Struggling with debt? Ask a debt advisor a question

Former_StepChange_Matthew

Icahbanjarmasin wrote: »

I have carried out limited research into govt mortgage help via local councils but it appears that because I do not have any children disabled or elderley/infirm co-dependants then I will not qualify for assistance.Oh the joys of being a White Single Healthy Indonesia Male that has always paid his way.

Hi there,

Welcome to the forum and thanks for posting.

I assume the benefit that you're referring to is support for mortgage interest (SMI). To qualify for this you usually need to be claiming certain benefits (details of eligibility can be found here).

Still, you might qualify for other benefits and you may want to check to see what you are entitled to receive. We have an online benefits checker that you can use.

If you're struggling to pay your debts, it may be worth seeing what the best course of action is to manage these. You can use our online Debt Remedy tool which is anonymous, free and will provide you with the best options to manage your debts.

I hope this helps.
Matthew

Snork_Maiden_2

Hello, I hope someone can give me some advice here

Basically I want to help a family member get rid of his overdraft as the bank (natwest) keep on at him to reduce it but due to many things he can't at the moment.
One of those money transfer cards sounds a good idea with the 0 percent interest for so many months, If I was accepted for one of these cards can I transfer the money into his bank account? and then he pays me monthly, Or does it have to be in the same name?? He can't have any more cards so it will have to be me applying. Would this be ok?
Any advice appreciated

StepChange_Allen

Snork_Maiden wrote: »

Hello, I hope someone can give me some advice here

Basically I want to help a family member get rid of his overdraft as the bank (natwest) keep on at him to reduce it but due to many things he can't at the moment.
One of those money transfer cards sounds a good idea with the 0 percent interest for so many months, If I was accepted for one of these cards can I transfer the money into his bank account? and then he pays me monthly, Or does it have to be in the same name?? He can't have any more cards so it will have to be me applying. Would this be ok?
Any advice appreciated

Hi there

Thanks for posting.

The money transfer cards are something I'm aware of but am not overly familiar with as I think they're quite a new concept. I don't know of any reason why you couldn't transfer the money to your friend's account, but I'd recommend having a read of this article on the MoneySavingExpert site to learn more about these cards.

You need to be aware of the fee involved for each card and how long you have to pay the money back at 0% before interest starts being charged. As with borrowing any money, please make sure that the repayments can be comfortably made before applying for a card.

I hope this is helpful.

Kind regards

Allen

SpongebobsMum

Hi, could I get a reply to my previous post?

Many thanks,

StepChange_Allen

SpongebobsMum wrote: »

Hi, could I get a reply to my previous post?

Many thanks,

Hi there

Thanks for your post.

I apologise that we have not responded to your previous message, it must have just been missed accidentally. My colleague Rachael is going to write a reply to you shortly.

Kind regards

Allen

StepChange_Rachael

SpongebobsMum wrote: »

Hello,

I have debts of about 15k with multiple creditors. I have reviewed my credit files with Experian and Equifax and have noticed that some of the creditors do not seem to be registering the debts at all, no record of payments or default notices, nothing.

- All of the debts I have are currently interest frozen and I make token monthly payments.

- I would like to get a mortgage within the next 5 years and am trying to plan an increase in my 'credit worthiness'.

My question is, whether is it necessary for me to a). pay off these debts completely, or b). even to pay them at all, if my objective is only to increase my credit rating/credit worthiness in the eyes of creditors: If they're not going to see the debt why pay it?

n.b. I'm sure you wouldn't, but I don't want a moral lecture.


Kind regards,

Christie

Hi Christie

Thanks for posting.

It’s creditor’s responsibility to update the list of debts to a credit file. There’s three main credit reference agencies in the UK, so I’d advise you to check all three. Equifax and Experian you mentioned and there’s also Call Credit.

Creditors might choose to update the information to your credit file at a later date and include interest and charges although I know you’ve mentioned they’ve stopped this at the moment.

It’s really up to you what you decide to do. From my experience as a debt advisor I’ve seen situations where people have left debts and then further action has been taken against them further down the line. Dealing with debts sooner could be a better option as leaving debts can prolong the issue.

Should creditors choose to take further action (such as a CCJ) this will very likely have a bigger impact on you and will almost certainly show on your credit file.

You can read more about what creditors can do on our website here.

Hope this helps

Rachael

Kdebt

Hello,

I'm unsure if I should apply for a DMP. Your site tells me I should when I do the quick survey. My worry is this, I have debt which is well more than my yearly income after tax but I have never missed payments and I'm coping to an extent. It's just I've used my credit card lately for unexpected things that pop up in life as when I budget my bank I don't really allow for anything other than the direct debits and even though there is a little bit of money left over it soon disappears on little things.
My biggest debt is a personal loan that has 40 months left, with gone I'd be debt free soon after so concerned maybe that the 40months is less scary than a DMP?
My other concern is my partner has been on a DMP since last year , I'm not on it with him, it was his own personal debts, if I was to go down the DMP route would it be a case of starting a new joint one together or keeping it as two seperates because his is settled and started?

many thanks
Kelly

StepChange_Allen

Kdebt wrote: »

Hello,

I'm unsure if I should apply for a DMP. Your site tells me I should when I do the quick survey. My worry is this, I have debt which is well more than my yearly income after tax but I have never missed payments and I'm coping to an extent. It's just I've used my credit card lately for unexpected things that pop up in life as when I budget my bank I don't really allow for anything other than the direct debits and even though there is a little bit of money left over it soon disappears on little things.
My biggest debt is a personal loan that has 40 months left, with gone I'd be debt free soon after so concerned maybe that the 40months is less scary than a DMP?
My other concern is my partner has been on a DMP since last year , I'm not on it with him, it was his own personal debts, if I was to go down the DMP route would it be a case of starting a new joint one together or keeping it as two seperates because his is settled and started?

many thanks
Kelly

Hi there Kelly

Welcome to the forum and thanks for your post.

A debt management plan (DMP) is one of a number of debt solutions that we help our clients with. People usually require a debt solution when their income does not cover their household bills and living costs, plus at least the minimum payments on their debts.

When working out a budget it's important to factor in things like one off expenses that come up, otherwise you can end up borrowing more to cover them.

If you are happy that you filled in our Debt Remedy tool accurately, and it recommends a DMP, then it is likely to mean it is a good option for you. However, I can't be 100% sure without personally looking at your budget. If you log back in to your Debt Remedy budget here and click on the 'Need help' button in the bottom left corner, you can contact a debt advisor to run through your budget and discuss whether the DMP is right for you.

You can ask the advisor any questions you have, and they can hopefully reassure you about any concerns.

If you decide a DMP is something you'd like to do, it can be done on your own, or jointly with your partner. If his DMP is with us, you could call us together with his reference number and we should be able to add you and your debts onto that plan. If elsewhere, you should still be able to do the DMP together with us if that's what you'd both like to do.

I hope this helps a little. Please get in touch if we can provide further advice.

Allen

brown123

Hi, James,many thanks for your advice.

Emmamoll

I'm wanting some advice on money transfer & 0% debt shift cards - I've read the relevent MSE pages.

I have a credit card currently with £500(ish) on it and an overdraft of roughly the same amount, I'd like to shift them to one 0% card to make paying them off easier. - What I want to know is, is this possible? From what I've read, I gather money transfer cards are fund transfer to a bank and so would help with my overdraft but debt shift cards are what I need for my credit card, but I'd like both on one card ideally. I hope that makes sense and hope you can offer some advice.

Thanks
Emma