Struggling with debt? Ask a debt advisor a question

StepChange_James

crystal_pixie wrote: »

Hi - hope someone can give me some guidance please.

I am in a position to settle with a very difficult creditor payment in full. However, because I have had so many problems with them I want to make sure I do this by the book.

So I have requested a settlement figure and I have a letter.

Should I sent a letter asking them to confirm that by paying this debt in full this will discharge me of the liability before sending the cheque or is there any legal obligation for the company to do that if I just send them the payment? I really want to get this settled but I am worried they will take my money and still threaten me.

Hi there Crystal Pixie,

It's always a good idea to have any full and final settlement agreement confirmed in writing before making any payment. There's no legal obligation for companies to do this, but I've never heard of any problems with them sending this sort of letter though.

Even if you have something in writing from a company they can still chase you for payment some time down the line. The advantage of having everything documented is that you can produce copies of correspondence and proof of payment which would mean they had no grounds to pursue the debt.

So it's important to keep hold of documents in this situation.

Here's a link to our Helpline contact details: http://www.stepchange.org/Contactus.aspx. Feel free to give us a call if you'd like to talk to someone about this.

Kind regards

James

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ChrisMc182

Majority of my debts have been defaulted for a few years now all roughly between 3 - 5, Will these be taken off my credit file 6 years from defaulted or if I paid them in full now is it 6 years from when the debt was settled so in another 6 years?

Thanks

crystal_pixie_2

StepChange_James wrote: »

Hi there Crystal Pixie,

It's always a good idea to have any full and final settlement agreement confirmed in writing before making any payment. There's no legal obligation for companies to do this, but I've never heard of any problems with them sending this sort of letter though.

Even if you have something in writing from a company they can still chase you for payment some time down the line. The advantage of having everything documented is that you can produce copies of correspondence and proof of payment which would mean they had no grounds to pursue the debt.

So it's important to keep hold of documents in this situation.

Here's a link to our Helpline contact details: http://www.stepchange.org/Contactus.aspx. Feel free to give us a call if you'd like to talk to someone about this.

Kind regards

James

Thanks James - my intention is to pay off the full amount outstanding on the account - however, I am still very nervous that it won't be registered and they will try and come back to me for payment again.

So I have sent them a letter with the cheque sent via registered mail, requesting confirmation of payment and I have called them to say I have done this. I will chase once the cheque has cleared.

Not sure what else I can do. Yes I have kept all my correspondence with this company.

Former_StepChange_Laura

ChrisMc182 wrote: »

Majority of my debts have been defaulted for a few years now all roughly between 3 - 5, Will these be taken off my credit file 6 years from defaulted or if I paid them in full now is it 6 years from when the debt was settled so in another 6 years?

Thanks

Hi there,

Thanks for your message. The default will usually drop off your credit file after six years from the date they’re entered, but it’s possible that other negative information about payments after the default date could still be on there, such as a CCJ.

I hope this answers your question.

Kind regards,

Laura

Rose_Petal

Hi
[FONT=&quot]
I urgently need some advice. [/FONT]

[FONT=&quot]I have just over £21k of unsecured debts, 3 credit cards, 1 loan, 1 overdraft. Up till now although it's been tight, but I've managed to pay the minimum payment on time each month.[/FONT]

[FONT=&quot]I have been a MSE follower for years and I keep a very tight hold on my budget. I no longer keep a car and switch all utilities annually to cheapest offer.[/FONT]

[FONT=&quot]My 2 main sources of income are my salary £25.5k and £600 per month child support (via Child Support Agency (CSA)). However, today I've learned that my ex-partner is stopping his payments as he's contesting them. He did this a number of years ago, and it took ages to sort it out but he did have to pay in the end.[/FONT]

[FONT=&quot]I am very dependent on his payment and his non-payment means I now cannot meet my month commitments this coming month and ongoing. [/FONT]

[FONT=&quot]I don't know which way to turn. I still have a couple of weeks before my mortgage is due and wondering if my best option is to request a payment holiday. I know I must contact my creditors ASAP but thought I'd get some sound advice before making a decision.[/FONT]

[FONT=&quot]Many thanks[/FONT]
[FONT=&quot]Carol[/FONT]

LoveLifeAgain

I am not the person for this, but I do know that the mortgage is a priority and must be paid before unsecured debts are considered. Someone will be along to advise properly I am sure.


Hang in there...

curlyclaz

I am in the process of setting up a DMP with stepchange, I have opened a basic bank account but when I looked at switching accounts there was a line about making sure there is enough in the new account to cover any debit in the old account ?
If I switch using the automatic system will the new bank send enough money to cover my old overdraft ? (from first direct to lloyds) I can't afford to loose that much money hence why I have opened the new account.

StepChange_Jen

Rose_Petal wrote: »

Hi
[FONT=&quot]
I urgently need some advice. [/FONT]

[FONT=&quot]I have just over £21k of unsecured debts, 3 credit cards, 1 loan, 1 overdraft. Up till now although it's been tight, but I've managed to pay the minimum payment on time each month.[/FONT]

[FONT=&quot]I have been a MSE follower for years and I keep a very tight hold on my budget. I no longer keep a car and switch all utilities annually to cheapest offer.[/FONT]

[FONT=&quot]My 2 main sources of income are my salary £25.5k and £600 per month child support (via Child Support Agency (CSA)). However, today I've learned that my ex-partner is stopping his payments as he's contesting them. He did this a number of years ago, and it took ages to sort it out but he did have to pay in the end.[/FONT]

[FONT=&quot]I am very dependent on his payment and his non-payment means I now cannot meet my month commitments this coming month and ongoing. [/FONT]

[FONT=&quot]I don't know which way to turn. I still have a couple of weeks before my mortgage is due and wondering if my best option is to request a payment holiday. I know I must contact my creditors ASAP but thought I'd get some sound advice before making a decision.[/FONT]

[FONT=&quot]Many thanks[/FONT]
[FONT=&quot]Carol[/FONT]

Hi Carol,


Thanks for getting in touch.


I’m sorry to hear that you have to deal with this at the moment but it’s good that you’re being organised in case the payments from your ex-partner do stop.


Your mortgage is a priority bill so we’d usually encourage you to pay this first, along with other priority bills and then make payments to your creditors. You can find out more about priority bills here:

http://www.stepchange.org/Debtinformationandadvice/Budgeting/Whatbillstopayfirst.aspx


You mentioned requesting a payment holiday from your mortgage provider, it’d hard to offer advice about this without knowing more about your situation.

I’d suggest your give our helpline a call and have a chat with one of our advisors. They’ll be able to take a look at your financial situation in more depth, put together a sustainable budget, and recommend a solution suited to you.


You can find out how to get in touch with us here:

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


I hope this helps.


If you have any more questions please let us know.


Jen

Rose_Petal

Hi Jen

Thanks for the advice. I called my mortgage provider to let them know the situation. They want me to complete a Financial Statement and I've booked a phone-appointment for next Wednesday to discuss this further with someone from the Mortgage Company. My next mortgage payment is due on 21st July so I'm trying to remain positive that they can help me find a solution.

Also, I will phone call your helpline tomorrow.

Thank you again for your help, Jen
and thanks for the moral support LoveLifeAgain