Struggling with debt? Ask a debt advisor a question

Thrugelmir

ChrisMc182 wrote: »

if I paid this off partially satisfied the now would I be able to improve my credit more by doing that and using a credit card to
Build it back up rather than waiting for it to fall off next year?

Not repaying money you've borrowed ultimately is a reflection of you. Ask yourself a question. Is a lender going to advance me thousands of pounds if my credit record shows that I'm not the sort of person that can be relied upon to repay several hundred.

enoughofbeingskintthanks

Hi, Im looking into a DMP with StepChange. However, Im a little worried about charging orders. How likely are cc, catalogue or loan providers likely to use this if I go onto a DMP?


Also, the department of the firm of solicitors that I work for has regular correspondence from StepChange, basically receiving cheques for DMPs, IVAs etc. so it's likely that my details will be spotted by my neighbourng colleague Can I request that another firm of solicitors is used so that none of my colleagues find out? Im assuming the firm that I work for is one of a few that StepChange would write to?

Former_StepChange_Rory

enoughofbeingskintthanks wrote: »

Hi, Im looking into a DMP with StepChange. However, Im a little worried about charging orders. How likely are cc, catalogue or loan providers likely to use this if I go onto a DMP?


Also, the department of the firm of solicitors that I work for has regular correspondence from StepChange, basically receiving cheques for DMPs, IVAs etc. so it's likely that my details will be spotted by my neighbourng colleague Can I request that another firm of solicitors is used so that none of my colleagues find out? Im assuming the firm that I work for is one of a few that StepChange would write to?

Hi,

Thanks for posting.

We'd be happy to help you deal with your debts, whether a DMP is one of the solutions we recommend would be something we'd talk to you about once you get in touch with us.

To put charging orders into perspective, it's useful to look at some of the figures. First of all, a charging order can only be applied for if the creditor has decided to take a County court judgement (CCJ) against you. It would be really difficult to tell you how likely a creditor is to do this, as from experience it really does depend on the individual creditor.

Of the 667,168 CCJs taken out in 2013, 47,769 of these resulted in a charging order - that's just over 7% of all the CCJs taken that year. Of this number, only 0.4% resulted in someone being forced to sell their property to recover the debt, which is known as an 'order for sale'.

Although creditors can apply for a charging order in some cases, it's usually done to secure a debt until it's either repaid, or until you sell your property. The chances of being forced to sell a property are extremely small. If it helps, have a read of our section on charging orders on our website.

There's always lots of questions, concerns and things you'll be unsure about when dealing with debts, which is why we'll be able to answer them, offer more support and help you make the right decision once we know more about your situation.

To answer your second question, we're not sure whether the company you work for acts as a legal firm for other companies that deal with debts. Sometimes debt collection companies or creditors such as banks will use solicitors to help deal with their debts, which is part of the normal collections process. This might offer some explanation as to why you may have seen this, but I think it would be best to speak to us about this first so we've got some more information.

Whichever way you decide to deal with your debts, our advice is free, confidential and impartial and we'd always want you to be informed first before going ahead with any debt solution. Don't feel pressured into making a choice until you've spoken to us, had a look at your options and decided on what's best for you.

I hope this helps,

Rory

mariamunkey

Hi,
I have a long history of debt that I basically ignored and learned to get by on what i was paid each week. I did try to get into some sort of repayment plan a few times over the years with the citizens advice bureau but nothing was ever achieved.
I am now determined to get everything consolidated if possible and enter into some kind of repayment plan, so I can once again regain control of my finances but don't want to get ripped off by a company. Can you tell me the best route to take please?

changeforbetter

Hello,

I am considering contacting stepchange to look at a temporary plan of setting up token payments to my creditors (I have very little income currently and can not afford payments much longer) - however I may have an increase in income at a later point, probably a few months later on this year.

Simply to ask, is it common or acceptable to do it like this - i.e. set up token payments initially with a plan to later move to a DMP?

I ask because I really would like to still work on reducing my debts if at all possible, but right now that isn't feasible or possible, so only token payments looks do-able sadly in my current state.

So, really just wondering about changes between different plans and whether that's possible.

Many thanks.

Former_StepChange_Laura

mariamunkey wrote: »

Hi,
I have a long history of debt that I basically ignored and learned to get by on what i was paid each week. I did try to get into some sort of repayment plan a few times over the years with the citizens advice bureau but nothing was ever achieved.
I am now determined to get everything consolidated if possible and enter into some kind of repayment plan, so I can once again regain control of my finances but don't want to get ripped off by a company. Can you tell me the best route to take please?

Hi there,

Thanks for your message and it’s great to hear you want to regain control of your finances. Professional debt advice isn’t something you should have to pay for, and there are a number of places that provide it for free. As you mention, the CAB offer free debt advice, as do we here at StepChange Debt Charity.

We have over 20 years’ experience providing free debt advice to our clients, and have helped thousands of people in similar situations to yours. We can have a chat with you in more depth about your financial circumstances, put together a sustainable budget, and recommend the best way for you to deal with your debts. As I mentioned, our advice is free, and we offer a range of debt solutions which you can read about here: http://www.stepchange.org/Howwecanhelpyou.aspx

There are a couple of ways you can get in touch with us. Our online Debt Remedy tool can provide you with a recommendation in around 20 minutes: http://www.stepchange.org/Debtremedy.aspx Alternatively you can give our helpline a call on 0800 138 1111. It’s free to call from landlines and mobiles, and is open from Mon-Fri from 8am-8pm and Saturdays from 8am-4pm.

I hope this helps.

Kind regards,
Laura

Former_StepChange_Laura

changeforbetter wrote: »

Hello,

I am considering contacting stepchange to look at a temporary plan of setting up token payments to my creditors (I have very little income currently and can not afford payments much longer) - however I may have an increase in income at a later point, probably a few months later on this year.

Simply to ask, is it common or acceptable to do it like this - i.e. set up token payments initially with a plan to later move to a DMP?

I ask because I really would like to still work on reducing my debts if at all possible, but right now that isn't feasible or possible, so only token payments looks do-able sadly in my current state.

So, really just wondering about changes between different plans and whether that's possible.

Many thanks.

Hi changeforbetter,

Thanks for getting in touch and I’m glad to hear you’re considering contacting us to set up a plan.

Token payment plans (TPPs) and debt management plans (DMPs) aren’t legally binding, so if you were originally on a TPP and your circumstances changed we’d be able to review your situation and look at what other debt solutions might be suitable for you. If a DMP is suitable for your new situation then changing from a TPP to a DMP is something we could help you with.

It’s not unusual for people’s financial circumstances to change, whether that’s because they find their income increases or decreases, or because they come into money unexpectedly, so we’re used to updating and reviewing our clients’ plans when necessary. If you decide to set up a plan with us, this is something our advisors can discuss in more detail with you.

I hope this answers your question.

Kind regards,

Laura

changeforbetter

Thank you Laura - that is very useful. It is good to know that there is a fair bit of flexibility. Many thanks again.

facingthefuture

I have amassed cc debt and frankly cannot pay it. It was done over years and the bulk of it is crazy interest and charges. My work/self employment has taken a nosedive (main customers went under). To say we are struggling is an understatement. I have lost 3 family members in 4 months and apart from sitting in graveyards, finding it hard to function. Anyway, sibling suggested they pony up some funds and get debts paid off though would have to be a partial payment (sibling hasn't much but is concerned about my wellbeing). This seems better than bankruptcy, least I could offer cc something. Sibling got in touch with local finance co who said dont deal with stepchange since they are paid for by cc companies and if they make a partial payment arrangement they are not legally binding. The cc companies could come after me at a later stage. Is this true? From what I understand only single payment iva's are legally binding and stepchange doesn't offer them. Is this true, if stepchange did a f &f would I be able to be chased later. Also what are the lowest percentages that would be achievable? I have lots of defaults and own nothing. My earnings are awful.
Barclays 1649.39
Bank of Ireland 4701.55
Co op 3912.07
Halifax 5587.85
sainsburys 1082.72
Do you think they would take 30%?

facingthefuture

er hello anyone here?