. I'm aware they'd still be making profit. I am in a position where, as my credit file is really great (after working really hard on it for 6 years) I could get a new loan to pay the settlement. I'm aware I'd then be paying interest which I currently don't pay but I want a genuine loan rather than paying a debt collector. The debt collector has said that I have to tell them where I'm getting the money from to pay the settlement. Do I have to tell them as they're demanding? And if I do could the fact I'm getting a new loan let them retract their offer? Does anyone know this?

Former_StepChange_Rachel

56978 wrote: »

Hi all,

Really helping someone can help me. I've been paying a debt collector for about 6 years. They have offered me a full and final settlement which would write off about £3k. I'm aware they'd still be making profit. I am in a position where, as my credit file is really great (after working really hard on it for 6 years) I could get a new loan to pay the settlement. I'm aware I'd then be paying interest which I currently don't pay but I want a genuine loan rather than paying a debt collector. The debt collector has said that I have to tell them where I'm getting the money from to pay the settlement. Do I have to tell them as they're demanding? And if I do could the fact I'm getting a new loan let them retract their offer? Does anyone know this?

Hi there, thanks for posting

It's worth thinking carefully about taking out further credit in order to pay off debt you already have, as this can often make your situation more difficult. If you do decide to make a settlement offer on this loan however, try asking the creditor to confirm in writing that they’re happy to settle at a certain figure. This way you have evidence that a settlement was agreed before you make a payment. While you’re not obliged to tell the creditor where your settlement funds came from, they are not under obligation to accept the settlement offer either. You can read more about settlements and the various options you may have here:

http://www.stepchange.org/Debtinformationandadvice/Debtsolutions/Settlementoffers.aspx


Kind regards

Rachel

clockfreddie

Hi

I need some advice on my debts I've been trying to hide from them but I no I need to face them but I really need help on it I owe RBS £9911,Barclay card £4,549,Santander £4000, BOS £2000 these are all in default as I have not been able to keep up with the repayments

I've tried a couple of years ago to face these debts and thought about an IVA or bankruptcy but I work as a sales manager and I know my boss would frown on me for going down this route.So for a few years now I've just been ignoring them I no it's not the answer and I've been paying my overdraft on my bank account down which is at £650 now.

I work full-time and earn £500 a week and my monthly out goings are roughly £1500 so I would have money left over to try and pay something to my debts but I've no idea where to start please can someone give me some advice on what to do.

I'm 59 I rent my home and I don't own a car (work provides my car) or house I am separated and have two young children they live with their mother and I pay child maintenance of £100 a week.I really worry to the point it's making me ill I worry about my children's future and need help to sort my finances out .

colsten

babetteo wrote: »

Buy a visa, passport, driving license,

Give babetteo a free :spam: button press

StepChange_James

clockfreddie wrote: »

Hi

I need some advice on my debts I've been trying to hide from them but I no I need to face them but I really need help on it I owe RBS £9911,Barclay card £4,549,Santander £4000, BOS £2000 these are all in default as I have not been able to keep up with the repayments

I've tried a couple of years ago to face these debts and thought about an IVA or bankruptcy but I work as a sales manager and I know my boss would frown on me for going down this route.So for a few years now I've just been ignoring them I no it's not the answer and I've been paying my overdraft on my bank account down which is at £650 now.

I work full-time and earn £500 a week and my monthly out goings are roughly £1500 so I would have money left over to try and pay something to my debts but I've no idea where to start please can someone give me some advice on what to do.

I'm 59 I rent my home and I don't own a car (work provides my car) or house I am separated and have two young children they live with their mother and I pay child maintenance of £100 a week.I really worry to the point it's making me ill I worry about my children's future and need help to sort my finances out .

Hello,

Thanks for posting, it sounds like these debts are weighing heavily on you at the moment, so it's a good idea to try to get them sorted out. We can help you start that process and work out a plan.

I'd recommend using our Debt Remedy advice tool: http://www.stepchange.org/DebtRemedy.aspx. It's a bit like an online questionnaire but it will take your details and provide a detailed income and expenditure budget and an action plan to deal with the debts.

Debt Remedy can make a recommendation to you about the available options and will provide instructions on the next steps depending on which solution you select.

You mention that the pressure of dealing with these debts is making you feel ill. Often getting advice about your debts can make you feel a lot more positive but if you continue to feel unwell I'd suggest talking to your doctor.

Being in Debt can be very stressful and it's important to take care of yourself and get help if you feel like you're struggling.

I hope this helps.

Kind regards

James

StepChange_James

colsten wrote: »

Give babetteo a free :spam: button press

Thanks Colsten,

I've given the spam button a click too. Hopefully that comment will be taken down soon.

James

Dfwannabe

Hi, my situation is the 'light-bulb' has finally gone on, head is now out of the sand and I've realised I need to sort out the debt I've gotten myself into after a year of being un-employed and using all my savings up to survive. 3 years on I'm still limping along, barely able to meet minimum repayments, defaulted on several mortgage payments (now paid) etc.
I believe a DMP may be the right route for me and have spoken to a friend who is already on a DMP and seems to be getting on very well and living a lifestyle I would have been envious of when I was financially secure before I was unemployed for a year... They say that they did not have to show any proof of income (payslips etc), have a DMP which extends to 20+ years ... I'm confused, I was assuming I would/should be providing proof of income as well as putting together a budget....otherwise, isn't the system open to fraud re: 'massaging' income/outgoings to ultimately pay less to cc companies etc ?

Stephanoir

Hi there,

I have had three debts with three different collection agencies a couple of which have been sold on as I am currently on maternity leave and unable to make any payments.

Today I was called by Cabot Financial who asked me a number of security questions before they could provide information regarding the call. When I gave my full name I was told that they had different details as to what I had given and they were unable to speak to me further regarding the matter until I have sent them a copy of my birth certificate or another proof of ID.

I am not really keen on sending this until I know what it's to do with (however I do think it is probably a debt which has been sold on). Could someone please advise on what I should do? Is there anyway I can find out about the matter without sending this information and am I liable for it if they have the incorrect details?

Thanks in advance for your help!

StepChange_James

Dfwannabe wrote: »

Hi, my situation is the 'light-bulb' has finally gone on, head is now out of the sand and I've realised I need to sort out the debt I've gotten myself into after a year of being un-employed and using all my savings up to survive. 3 years on I'm still limping along, barely able to meet minimum repayments, defaulted on several mortgage payments (now paid) etc.
I believe a DMP may be the right route for me and have spoken to a friend who is already on a DMP and seems to be getting on very well and living a lifestyle I would have been envious of when I was financially secure before I was unemployed for a year... They say that they did not have to show any proof of income (payslips etc), have a DMP which extends to 20+ years ... I'm confused, I was assuming I would/should be providing proof of income as well as putting together a budget....otherwise, isn't the system open to fraud re: 'massaging' income/outgoings to ultimately pay less to cc companies etc ?

Hi there,

Thanks for getting in touch.

We ask our clients to provide proof of income when we set up a DMP for them but this could be different for other providers.

There's an element of trust when it comes to putting together income and expenditure budget and in my experience the vast majority of people are honest about their figures. It's in everyone's best interest as "massaged" figures are very likely to lead to the advice not being right for that person.

You mention that your friend has a 20+ year DMP. Every situation is different, so I can't comment on their specific case but generally speaking a DMP isn't a good idea if it's really going to take that long to clear debts.

However, if things are tight in the short term but it's likely payments can be increased in the future then that 20+ year estimate is less of an issue as eventually the estimated time will reduce to something more realistic.

If you'd like in depth advice about how to deal with your debts I'd suggest using our Debt Remedy advice tool: http://www.stepchange.org/DebtRemedy.aspx. It's online, takes about 20 minutes and will give you an action plan with recommendations about how to deal with your debts.

Kind regards

James