Struggling with debt? Ask a debt advisor a question

StepChange_James

BabyRay11 wrote: »

Hi
Could you tell me if my child's DLA will be considered as income to pay off my debts on a DMP please? I use the money purely to pay for her extras that she needs and save any left over for future big expenditure that I know she will need. I have been told her money would be considered my income as its paid to me. Could you please advise me.
Thanks

Hi there,

Thanks for posting.

We'd usually take the approach of showing your daughter's DLA on the income side of your budget and then subtracting it out on the expenditure side. So that money wouldn't be used to go towards debts but your budget would show that the money comes in and is spent on things your daughter needs.

You haven’t mentioned if you’ve received advice about your situation yet. If this is something you need then we’d be able to help, as a charity all of our advice is free and impartial.
If you do want to get in touch, you can find out how to do this here:

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

I hope this helps and if you’ve got any more questions please let us know.

James

StepChange_James

berbatova998 wrote: »

Hi guys


I have got nearly £20,000 worth of debt. It is made up of several credit cards, payday loans (yep I know). One of the credit cards (HSBC Bank) have been pretty vile. I turned to various debt management companies who all appeared to have ripped me off and I have more debt now than when I first joined the first debt management company 10 years ago.


Anyway I lost my mum last year and am selling her house so I will be able to clear my debts entirely and wondered two things:-


1. What is the best way to clear debts with these people. Presumably not through the debt management company who I should probably cancel as soon as I am in funds. Can I contact each one individually and ask for a settlement figure and will they be generous and lose some of the huge interest accrued.


2. How do I get rid of the County Court Judgment I have which HSBC have got against my name. This happened without my knowledge as the debt management company overlooked to tell me.


Any help would be appreciated.


Thanks.

Hi Berbatova998,

Firstly, if you've had a bad experience with a debt management company then it may be worth making a complaint. The first step it to complain directly to the company, if they don't resolve your complaint to your satisifaction then you could ask the Financial Ombudsman to investigate.

With settlement offers, it's likely that a fee-charging debt management company would charge additional fees to arrange settlements, so it's probably best to avoid these fees if you can.

It's possible to negotiate settlements directly with creditors and many are willing to agree to reduced amounts. From a creditors point of view, they'd often rather have a smaller lump sum now rather than wait many years to get the full amount.

When negotiating settlements it can be handy to have an up to date income and expenditure budget to show what you'll be able to offer out of your income if they don't accept your offer. We can help you put together a budget and provide some pointers on making full and final settlements. Here's our contact details: http://www.stepchange.org/Contactus.aspx.

There's some information about settlement offers on our website here: https://www.stepchange.org/debtinformationandadvice/debtsolutions/settlementoffers.aspx.

Kind regards

James

edit: Realised I didn't answer the second question about CCJS:

You can apply to the court to set aside a CCJ. There's more detail here: http://www.trustonline.org.uk/understand-judgments-fines/ccjs-and-county-courts/set-aside-a-judgment. It may be tricky to convince the court that the CCJ should be set aside, there are fees involved and it's possible the creditor may start the CCJ process again after the original one is set aside.

StepChange_James

jojororo wrote: »

Hey Guys,

I'm looking for some advice.

In 2009 I had built up £54k worth of debts (4 x cc, 1 x loan, 1 x OD)

I took out a DMP with PayPlan and have been paying this for last 6 years

Total amount owing is now down to £40k (mainly due to one of cc's totally writing off amount owed)

Currently paying £115/m so end date is somewhere after 2040

I recently checked my credit history and was expecting to see that the 5 remaining debts would be due to drop off this year.

However default dates ranged from 9/09 to 7/11

I thought that once I entered the DMP and companies agreed to accept low monthly payments that this would be when account officially "defaulted"

Additionally I am in a position where I might be able to "borrow" £10k from a family member if I can clear the debts entirely.

So my questions are....

1. Can I query the default dates and get them to change them to 2009 when DMP was taken out ?

2. Can I write to the creditors directly myself with F&FP offers or do I need to go thru' PayPlan ?

3. What chances that any creditor will accept 25% F&FP offer ? [NB two of debts have been sold on]

4. Should I try and get default dates "fixed" before a F&FP offer or do it at the same time ?

5. Should I try sending a CCA Request ? And again should I do this before the other issues or at the same time ?

Regarding the bank overdraft - this is not showing as defaulted on my credit history but is showing as unpaid [I think I owe £2350 when original OD was £2000]

6. Can debts of this type be "defaulted" - obviously want to avoid this being added now ?

7. If I pay in say £500 so that the account is back under the OD limit should the "black mark" disappear from my credit history ?

8. Should I treat this differently from other debts when negotiating with the creditors

Thanks in advance.
Jo

Hi Jo,

I'll reply using the same numbers as your questions if that's OK.

1. You can query then but the dates don't have to be the date your DMP was taken out, creditors don't have to default an account straight away. The thing to check would be that the date on your credit file is an accurate reflection of the date your account was first defaulted.

2. I'd suggest having a chat with Payplan first and see what they say. I'm not sure if they have a service that will help you then I'm sure they'll be able to give you some advice.

3. There are a lot of factors that go into whether a creditor will accept a settlement offer (some that can feel a bit random too).

4. This is down to you really. It saves an extra phone call/letter if you do it at the same time.

5. We generally only recommend making Consumer Credit Act requests for original agreements in sitations where you're not sure if the debt is yours.

6. I can't see why a bank account couldn't be defaulted. Even though they sometimes don't have minimum payments like a credit card they can still be classed as in arrears if they're over their limits.

7. Bringing your overdraft back within its limits will stop new negative information accululating on that account about it being over the limit. However, the history will still show the period of time it was over the limit.

8. We tread bank overdrafts as equal priority to other similar types of debts like unsecured loans and credit cards.

Thanks for all the questions, I hope all this stuff makes sense.

Kind regards

James

Alfie0611

Hi

Hope you can help. A debt from Lloyds TSB was sold to DCA and they immediately took me to court. I have a CCJ which I am paying.
I am 95% sure this debt was statute barred.
If it was statute arred is there anything I can do as they should not of gone to court.
Or am I too late now the CCJ is lodged.

Any help would be great Thanks

minty96

hi i have a bank account with a 1100 overdraft limit which the abbey charge me 30 month to use they have just sent me a letter saying they are going to reduce it to 700 in july which make me stuck i do have another account in good order with natwest so my problem is do i or can i withdraw the 500 overdrawn i have in there then can i set up a 30 month repayment to abbey to clear the overdraft ! or try set up a new current acccount somewhere else i am not bothered about the account with the abbey but dont want to get any more bad marks against me trying to rebuild my credit my good nat west account i dont want to use so what shall i do i have 2 current accounts with abbey both are overdrawn one by a 350 limit and the other 11oo limit it costs me 60 month to have these now whats the best way around this please

Former_StepChange_Rachel

Alfie0611 wrote: »

Hi

Hope you can help. A debt from Lloyds TSB was sold to DCA and they immediately took me to court. I have a CCJ which I am paying.
I am 95% sure this debt was statute barred.
If it was statute arred is there anything I can do as they should not of gone to court.
Or am I too late now the CCJ is lodged.

Any help would be great Thanks

Hi there, thanks for posting.

Once a CCJ has been granted on a debt it can be difficult to have the judgment set aside, particularly if you acknowledged the debt when the original CCJ forms were sent. If you feel that you have a strong enough case to prove that there was a 6 year period of non-payment or non-acknowledgment before the CCJ was put in place, you can apply for the CCJ to be set aside by filling in an N244 form. The court will arrange a hearing with you to explain your case.

There is a fee of £155 to apply for a CCJ to be set aside, and while there is a chance that the debt may be set aside by the court, we couldn’t say for certain as it’s the decision of the court. Whatever the outcome of the hearing, you’ll still be asked to pay the £155 court fee.

You can find out more information about setting aside a CCJ on the gov.uk website: https://www.gov.uk/county-court-judgments-ccj-for-debt/if-you-dont-owe-the-money

Kind regards

Rachel

billyhoyle

I recommend consulting with Brevan Asset Management for objective advice on how to improve your situation. Best of luck.

Former_StepChange_Rachel

minty96 wrote: »

hi i have a bank account with a 1100 overdraft limit which the abbey charge me 30 month to use they have just sent me a letter saying they are going to reduce it to 700 in july which make me stuck i do have another account in good order with natwest so my problem is do i or can i withdraw the 500 overdrawn i have in there then can i set up a 30 month repayment to abbey to clear the overdraft ! or try set up a new current acccount somewhere else i am not bothered about the account with the abbey but dont want to get any more bad marks against me trying to rebuild my credit my good nat west account i dont want to use so what shall i do i have 2 current accounts with abbey both are overdrawn one by a 350 limit and the other 11oo limit it costs me 60 month to have these now whats the best way around this please

Hi, thanks for getting in touch.

In a situation like this, it might be wise to open a basic bank account with a bank you have no debt balance with and get your money and direct debts transferred to this new account. Staying with Santander may put you in further financial difficulty, as they are within their rights to reduce your overdraft limit whenever they wish.

Applying for a basic bank account may be simpler than applying for a current account, as you’re not asking for a credit facility (overdraft). There’s a guide on our website for applying for basic bank accounts if you’d like to take a look: http://www.stepchange.org/Debtinformationandadvice/Budgeting/Moneymanagement/Bankaccounts.aspx

I can appreciate where you’re coming from as far as not wanting to affect your credit rating. What’s most important now however is that you get all your funds put somewhere safe so you can continue to pay your most important living costs such as rent, utility bills and food. Your credit rating should improve over time once the debts you’re dealing with have been cleared.

I feel from what you’ve told us that it would be a good idea for you to get some free and confidential debt advice. Our Helpline is open Mon-Fri 8am to 8pm and sat 8am – 4pm, and can be reached on 0800 138 1111 (free from landlines and most mobiles). Alternatively, 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

Hope this helps

Kind regards

Rachel

missworried_2

I desperately need help with debt
A few years I lost my job and racked up some debt on 2 credit cards. Struggling with bank charges at the time, interest etc left me struggling to cope. I was unable to continue living in my property (mortgaged) and had to move out and put tenants in as it was close to repossession. The tenants cover mortgage and council tax and bills. That is also the house bailiffs write to and intend to visit.
Before I lost my job I had my credit card for a year before I even made an occasional purchase using it, which I would pay off in full within the month! I buried my head in the sand about my debt, I can't sleep at night, I get panicky and shaky when the phone rings or there's a knock on the door. I literally feel like I'm going to pass out when I receive a bailiff letter.

I've let the situation get ridiculously out of hand and I take full blame for that, even though I was unemployed and in debt I didn't claim any type of benefit and I guess maybe I should have done to get me out of this hole.

For a month now I've started working as a private tutor, at the minute it's not much money as I've just started but it's something, I am also thinking of applying for working tax credit for a few months while I get going - not sure if I can since I own property?

My debt is: £764 on 1 card and £2001.00 on 2nd card. At some stages I was getting letters from perhaps 4 different companies about the same debt, I didn't know whether I was coming or going, eg Red, Lowell, Fredrickson, Hampton, then I didn't open my letters, I didn't deal with it. The £764 debt is past ccj stage, I have had letter from solicitor saying bailiffs are going to come now. The £2001.00 I have had letter from Keynes stating debt is owned by mkdp and informing me of intended legal action.
I am only making £20- £30 a week and have not registered as self employed yet with tax people, should I do that asap? If I start claiming working tax credit that would be £52.00 I believe. I could afford to pay a little bit to debtors every week. I know I'm rambling, it's 3am and I can't sleep thinking about all this. What should I do? Thank you so much in advance

StepChange_Jen

missworried wrote: »

I desperately need help with debt
A few years I lost my job and racked up some debt on 2 credit cards. Struggling with bank charges at the time, interest etc left me struggling to cope. I was unable to continue living in my property (mortgaged) and had to move out and put tenants in as it was close to repossession. The tenants cover mortgage and council tax and bills. That is also the house bailiffs write to and intend to visit.
Before I lost my job I had my credit card for a year before I even made an occasional purchase using it, which I would pay off in full within the month! I buried my head in the sand about my debt, I can't sleep at night, I get panicky and shaky when the phone rings or there's a knock on the door. I literally feel like I'm going to pass out when I receive a bailiff letter.

I've let the situation get ridiculously out of hand and I take full blame for that, even though I was unemployed and in debt I didn't claim any type of benefit and I guess maybe I should have done to get me out of this hole.

For a month now I've started working as a private tutor, at the minute it's not much money as I've just started but it's something, I am also thinking of applying for working tax credit for a few months while I get going - not sure if I can since I own property?

My debt is: £764 on 1 card and £2001.00 on 2nd card. At some stages I was getting letters from perhaps 4 different companies about the same debt, I didn't know whether I was coming or going, eg Red, Lowell, Fredrickson, Hampton, then I didn't open my letters, I didn't deal with it. The £764 debt is past ccj stage, I have had letter from solicitor saying bailiffs are going to come now. The £2001.00 I have had letter from Keynes stating debt is owned by mkdp and informing me of intended legal action.
I am only making £20- £30 a week and have not registered as self employed yet with tax people, should I do that asap? If I start claiming working tax credit that would be £52.00 I believe. I could afford to pay a little bit to debtors every week. I know I'm rambling, it's 3am and I can't sleep thinking about all this. What should I do? Thank you so much in advance

Hi there,

I’m sorry to hear you’re struggling at the moment but it’s good to hear you’re ready to start dealing with your debt. Please know you don’t have to deal with this alone, we’re here to help and offer support.

You mention your creditors have taken court action against you to issue CCJs. To be able to give you the most appropriate advice, it’d be good for us to know a bit more about this situation, as it depends on the stage the court proceedings are at as to the next steps we’d advise you to take. I’d suggest you give our Helpline a call and speak to one of our advisors for free, impartial advice. You can have a chat with the advisor about your situation in more depth, and they’ll be able discuss with you what your options are to deal with the debts.
We’ll also be able to help you find out if you’re entitled to any benefits that you may not be receiving yet, to help maximise your income.
You can give our Helpline a call on 0800 138 1111. It’s free to call from landlines and major mobile networks, and is open from Monday to Friday from 8am until 8pm and Saturdays from 8am until 4pm.
You mention you’re self-employed - we’d encourage you to register as self-employed as soon as possible, so it might be worth looking into doing this. You can find out more about how to register here:

https://www.gov.uk/working-for-yourself/what-counts-as-self-employed

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

Jen