Struggling with debt? Ask a debt advisor a question

BorderGuy

OK, my first public confession my my situation. It's embarrassing but we are committed to get debt free and never use credit again.

My wife and I together have close on £50k of unsecured debt. She earns over £100k a year and I now look after the kids. We are just keeping up repayments on a number of loans, CC and OD. Our interest rates are high and I'm working to bring them down so that we can clear the capital faster. I've made some good progress, cutting Barclaycard rate from 29.9% to 9.9% for 2 years but that is only a start. Our debt is reducing not increasing.

I see 0% cards as a good option. Get everything on these and all our short term debt can be cleared in 3 years.

Our issue is that my wife has a limited credit history with only one unsettled loan, our overdraft and mortgage in her name/our joint names.

She's just got a 0% BT card for 34m with a credit limit. My question is what do we put on it?

Logic would say some of my CC debt that is bearing the highest interest rate. However, if she's to get other 0% BT credit card(s) we need to improve her credit score (Experian currently 979). As we are currently using our overdraft all the time, would it be better to clear that, even though the interest rate is not our highest?

Bubblegum33

Hi, first time posting anywhere so looking for any advice I can get. I have a debt for £5500, this was with black horse a ccj was issued against me and an attachment of earnings put in place. This originally fell off my credit file in Oct 2014 as the 6 years were up. This then reappeared a few weeks later with lowel taking over the debt the new default being 2012. Can they do this? Lowel have recently contacted me telling me they want to end the attachment of earnings and me pay them directly. I have no idea what to do next the attachment of earnings is only requiring me to pay £1 a month back (5500 pound debt) any advice would be gratley received.

mumtotwo_2

Hi

We've been on a DMP withstepchange for 2 years and it has mostly gone quite smoothly, however 2 creditors are being difficult.

Every month Nationwide are charging a £12 late payment fee, despite me asking them to change my payment date to match my SC payment. We are paying over the minimum payment to this debt and it would be paid off by now if it wasn't for this charge.

The other problem is with Barclaycard. They are getting £90 each month from SC, but are charging me £190 in interest every month so my debt to them is increasing quite significantly.

Is there anything I can do to resolve these issues or am I stuck with them?
Thanks

StepChange_Jen

mumtotwo wrote: »

Hi

We've been on a DMP withstepchange for 2 years and it has mostly gone quite smoothly, however 2 creditors are being difficult.

Every month Nationwide are charging a £12 late payment fee, despite me asking them to change my payment date to match my SC payment. We are paying over the minimum payment to this debt and it would be paid off by now if it wasn't for this charge.

The other problem is with Barclaycard. They are getting £90 each month from SC, but are charging me £190 in interest every month so my debt to them is increasing quite significantly.

Is there anything I can do to resolve these issues or am I stuck with them?
Thanks

Hi there,

I’m sorry to hear you’re feeling frustrated by the fees your creditors are charging you.

Adding charges and interest to debts is one of the actions your creditors can take and is a normal part of the debt collection process.

If the fees you’re being charged aren’t listed in your original agreement, it might be worth making a formal complaint to your creditor about them.
You can find out more about making a complaint about your creditors here:

http://www.stepchange.org/Debtinformationandadvice/Whatyourcreditorscando/Makingacomplaint.aspx

I hope this has helped,

Jen

StepChange_Jen

BorderGuy wrote: »

OK, my first public confession my my situation. It's embarrassing but we are committed to get debt free and never use credit again.

My wife and I together have close on £50k of unsecured debt. She earns over £100k a year and I now look after the kids. We are just keeping up repayments on a number of loans, CC and OD. Our interest rates are high and I'm working to bring them down so that we can clear the capital faster. I've made some good progress, cutting Barclaycard rate from 29.9% to 9.9% for 2 years but that is only a start. Our debt is reducing not increasing.

I see 0% cards as a good option. Get everything on these and all our short term debt can be cleared in 3 years.

Our issue is that my wife has a limited credit history with only one unsettled loan, our overdraft and mortgage in her name/our joint names.

She's just got a 0% BT card for 34m with a credit limit. My question is what do we put on it?

Logic would say some of my CC debt that is bearing the highest interest rate. However, if she's to get other 0% BT credit card(s) we need to improve her credit score (Experian currently 979). As we are currently using our overdraft all the time, would it be better to clear that, even though the interest rate is not our highest?

Hi there,

Thanks for posting.

It’s good to hear you’re taking the first steps towards dealing with your debts.

We speak to a lot of people that have tried to juggle their debts on 0% deals but have found the temptation to use more credit too strong and have ended up getting deeper into debt. So lower interest deals can potentially save money but it’s important to be very careful and to not run up any new debts.

There are a lot of theories about how to improve credit files in the eyes of creditors but I don’t think there are a lot of hard facts. It may be better to have a lower overdraft balance compared to reducing credit card debt but depends on the criteria of individual lenders and how they interpret the information on a credit file. Whether it’s better to shuffle the debt around onto the cheapest deals or try to optimise the debts to have a better chance with future credit applications is a tough choice and I suppose it’s a matter of person opinion.

Our area of expertise is in dealing with debts that have become unaffordable rather than finding the best deals, so you may find better advice in other parts of the forums.

If you feel that you might be struggling to keep up with payments on these debts I’d suggest getting in touch with our Helpline for some free debt advice. One of our advisors can talk through your budget and debts with you. They’ll also be able to let you know about any debt solutions that may be suitable for you.

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

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

I hope this helps,

Jen

freeland33

Not quite sure if this is the right forum to be in. However here goes I was declared bankrupt in 2011 and discharged in 2012, however after find my self in financial difficulties due to unforeseen circumstances I an at a stage where I'm struggling to pay back my loans etc. I owe around 5 grand. I don't no what I should do. Any help would be appreciated.

Former_StepChange_Rory

freeland33 wrote: »

Not quite sure if this is the right forum to be in. However here goes I was declared bankrupt in 2011 and discharged in 2012, however after find my self in financial difficulties due to unforeseen circumstances I an at a stage where I'm struggling to pay back my loans etc. I owe around 5 grand. I don't no what I should do. Any help would be appreciated.

Hi there,

If you're struggling with your debts and you're not sure what to do, we'd recommend getting some free advice from us. By speaking to us you'll be able to see what your options are, how best to deal with your situation and look at debt solutions to help you.

There's two ways to do this, either online by using our free Debt Remedy tool, or by speaking to our Helpline.

You can find out more about how to get in touch by visiting our website at www.stepchange.org/contactus

Rory

moonbrown

Hello, what is the best way to deal with payday loan debts, its building up each month as I pay them back each month and then borrow again to live that month. Thank you for any advice.

StepChange_James

moonbrown wrote: »

Hello, what is the best way to deal with payday loan debts, its building up each month as I pay them back each month and then borrow again to live that month. Thank you for any advice.

Hi there,

Taking out new payday loans to pay off old ones is a common sign that you've got trouble with your finances. As you've pointed out, carrying on this way is going to mean the total debt goes up and up.

Obviously the best way to deal with payday loans is to pay them off and not take out any new debt. This isn't always a practical option though. If the money isn't there to clear the debts, it's worth getting debt advice to look at the options.

It can be worth cancelling the repayment on a payday loan and then trying to negotiate affordable instalments. This is something you can read more about in this article on our blog: http://moneyaware.co.uk/2013/07/how-do-i-get-out-of-payday-loans/.

We can give you in-depth and personalised advice on dealing with debts, including payday loans. You can do this over the phone (http://www.stepchange.org/Contactus.aspx) or online using our Debt Remedy tool (http://www.stepchange.org/Debtremedy.aspx).

Kind regards

James

Sblogz

Dear StepChange,

I have for a long time ignored the issue that I am going to outline however, it is time to face up to my actual situation.

I had a number of unsecured debts with various creditors, comprising of:
two student overdrafts, one bank loan, one student loan.

These debts were in arrears when I left the UK seven years ago. I have not contacted any of my creditors during this time.

It is now likely that I will return to the UK to live.

What would have likely happened to these debts since I left the UK and what can I expect on my return, unemployed and staying with friends/relatives?

Thank you.