Struggling with debt? Ask a debt advisor a question

Former_StepChange_Richard

thmancm wrote: »

Hi

I am in a debt management plan and have been told by my debt management company that after 5 years if I make my payments each month I will be debt free. Is this the case? The payments are what I could afford on the management plan but do not cover the amount I owe.

Thanks

Hi there,

Thanks for your message and welcome to the forum.

Without seeing the details of your plan I can't say for certain if you will be debt free in 5 years, however, any Debt Management Plan should be setup so that you will clear your debts eventually by making payments that are affordable for you.

If you have a calculator to hand a quick way to check this would be to enter the total amount of debt you have and then divide this figure by 60 (60 months in 5 years). This figure should be the amount you are paying each month if you are going to pay this debt off in 5 years.

There is a chance that the company is arranging an Individual Voluntary Arrangement (IVA) for you. These arrangements are legally binding and methods of insolvency. IVA's will require a person to make monthly payments to their debts for an agreed period of time (5 years or longer in some cases). After the agreed period of time any outstanding debt that is left to pay will be written off. You can read more about these on our website here.

I would suggest speaking with your company to be sure about the arrangement you have made. There are consequences to both so it's best to be certain about what you are agreeing to before it begins.

If you're in any doubt and would like to discuss this further you can contact us here.

I hope this helps.
Richard.

tyrna

hi and thanks for reply
before I've even managed to write back to them they have now issued a direct earnings attachment to my employer.My understanding was that they couldn't do this as the (disputed) debt is over six years old. As there is no way on the planet I can prove that i paid this debt It would seem I have no choice but to pay the amount.
To say I'm being bullied into this would be an understatement, but i don't see any other course at the moment

StepChange_Rachael

Hi

Thanks for posting.

If they are aware that you’re disputing a DWP (department of work and pension) debt then they can suspend recovery action. I’d suggest contacting them as soon as possible to discuss this with them. However, without having any evidence of paying the debt it might be hard to dispute. They should maintain a record of any payments made and provide these records to you if asked.

To collect Social fund loans the DWP can’t take court action to recover the payment which is over six years old, but they can set up a (DEA) direct earnings attachment as this doesn’t require court action.

If you decide to take the formal complaint route it’s important to follow their process. You’ll be able to find on their website you can find the link here.

You can always contact us at StepChange for free and impartial debt advice if you’re struggling financially and you can find our contact details here.

Thanks

Rachael

tyrna wrote: »

hi and thanks for reply
before I've even managed to write back to them they have now issued a direct earnings attachment to my employer.My understanding was that they couldn't do this as the (disputed) debt is over six years old. As there is no way on the planet I can prove that i paid this debt It would seem I have no choice but to pay the amount.
To say I'm being bullied into this would be an understatement, but i don't see any other course at the moment

tiredoflife

I have considerable debts of 46k made up as loans and credit cards. I have finally admitted this to my husband tonight.
My husband is understandably furious. He has substantial savings.
Would it be best to use his savings to pay off my debts and I pay him back over a long period of time, or, should I go down the dmp route on my own. My credit rating would be stuffed and future mortgages I'm guessing would be out of the question? but he would presumably be able to still get credit? I earn slightly more than him.
Not sure what the best solution is, I'm thinking dmp, my mess so I should sort it out. Any advice appreciated.

sourcrates

lewis_whitman wrote: »

I have a fairly large amount of experience in debt management, lately I'm speaking to a lot of people who are in debt management plans that don't know about any other options. At the company that I work for we have a team of finance managers who look at all of your options on a non-advice, no obligation basis. please feel free to message me your name and number and I will give you a call to see if there is a better option out there for you.

None of your information will be shared and you won't get put on any marketing lists.

If you would rather not message me about your debt then feel free to message me and I will send you a link to our website for more info.

Many thanks.

For a substantial fee no doubt !!!!!

Bouncybubbles

tiredoflife wrote: »

I have considerable debts of 46k made up as loans and credit cards. I have finally admitted this to my husband tonight.
My husband is understandably furious. He has substantial savings.
Would it be best to use his savings to pay off my debts and I pay him back over a long period of time, or, should I go down the dmp route on my own. My credit rating would be stuffed and future mortgages I'm guessing would be out of the question? but he would presumably be able to still get credit? I earn slightly more than him.
Not sure what the best solution is, I'm thinking dmp, my mess so I should sort it out. Any advice appreciated.

Please speak to stepchange they can help you for free!! also don't view money as your money and my money if you are married it should be 'our' money therefore 'our' debt?? I do not understand your personal circumstances but this is what we had to do in our household

Former_StepChange_Matthew

Hello qaw, not exactly full of advice and not exactly helpful seeing as there is no advice. I'd love to live within my means, unfortunately I have an ex husband who wouldn't like me to live at all.

Hi there,

Thanks for your post and welcome to the forum.

I'm sorry to hear about your difficulties at the moment. As you've mentioned, things can change which makes what was an affordable payment become difficult to pay.

If you're struggling to pay your debts, it's worth exploring what your options are and see what options are suitable for you. We have an online debt help tool called Debt Remedy which you can access here.. This is free to use and available 24 hours a day.
Alternativley, if you would prefer to speak to someone, you can have a chat with a member of our Helpline who will be able to help you. You can find their contact details here.

I hope this helps
Matt

Former_StepChange_Matthew

I have considerable debts of 46k made up as loans and credit cards. I have finally admitted this to my husband tonight.
My husband is understandably furious. He has substantial savings.
Would it be best to use his savings to pay off my debts and I pay him back over a long period of time, or, should I go down the dmp route on my own. My credit rating would be stuffed and future mortgages I'm guessing would be out of the question? but he would presumably be able to still get credit? I earn slightly more than him.
Not sure what the best solution is, I'm thinking dmp, my mess so I should sort it out. Any advice appreciated.

Hi there,

I'm sorry to hear about your troubles at the moment. It's tough letting your family know about your financial difficulties but hopefully it will be easier to manage now it's in the open.

Borrowing money from family can help you clear off the debt in full and this would have a minimal impact on your credit rating however, as you would owe this money to your husband directly it will be a sensitive debt to pay and could be a difficult conversation to have if your circumstances change and your unable to pay your husband back.

With a solution like a debt management plan (DMP), you will be making reduced payments to your debts which will result in a default notice being registered on your credit file. Anything that goes on your credit file will remain there for 6 years and whilst it is on your credit file, you may find it difficult to obtain credit. Once 6 years pass since the date it was noted on your credit file, this should fall off and not be visible by lenders when you apply for credit.

A DMP may be a suitable option to manage your debts however, there are multiple solutions out there to manage debts. We can help you find the right solution for you to manage your debts.

You can use our online Debt Remedy tool which is available 24 hours day here.

If you would prefer to speak to a member of our Helpline, you can give them a call and their contact details are here.

I hope this helps.
Matthew

Ilovemygirls

Feeling very emotional and very stupid as I write this.
Went into a DMP quite a few years ago and with 2 years left on it to run I thought I could manage things better myself and came out of it.
I am now in a mess again. I've come to realise this is a psychological issue as much as anything else.
Can I approach Stepchange again?
Does it have to be joint this time?
DH has no debts in his name apart apart from the car finance and the car is in his name too.
Feeling very very low about all this.

Former_StepChange_Richard

Ilovemygirls wrote: »

Feeling very emotional and very stupid as I write this.
Went into a DMP quite a few years ago and with 2 years left on it to run I thought I could manage things better myself and came out of it.
I am now in a mess again. I've come to realise this is a psychological issue as much as anything else.
Can I approach Stepchange again?
Does it have to be joint this time?
DH has no debts in his name apart apart from the car finance and the car is in his name too.
Feeling very very low about all this.

Hi there,

Thank you for contacting us. Struggling with debts at any time can be upsetting but there's no need for blame or to feel this way when you were only trying to help yourself.

We will be happy to help you with your debts. It will be up to you to decide how you want to deal with your situation. If you just want advice for yourself, that's fine. If you want advice for you and your partner we can do that too. Here's all the contact details you'll need to get started.

Let us know if there's anything else you need. Take care.

Richard.