Struggling with debt? Ask a debt advisor a question

StepChange_Jen

rai78 wrote: »

Over around 12 years we built up a lot debt; about £15000. The last eighteen months I've been managing this debt and getting it paid off reducing it from the £15000 to just under £12000. This is made up of just over £1000 in a loan and the rest on credit cards. I've been transferring money between the credit cards when a 0% offer is made and also managing our money better so we don't get in any more debt. I've calculated that if we could keep transferring the money, providing nothing happens, we'd be debt free in about three years.
My problem now is that we're running out of time on the 0% offers and not getting anymore of these offers with our current credit cards. We have 0% chance of getting a credit card using the calculator on here and 0% chance of getting a loan. I applied for a loan with my bank, who we have the current loan with, and they offered me 21% APR.
We currently rent the property we live in but own a house 300 miles away which we rent out. I'm worried about applying for a re-mortgage to pay off our debts as the mortgage we currently have is a really good deal. The way our credit rating looks I'm not sure we'd even be able to get a mortgage! I'm also aware that to re-mortgage to cover our debts would probably mean we'd end up paying more back than if we accepted the 21% offer from the bank.
It's really frustrating because we're finally in a position to get debt free but I feel like we have no options.
Is there any way to have the interest on these cards stopped and a payment plan put in place or does the fact we own a house stop anything like that from happening?
I keep hearing of people who've had the debts dropped but I'm not sure how that works and I'm not sure how comfortable I am with that idea. I feel we should pay back what we've borrowed (which we are now in a position to do) but not if the interest rates are going to cripple us.
I'd really appreciate some option suggestions so I can get this sorted before we start getting hit with the credit card interest.
Thank you.

Hi there,

Thanks for posting.

Some creditors are willing to stop interest and charges on debts, usually when they can see that you’re in a position where you can’t afford to keep up with the full payments. This can be done by something called a debt management plan which is organised through a debt advice organisation, or some people negotiate directly with their creditors themselves. The people you’ve heard of that have had some of their debts written off have probably been involved in some form of insolvency, such as bankruptcy, IVAs or DROs. These can be reasonable strategies to deal with debts, but only when they are right for your circumstances.

It can feel overwhelming when you’re trying to find a debt solution but please know you don’t have to deal with this alone. We’re here to help and can offer you free and impartial advice. As part of this process we can help you find out what debt solutions suit your circumstances.

Taking out more credit to pay off other debts might not be the best option for you as there are other more practical solutions you can try.
We have an article about the pros and cons of debt consolidation on our blog that you may find useful:

http://moneyaware.co.uk/2013/01/to-debt-consolidate-or-not-to-debt-consolidate/

I think you’d benefit from giving our Helpline a call and having a chat with one of our advisors about your situation. We can help you put together a budget using details of your debts and income and from this we should be able to work out an action plan that’s best suited to helping you pay off your debts.

You can find out how to get in touch with us here: http://www.stepchange.org/Contactus.aspx

Alternatively, you could use our online tool, Debt Remedy:

http://www.stepchange.org/DebtRemedy.aspx

Debt Remedy takes around 20 minutes to complete and you’ll be asked to enter details about your budget, income and debts. Once completed you’ll receive advice based on your circumstances and a solution will be recommended.

I hope this helps and if you’ve got any questions you know where we are.

Jen

Goldfish31

Hi, I currently have a DMP via SC and stupidly have used catalogues for Christmas and birthdays and now struggling to meet payments. Can I add this to my current DMP.


I have emailed SC and waiting to hear back.


Thank you x

StepChange_Jen

bride2be2012 wrote: »

We are struggling with our debts at the moment.
We have separate finances, mortgage and cars all in my husbands name. His credit file is good, mine is a mess - late payments, one card I've not paid even minimum since July. At the moment my husband helps me to pay my debts but we still struggle. Is it possible for me to have a DMP in my name only but my husband can help me pay it, without affecting his credit rating?

[FONT=&quot]Hello,[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Thanks for posting.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]I’m sorry to hear you’re struggling with your debts at the moment but well done for taking the first steps towards sorting them out. [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Firstly, if you haven’t already, it might be worth getting some free and impartial advice about how to deal with your debts. A DMP is just one of the solutions available and it could[/FONT]
[FONT=&quot]be that there’s a different solution that’s more suited to your situation. We offer free, impartial advice and a range of debt solutions, you can find out how to contact our Helpline here:[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]http://www.stepchange.org/Contactus.aspx[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Or, if you’d prefer, you could use our online tool Debt Remedy. Debt Remedy works in the same way as our Helpline, except instead of talking with an advisor you can[/FONT]
[FONT=&quot]enter the same information online. Details of your income, budget and debts will be taken into account before a personal action plan is created to help you deal with your debts.[/FONT]
[FONT=&quot]Debt Remedy takes about 20 minutes to complete and you can find it on our website here:[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]http://www.stepchange.org/Debtremedy.aspx[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]In answer to your question your credit rating does tend to be affected by a DMP because you are usually paying less than the minimum amount to your creditors while on the plan. Your credit file will improve over time, however and if the debts are only in your name, your husband’s credit rating should not be affected as they won’t appear on his file. [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]When a DMP is put together, details of your budget, income and debts are all taken into account and then what you have left over at the end of the month is split between your creditors. Whoever oversees your DMP can advise on how to treat any contributions your husband is able to provide to your debts.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]I hope this helps and if you’ve got any questions you know where we are.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Jen [/FONT]

Former_StepChange_Rachel

bride2be2012 wrote: »

We are struggling with our debts at the moment.
We have separate finances, mortgage and cars all in my husbands name. His credit file is good, mine is a mess - late payments, one card I've not paid even minimum since July. At the moment my husband helps me to pay my debts but we still struggle. Is it possible for me to have a DMP in my name only but my husband can help me pay it, without affecting his credit rating?

Hi there, thank you for posting

From everything you've told us, I think you would benefit from some free and confidential debt advice.

It is possible to have a DMP just in your name. You might need to outline what your individual contributions are to the household as your creditors will need to understand how much of your income goes towards priority expenses such as mortgage, council tax, utilities etc, and of course any living expenses you may have such as food, toiletries, and sundries.

As we are a debt advice charity, we'll be able to take a look at your situation and give you some practical options on how you're best dealing with these debts.

Our online anonymous advice tool Debt Remedy can help you put together your own personal action plan in approximately 20 minutes: http://www.stepchange.org/debtremedy.aspx?domain=www.MoneyAware.co.uk

You can also get free and confidential advice via our Helpline. Visit our contact us page to find out more.

Hope this helps

Kind regards

Rachel

Former_StepChange_Rachel

Goldfish31 wrote: »

Hi, I currently have a DMP via SC and stupidly have used catalogues for Christmas and birthdays and now struggling to meet payments. Can I add this to my current DMP.


I have emailed SC and waiting to hear back.

Thank you x

Hi there, thank you for posting.

The best thing to do would be to give us a call so we can update your records and talk through any changes that need to be made to your debt solution.

Best regards

Rachel

lucky_magpie_2

We are seriously in debt and need some advice.

My partner is 51 years old and I am 50.
We have a mortgage with Nationwide still owing
£140,749.00 with approx 25 years to go as extended mortgage to 32 years.
A secured loan with First Plus which was over 25 years, the total was for £89,000
but still owing £85,634.00 after 9 years due to very high interest rate. We were
misold the loan which is also being looked into.
I have two CCJs with the Nationwide due to a DMP company telling me not to pay as the Nationwide wanted too much money, and the DMP company would sort it out but did not, the 6 years will be finished in November 2015, I still owe approx £2500 paying £40.14 per month which means it will take me years to pay it off, with the Nationwide also taking out a further extension of my CCJs. These CCJs were not even my fault. They also put a charge on my house.
I have a Debt Management Plan paying £20 per month with a balance of £4491.15 which will be finally paid off in 2033.

£140,749.00 Nationwide mortgage
£85,634.00 First Plus
£2500 DMP
£4491.15 CCJs

Total £233374.15

The value of our house is £300,000.00 which leaves us £66625.85 in equity.

I have spoken to Stepchange as I wanted to go onto an IVA, but they advised that I do not have enough debt to do this. They also told me I am unable to go bankrupt as I have to much equity to do this. There is nothing they can do for me.
I have spoken to the Nationwide mortgage to find out if I could put the Nationwide mortgage and First Plus together. I was told that I will be declined if they try and put a mortgage through. As I have CCJs I will never be able to get a mortgage again.
Apparently I will be shown as a risk to pay it back even though I pay £1400 per
month at the moment with no late payments.

Can anybody help us sort this mess out, as I have tried every avenue possible.

Former_StepChange_Rachel

lucky_magpie wrote: »

We are seriously in debt and need some advice.

My partner is 51 years old and I am 50.
We have a mortgage with Nationwide still owing
£140,749.00 with approx 25 years to go as extended mortgage to 32 years.
A secured loan with First Plus which was over 25 years, the total was for £89,000
but still owing £85,634.00 after 9 years due to very high interest rate. We were
misold the loan which is also being looked into.
I have two CCJs with the Nationwide due to a DMP company telling me not to pay as the Nationwide wanted too much money, and the DMP company would sort it out but did not, the 6 years will be finished in November 2015, I still owe approx £2500 paying £40.14 per month which means it will take me years to pay it off, with the Nationwide also taking out a further extension of my CCJs. These CCJs were not even my fault. They also put a charge on my house.
I have a Debt Management Plan paying £20 per month with a balance of £4491.15 which will be finally paid off in 2033.

£140,749.00 Nationwide mortgage
£85,634.00 First Plus
£2500 DMP
£4491.15 CCJs

Total £233374.15

The value of our house is £300,000.00 which leaves us £66625.85 in equity.

I have spoken to Stepchange as I wanted to go onto an IVA, but they advised that I do not have enough debt to do this. They also told me I am unable to go bankrupt as I have to much equity to do this. There is nothing they can do for me.
I have spoken to the Nationwide mortgage to find out if I could put the Nationwide mortgage and First Plus together. I was told that I will be declined if they try and put a mortgage through. As I have CCJs I will never be able to get a mortgage again.
Apparently I will be shown as a risk to pay it back even though I pay £1400 per
month at the moment with no late payments.

Can anybody help us sort this mess out, as I have tried every avenue possible.

Hi there, thank you for posting.

I’m sorry to hear that things have been so difficult. From what you’ve described it sounds like the mortgage, secured loan and the charge on your property are causing you a huge amount of worry.
When it comes to IVAs, these tend to be suitable in situations where a person is deemed insolvent. As you have quite a bit of equity in your property, and this is greater than the amount of unsecured debt you owe, it’s likely that an IVA was not suitable for you.

As a result I understand that your options may feel quite limited. I’d encourage you to contact us again and we can talk about what your best option is.

Kind regards

Rachel

roofie71

Hello, Having struggled with debts for some time I wrote to my 4 creditors on Jan 1st this year asking them to hold my ccounts for a couple of months and if possible to freeze interest, just to give me a bit of time to sort everything out and address y budget and what I would be able to afford to pay. I also asked if they cold let me know what I owed them to date. Two of my creditors wrote straight back and were very helpful. The other two, namely Vanquis and Quik quid did not respond to the letter and Vanquis in particular have been chasing me, but no mention of the letter, freezing the accont/interest or an update on the balnce to date, though I did get a regular stateent very recently. The letter I sent them is below. Am I right in thinking that although they aren't obliged to freeze interest etc, they are obliged to respond to me? To be fair they have been trying to call me, but I am also trying to cope with depression and am finding it very difficult to talk on the phone with anyone, least of all my creditors, so I was hoping they would respond in writing.
[FONT=&quot]1 January 2015[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Dear Sir/Madam[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Without Prejudice[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Account name: ********[/FONT]
[FONT=&quot]Account number: ********[/FONT]
[FONT=&quot]I write with reference to the money which you are claiming on the above account.[/FONT]
I am sorry that I have been unable to keep up my monthly payments to your company. This is because I lost my job and have since gone self employed. I am trying to build my business and it is starting to show signs of potential growth, however, my husband has also been absent from work for 3 months, with what has become an ongoing mental illness. This has meant our household has been much more reliant on me, which has meant that my mental health has suffered too. My business is a seasonal one and it is expected that it will vastly improve in the Spring once the next 3 months are out of the way.
I am writing to you, along with all my creditors to ask for details of the balance outstanding on my accounts. I would be grateful if you could forward this information as soon as possible so that i may start to address the situation. Once I have this information I will be able to work out how much I can afford to pay to each creditor at present. As it may take a little time for all my creditors to reply, it would be helpful if you could hold action on my account for two months and agree to freeze interest and other charges to stop my debt increasing. If you are unable to agree to this, please explain your reasons.
Thank you for your help and I look forward to hearing from you.

Former_StepChange_Rory

roofie71 wrote: »

Hello, Having struggled with debts for some time I wrote to my 4 creditors on Jan 1st this year asking them to hold my ccounts for a couple of months and if possible to freeze interest, just to give me a bit of time to sort everything out and address y budget and what I would be able to afford to pay. I also asked if they cold let me know what I owed them to date. Two of my creditors wrote straight back and were very helpful. The other two, namely Vanquis and Quik quid did not respond to the letter and Vanquis in particular have been chasing me, but no mention of the letter, freezing the accont/interest or an update on the balnce to date, though I did get a regular stateent very recently. The letter I sent them is below. Am I right in thinking that although they aren't obliged to freeze interest etc, they are obliged to respond to me? To be fair they have been trying to call me, but I am also trying to cope with depression and am finding it very difficult to talk on the phone with anyone, least of all my creditors, so I was hoping they would respond in writing.
[FONT=&quot]1 January 2015[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Dear Sir/Madam[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Without Prejudice[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Account name: ********[/FONT]
[FONT=&quot]Account number: ********[/FONT]
[FONT=&quot]I write with reference to the money which you are claiming on the above account.[/FONT]
I am sorry that I have been unable to keep up my monthly payments to your company. This is because I lost my job and have since gone self employed. I am trying to build my business and it is starting to show signs of potential growth, however, my husband has also been absent from work for 3 months, with what has become an ongoing mental illness. This has meant our household has been much more reliant on me, which has meant that my mental health has suffered too. My business is a seasonal one and it is expected that it will vastly improve in the Spring once the next 3 months are out of the way.
I am writing to you, along with all my creditors to ask for details of the balance outstanding on my accounts. I would be grateful if you could forward this information as soon as possible so that i may start to address the situation. Once I have this information I will be able to work out how much I can afford to pay to each creditor at present. As it may take a little time for all my creditors to reply, it would be helpful if you could hold action on my account for two months and agree to freeze interest and other charges to stop my debt increasing. If you are unable to agree to this, please explain your reasons.
Thank you for your help and I look forward to hearing from you.

Hi there,

Thanks for posting.

It's good to hear that some of your creditors have responded to let you know that they're willing to help you. It sounds like the other creditors have tried to get in touch with you by phone rather than letter, which they're allowed to do.

If you'd prefer them to write to you, write to them and ask them to only contact you by letter and explain the situation. As long as the creditors have one method of contact, this should be enough.

In most cases, creditors just want to understand the situation so that they can come to an arrangement or agreement on how you plan to deal with the debts. If you feel that you can speak to them over the phone this could help resolve things more quickly.

It also sounds like you'd really benefit from some free, impartial advice on how to deal with your debts which we'd be happy to help you with. As a charity we deal with anyone struggling with debts and offer practical advice and debt solutions.

You can use our free online Debt Remedy tool to enter details about your situation and debts, and in about 20 minutes you should have a personalised action plan and a debt solution to help you move forward.

I hope this helps,

Rory

solong

I have got a little behind with my council tax since Christmas and have agreed to pay them £200 per month. I have made a silly error and send them an online payment, forgetting that I had set up a standing order. They have received £400 yesterday. I phoned the bank and asked if possible to stop standing order but they can't do this as it is too late.


I don't expect that the Council will send me my money back.


My DD (£400) for stepchange has already gone from my bank account, shows 2/3/14 on my statement. The creditors get paid around the end of the month.


My question is.....


Will stepchange be able to send me the £400 back and then maybe accept a reduced payment for one month?? I am worried sick.


Thank you in advance.x