Struggling with debt? Ask a debt advisor a question

Former_StepChange_Rory

RockRebel wrote: »

This is a tricky debt question. But how do you deal with debt after someone has passed away. My mum has a debt that is a secured loan as a hire purchase agreement on an item that she boughtbas an investment for us. Sadly in Jan this year my mum passed awa, leaving an outstanding balance. We have offered and asked to continue paying the debt on her behalf. They are happy for us to pay as long as we pay a lump sum in full to clear the debt completely. This is not an option for us and we do not want to lose the item in question. What can we do??

Hi there,

Thanks for posting. Death is often a difficult topic and can create a lot of uncertainty about what happens to debts when someone dies.

Firstly, when someone dies and leaves behind unsecured debts such as personal loans and credit cards, what happens depends on whether the person had any assets to clear the debt. If the debts were in their name only and there were no assets, then the debts are usually written off or repaid from any estate.

With this situation, it’s difficult to provide a definitive answer, as you’ve not mentioned what type of item or agreement you have. HP items have many different terms, depending on the payments made, the item in question and the various issues around ownership of the debt.

We’d suggest speaking to the HP company to see if you can arrange repayments for the debt, which could help, but in many cases, as long as the finance company are following the correct process as outlined in the original agreement, there might not be an alternative to keeping the item if you’re unable to pay it. HP items aren’t legally owned by the person until all repayments are made.

I’m sorry that I can’t provide any further advice on this question.

Rory

KARENWH

I am so sorry, I am new to this forum site and am probably in the wrong place. I need some advice about a high interest credit card I have. I tried to do the eligability page for a balance transfer and was advised to try for a capital one card with a six month 0% transfer. I did this and put in all the details of the card and amount I wanted to transfer. This was approved but has now come through without the balance transfer and not enough credit on it to make any difference. Did I do something wrong? I am currently paying off my £2000 debt on barclaycard at £100 per month but almost half of this is being swallowed up in interest. I don't know how to get out of this mess.
Karen

Former_StepChange_Rory

SitAndBeg wrote: »

Hello Jenny and thank you for the reply. You mention "Partners". Do Stepchange consider debt collection firms "partners" ? It's just that if you want to take a look on Youtube & type in "Marston Debt" for instance, up will pop scores of videos showing you how some very un-professional thugs who work for these companies behave when collecting debt. Are you telling me a "charity" like Stepchange regards these people as partners ?

Hi Steve,

We list Martons on the “our partners” section of our website here: http://www.stepchange.org/Partnerships/Ourpartners.aspx alongside other debt collection agencies. I don’t have specific figures but I think we get quite a few referrals from debt collectors and enforcement agents.

I think it can make debt collector’s lives a bit easier dealing with clients of ours, so they refer to us so they can do a budget and get help proposing a payment plan. I suppose there are probably tougher enforcement agents that will just push for payments but many will try to cooperate with their customers and refer to us.

We also held a refers event last week which was attended by quite a few debt collection agencies.

Kind regards

Rory

opp127

Hi,

A good friend of mine has got into debt (as most of us do) but has recently started to find it unmanageable and fallen behind on a couple of payments due to a recent illness.

He owns his home and has a good job, but mentioned to me about being able to write it off using an IVA. From doing some initial research it seems this will just help line the pockets of a company and still require him to pay a substantial amount each month.

I want to offer to help him organise his financial, sort out a budget and repayment plan, but before I do I wanted to know whether creditors (banks and building societies) will allow me to liaise with them on his behalf?

Thanks, hope you can help to let me help my friend.

ukguy2k

Currently I have debt with 'Very' for £1352.70. Debt with 'Fashion-World' for £1352.63. Debt with 'Apex Credit Management' for about £380. I'm paying slightly more than the minimum payments for 'Very' and 'Fashion-World'. 'Very' and 'Fashion-World' are catalogue companies. I'm paying £10 a month for 'Apex Credit Management'. I'm more worried about the 'Very' and 'Fashion-World' debts. All I can afford is to pay about £30 to £40 a month extra total for the two 'Very' and 'Fashion-World', would the debts get cleared quicker if I paid that much extra? The 'Very' and 'Fashion-World' debts are taking a time to get cleared. I pay my father towards mortgage and bills. So I cannot pay plenty towards the debts. I'm currently paying £30 a month for 'Virgin Media' to my sister. And any extra towards my debt with her. Paying £10 a month for 'Virgin Mobile'. Paying £16 a month to 'EE' for mobile wifi device.

karljt2013

I was shocked to open my mail today to receive a county court summons from a solicitor regarding a £300 credit card debt default that is 5 years and 8 months old. I have checked my credit file and the default was due to be removed from my credit file in June.

I had serious mental health problems at the time which led me to be sectioned under the mental health act and placed under suicide watch. I have hospital documents to support this. Maintaining credit cards was absolutely out of the question.

I had many debt collectors knocking on my door in 2011 including ones chasing me for this debt, I made some payments on this debt but the payments were never deducted from my bill.

This debt has been sold at least three times between debt collection agencies in the 6 years since the default and I am determined to contest this CCJ summons. Do I have any hope of successfully arguing my case? They have already tried to add £80 to the bill in fees and I couldn't afford it before that.

This is agonisingly close to the statute of limitations cut off point

DCFC79

opp127 wrote: »

Hi,

A good friend of mine has got into debt (as most of us do) but has recently started to find it unmanageable and fallen behind on a couple of payments due to a recent illness.

He owns his home and has a good job, but mentioned to me about being able to write it off using an IVA. From doing some initial research it seems this will just help line the pockets of a company and still require him to pay a substantial amount each month.

I want to offer to help him organise his financial, sort out a budget and repayment plan, but before I do I wanted to know whether creditors (banks and building societies) will allow me to liaise with them on his behalf?

Thanks, hope you can help to let me help my friend.

ukguy2k wrote: »

Currently I have debt with 'Very' for £1352.70. Debt with 'Fashion-World' for £1352.63. Debt with 'Apex Credit Management' for about £380. I'm paying slightly more than the minimum payments for 'Very' and 'Fashion-World'. 'Very' and 'Fashion-World' are catalogue companies. I'm paying £10 a month for 'Apex Credit Management'. I'm more worried about the 'Very' and 'Fashion-World' debts. All I can afford is to pay about £30 to £40 a month extra total for the two 'Very' and 'Fashion-World', would the debts get cleared quicker if I paid that much extra? The 'Very' and 'Fashion-World' debts are taking a time to get cleared. I pay my father towards mortgage and bills. So I cannot pay plenty towards the debts. I'm currently paying £30 a month for 'Virgin Media' to my sister. And any extra towards my debt with her. Paying £10 a month for 'Virgin Mobile'. Paying £16 a month to 'EE' for mobile wifi device.

You should post up an SOA on the debt free wannabe boards

StepChange_Jen

opp127 wrote: »

Hi,

A good friend of mine has got into debt (as most of us do) but has recently started to find it unmanageable and fallen behind on a couple of payments due to a recent illness.

He owns his home and has a good job, but mentioned to me about being able to write it off using an IVA. From doing some initial research it seems this will just help line the pockets of a company and still require him to pay a substantial amount each month.

I want to offer to help him organise his financial, sort out a budget and repayment plan, but before I do I wanted to know whether creditors (banks and building societies) will allow me to liaise with them on his behalf?

Thanks, hope you can help to let me help my friend.

Hi there,


Thanks for posting.


I’m sorry to hear your friend is unwell.


You will only be able to speak to your friend’s creditors if he gives you permission to do so. It’d be worth him getting in touch with his creditors by telephone to find out the best way to do this, or calling into a branch and talking to a staff member. If he calls the creditors with you present, it may be that he can set up temporary authority for you to speak to them during that phonecall. This is at the discretion of individual creditors however and not something we could guarantee.


Without knowing more about your friend’s circumstances it’d be hard to know whether an IVA is a debt solution that’s suited to his situation.


If you’d like advice about your friend’s situation, you can talk to us on his behalf as long as he gives us permission to. If he calls us we can talk him through the process. We can have a look into his financial situation and recommend a debt solution that’s best suited to his situation. You can find out how to get in touch with us here:

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


I hope this has helped.


Kind regards,


Jen

StepChange_Jen

ukguy2k wrote: »

Currently I have debt with 'Very' for £1352.70. Debt with 'Fashion-World' for £1352.63. Debt with 'Apex Credit Management' for about £380. I'm paying slightly more than the minimum payments for 'Very' and 'Fashion-World'. 'Very' and 'Fashion-World' are catalogue companies. I'm paying £10 a month for 'Apex Credit Management'. I'm more worried about the 'Very' and 'Fashion-World' debts. All I can afford is to pay about £30 to £40 a month extra total for the two 'Very' and 'Fashion-World', would the debts get cleared quicker if I paid that much extra? The 'Very' and 'Fashion-World' debts are taking a time to get cleared. I pay my father towards mortgage and bills. So I cannot pay plenty towards the debts. I'm currently paying £30 a month for 'Virgin Media' to my sister. And any extra towards my debt with her. Paying £10 a month for 'Virgin Mobile'. Paying £16 a month to 'EE' for mobile wifi device.

Hi there,


Thanks for posting.


Making minimum payments towards your debts can often be a sign that you have a debt problem. Due to this, it sounds like you’d benefit from some free debt advice and as a charity this is something we can help with.


You can get in touch with us in two days, by calling our Helpline or using our online debt advice tool, Debt Remedy.


If you call our Helpline, one our advisors will talk through your finances with you and will use the information you give them to recommend a debt solution that’s suited to your situation. If you decide to go ahead with the debt solution, we can let you know the next steps to take and will offer support along the way. You can find out how to get in touch with our Helpline here:

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


Debt Remedy works in the same way, except instead of talking with an advisor you enter your information online. It’ll then use this to recommend a debt solution. If you get stuck or need help along the way, we have a digital support team that can help. You can find Debt Remedy here:


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


I hope this has helped but if you’ve got any questions please do let us know.


Kind regards,


Jen

StepChange_Jen

karljt2013 wrote: »

I was shocked to open my mail today to receive a county court summons from a solicitor regarding a £300 credit card debt default that is 5 years and 8 months old. I have checked my credit file and the default was due to be removed from my credit file in June.

I had serious mental health problems at the time which led me to be sectioned under the mental health act and placed under suicide watch. I have hospital documents to support this. Maintaining credit cards was absolutely out of the question.

I had many debt collectors knocking on my door in 2011 including ones chasing me for this debt, I made some payments on this debt but the payments were never deducted from my bill.

This debt has been sold at least three times between debt collection agencies in the 6 years since the default and I am determined to contest this CCJ summons. Do I have any hope of successfully arguing my case? They have already tried to add £80 to the bill in fees and I couldn't afford it before that.

This is agonisingly close to the statute of limitations cut off point

Hi there,


Thanks for posting.


I’m sorry to hear about this situation. Suffering with mental health problems while dealing with debt can be very difficult, and can sometimes make each problem harder to deal with. If you believe your creditor treated you unfairly when you were experiencing mental health issues, it might be worth making a formal complaint to them.


A creditor is within their rights to start court action to retrieve a debt if they’re still within the limitations period. It’s frustrating that the debt is close to the six year limit however if the CCJ is put in place the debt would no longer be able to become statute barred. Also, the payments that you made towards the debt in 2011 may have reset the limitations period too. You mentioned that these were not deducted on your bill so it might be worth querying this with your creditor to find out what’s happened.


In terms of the CCJ, when a creditor applies for a CCJ the only real grounds to be able to defend the CCJ are if you have a valid factual or legal argument. For example, if the debt is statute barred your creditor wouldn’t be able to use court action to get you to repay it, this might be legal grounds to get it ‘set aside’.


If you do owe the money, it seems unlikely that you’d be able to set the CCJ aside. It’s best to respond to court paperwork within the timeframe given. This way, you can arrange to repay the debt at an affordable amount that suits your budget. We’ve got an article about dealing with a CCJ that you may find useful to read here:


http://moneyaware.co.uk/2012/01/received-a-county-court-judgement-ccj/


If you decide that you do want to defend the CCJ, please feel free to get in touch with our Helpline for advice as it can be quite complicated.


Furthermore, if you do need to pay the debt back and are worried about the impact it could have on your finances, our advisors can offer you advice on this too. You can find out how to get in touch with our Helpline here:


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


I hope this has helped,


Jen