Struggling with debt? Ask a debt advisor a question

Killick

Hi,

I've just set up a DMP and I have a question regarding setting off.
I have a bank account were I don't have any debts but I use a Visa Debit Card with that account. As I have debts with Barclaycard Visa. is there any possibility that money could be taken from this account under setting off clauses?

Thank you

mum2one

Killick wrote: »

Hi,

I've just set up a DMP and I have a question regarding setting off.
I have a bank account were I don't have any debts but I use a Visa Debit Card with that account. As I have debts with Barclaycard Visa. is there any possibility that money could be taken from this account under setting off clauses?

Thank you

it is in the banking terms and conditions that they can take money to offset any debts, - I would get an account where you don't owe any debts to.
I used Natwest for my new account.

scouseaggie

Hi i hope you can answer a query for me.
i have gotten into debt with my catalogue very, wont go into details, buried head in sand (the usual). but decided to actually answer the phone this one time, explained i was struggling and offered them to pay a certain amount .they said they couldnt accept this and i needed to go through your company, which you would then talk to them, why would they accept the amount i offered them from you but not directly from myself??? im confused surely i thought speaking to them directly myself is the better option , but obviously not in this case.

CJReeve

Hi there I wonder if somebody could give me some much needed advice?
I currently have around £15000 worth of debt. I have been living on my credit card from month to month as my monthly outgoings were more than my incomings, plus paying 3 overdrafts off, along with my other bills(mortgage etc etc), before I knew it (well ignored it) I have a credit card bill of £10000 which i have now got behind on payments with. I have always paid all my bills on time up until recently, but this then leaves me no money left for rest of the month, hence using the credit cards. What can I do??? I feel as if im stuck in a vicious circle, and cannot see a way of clearing my debt and overdrafts. I tried to talk to my bank about the problem without success, I have just looked into possibility of getting a secured loan to pay off all the debts, but im not sure if there is enough equity in my bungalow, or if this is the correct route, I only remortgaged last year changing from a interest only to a repayment so that isnt a viable option currently..
Please Is there anybody out there that might be able to offer some advice(apart from stop spending what i dont have) I have cut all my bills and outgoings as much as possible but still more money goes out than comes in...
Thanks
Chris

StepChange_James

poppy217 wrote: »

Thanks James, I really appreciate your reply.

I will perservere with obtaining settlement figures. Is this something that I am allowed to deal directly with the creditors about without jepordising my DMP with Payplan?

Hi Poppy,

I can't see why not, all you're doing is talking to your creditors. I'm not familiar with the terms and conditions of Payplan's DMPs, but in the same situation we wouldn't have problems with one of our DMP clients negotiating their own settlements.

The only thing I'd add would be that if you do successfully arrange settlements with your debts then make sure they confirm it all in writing before you send any payments. Then you'll be covered if any debts tried to chase you for the remaining balance in the future.

Regards

James

StepChange_James

TeaUK wrote: »

Is it legal to sell on a non-defaulted debt within a DMP? I read on the CCCS website that is isn't?

Hello,

A creditor should send a default notice before passing a debt to a debt collector. This then gives the person a chance to get the account up to date and avoid the further action that can happen after a default notice has been sent out.

Creditors don't have to prove you've received a default notice, they only need to be able to show that they've sent one to your last known address. This means that quite often people don't know that they've received default notices.

If you've had a debt passed to a debt collector, then I'd recommend calling the original company and asking them if they've sent you a default notice and they'll be able to tell you.

Hope this helps.

James

StepChange_James

Killick wrote: »

Hi,

I've just set up a DMP and I have a question regarding setting off.
I have a bank account were I don't have any debts but I use a Visa Debit Card with that account. As I have debts with Barclaycard Visa. is there any possibility that money could be taken from this account under setting off clauses?

Thank you

Hi Killick,

Visa is a system for making payments, so having a visa credit card with one bank and a visa debit card with a different, unassociated bank doesn't put your money at risk.

Good luck with the DMP.

James

StepChange_James

scouseaggie wrote: »

Hi i hope you can answer a query for me.
i have gotten into debt with my catalogue very, wont go into details, buried head in sand (the usual). but decided to actually answer the phone this one time, explained i was struggling and offered them to pay a certain amount .they said they couldnt accept this and i needed to go through your company, which you would then talk to them, why would they accept the amount i offered them from you but not directly from myself??? im confused surely i thought speaking to them directly myself is the better option , but obviously not in this case.

Hi Scouseaggie,

Thanks for getting in touch. If you would prefer to deal directly with Very then they should respect this and treat you the same as they would somebody receiving advice through StepChange.

When they say they want us to contact them on your behalf, they probably mean via something called a debt management plan (DMP). This might not be a good option for you, but we can have a look at your situation and give you some advice about this and all the other debt solutions.

The first thing to do is visit our online debt advice service Debt Remedy (http://www.stepchange.org/msehelp) to help you find a solution to your debt problem quickly.

Debt Remedy will assist you in completing a financial statement with information on your household, employment, income, expenditure and debts. From this the service will automatically determine your options.

To help you fill in the form, it’s best to gather together information about:
• Your income
• Your expenditure
• The creditors you owe money to

You’ll receive a downloadable advice booklet providing a tailored solution for you based on your current circumstances and advice on ways you may be able to improve your situation.

If you’re not confident with computers or would like to speak to an advisor then you’re welcome to ring our Helpline on 0800 138 1111 (free including from mobiles). We’re open Monday to Friday 8am - 8pm and Saturdays 9am – 3pm.

If you phone us it may be possible to refer you directly to a counsellor for immediate advice. Alternatively, we will arrange for an appointment to be booked at a time convenient for you.

Kind regards

James

StepChange_James

CJReeve wrote: »

Hi there I wonder if somebody could give me some much needed advice?
I currently have around £15000 worth of debt. I have been living on my credit card from month to month as my monthly outgoings were more than my incomings, plus paying 3 overdrafts off, along with my other bills(mortgage etc etc), before I knew it (well ignored it) I have a credit card bill of £10000 which i have now got behind on payments with. I have always paid all my bills on time up until recently, but this then leaves me no money left for rest of the month, hence using the credit cards. What can I do??? I feel as if im stuck in a vicious circle, and cannot see a way of clearing my debt and overdrafts. I tried to talk to my bank about the problem without success, I have just looked into possibility of getting a secured loan to pay off all the debts, but im not sure if there is enough equity in my bungalow, or if this is the correct route, I only remortgaged last year changing from a interest only to a repayment so that isnt a viable option currently..
Please Is there anybody out there that might be able to offer some advice(apart from stop spending what i dont have) I have cut all my bills and outgoings as much as possible but still more money goes out than comes in...
Thanks
Chris

Hi Chris,

Thanks for posting. This kind of situation is a lot more common than you might think and there are ways to get on top of things.

If cutting back on spending would free up enough money for your to pay all your debts in full and have enough left to live off then that would be the best option, but it sounds like you've tried this and it's not enough to cover everything.

We can give you advice on what other options you've got available. Generally speaking we'd advise against secured loans as it would put your property at risk if you struggled with the new loan.

If you get in touch with us we can help you make a monthly income and expenditure budget to work out what you have coming in and how much of it you need for essentials.

It is possible to make reduced payments to unsecured debts, providing you are willing to pay them what you can afford. There are a few different methods to do this and it depends on your situation which would suit you best.

I would recommend that you contact us and we'll give you some advice on how to move things forward. You can do this online with our advice tool, Debt Remedy (http://www.stepchange.org/msehelp) or by giving us a call (http://www.stepchange.org/Contactus.aspx).

All the best

James

Tinam1982

I posted on here a little while back, so I'm now in need of a bit of guidence really!

My husband and I have got ourselves in to a bit of an impossible situation, due to him losing his job, being out of work for 5 months and now having a job that pays quite a bit less and is much further away. Anyway it ends up with us having a loan and a credit card in my parents name. The loan is £460 a month and the cc £270. This is starting to really get on top of us. Problem being is that as it's in my parents name we can't really do much about it as I don't want to ruin their credit rating. So after LOTS of worrying and sleepless nights, I have been thinking about a consolidation loan. This would again have to be in their name and we both have awful credit. I have looked into it and it seems we could get a loan for £25000 over 8 years, costing £400 a month. This would make our lives much more comfortable. However, the loan finishes in a little over 2 years, then we would be a whole lot better off and can then really hammer the CC down.

So really what I wonder is is better to work our asses off and tighten our belts for 2 more years, or go ahead with the loan and have a much better standard of living.

Any advice would be great, I feel like I am going to have a breakdown soon with all this, I constantly feel sick and I don't sleep anymore. I have a 4 year old son and I feel like I am missing out on his childhood because I'm so pre-ocupied.

Tina