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StepChange_James

Sblogz wrote: »

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.

Hi there,

Thanks for getting in touch.

It's likely that while you were away these debts will have been sending regular correspondence to your last known address (unless they start getting mail returned to them) and tried to call you on the numbers they have on file. As payments are missed it's typical for negative information to be added to your credit history.

Usually debts will be passed on to debt collectors if you've got quite far behind on payments. So these debts will more than likely have changed hands a few times.

As it's been over six years since you last made a payment to these debts there's a possibility that some may be "statute barred". You can read more about this here: http://moneyaware.co.uk/2013/10/statute-barred-debt/.

Your overdrafts and bank loans are most likely to be statute barred. Your student loan isn't likely to be covered by this. The way student loans are dealt with has changed over the years, so how this debt is managed will depend on the time you studied. However, it's likely that you'll still owe this money and when you return you can pick up making payments.

One way you can get an idea of where you stand is to get a copy of your credit history. That will tell you if any debts obtained County Court judgments against you, which would mean they can't become statute barred.

You can check your report for free using a service called noddle, which checks the Call Credit record (Experian and Equifax are the other two agencies that hold credit records for people). Here's the link:https://www.noddle.co.uk/.

So it may not be as bad as you expect. If the bulk of your debts are statute barred then the debt isn't legally enforceable. The student loan debt is likely to be sat there waiting for you on your return. Here's a website with some more information: http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678408&_dad=portal&_schema=PORTAL.

If the other debts aren't statute barred then you may need to take steps to deal with them. We can give you advice on that, our contact details are in my signature below.

I hope this is useful.

Kind regards

James

InTooDeep.Help

Hi there,
I've managed to land myself in a right mess. I had it all planned out, this was going to be 'the year'. So I bought a ring paid for a hotel and a couple of bits on my credit card. Was going to pay that off over 3 months and had budgeted for it. So having spent a lot on my credit card and dipped into my overdraft getting a letter from the council asking me to pay the full years council tax or they'll take me to court got me in a complete panic. So rather than do the sensible thing and ask for some help from family etc I tried to do it on my own and turn to payday loans. Being up to the limit and taking out a payday loan only means you have to pay it back in a months time plus stupid amounts of interest, I knew but I needed the money so I did it anyway. Then to cover the shortfall I took another and another until I took out a consolidation loan and then another. So there we have it I am engaged planning a wedding for 2017 but am in 12500 worth of debt. Everytime I get paid I am left with nothing or am desperately trying to find funds elsewhere. So I decided enough was enough I have to do something about it. I started writing a long email to my dad who whilst would be far from happy would be able to bail me out. But what next.... cancel the wedding not talking etc etc.... or do I enter into some sort of IVA or DMP take the hit on my credit rating and try explain it away when we're looking to buy a house? I know parents would be angrier if they found out I didnt tell them and tried to go it alone, but is it worth heartache in the short term?
Feel like a complete idiot because I know just how dangerous these companies are but embarrasment got the better of me and now i'm in a real mess!!
Chris

Former_StepChange_Rachel

InTooDeep.Help wrote: »

Hi there,
I've managed to land myself in a right mess. I had it all planned out, this was going to be 'the year'. So I bought a ring paid for a hotel and a couple of bits on my credit card. Was going to pay that off over 3 months and had budgeted for it. So having spent a lot on my credit card and dipped into my overdraft getting a letter from the council asking me to pay the full years council tax or they'll take me to court got me in a complete panic. So rather than do the sensible thing and ask for some help from family etc I tried to do it on my own and turn to payday loans. Being up to the limit and taking out a payday loan only means you have to pay it back in a months time plus stupid amounts of interest, I knew but I needed the money so I did it anyway. Then to cover the shortfall I took another and another until I took out a consolidation loan and then another. So there we have it I am engaged planning a wedding for 2017 but am in 12500 worth of debt. Everytime I get paid I am left with nothing or am desperately trying to find funds elsewhere. So I decided enough was enough I have to do something about it. I started writing a long email to my dad who whilst would be far from happy would be able to bail me out. But what next.... cancel the wedding not talking etc etc.... or do I enter into some sort of IVA or DMP take the hit on my credit rating and try explain it away when we're looking to buy a house? I know parents would be angrier if they found out I didnt tell them and tried to go it alone, but is it worth heartache in the short term?
Feel like a complete idiot because I know just how dangerous these companies are but embarrasment got the better of me and now i'm in a real mess!!
Chris

Hi Chris, thanks for getting in touch.

I’m very sorry to hear about what you’ve been dealing with and can appreciate why you’ve been struggling. It’s not unusual for people to resort to payday loans when faced with an unexpected debt such as council tax, but as you’ve experienced, it can make a tough situation much more difficult to deal with.

Payday lenders in particular can make things tough because they often have what’s called a Continuous Payment Authority (CPA). When you took out a payday loan, it’s likely that you gave the lender the right to take money out of your account to pay it off once you had available funds. There is a way to withdraw CPA from the lender so you can put yourself in a much better position to negotiate a lower, more affordable payment. You can find out more about this on our blog: http://moneyaware.co.uk/2012/07/how-to-cancel-a-continuous-payment-authority-cpa-on-a-payday-loan/

I can appreciate that you feel nervous about raising this matter with your parents. While it’s not our place to tell you how you deal with this, we do speak to a lot of people who keep their debts and the worry it causes to themselves, which can in turn cause more stress on top of what they’re dealing with. Ultimately, you must do what’s best for your wellbeing, but please know that you have support here on the forum and of course, from StepChange Debt Charity. We never judge anyone who gets in touch with us for help. We’re simply here to help you explore all of your options and provide any support or guidance you might need.

From what you’ve told us, it certainly sounds like you would benefit from some free and confidential debt advice. We can take a look at your budget and see what kind of debt solutions may be suitable for you. We do this by looking at your living expenses first and understanding what you can realistically afford. There’s two ways we can do this:

Our anonymous online advice tool Debt Remedy can help you put together a personal action plan in around 20 minutes: http://www.stepchange.org/debtremedy.aspx

Alternatively, you can call our Helpline and go through your budget with one of our friendly advisors on 0800 138 1111 (free from landlines and mobiles). We’re open Mon – Fri 8am to 8pm and Sat 8am to 4pm.

Kind regards

Rachel

Mason9996

Hi,
I'm 18 and I'm about £3000 in debt
I earn about £12,000 a year. But I'm in debt because of gambling. I struggle to stop however I'm going to my bank to block all mobile betting. I Want to get a loan to put all my debt into one pile, as I have two loans and an overdraft which adds to £3000 however nowhere will approve my loan due to bad credit rating. Any idea what I can do? I live at home too

StepChange_Jen

Mason9996 wrote: »

Hi,
I'm 18 and I'm about £3000 in debt
I earn about £12,000 a year. But I'm in debt because of gambling. I struggle to stop however I'm going to my bank to block all mobile betting. I Want to get a loan to put all my debt into one pile, as I have two loans and an overdraft which adds to £3000 however nowhere will approve my loan due to bad credit rating. Any idea what I can do? I live at home too

Hi there,

Thanks for posting.

I’m sorry to hear about this situation.

If you feel you have a problem with gambling, it might be worth getting some support to help you deal with the issue. Gamcare offers free advice about gambling problems and you can find their website here:

http://www.gamcare.org.uk/

It’s good to hear you’re thinking about dealing with your debt. We wouldn’t normally advise someone to take out more credit to help them deal with their debt. Although this method can work for some people there are risks involved. Without knowing your full situation, it’d be hard to say if this is the best option for you.

You might find it beneficial to use our online debt advice tool, Debt Remedy. It’ll ask you for information about your budget and debts and it’ll use this to let you know of any debt solutions that may be available to you.

You can find Debt Remedy here: http://www.stepchange.org/Debtremedy.aspx

Or, if you’d prefer, you can give our Helpline a call and have a chat with one of our advisors about your situation. They’ll let you know what your options are and can help you with your next steps. You can find our Helpline details here:

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

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

Jen

Sblogz

StepChange_James wrote: »

Hi there,

Thanks for getting in touch.

It's likely that while you were away these debts will have been sending regular correspondence to your last known address (unless they start getting mail returned to them) and tried to call you on the numbers they have on file. As payments are missed it's typical for negative information to be added to your credit history.

Usually debts will be passed on to debt collectors if you've got quite far behind on payments. So these debts will more than likely have changed hands a few times.

As it's been over six years since you last made a payment to these debts there's a possibility that some may be "statute barred". You can read more about this here: http://moneyaware.co.uk/2013/10/statute-barred-debt/.

Your overdrafts and bank loans are most likely to be statute barred. Your student loan isn't likely to be covered by this. The way student loans are dealt with has changed over the years, so how this debt is managed will depend on the time you studied. However, it's likely that you'll still owe this money and when you return you can pick up making payments.

One way you can get an idea of where you stand is to get a copy of your credit history. That will tell you if any debts obtained County Court judgments against you, which would mean they can't become statute barred.

You can check your report for free using a service called noddle, which checks the Call Credit record (Experian and Equifax are the other two agencies that hold credit records for people). Here's the link:https://www.noddle.co.uk/.

So it may not be as bad as you expect. If the bulk of your debts are statute barred then the debt isn't legally enforceable. The student loan debt is likely to be sat there waiting for you on your return. Here's a website with some more information: http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678408&_dad=portal&_schema=PORTAL.

If the other debts aren't statute barred then you may need to take steps to deal with them. We can give you advice on that, our contact details are in my signature below.

I hope this is useful.

Kind regards

James

Dear James,

I feel a bit guilty saying it, but this is fantastic news! The noddle site doesn't seem to work outside of the UK, so I ended up using trustonline.org.uk to check my last addresses, no CCJs!

It has definitely been longer than 6 years since the debts have received payment or contact from myself, so they must be statute barred.

I think the wisest thing I should do now is to contact the SLC directly to check the situation.

Thank you!

Mamamia123

Sorry if this isn't the right thread but I'm slowly finding my way around this site.
I'm looking for any advice at all as I'm stuck as to what to do next.
I am a full time carer For my mother who is severely disabled and in very poor health.
My sibling has been taking her for a fool and over the last 12 years has taken thousands every year from my mothers account by ordering online or using her debit card.
My mother will not press any charges as my sibling has5 young children and is on her own, as well as having mental health issues.
Now this is bad enough but this year she has ran up approximately £17,000 of debt from my mothers catalogue. Problem is she had allowed my sibling to order a few things last Christmas so gave her the details (yes I know, grrrr!) and sibling kitted out the whole house and 5x Christmas boxes! but because she hasn't paid the but now pay 12 months, the interest has all been added on. So basically. My mother is able to pay what she owes , credit card, next directory shopping etc, but had no way of paying the £600 p/m catalogue charge that my sibling has created.
My mother is making herself ill, my sibling is unable to pay as she is on benefits so my mother is up the creek without a paddle.
The catalogue have refused to allow smaller payments or to transfer the debt to my siblings name- who has agreed to do so.
So what next IVA? Meaning my mother won't have any spare cash for herself at her time in life? She has already borrowed money off her house almost 2 year ago to clear the debt her child had ran up then, so owes £19,000 to then when finally she leaves the earth and the house is sold, assuming she manages to keep paying the interest on that also! :eek:
It's a mixed up situation, please can anyone help?

coops678

My debt management charity has started making full and final offers to both of my Barclaycards. Truth be told I'm having a nervous pang about it. All going well, my partner and I would be moving out of his owned flat to a larger place in a few years time. I am anxious thinking forward to my options for mortgages in the future. I defaulted on 3 of my credits before beginning to pay them off in 2010. I am currently aiming to make full and final settlements on all of my accounts. I'm unsure if the default remains after the debt is paid off or from the point it was added and if it's 5 or 6 years that it remains on your account in Scotland. I'm unsure how big a difference a full and final vs. fully satisfied would make on my options even if looking at sub-prime mortgages. My partner has a perfect credit score and around 40k paid off on his flat. In my head I have told myself that whatever I have on my record is irrelevant as it will take a number of years for me to save my part of a deposit for a bought property. All going well, we would look for a larger property in 3 years time. At this moment though I am wondering if I am shooting myself in the foot for future. Any thoughts?

StepChange_Jen

Mamamia123 wrote: »

Sorry if this isn't the right thread but I'm slowly finding my way around this site.
I'm looking for any advice at all as I'm stuck as to what to do next.
I am a full time carer For my mother who is severely disabled and in very poor health.
My sibling has been taking her for a fool and over the last 12 years has taken thousands every year from my mothers account by ordering online or using her debit card.
My mother will not press any charges as my sibling has5 young children and is on her own, as well as having mental health issues.
Now this is bad enough but this year she has ran up approximately £17,000 of debt from my mothers catalogue. Problem is she had allowed my sibling to order a few things last Christmas so gave her the details (yes I know, grrrr!) and sibling kitted out the whole house and 5x Christmas boxes! but because she hasn't paid the but now pay 12 months, the interest has all been added on. So basically. My mother is able to pay what she owes , credit card, next directory shopping etc, but had no way of paying the £600 p/m catalogue charge that my sibling has created.
My mother is making herself ill, my sibling is unable to pay as she is on benefits so my mother is up the creek without a paddle.
The catalogue have refused to allow smaller payments or to transfer the debt to my siblings name- who has agreed to do so.
So what next IVA? Meaning my mother won't have any spare cash for herself at her time in life? She has already borrowed money off her house almost 2 year ago to clear the debt her child had ran up then, so owes £19,000 to then when finally she leaves the earth and the house is sold, assuming she manages to keep paying the interest on that also! :eek:
It's a mixed up situation, please can anyone help?

Hi there,

Thanks for posting.

I’m sorry to hear about this situation. Dealing with debt when other family members are involved can be very stressful.

You mentioned that your mother and sibling have mental health issues. Debt and mental health issues often go hand in hand. If you’d like to find out more about this and about the support available we have a page about it on our website here:

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

I think your mother would benefit from giving our Helpline a call for some free debt advice. If your mother is unable to or doesn’t want to call us, you can speak with our advisors on her behalf as long as she gives you permission to do so.

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

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

Our Helpline advisors will use information from your mother’s budget, income and debts to see if any debt solutions are suited to her situation. If you decide to move forward with a debt solution
we’ll be here to support you every step of the way.

I hope this helps but if you have any more questions please let us know.

Jen

StepChange_Jen

coops678 wrote: »

My debt management charity has started making full and final offers to both of my Barclaycards. Truth be told I'm having a nervous pang about it. All going well, my partner and I would be moving out of his owned flat to a larger place in a few years time. I am anxious thinking forward to my options for mortgages in the future. I defaulted on 3 of my credits before beginning to pay them off in 2010. I am currently aiming to make full and final settlements on all of my accounts. I'm unsure if the default remains after the debt is paid off or from the point it was added and if it's 5 or 6 years that it remains on your account in Scotland. I'm unsure how big a difference a full and final vs. fully satisfied would make on my options even if looking at sub-prime mortgages. My partner has a perfect credit score and around 40k paid off on his flat. In my head I have told myself that whatever I have on my record is irrelevant as it will take a number of years for me to save my part of a deposit for a bought property. All going well, we would look for a larger property in 3 years time. At this moment though I am wondering if I am shooting myself in the foot for future. Any thoughts?

Hi there,

Thanks for posting.

It’s normal to feel worried about the impact your debts could have on your credit file. However, we believe the most important thing is that you deal with your debts first and then work on improving your credit file.

Your credit file should be made up of facts about how you’ve dealt with your debts. However when you agree upon a full and final settlement with your creditors, it can sometimes vary how it appears on your credit file. Some will mark the account as ‘partially settled’ while others will mark it as ‘settled’.

It’s important to remember that most things will stay on your credit file for six years from the date they’re entered onto it.


There are things you can do in the meantime to help improve it, you can read about these here:
http://moneyaware.co.uk/2013/10/how-to-improve-your-credit-rating-after-a-dmp/

I hope this helps,

Jen