Struggling with debt? Ask a debt advisor a question

Former_StepChange_Rory

Paul.S100 wrote: »

hi, we have several creditors owing a combined £30,000 on loans and credit cards. We have been in a DMP previously but decided to go our own way with repayments. We have sold our house and are living with friends which has released £16,000 in equity. Is it possible to contact the creditors and offer a lower figure than what is owed in order to settle the debt? Will this affect my credit rating?


many thanks if you can help

Hi there,

If you're in a position to offer a reduced settlement figure then it is possible to do this yourself by negotiating with your creditors.

There aren't any specific amounts or percentages that we could suggest offering as each creditor will likely want to discuss this with you individually and the amounts they accept do vary.

Although settlement offers are quite commonly accepted, it does depends on how much creditors will accept and they don't have to accept them if they don't want to. If you do negotiate an affordable amount, always make sure that any offers are put into writing by the creditor.

When a debt is settled this way this is usually marked on your credit file as a partial settlement and like other things on your credit file it will usually show for 6 years.

If you've already been making reduced payments to your debts then it's very likely this will have already affected your credit, but remember that nothing on your credit report is permanent and generally nothing shows longer than 6 years.

If you'd like us to help, we have a settlements team who may be able to offer advice and discuss your options with you. We'd first need to know more about your situation and the amount you have to offer and you can contact us at https://www.stepchange.org/contactus.aspx for more information.

I hope this helps, good luck with your offers and if you would like us to help you then please don't hesitate to get in touch.

Rory

Magi74

With some recent changes to my personal circumstances I now have an extra sum of cash available for my DMP. Been paying every month (every debt is either defaulted or on A2P) but in driving the debt down to zero my pension plans are very much on hold.

So, now that I've got spare cash I could kick-start my pension again. Except...don't I have to pay every bit of spare cash to my DMP? When I've done an annual budget renewal with Step Change in the past I've been told "ok, you've got £x left. How much of that do you want to use to pay off your DMP?". That suggests there's a degree of flexibility....

....but is that right? Am I allowed to have money left over from my budget after my DMP payment? Some confirmation would help my planning...

MTIA

Former_StepChange_Rory

Magi74 wrote: »

With some recent changes to my personal circumstances I now have an extra sum of cash available for my DMP. Been paying every month (every debt is either defaulted or on A2P) but in driving the debt down to zero my pension plans are very much on hold.

So, now that I've got spare cash I could kick-start my pension again. Except...don't I have to pay every bit of spare cash to my DMP? When I've done an annual budget renewal with Step Change in the past I've been told "ok, you've got £x left. How much of that do you want to use to pay off your DMP?". That suggests there's a degree of flexibility....

....but is that right? Am I allowed to have money left over from my budget after my DMP payment? Some confirmation would help my planning...

MTIA

Hi there,

We'd be happy to talk to you about your budget and discuss any changes in circumstances with you.

We understand the need to put money aside for essential costs and if you're looking to put money towards your pension then we'll look at this and your budget and explain your options.

You can find our contact details and opening hours at https://www.stepchange.org/contactus.aspx

We look forward to speaking to you soon.

Rory

chris27

Hi team, I'm going through my finances and need a bit of help/advice.

I have a number of debts I'm repaying still from quite a number of years ago. I'm 35 now, and I know at least 2 of them are from over 10 years ago easily.

I set up agreed monthly payments which go out every month without fail, but my problem is I have no idea now what I'm paying back, how much I still owe or who to contact to find out this info.

I don't know who to look to, the reference numbers on the payments from my bank don't seem to be much use. I've tried to contact the companies involved but they don't seem able to get any info from the ref numbers.

My credit file doesn't have any information about them either due to the age of the debts.

I'm really stuck here, and don't know where to turn. Hoping someone can help me.

Former_StepChange_Laura

chris27 wrote: »

Hi team, I'm going through my finances and need a bit of help/advice.

I have a number of debts I'm repaying still from quite a number of years ago. I'm 35 now, and I know at least 2 of them are from over 10 years ago easily.

I set up agreed monthly payments which go out every month without fail, but my problem is I have no idea now what I'm paying back, how much I still owe or who to contact to find out this info.

I don't know who to look to, the reference numbers on the payments from my bank don't seem to be much use. I've tried to contact the companies involved but they don't seem able to get any info from the ref numbers.

My credit file doesn't have any information about them either due to the age of the debts.

I'm really stuck here, and don't know where to turn. Hoping someone can help me.

Hi chris27,

Thanks for your message. Your creditors should be able to give you an up to date balance and statement showing the transactions on your account, including any interest and charges that have been added. I’d suggest you request this information in writing, and you might find it useful to have a look at this template letter as a guide: http://moneyawarecouk.c.presscdn.com/wp-content/uploads/StepChange-Debt-Charity-Right-to-information-request.pdf

I hope this helps.

Kind regards,

Laura

cactusplant

Hello

I've ran into a few problems recently regarding debt with HMRC. I had a late filing fee and am behind on my NI payments (Primarily because I don't actually make enough to pay them at the moment although I sent a exemption form, I'm still being told to pay them)

Is there any way I can somehow arrange a weekly/Monthly payment plan to clear these debts as that would be far easier for me as money is pretty tight at the moment.

If there is any other advice that I should be aware of, id be very thankful.

Bagpuss89

Hi Im currently struggling to keep up with payments to my online catalogue shopping companies and wondered if a credit card was a good idea to get to pay them all off or would a loan be better? their interest and charges are so much that what ever I pay it doesnt seem to go down. I dont know where to start. I currently owe approx £4,000.00 all together to four online catalogues and to tesco credit card. Thanks in advance.

Former_StepChange_Rachel

Bagpuss89 wrote: »

Hi Im currently struggling to keep up with payments to my online catalogue shopping companies and wondered if a credit card was a good idea to get to pay them all off or would a loan be better? their interest and charges are so much that what ever I pay it doesnt seem to go down. I dont know where to start. I currently owe approx £4,000.00 all together to four online catalogues and to tesco credit card. Thanks in advance.

Hi there, thank you for getting in touch.

We wouldn't usually recommend taking out further credit to pay off debt you may already have. Doing this can sometimes make your situation more difficult, as you may be tempted to carry on using those credit facilities which could put you further into debt.

The debts you've described are what we call non-priority debts, and it's much more important to stay on top of living expenses such as rent, mortgage, council tax, utilities and food. By putting together a budget to figure out what you have left over once you've covered these important payments, you'll be in a much better position to work something out that's realistic for you.

It might be a good idea to get in touch with us for some free and confidential debt advice. We can have a look at your full situation and recommend any debt solutions that may be available to you.

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

If you prefer, you can speak to one of our Helpline advisors and go through your budget over the telephone. Visit our contact us page for more information: http://www.stepchange.org/Contactus.aspx

Hope this helps

Best regards

Rachel

Former_StepChange_Rory

cactusplant wrote: »

Hello

I've ran into a few problems recently regarding debt with HMRC. I had a late filing fee and am behind on my NI payments (Primarily because I don't actually make enough to pay them at the moment although I sent a exemption form, I'm still being told to pay them)

Is there any way I can somehow arrange a weekly/Monthly payment plan to clear these debts as that would be far easier for me as money is pretty tight at the moment.

If there is any other advice that I should be aware of, id be very thankful.

Hi there,

HMRC debts such as income tax should always be treated as a priority and you should contact them to make an offer of repayment as soon as you can.

It would be difficult to say what arrangement HMRC would look to agree with you but you should make sure you discuss this with them and then stick to any arrangement you make. Although in many cases HMRC should be able to agree a repayment with you, they do have powers to enforce debts through many different means including bailiffs, deduction from wages and in some cases bankruptcy.

If you're struggling to repay the debt or you're still unsure what to do then we can help. You can find out more about how to contact us by visiting https://www.stepchange.org/contactus.aspx.

Also, if you're unable to make an arrangement with HMRC then you could also seek help from Tax Aid at http://taxaid.org.uk/

I hope this helps,

Rory

fenix69

Hello
I wonder if someone can help?
I received a Default CCJ in the post yesterday I was horrified!


I have an Audi 4 years ago and due to my nasty divorce I had to hand it back to the finance company whom informed me it would be sold at auction. I moved home. I always assumed they sold it which cleared the finance (there was approx. £7k owed and the car was worth apporx £13k)


Then yesterday as my new home (lived there 3 years now) I got the letter from the County Court with a Default CCJ demanding payment. Is there anything at all I can do about this? There is no way on earth I can afford to pay this as I am currently on long term sick from work on SSP.


Any advice would be great


Thanks
Amanda