Struggling with debt? Ask a debt advisor a question

StepChange_Rachael

Hi

Welcome to the forum and thanks for posting.

It’s in your right to have access to any information a company hold on you. So you can ask them for details of the debt, such as the original agreement and any payments made.

Lowell are a collections agency, many creditors pass debt on to them if the original agreement has defaulted. It sounds like it’s possibly the same company.

You could also check your credit file to find out what debts you have. There are three in the UK and these are Noddle run by Callcredit, Equifax and Experian. Noddle is free for life to check your basic credit file. Equifax and Experian normally allow a month’s free trial. If you don’t want to continue with it you can cancel before the first month so you’re not charged.

Not all creditors update their information to all three so if you’re unsure of your creditors it’s worth checking all three.

If you believe you don't owe Lowell and they can’t give you details of the debt and it’s not on your credit file then it sounds like you’d have grounds to dispute the debt.

To dispute a debt I’d suggest following their complaints procedure. You’d be able to find this on their website.

If you find the debt is owed and you'd struggle to afford a repayment then as a debt charity we can help you find a suitable solution. You can find StepChange's details here.

Thanks
Rachael

Sohaibahmad wrote: »

Hi, i recived a letter from lowell saying that i owe them. Debt . The thing is i was not in united kingdom from 2012 to 2015 i dont knw hw come i owe them a debt can u please help me these guys are giving me headache . Thanks

StepChange_Rachael

Hi

Thanks for your post.

I’m sorry to hear you went through a difficult period but glad to hear things are turning around with your new career.

As creditors often pass debts on to collections agencies it’s a good idea to find out who’s collecting for the debt now. You can check your credit file for this information.

There are three credit reference agencies in the UK. Noddle ran by Callcredit, Equifax and Experian. Not every creditor updates all their information to all three so you could check them all.

Noddle is free. Equifax and Experian normally allow a month’s free trial. If you don’t want to continue using the facility then you’d need to cancel the membership before the first month so you’re not charged.

If the debt has been passed on then the original creditor might have cancelled the direct debit. I’m not sure why they hadn’t contacted you before now but it’s important to keep the creditors up to date on your new contact details as it falls to the debtor to keep the creditor updated.

It sounds like they are considering taking the debt through to a county court judgment (CCJ). This is where a court looks at your financial situation to decide how the debt should be paid. For example how much should be set as an affordable monthly payment.

Creditors normally consider taking the debt to a CCJ to secure a payment. If you can agree a repayment with the creditor before it’s sent then this might stop the creditor taking this action.

If a debt is set as a CCJ then this can open up further routes of collection for the creditor.

Most creditors will expect to see evidence of your income and expenditure before agreeing to a repayment so it’s a good idea to have this to hand.

If you’d like some further help and advice to find a way forward with dealing with the debts you have then we can help.

If you’re unable to locate your income and expenditure form then you can create a new one using our online Debt Remedy tool and once completed you’ll be able to access our recommendations. You can also use a print out of the Debt Remedy budget with the creditors to show them your financial situation.

If you explain to the creditor you’re seeking help and advice then hopefully they'll put court action on hold so you've time to look at a suitable way forward.

You can access the Debt Remedy tool here.

Thanks
Rachael

Leala wrote: »

Hi,

Hoping for some help and advice. I've just received a letter from PRA group who took over a credit card balance I had with MBNA. Unfortunately, I got myself into financial difficulties a few years ago thanks to my sister taking advantage of me, and being subject to a £4k con trick at a photography studio in central London.

Then I got made redundant twice in 4 years, so had to make arrangements with my creditors to pay off in affordable amounts. On the whole this has worked well, but a few of my balances have changed hands so often, I'm now confused as to which company handles what now!

I'm in a better position today - I've just qualified as a teacher so I have a career ahead of me and I'm a debt free wannabe. I'm also working as a Weight Watchers leader as well to earn extra money.

My letter today is about an MBNA credit card for the total balance of £2765, which I cannot afford to pay back in one lump. I have been paying them back in affordable amounts by direct debit, but I had not realised that the DD had been cancelled. I was quite happy to just let it be and the money to be taken out of my account - I know I should have been on top of it, but I didn't notice.

But now they are saying that they have been trying to contact me (I refuse to discuss it in a phone call and I don't give out my phone number to avoid harassment, which is what happened when I was made redundant), but I don't recall receiving any earlier letters than this one, which is "to give me notice of PRA Group's intention to issue court proceedings against you."

I have to reply by 24th August and it also says I should treat the letter as 'an invitation to refer to this dispute to mediation or some other form of alternative dispute resolution (ADR)'. What does that mean?

What should I do, write back and say yes, I am willing to pay the balance at an affordable sum?

Annoyingly, I have packed away my new contract as I'm in the middle of moving house so I don't have all the information necessary to do an income/expenditure form if they ask - isn't that just a waste of time anyway?

I dont know what to do for the best - I'm trying to get my life sorted, I can't work any more hours than I already am, and I have no other way of getting money. What options do I have?

StepChange_Rachael

Hi Julie

Thanks for posting and welcome to the forum.

Your new housemate can’t become liable for an old council tax debt they weren’t originally named in. If you where solely liable for the debt originally then it can’t be transferred to anybody else.

I’m not sure if it’s an enforcement agent or the council collecting for the debt but I’d suggest explaining to them that you’re house sharing and neither of you are financially responsible for the other party in the property. They don’t have a legitimate reason for the details of their financial situation.

Here is a link to our website and further information on council tax arrears that might help. You can also find our contact details if you’d like to discuss your situation in more detail.

Thanks
Rachael

Juliem31 wrote: »

Please could some give me advise with this:

I have received an old (12 years old) council tax bill which has proved I'm liable for, I am happy to pay off in installments and the sent me an income and expenditure form to work out a plan which j filled in and returned.

They have replied asking me to provide details of the other adult living at the address salary, can they do this? We aren't married or even a couple, Imy name is not on any bills at the address i am just living here currently.

Can they make this person luable for or contribute to my old debt?

Former_StepChange_Richard

PR0PJ0E89 wrote: »

Hey,

I'm currently looking at consolidating my Student--->Graduate Overdraft balance which is currently sitting at -£2000 a year after graduating in summer 2015. My current wage goes into this account each month so it does decrease but as I spend over the month the balance goes down again. I believe this is what people in the financial world call 'revolving debt'. I'm looking at separating debt from my day to day spending and to get back on a even keel.

I went to my local Natwest bank today and received some advice. He gave me three options and as helpful as he was, its still left me confused and unsure as how to proceed.
He mentioned that I could ask HSBC to give me the money to clear my Natwest overdraft and add it to the personal loan I have with them (£1260 over 24 months) of which i took out in August 2015 and have 15 repayments still left. The problem with this option is that when I went to ask HSBC they seemed reluctant to proceed because I'm not using my current account with them enough - there is enough cashflow coming through the account (apparently)
The second option was something I had seen previously on MSE and that was the Virgin 36 month 0% Interest credit card. He suggested I could use lets say the £2000 balance to live off while I paid my Natwest overdraft with my wages. I have to be honest and didnt really completely understand this option.
Thirdly, he said I could potentially apply for a credit card with Natwest to pay off the full £2600 of debt over 30 months, paying one sum of £114 each month.

However there are a few factors that make this more of a headache for me.

Firstly, I can't simply utilise the Virgin 36 Month 0% Interest card and do a balance transfer because my Natwest account is a 'Student/Graduate' card.

Secondly, I currently don't have a guaranteed income as I'm on a zero hours contract.

Thirdly, I dont want to be paying interest in two places if possible (if I took out a Natwest credit card I would be paying two lots of interest), I want to consolidate it into one manageable payment each month. Also, I am aware that having had no credit card before, it would be advantageous from a credit rating perspective to go in that direction. The trouble is with my current work situation I'm unsure whether I would be accepted.

I'm very confused and feel really lost as the best way to proceed.

If you could offer any good advice I would be very grateful.

Many thanks,

PropJoe.

Hi there

Thanks for your message and welcome to the forum. I know how hard it can be to work out the best way to deal with your debts, but you've come to the right place and we'll certainly be able to help.

The options you have been given so far sound viable, but they all present a risk in one way or another. None of them are designed to get you debt free, they are just shifting the debt from one place to another.

I would suggest that you use our Debt Remedy tool on our website to find the best way to become debt free. You can complete it in your own time and at the end it will present you with the best option for your circumstances. There will be a personal action plan at the end that will explain what we're suggesting and, if you're happy with it, how to get started too.

It's a good idea to have details of your income, expenses and debts to hand when you begin. As you've mentioned you're on a zero-hour contract, if this is fluctuating, try work out an average income if you can. If you need any help with this you can call and speak with an advisor. All our contact details are available here.

I hope this helps
Richard.

Former_StepChange_Richard

Lovelylooamy wrote: »

Hi I'm hoping someone can help me please, I have two credit accounts (next,simplybe) I am struggling to pay them off as the interest rates are quite high...I owe around 2000 in total. I was looking at 0% credit cards to pay off the balances and then just pay off the credit card, I'm a little confused when it comes to credit cards though as iv always vowed I would never get one. But basically I can get a balance transfer card with 0% interest for 32 months...plenty of time to pay it off, but is this just a card to pay off existing credit card debts? What card would I need? Thanks

Hi there

Thanks for your post and welcome to the forum. I know these things can be tricky to work out, but you've come to the right place for some help.

A balance transfer is where you shift existing credit card debt to another card. You've mentioned that your debt is with Next and Simplybe. Because the debt is not on a credit card you wouldn't be able to do a balance transfer.

These arrangements can be good for short term relief of interest, but they don't tackle the problem of making you debt free directly. Whilst you may have good intentions of paying the debt back quickly, things can change in life at short notice which could complicate your situation and make it hard for you to pay. You could then find that your 0% interest period runs out and you are back on a much higher rate.

We can give you impartial advice on the best way to deal with your debts if you like. Our Debt Remedy tool on our website will help you to build a budget. This shows us what is happening with your finances. The website will then present the best solution for your debts and create a personal action plan to help you too.

If you would rather talk to someone about this or have one of our advisors build the budget for you, you can call our Helpline for free. All our contact details are available here.

I hope this helps
Richard.

Buttonmoon12

Hi

I have £11,000 worth of barclaycard debt currently and due to only being able to make minimum payments (which I'm going to start struggling with due to ill health) I wrote to them with my financial status, asked them to freeze the interest on the debt and offered to pay £200 per month towards the total amount.

I have received a response from them which I will paste below but I need help understanding it. Does it mean I'm going to have bailiffs knocking on my door and they will sell the debt? I thought I was doing a good thing by warning them of my situation. I don't want this as they'll be knocking at my parents door!!

I have offered to pay £200 so what is the amounts less than £10 below. Also why is it an informal arrangement?

Any advice would be much appreciated.
Here is the response I got:

Dear Miss

Thanks for contacting us and for sending your financial statement. I am sorry for the delay in our reply, but I can see that we wrote to you on 12 August.

I confirm that your accounts have now been placed onto informal arrangements for £9.43 to account ending 7001 and £6.77 to account ending 6001. As long as you continue to make your monthly payments on time, you won't be charged interest or fees and this will also reduce further contact from our Collections department.

Your statements will continue to request payment of the arrears, however, while you are making your monthly payments on time these requests can be disregarded.

Please be aware that as a responsible lender, we will report any arrears to the credit reference agencies. This may affect your ability to obtain credit in the future.

As there is no formal agreement in place your account will continue to move through the Collections process. During this process we can issue a Default Notice at any time requesting the arrears are paid in full.

The accounts will eventually be closed, however, you should continue making your regular payments but be aware you won't be sent monthly statements. At that time, your accounts may then be passed for transfer of ownership, you will be advised of this in writing at the time.

The arrangement will be reviewed on a regular basis to allow us to access your situation and to ensure that we offer you all the help and support that you may need. Should you have any difficulty in maintaining these payments then please do not hesitate to contact us.

I hope this information is of assistance to you and we look forward to your continued co-operation.

gethro

Hi.
My question is about settlement figures,I have been on my plan for many years and I am just over half way through it,I have paid back nearly £10,000 but still owe just over £8000 and my debt free date is May 2020.
I want to clear these debts now and have asked via my DMP page (contact us) if you can get settlement figures for me but have had no reply or confirmation you received the email,should I contact my creditors direct and ask them for settlement figures.
Regards

StepChange_Allen

Buttonmoon12 wrote: »

Hi

I have £11,000 worth of barclaycard debt currently and due to only being able to make minimum payments (which I'm going to start struggling with due to ill health) I wrote to them with my financial status, asked them to freeze the interest on the debt and offered to pay £200 per month towards the total amount.

I have received a response from them which I will paste below but I need help understanding it. Does it mean I'm going to have bailiffs knocking on my door and they will sell the debt? I thought I was doing a good thing by warning them of my situation. I don't want this as they'll be knocking at my parents door!!

I have offered to pay £200 so what is the amounts less than £10 below. Also why is it an informal arrangement?

Any advice would be much appreciated.
Here is the response I got:

Dear Miss

Thanks for contacting us and for sending your financial statement. I am sorry for the delay in our reply, but I can see that we wrote to you on 12 August.

I confirm that your accounts have now been placed onto informal arrangements for £9.43 to account ending 7001 and £6.77 to account ending 6001. As long as you continue to make your monthly payments on time, you won't be charged interest or fees and this will also reduce further contact from our Collections department.

Your statements will continue to request payment of the arrears, however, while you are making your monthly payments on time these requests can be disregarded.

Please be aware that as a responsible lender, we will report any arrears to the credit reference agencies. This may affect your ability to obtain credit in the future.

As there is no formal agreement in place your account will continue to move through the Collections process. During this process we can issue a Default Notice at any time requesting the arrears are paid in full.

The accounts will eventually be closed, however, you should continue making your regular payments but be aware you won't be sent monthly statements. At that time, your accounts may then be passed for transfer of ownership, you will be advised of this in writing at the time.

The arrangement will be reviewed on a regular basis to allow us to access your situation and to ensure that we offer you all the help and support that you may need. Should you have any difficulty in maintaining these payments then please do not hesitate to contact us.

I hope this information is of assistance to you and we look forward to your continued co-operation.

Hi there

Thanks for posting. I'm sorry to hear about your ill health.

I think the reply from Barclaycard is probably a standard response to a customer that has contacted them to explain financial difficulties, though the amounts they have noted in there will have been worked out personally to you. I'm not certain how those amounts have been calculated, but it may be based on affordability after they've looked at your budget.

There is an excellent page on our website that explains all you need to know about the debt collection process in more detail than I can post on here, so I hope this is helpful to you. In a nutshell, once you're not paying the contractual payments any more, it's common for creditors to pass or sell debts on to a third party but little usually changes, other than who you're paying. You may have to show your budget to the new company.

Bailiffs (now called enforcement agents) can only be used once a county court judgment (CCJ) has been obtained against you and you've failed to pay the amount ordered by the court. There's no guarantee a CCJ will ever be entered, and if it is, as long as you deal with it in the right way, you can almost always avoid bailiff action. There's more information about what creditors can do on our website as well.

It's described as an informal arrangement because it's not legally binding, like the original credit agreement for example. It means they can withdraw the agreement any time, such as by passing it onto another company as explained.

If you'd like any help with this debt and any others you may have, we provide a free and impartial debt advice service. Our details can be found here.

I hope this is helpful.

Allen

StepChange_Allen

gethro wrote: »

Hi.
My question is about settlement figures,I have been on my plan for many years and I am just over half way through it,I have paid back nearly £10,000 but still owe just over £8000 and my debt free date is May 2020.
I want to clear these debts now and have asked via my DMP page (contact us) if you can get settlement figures for me but have had no reply or confirmation you received the email,should I contact my creditors direct and ask them for settlement figures.
Regards

Hi there

Thanks for posting. It's good to hear that you may be in a position to settle your debts.

I'm not completely sure if your DMP is with us, but if it is, I'm sorry you've not had a response to your e-mail yet. The best thing to do would be to call our Client Support team and they'll be able to help, maybe by putting you in touch with our Settlement Team. We don't charge any fees for assisting with settlement offers and would love to be able to help if we can.

If you need any more specific information please feel free to send us a DM to StepChange Private Messages.

If you're with another company, then again I'd recommend giving them a call.

I hope this is helpful.

Allen

Givens

First of all I'm not sure if I'm posting in the right place so apologies If I'm not. A friend has come to me asking for some advice on his business overdraft. First of all he is no longer trading anymore but it was a ltd company but his business overdraft is unfortunately about £8000, he does inform me that he has personally guaranteed £2000 of his loan but is awaiting confirmation of this.

He is under the impression once he has paid the £2000 back he can walk away from the rest of the loan and they can't follow him personally for the loan, is this correct? A relative is willing to lend him the £2000 if this is the case.

Any help and advice would be greatly appreciated.