Struggling with debt? Ask a debt advisor a question

Former_StepChange_Rory

rachie332 wrote: »

Hi

I'm scared and lost I owe approx £16k in loans and credit cards.. I have been making payments (just) thankfully my husband had a good wage. However, we are now separating and my income will reduce dramatically..I just don't know what to to....could I contact the companies and offer them so much a month.? If I did would they have to accept it?

I'm so scared and alone, my husband has told me that he will not bail me out as he's got to find his own place to live now

Hi rachie332.

Whenever there’s a drop in your income, it can come as a shock to your budget. It’s really important to first prioritise your main household bills and living costs over your unsecured debts, as falling behind with these will have the biggest impact on you.

You can then start to look at ways of dealing with your debts and that’s where we can help. Sometimes this means looking at reducing payments, contacting creditors and looking at what debt solutions would work best for you and your budget.

First of all, we’d need to look at your situation as everyone’s circumstances are different. Our advice is free, impartial and confidential and we can get you speaking to one of our expert debt advisors who can talk you through what to do and look at solutions with you.

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

I hope this helps,

Rory

Former_StepChange_Rory

merrydance wrote: »

Hi Have large credit card debts of about £50,000 plus outstanding mortgage of £17,000. House is worth about £250/260,000. Would you advise down-sizing or equity release? Hear so many horror stories about equity release, but went on the step-change website and this is what we were advised to do. Didn't realise my husband had racked up so much debt grrrrr

Hi,

There are lots of different options available when it comes to dealing with debt, depending on your situation, budget and also your property and assets.

For some people, releasing equity is a useful way to deal with debts. However as you’ve found from searching around the topic, it’s also a very important and complicated decision.

If it’s something that you’re considering, why not have a chat with us about it? We have a Financial Solutions team who are qualified to give free, whole-of-market impartial advice on equity release and mortgages. We’ll also discuss other alternatives with you depending on your situation, and we’re not here to pressure you into making any decisions without first getting the right advice.

You can find contact details for us on our website at http://www.stepchange.org/Howwecanhelpyou/Mortgagesandequityrelease

I hope this is helpful for you

Rory

PaulJW95

Hello,
My name is Paul and I am 20 years old, unfortunately I have not been to university and still have managed to rack up quite a considerable amount of debt. To be honest, when I say debt, I mean finance plans etc.

I got myself out of a pickle by getting a guarantor loan, however I've now come to terms with the fact I am only living on about £25 a week and that's just not good enough.

My monthly income, after tax and NI is £1113.08.

What I owe:
£13708.35 / 45 repayments of £304.63 for the loan.
£6917.85 / 45 repayments of £153.73 for a car.
£3000 at the end of the agreement to keep the car.
£200 to my mum for getting my out of trouble with money.
£714.84 for the remaining balance on a store card due by September.
£750.00 overdraft which I am always in (banking with Santander)

My current breakdown per month looks like:

Income £1113.08
Overdraft repayment £750.00
Overdraft charges £28.00
Phone bill £33.99
Board/Rent £55.00
Loan repayment £304.63
Car repayments £153.73
Petrol £80.00
Store Card £ varies but around £100
IOU Mum £50
Spending £200/£100 no set figure because you know how life is.

I was just wondering how I can pay things off faster and what I should prioritise?

I have a spreadsheet written out but the more I try and pay things off the worse it reflects the other balances.

please help!

Thanks,

Former_StepChange_Rachel

PaulJW95 wrote: »

Hello,
My name is Paul and I am 20 years old, unfortunately I have not been to university and still have managed to rack up quite a considerable amount of debt. To be honest, when I say debt, I mean finance plans etc.

I got myself out of a pickle by getting a guarantor loan, however I've now come to terms with the fact I am only living on about £25 a week and that's just not good enough.

My monthly income, after tax and NI is £1113.08.

What I owe:
£13708.35 / 45 repayments of £304.63 for the loan.
£6917.85 / 45 repayments of £153.73 for a car.
£3000 at the end of the agreement to keep the car.
£200 to my mum for getting my out of trouble with money.
£714.84 for the remaining balance on a store card due by September.
£750.00 overdraft which I am always in (banking with Santander)

My current breakdown per month looks like:

Income £1113.08
Overdraft repayment £750.00
Overdraft charges £28.00
Phone bill £33.99
Board/Rent £55.00
Loan repayment £304.63
Car repayments £153.73
Petrol £80.00
Store Card £ varies but around £100
IOU Mum £50
Spending £200/£100 no set figure because you know how life is.

I was just wondering how I can pay things off faster and what I should prioritise?

I have a spreadsheet written out but the more I try and pay things off the worse it reflects the other balances.

please help!

Thanks,

Hi Paul, thanks for posting.

I’m very sorry to read about the tough time you’ve been having trying to pay off the various debts you owe. From what you’ve told us, it’s easy to see how you’ve been struggling recently. It sounds like you would really benefit from letting us take a look at things and seeing how we can help you.

We’re a free and confidential debt advice charity and we have over 20 years’ experience in helping people deal with their debt problems. When a person gets in touch with us for debt advice, we look at their entire budget and what kind of options are available to them once their most important living expenses are covered. These are things such as mortgage, rent or board, council tax, any utilities you need to pay, and general living costs such as food, clothing and toiletries.

It’s good to hear you’ve been keeping track of everything on a spreadsheet. However I can see where you’re coming from in regards to how difficult you’ve found it to pay down the various balances you have. We tend to recommend that you treat each creditor as fairly as possible. Some creditors may put interest and charges on hold once they know you’re seeking free debt advice.

If you would like to look into any debt solutions that might be beneficial, you can talk through your budget with one of our friendly advisors over the telephone. We’ll also look at how to prioritise you most important bills will dealing with your unsecured debts. Our Helpline number is 0800 138 1111 (free from landlines and mobiles) and we’re open 8am to 8pm Mon – Fri and 8am to 4pm on Saturday.

Alternatively, 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

Kind regards

Rachel

strugglingone

This is shameful and I'm in no doubt about the situation I have put my daughter in.

A few years ago she set up some accounts: simplybe, fashion world and laredoute. She gave permission for me to use it. She used it a lot and I paid the repayments because I had more money that she did as I was earning a decent wage at the time.

Then I got ill. I have bipolar disorder. If you don't know, it is an illness which, amongst other symptoms, is marked by impulsivity and uninhibited spending. At the time I spent a lot on these accounts.

Once I'd recovered from the period of illness, I started training to be a mental health nurse. I'm now in the third year of my degree. I'd like to say that I haven't used the accounts since being ill but, with a bursary of £380 per month, and irregular pay from shifts picked up on the bank, there are times when I've used it.

Now in the my third year and currently struggling with anxiety and mild depression, I've had to go back onto antidepressants. At the moment, between placements (which are 37 hours per week) and essays and the minimal work I can do, I have insufficient money to cover the £260 pound a month repayments (the catalogues total £5500 in total).

In ten months I will qualify and I'll be earning anything from £22, 0000 to £32,000 as a starting wage. I know then I can clear the debt.

For now though, do you have any advice for me to manage, delay these payments 'without' it affecting my daughter's credit rating?

I'm ill with worry over the situation.

Former_StepChange_Rachel

strugglingone wrote: »

This is shameful and I'm in no doubt about the situation I have put my daughter in.

A few years ago she set up some accounts: simplybe, fashion world and laredoute. She gave permission for me to use it. She used it a lot and I paid the repayments because I had more money that she did as I was earning a decent wage at the time.

Then I got ill. I have bipolar disorder. If you don't know, it is an illness which, amongst other symptoms, is marked by impulsivity and uninhibited spending. At the time I spent a lot on these accounts.

Once I'd recovered from the period of illness, I started training to be a mental health nurse. I'm now in the third year of my degree. I'd like to say that I haven't used the accounts since being ill but, with a bursary of £380 per month, and irregular pay from shifts picked up on the bank, there are times when I've used it.

Now in the my third year and currently struggling with anxiety and mild depression, I've had to go back onto antidepressants. At the moment, between placements (which are 37 hours per week) and essays and the minimal work I can do, I have insufficient money to cover the £260 pound a month repayments (the catalogues total £5500 in total).

In ten months I will qualify and I'll be earning anything from £22, 0000 to £32,000 as a starting wage. I know then I can clear the debt.

For now though, do you have any advice for me to manage, delay these payments 'without' it affecting my daughter's credit rating?

I'm ill with worry over the situation.

Hi there, thank you so much for getting in touch with us.

I’m very sorry to hear of the difficult situation you’ve been dealing with. Many people find themselves struggling with debt due to things such as illness, so you’re by no means alone. It’s fantastic to hear that you’ve since started training to become a mental health nurse and that you’ve only 10 months left until you complete your degree.

As these debts are in your daughter’s name, she is the one who would be considered liable for the debt, and it would be her situation that a creditor would consider if you were to offer lower payments to them. If she is unable to make the payments in full herself each month, we can take a look at her budget and see what she can realistically afford to pay, and we can also explore any long term debt solutions that may be suitable. Please keep in mind however that your daughter’s credit rating will be affected if she pays lower than the minimum amount, although not to the same extent as missing the payments altogether. Her creditors may also be inclined to freeze interests and charges should they know that she is seeking free debt advice. This blogpost goes into a bit more detail about interests and charges: http://moneyaware.co.uk/2012/06/can-i-get-my-creditors-to-freeze-interest-and-charges/

You may be worried about the kind of action that creditors can take if you give them reduced payments. Our blogpost goes into more detail about what creditors can and can’t do if you’d like to take a look: http://moneyaware.co.uk/2011/08/you%E2%80%99re-in-debt-but-what-can-your-creditors-actually-do/

If your daughter would like to speak to us about this, our Helpline is open Mon – Fri 8am to 8pm and Sat 8am – 4pm. You can reach us on 0800 138 1111 (free from landlines and mobiles). Alternatively, 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

I hope this helps. Please write again if you have further questions.

Kind regards

Rachel

Bluepete29

Hi.

I have a loan with an outstanding balance of £2600.
I pay £143.99 per month and have 18 months remaining on it.

My car was bought with a loan and has around £6000 left to pay over the next 4 years. Ive had it for 12 months already and pay £146 per month for it.

The car is worth £5200.

If i sell the car this would pay off my first loan and enable me to buy another car worth around £2500 (the car would need cheap road tax and insurance) however i would still be paying off the loan for the first car.

By selling the car it would free up £1787 per year.

Is this a good idea? Or am i jumping the gun.

Thanks

Peter

StepChange_Jen

Bluepete29 wrote: »

Hi.

I have a loan with an outstanding balance of £2600.
I pay £143.99 per month and have 18 months remaining on it.

My car was bought with a loan and has around £6000 left to pay over the next 4 years. Ive had it for 12 months already and pay £146 per month for it.

The car is worth £5200.

If i sell the car this would pay off my first loan and enable me to buy another car worth around £2500 (the car would need cheap road tax and insurance) however i would still be paying off the loan for the first car.

By selling the car it would free up £1787 per year.

Is this a good idea? Or am i jumping the gun.

Thanks

Peter

Hi Peter,

Thanks for getting in touch.

It’s hard to offer advice on this without knowing more about your situation. Generally, selling an asset to help pay off a debt can make financial sense.

However there are things to consider, for example if you purchased the car on a hire purchase agreement, it’ll belong to the finance company until you’ve paid it off.

You can read more about selling assets to pay off debts here:

http://www.stepchange.org/Debtinformationandadvice/Debtsolutions/Sellingyourassets.aspx

I hope this helps,

Jen

Chuggabug

Hi,
I'm desperately worried because Restons Solicitors are putting a sale order on our house.
I have 2 Charging orders from about 10 years ago, and have been paying 1 off at £2 per month as that's all I can afford. There was nothing in place for the other one. Out of nowhere, Restons have started sending letters saying they are going for a sale order. I cant pay them the 7K that they want, and have offered £2 per month as a token gesture - they have refused that. They also say that I had a plan before, and didn't pay it...I have no knowledge of this - can I ask for proof? I have no details on the debt or charging order as I was deeply depressed and not dealing with anything at the time - it all just got ignored. I have 2 children (7 & 10) and also look after my grandson so my daughter can work, I only work part time due to a long term illness....Can I get all the original details for this? Can I stall this? I have sent income and expenditure, and they said that I was spending too much on clothing and uniforms - £100 per month for all 4 of us, and clubs £102 per month. 1 of these clubs is attended by me for rehabilitation therapy (Movement). I haven't given my husbands income as its nothing to do with them, but on a full income and expenditure, it makes no difference - we still cant afford to pay it.
Sorry for the rambling, is there anything I can do - we have lived in our house for 22 years, memories of my dead husband are all there, and the children have all grown up there....

Former_StepChange_Rory

Chuggabug wrote: »

Hi,
I'm desperately worried because Restons Solicitors are putting a sale order on our house.
I have 2 Charging orders from about 10 years ago, and have been paying 1 off at £2 per month as that's all I can afford. There was nothing in place for the other one. Out of nowhere, Restons have started sending letters saying they are going for a sale order. I cant pay them the 7K that they want, and have offered £2 per month as a token gesture - they have refused that. They also say that I had a plan before, and didn't pay it...I have no knowledge of this - can I ask for proof? I have no details on the debt or charging order as I was deeply depressed and not dealing with anything at the time - it all just got ignored. I have 2 children (7 & 10) and also look after my grandson so my daughter can work, I only work part time due to a long term illness....Can I get all the original details for this? Can I stall this? I have sent income and expenditure, and they said that I was spending too much on clothing and uniforms - £100 per month for all 4 of us, and clubs £102 per month. 1 of these clubs is attended by me for rehabilitation therapy (Movement). I haven't given my husbands income as its nothing to do with them, but on a full income and expenditure, it makes no difference - we still cant afford to pay it.
Sorry for the rambling, is there anything I can do - we have lived in our house for 22 years, memories of my dead husband are all there, and the children have all grown up there....

Hi there,

Thanks for posting. I'm sorry to hear about the difficulties you've had, it sounds like a lot has happened and dealing with debts can be difficult even at the best of times.

With charging orders, most creditors are prepared to wait for the sale or remortgage of a property to be paid from the proceeds. If they aren't prepared to wait, they can apply to the court for a hearing for an order for sale, It's very rare (but not impossible) for the court to allow a creditor who has a final charging order, to force the sale of your home.

If the creditor is serious about applying for an order for sale, you'll be sent an N208 form and a hearing date will be given. You should always attend this, if you don't the court can automatically grant the order for sale. You must return the completed acknowledgment form to confirm you'll attend.

Any mention of an order for sale should be taken seriously, even if the creditor hasn't sent the forms, they could be about to so it's vital that you take steps to deal with the situation at this stage, to try and prevent or avoid the order for sale.

Sometimes you may be able to come to an agreement with the creditor as to how much you should be repaying, based on a fair and realistic budget. This is also something we can discuss with you.

If you're not sure what to do from here, we'd strongly recommend getting expert debt advice to look at your options now. This is something we can help you with, our advice is free and impartial and we'll be able to offer as much help as we can.

You can find out how to get in touch with us by visiting our website at https://www.stepchange.org/contactus

I hope this helps, please get in touch if you need help.

Rory