Struggling with debt? Ask a debt advisor a question

DaveK1971

Hi,

I'm on a DMP with SC and all is going ok but I'm having issues with creditors simply denying they have heard from SC and threatening to recommence recovery action unless SC get in touch.

Is this a common ploy and what action would you recommend.

One creditor in particular refuse to admit to any contact by SC or authority from me to deal with them when I know that the authority letter has been sent nine times and SC have issued the payment plan to them twice!

Many Thanks.

mum2one

moneysavvy35 wrote: »

My best friend is always borrowing money off me and recently she admitted to me she has over £15,000 worth of debt. I was totally shocked as she is usually so well put together. It took a while for her to reveal the full extent. one of her debts iswith Halifax that she owes overnight £7000 and they her currently charging her £150 in interest alone :eek:

Anyway as she knows I'm an avid reader of this forum....(usually travel or jobs related) she asked me to look into help. I had a quick look on this forum and read a few post in here....cut a long story i advised her to do one of those means tested statements. She got a call from someone today and they told her she has no disposable income so she must offer these companies £1 a month. She says she's up to date with her payments with her debts except the Halifax one and a tv she bought last year. She has a plan set up with barclays which she has stuck to religiously also her car payments are up,to date. The person at step to says she has to offer £1 to ALL her creditors even the one's she's up,to date with. I don't really get that!! Also how would she ever get the debt down on £1 a month on £15,000?

Do they just set this assuming her circumstances may change in a few months? I've told her she better do as they say as they know best but sounds abit strange i. I would just like to get some understanding on why they say that? Its like their affecting the whole debt when it don't need to be. Couldn't she just come up with some type of payment plan for the other debts she is not up to date with like the arrangement she has with barclays? If she gives me permission can I speak to them on her behalf. She is really in a bad way at the moment. Also once these £1 a month thing comes into play can she pay than the £1 a month as I know she occasionally does bar work.


Sorry its long....any advice would be much appreciated...

basically the principal of £1 per month to all creditors (even if you have previously paid more) is to ensure that all the creditors are treated fairly. The idea is that when her circumstances change then a new financial review will be done and new sums can be allocated to the creditors.

If your friend gives permission then you can discuss the case for her, some companies will let you deal on her behalf straight away, others may ask for it in writing.

mum2one

DaveK1971 wrote: »

Hi,

I'm on a DMP with SC and all is going ok but I'm having issues with creditors simply denying they have heard from SC and threatening to recommence recovery action unless SC get in touch.

Is this a common ploy and what action would you recommend.

One creditor in particular refuse to admit to any contact by SC or authority from me to deal with them when I know that the authority letter has been sent nine times and SC have issued the payment plan to them twice!

Many Thanks.

Its a common ploy to try to get more money from you, - the company that are being a pain, theyve had 2 lots of money from step, that can be traced as coming from step and not your account,

It may be worth giving step a ring, as they may have some advice how to deal with it, more the correct termonilogy.

I'm having ngtmare with one of my creditors the best thing I have 3 debts with them 2 there plodding along happy with, the 3rd they come up with excuses. xx

System

crushed00 wrote: »

We currently have about 18000 left to pay on 5 unsecured loans, monthly payments smallest under a £100 to largest over £400 per month, total cost per month is over £900, we can manage the payments and probably pay extra towards one if we cut back, but all we can see is what we are doing without now because of the monthly payments. Just by what I have wrote could anyone suggest anything we should be looking at, or is the best way just to try and balance living and paying debt. All we want is to be debt free but equally as much we don’t want our debt to hurt us anymore than it does ATM. Hope this makes sense and someone can give us a little point in the best way forward whatever that way maybe, because between us we are hopeless, hence the mess above.

THANKU

Hi and thanks for your posts.

It looks like you’ve had some good advice from mum2one already.

We wouldn’t normally recommend consolidation loans as a debt solution as these often make the situation worse.

The first step is really to put together a budget and we can help with this, if you do have problems budgeting keeping a spending diary can also help. You’ll also find a lot of support on these forums for people trying to live on a budget.

The first thing to do is visit our online debt advice service Debt Remedy (http://www.stepchange.org/msehelp) to help you put together a budget and see if you qualify for any debt solutions.

Debt Remedy will assist you in completing a financial statement with information on your household, employment, income, expenditure and debts. From this the service will automatically determine your options.

To help you fill in the form, it’s best to gather together information about:
• Your income
• Your expenditure
• The creditors you owe money to

You’ll receive a downloadable advice booklet providing a tailored solution for you based on your current circumstances and advice on ways you may be able to improve your situation.

If you’re not confident with computers or would like to speak to an advisor then you’re welcome to ring our free Helpline on 0800 138 1111. We’re open Monday to Friday 8am - 8pm and Saturday 9am until 3.00pm.

If you phone us it may be possible to refer you directly to a advisor for immediate advice. Alternatively, we will arrange for an appointment to be booked at a time convenient for you.

It may take a while to get into the idea of living on budget and /or looking at any solutions you may qualify for, but you have taken the first step to sorting out your money worries and we can help with support and free and impartial advice along the way.

Kind regards,

Mat

System

bradsha3 wrote: »

Hi, I need some advice with my debt after several years of thinking that things will be ok when I get a better job - have finally come to the conclusion that in the current job market, this is not going to happen, certainly in the near future. I am also at that point in my life where the biological clock is ticking and I am wanting a family and getting very desperate as the prospects of me being able to afford one before I'm beyond that is looking increasingly unlikely!

I've tried going to CAB - told me I earn too much for them to help me and that no one can negotiate with my creditors until I stop paying them - I will point out here that I am only managing to pay by working three jobs, selling everything I own of any value and borrowing extensively from my retired and disabled mother!

This morning tried calling national debtline - they got fixated on the fact that I do 1 day per month self-employed, earning me an extra £100 per month after tax etc (this is not guaranteed at all!). They also worked out that I have a surplus of £540 per month and therefore it would not make sense to get an IVA or bankruptcy. I wish this were the case, my actual budget currently gives me approx £100 surplus per month (if I do my self-employed work), rising to £250 surplus per month (after tax) if I'm successful in getting a promotion this week! They told me to ring business debtline - ironically open 9-5.30 weekdays - when most people including me are at work!!! I work in an open plan office with no where private to go. (I also get quite upset when talking about this so not good when at work).

So I'm really stuck and feel no further forward and desperately need some help. I owe approx £19.5K to 2 loans, 4 credit cards and 2 catalogues. I take home £1444 per month from my full time job with £100 extra the months I get self-employed work and I also do some casual work which is impossible to predict.

I think an IVA or bankruptcy are the only solutions and at least it has an end date before my reproductive organs shrivel up completely but my mum is not keen in the slightest and as I'm not getting any decent advice from anyone else I'm completely stressed out and don't have a clue what to do.

Please any advice would be really helpful!!!

Hi and welcome to the forum.

It sounds like you would benefit from some free and impartial advice.

We can help, even if you do have some self–employed income.

The first thing to do is visit our online debt advice service Debt Remedy (http://www.stepchange.org/msehelp) to help you find a solution to your debt problem quickly.

Debt Remedy will assist you in completing a financial statement with information on your household, employment, income, expenditure and debts. From this the service will automatically determine your options.

To help you fill in the form, it’s best to gather together information about:
• Your income
• Your expenditure
• The creditors you owe money to

You’ll receive a downloadable advice booklet providing a tailored solution for you based on your current circumstances and advice on ways you may be able to improve your situation.

If you’re not confident with computers or would like to speak to an advisor then you’re welcome to ring our free Helpline on 0800 138 1111. We’re open Monday to Friday 8am - 8pm and Saturday 9am until 3.00pm.

If you phone us it may be possible to refer you directly to an advisor for immediate advice. Alternatively, we will arrange for an appointment to be booked at a time convenient for you.

Kind regards,

Mat

System

TeaUK wrote: »

Thanks, however my question was about a non-defaulted debt, not a defaulted debt?

On another note, isn't it unfair that paying off a debt in full over 6 and a half years on a non-defaulted debt through a DMP results in another 6 years of AP, SETTLED and Debt management tags on your credit reference file. Essentially 12 and a half years of negative entries, when someone who defaults or arranges an IVA will have a clear file after 6 years.

This seems to suggest that not paying back the full amount and allowing a default to be served would be far better.

Hi and thanks for your reply.

Sorry, it looks like we didn’t understand the original question.

In regards the late default I’d recommend that you complain to the creditor in writing regards this. It may be possible that this could be amended. You could also add a ‘notice of correction’ to your own credit reports.

You can find more about ‘notices of correction’ and other credit file details here.

http://www.moneysavingexpert.com/loans/credit-rating-credit-score

Serving late default notices does seem an unfair practice, having repaid the debt in full you have a good case to take up with the creditor in question.

I hope this helps.

Kind regards,

Mat

System

moneysavvy35 wrote: »

My best friend is always borrowing money off me and recently she admitted to me she has over £15,000 worth of debt. I was totally shocked as she is usually so well put together. It took a while for her to reveal the full extent. one of her debts iswith Halifax that she owes overnight £7000 and they her currently charging her £150 in interest alone :eek:

Anyway as she knows I'm an avid reader of this forum....(usually travel or jobs related) she asked me to look into help. I had a quick look on this forum and read a few post in here....cut a long story i advised her to do one of those means tested statements. She got a call from someone today and they told her she has no disposable income so she must offer these companies £1 a month. She says she's up to date with her payments with her debts except the Halifax one and a tv she bought last year. She has a plan set up with barclays which she has stuck to religiously also her car payments are up,to date. The person at step to says she has to offer £1 to ALL her creditors even the one's she's up,to date with. I don't really get that!! Also how would she ever get the debt down on £1 a month on £15,000?

Do they just set this assuming her circumstances may change in a few months? I've told her she better do as they say as they know best but sounds abit strange i. I would just like to get some understanding on why they say that? Its like their affecting the whole debt when it don't need to be. Couldn't she just come up with some type of payment plan for the other debts she is not up to date with like the arrangement she has with barclays? If she gives me permission can I speak to them on her behalf. She is really in a bad way at the moment. Also once these £1 a month thing comes into play can she pay than the £1 a month as I know she occasionally does bar work.

Sorry its long....any advice would be much appreciated...

Hi and thanks for your post.

We can’t really comment on your friend’s situation without knowing details of what she’s been advised.

We usually tell our clients to make a £1 token payment when their budget means they can’t afford to repay any more than this or until a different solution is in place. Each creditor receiving £1 means that they’re all treated equally.

It’s not clear if your friend has spoken to us or not.

If you want to assist her with her you could sit down and run through our online advice tool Debt Remedy http://www.stepchange.org/msehelp. This will help her put together a budget and offer the best solution based on her circumstances.

I hope this helps.

Kind regards,

Mat

System

DaveK1971 wrote: »

Hi,

I'm on a DMP with SC and all is going ok but I'm having issues with creditors simply denying they have heard from SC and threatening to recommence recovery action unless SC get in touch.

Is this a common ploy and what action would you recommend.

One creditor in particular refuse to admit to any contact by SC or authority from me to deal with them when I know that the authority letter has been sent nine times and SC have issued the payment plan to them twice!

Many Thanks.

Hi and thanks for your message.

It could be part of the debt collection tactics of this particular creditor.

I’d recommend that you request the creditor only contact you in writing, make sure you open all your mail and stay on top of the correspondence but this usually cuts down on some of the collection ploys you may receive when speaking to them.

I hope this helps.

Kind regards,

Mat

sarahsausage_2

Hi i am trying to get debt free but have a 3,000 overdraft with lloyds tsb. i cant seem to be able to lower the overdraft and lloyds dont ssem to be helping (apart from charges charges charges) they offered me a 5 year loan to pay it off which would result in me paying almost 6,000!! the only solution i can thing would be to clos my account and drip feed the overdraft off...or could i get a 0% card for 20 months and balance transfer the overdraft and pay it off within the 20 months...can i do that? or is there anything else i can do? i am not happy with the bank as i have always banked with them have insurances with them and now i feel like they wont help me many thanks for your help in advance x

rwp150

Hi, I am new the forums and have been reading with interest as lots of useful advise and tips.

I have decided that 2013 is the year to face up to my debts, my wife and I have approx £30k of debt, which we were coping with, but we have now maxed all of our credit cards and overdrafts and are really struggeling with basic living costs.

I have been looking into why this has happended, and the main reason is we used to get 0% credit cards and move around the debts, but then the credit crunch and no one would give us a 0% deal, the interest rate on all of our cards have then crept up, the worst bing barclaycard which went up from 9.9% (after into offer) to 24.9% within a year! The minimum payment is £120 and interest is £100 a month and we just can't afford to pay it off.

We also have a HSBC overdraft which is constantly at it's limit (£4k), I am really concerned that HSBC will see tha we are struggeling and then pull the overdraft after I get paid which would really mess us up and I need to ensure I can keep food on the table for the kids and the car on the raod so I can work.

I have thought about moving my salary to another bank account and then just leaving the HSBC overdraft and slowly paying it off, the problem I have with that is the interest on the overdraft is currently £60 a month but this is with money going in it so the interest will go up which will just make things worse!!

Anyone have any ideas? Do you think HSBC would pull the overdraft? At the moment we haven't defaulted on anything.

Many thanks for your help