Struggling with debt? Ask a debt advisor a question

StepChange_Rachael

Hi

Welcome to the forum and thanks for posting.

It’s difficult to say exactly without knowing the full details of the situation.

Ultimately if there is debt outstanding debt which hasn’t been paid then Volkswagen have the right to chase for the debt.

It’s not unusual for a debt to be passed to another collections agency or that unusual to be passed back to the original lender although this is less likely to happen.

If you’ve been making payments in this 10 year period then the debt can still be taken to court for the remaining amount.

If you’re struggling to maintain the payments the credit is asking for and would like further advice you can contact us for further help. You can find our contact details here.

Thanks
Rachael

Volkswagen69 wrote: »

My car was written off in 2006. The insurance refused to pay out and I was left with £22000 to pay, which up till now has been managed by a credit management agency call BluestoneCreditManagment. They recently contacted me to say my account had been handed back to Volkswagen financial services with £2550 left outstanding.

Am I still liable to pay the remaining debt after ten years? Can I be taken to court for the remaining £2550 after paying more than £19000?

I'm not sure what to do.

jim4624

I have a logbook loan at 450%APR. I have been paying with a continuous payment authority for about two years. I took out an additional loan with the same company but due to their error the mandate has expired. They appear to be in a state of chaos, failed to take payments refunded payments in error etc and now they want me to call them. Before I call can someone advise me how I stand legally. It would be good if it where possible to "rip off" a rip off lender

kthrpr

I'm just about to begin my journey to become debt free and it's been a huge wake up call. I am arranging it through step change and it's to start on the 10th of August. However up until now I've never really missed a payment and I'm really scared of the next few months.
My problem is that this month due to partner being out of work and I had a sick day my income is £150 less than what I thought it would be and I'm going to struggle to pay my priority bills.
I'm considering defaulting on my mortgage this month but it's a last resort. I have no one I can borrow from and my partner has found work but will only get paid at the end of August.
Just wondering if I could delay my DMP for a month but I don't want it to look bad as I'm only just starting it.
Just looking for advice, I'm considering selling a few things I've got an iPad Air that I love but will probably get me £200. And I have a few baby bits I could sell too.

BigsuSpender

Hello,
I've been paying Cabot Financial (originally the debt was with First Direct) a minimal monthly amount for a debt now totalling around £9,000. There is no interest being charged so I'm literally paying what I can afford which is just over £21 per month. Of course, this is going to take a long time to pay at this rate!

However, when checking my credit file, this creditor does not appear on my file - the original default with First Direct occurred well over 10 years ago. My priority, therefore, has been to pay any debt I have with creditors who do appear on my credit file as these are the ones that are impacting my credit score.

Is there a reason for Cabot NOT appearing on my credit file? If I don't pay them will they then be able to log it as a default so that it then appears on my credit file? I'm confused!

Thanks

StepChange_Rachael

Hi

Welcome to the forum and thanks for posting.

I’m sorry to hear you’re having difficulties with the log book loan lender.

It’s important to check the original contract to see what you agreed to when you took out the loan. The contract should give you a good idea of what you’re legally responsible for paying back such as interest and charges and what your rights are.

Most companies or organisations that deal with finances are regulated under the Financial Conduct Authority (FCA). They make sure financial markets are providing a fair and honest service. I’d recommend making sure a provider is regulated by the FCA.

You can also report unfair or misleading companies through the FCA and you can find their website here.

If you feel you’ve been treated unfairly after checking the original contract then I’d suggest making a formal complaint to the company following their process.

If you’re unhappy with their response or they don't reply within eight weeks then I’d suggest contacting a Financial Ombudsman to look into this further.

Thanks
Rachael

jim4624 wrote: »

I have a logbook loan at 450%APR. I have been paying with a continuous payment authority for about two years. I took out an additional loan with the same company but due to their error the mandate has expired. They appear to be in a state of chaos, failed to take payments refunded payments in error etc and now they want me to call them. Before I call can someone advise me how I stand legally. It would be good if it where possible to "rip off" a rip off lender

StepChange_Rachael

Hi

Thanks for posting.

It’s great to hear you’ve found a way forward to deal with the problem debts.

It’s really important that your household bills and general living costs are prioritised. Secured debts like a mortgage have a higher priority than unsecured debts, as not paying your mortgage puts the property at risk.

It’s also important that a solution is right for you and your situation.

I’d suggest contacting us so we can discuss your plan and the change in situation in more detail.

You can find our contact details here.

Thanks
Rachael

kthrpr wrote: »

I'm just about to begin my journey to become debt free and it's been a huge wake up call. I am arranging it through step change and it's to start on the 10th of August. However up until now I've never really missed a payment and I'm really scared of the next few months.
My problem is that this month due to partner being out of work and I had a sick day my income is £150 less than what I thought it would be and I'm going to struggle to pay my priority bills.
I'm considering defaulting on my mortgage this month but it's a last resort. I have no one I can borrow from and my partner has found work but will only get paid at the end of August.
Just wondering if I could delay my DMP for a month but I don't want it to look bad as I'm only just starting it.
Just looking for advice, I'm considering selling a few things I've got an iPad Air that I love but will probably get me £200. And I have a few baby bits I could sell too.

StepChange_Rachael

Hi

Thanks for posting.

Firstly there are three credit reference agencies in the UK. Equifax, Experian and Call Credit (Noddle). Not every creditor will update their information to all three. So it might seem a debt isn’t on your credit file if you’ve only been using one but could be on another.

It’s worth checking all three to find out what is registered on your credit file. Noddle is free for life to check your basic credit file. Equifax and Experian normally allow for a month’s free trial but charge a fee after the trial period.

As the creditor originally issued a default on your credit file then they won’t be able to issue a new default for the same debt.

As you’ve mentioned that it'd take a long time to pay back the debt and that you’ve also other debts I'd suggest taking a look further into what your options are to deal with them.

Here you can find a link to our online anonymous Debt Remedy tool. Once completed you’d be able to access your personalised recommendations page.

Thanks
Rachael

BigsuSpender wrote: »

Hello,
I've been paying Cabot Financial (originally the debt was with First Direct) a minimal monthly amount for a debt now totalling around £9,000. There is no interest being charged so I'm literally paying what I can afford which is just over £21 per month. Of course, this is going to take a long time to pay at this rate!

However, when checking my credit file, this creditor does not appear on my file - the original default with First Direct occurred well over 10 years ago. My priority, therefore, has been to pay any debt I have with creditors who do appear on my credit file as these are the ones that are impacting my credit score.

Is there a reason for Cabot NOT appearing on my credit file? If I don't pay them will they then be able to log it as a default so that it then appears on my credit file? I'm confused!

Thanks

chris27

I need some advice on my debts and managing them.

I've got myself into a real mess, and I'm scared that I can't manage my payments.

I currently have 4 credit cards, 3 of which are thankfully 0% balance transfer cards, so I'm at least not paying any interest on them.

my total debt amount is more than my annual take home salary I'm embarrassed to say.

I got myself into some serious trouble through trading through a spreadbet firm on the financial markets.

I made a few losses, and then ended up chasing those losses and it spiralled out of control. I no longer trade I might add, as I've stopped that, but sadly to late.

I have around £6800 on a 0% Barclaycard. £5800 on a Tesco CC which isn't 0%. £4500 on a virgin CC which is 0% and £2000 on a Halifax CC which again is 0%

My take home monthly pay is £1552, and I'm scared that I'm not going to be able to keep up the payments, as well as pay bills and have at least £20 left to live.

I have been renting with my partner for 18 months and we are also just in the process of buying our first home together.

My partner knows about half of the debt, but I've been to scared and ashamed to admit to the whole amount.

I need some help to get things under control so that I can afford to live, and also pay my debts.

I haven't defaulted on any payments and my credit score is thankfully unharmed...at the moment, but I fear that may not last long.

StepChange_Allen

chris27 wrote: »

I need some advice on my debts and managing them.

I've got myself into a real mess, and I'm scared that I can't manage my payments.

I currently have 4 credit cards, 3 of which are thankfully 0% balance transfer cards, so I'm at least not paying any interest on them.

my total debt amount is more than my annual take home salary I'm embarrassed to say.

I got myself into some serious trouble through trading through a spreadbet firm on the financial markets.

I made a few losses, and then ended up chasing those losses and it spiralled out of control. I no longer trade I might add, as I've stopped that, but sadly to late.

I have around £6800 on a 0% Barclaycard. £5800 on a Tesco CC which isn't 0%. £4500 on a virgin CC which is 0% and £2000 on a Halifax CC which again is 0%

My take home monthly pay is £1552, and I'm scared that I'm not going to be able to keep up the payments, as well as pay bills and have at least £20 left to live.

I have been renting with my partner for 18 months and we are also just in the process of buying our first home together.

My partner knows about half of the debt, but I've been to scared and ashamed to admit to the whole amount.

I need some help to get things under control so that I can afford to live, and also pay my debts.

I haven't defaulted on any payments and my credit score is thankfully unharmed...at the moment, but I fear that may not last long.

Hi Chris

Thanks for your post.

I can understand how this debt problem is worrying you and how debts can make people feel ashamed and embarrassed, but it can happen to anyone and you haven't done it on purpose. The most important thing now is that you get the help and advice that you need to get things under control.

In order to be able to give you accurate and personalised advice we'd need to know a lot more details about your financial situation. If you'd like to register with us, we'd look at your income, expenses/bills and debts and see what the best way of tackling the debts would be.

Our advice is free of charge, and details of how to get started are on our website.

Rest assured that there's always a way to sort debts out, it's just knowing what the options are, what they can mean for you and so on, and that's something we'll explain fully to you.

I hope this makes sense and we hope to hear from you soon.

Allen

chris27

Thanks for you reply Allen.

I went through the website last night and got my personal report.

When it gave the results it was actually showing a lot higher values for the card payments then what the current minimums are.

Is this normal as that did skew the figures slightly?