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Struggling with debt? Ask a debt advisor a question

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  • System
    System Posts: 178,116 Community Admin
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    Cougargb wrote: »
    I am not prepared for what has just happened to me!

    Last Wednesday I "rescued" my 37 year old estranged son (no contact since May) as he was evicted from his house. He has not worked since being made redundant 2 years ago, living off his redundancy and accruing debts of just over £5k. He suffers from ADHD and is unfit for work.

    He has asked me to deal with his debts and guide him on a suitable path!

    After some initial advice we/he applied for ESA and on checking various sites feel that going down the DRO route is the best option.

    Clearly we have to produce a presentable budget but I have no idea on expenses we should claim bearing in mind he is living "at home". I am financially stretched and would need some help with food costs etc.

    None of the so called "debt remedy calculators" give any advice for our situation, so any advice would be gratefully received.

    Hi and thanks for your post.

    It sounds like you and your son would benefit from see free and impartial advice.

    I’d recommend that your son gather details of his income, current expenditure and debts and that he call our free helpline (you can listen in with his consent).

    We can help with DROs and also look at what benefits he may be entitled to in his current situation.

    Our free Helpline is on 0800 138 1111. We’re open Monday to Friday 8am - 8pm and Saturday 9am until 3.00pm.

    We can sometime transfer directly to an advisor or we can make an appointment that is convenient for both of you.

    I hope this helps.

    Kind regards,

    Mat
  • System
    System Posts: 178,116 Community Admin
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    Rat_Boy wrote: »
    Hi, we have built up a large debt over the last 7 years of around £40k, it all started 7 years ago when I got a new mortgage and tried to reduce the term by paying more, and this was ok at first but the last few years it has suddenly got out of control.

    However I’m now in a position to re mortgage as my fixed term is up, (I took a 2 year then a 5 year fixed rate).

    We have repaid about £20k off in this time from the mortgage and owe about 75% of our house.

    My question is as some of our debt is with the mortgage company 2 credit cards and overdraft, should I get a new fixed term rate (thats if I can) again for 5years and add this debt to the mortgage this would be about £15k, and the rest either do a DMP or a loan?

    What will happen in 5 years if I did a DMP, would I still be able to get a mortgage at a preferred rate?

    Regards

    Richard

    Hi Richard and thanks for your message.


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

    We wouldn’t normally recommend taking out any further lending or securing debt to a property. This is usually not a good solution and often makes the situation worse.

    A debt management plan will have an impact on your credit rating and this will possibly limit the availability of certain credit products to you until your rating improves. However, there could be other solutions available to you that you haven’t yet considered.

    I’d recommend that
    you 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.


    I hope this helps.


    Kind regards,


    Mat
  • Cougargb
    Options

    Hi and thanks for your post.

    It sounds like you and your son would benefit from see free and impartial advice.

    I’d recommend that your son gather details of his income, current expenditure and debts and that he call our free helpline (you can listen in with his consent).

    We can help with DROs and also look at what benefits he may be entitled to in his current situation.

    Our free Helpline is on 0800 138 1111. We’re open Monday to Friday 8am - 8pm and Saturday 9am until 3.00pm.

    We can sometime transfer directly to an advisor or we can make an appointment that is convenient for both of you.

    I hope this helps.

    Kind regards,

    Mat

    Thanks tried that number, disappointing first response, unable to answer DRO questions, no one currently available, gave me number to call later.

    0800 19701704 will maybe try later.
  • Chalkie77
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    Hiya - bit of an embarassing question really but was hoping for some anonymous help. I have a DMP with Step Change (CCCS) that I have been happily paying for over five years and have light at the end of the tunnel with under two years left. However, it has been a long slog and I have built up some additional credit card debt since and dare not mention it in my annual review.

    I am currently maintaining the minimum payments - and a little extra but my husband and I are hoping to get pregnant soon (the booming biological clock cannot be kept at bay now I'm in my mid-30s) and I worry what will happen if my wage drops as I am the main wage earner in my household.

    Hubby also has a seperate DMP and when I drop to SMP we will not be able to make any debt payments. I am mostly scared that we will be dumped by CCCS and end up bankcrupt - and hubby doesn't quite know the scale of the problem as I deal with all the accounts / budgeting.

    Any advice graciously received - thanks, Claire
  • System
    System Posts: 178,116 Community Admin
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    WayneB73 wrote: »
    Hi,

    I need some advise about IVA's as apposed to bankruptcy. The only reason i havn't already filed for bankruptcy is the fact i don't want to lose my house..

    I currently have a debt plan which i pay around £167 pcm on a debt of £90,000 My mortgage is £115,000 with a house value of £150,000 max, Currently i can only afford to pay my interest which is about £142 pcm.

    the problem i have is i am due to finish my mortgage in 16 years time, by my maths i would have to pay £7187 per year plus 1800 in interest providing my rate stayed the same meaning i would have to pay back £748 pcm to clear the mortgage in 16 years..

    Out of the £90,000 debt two of those creditors has debts secured against the house by a court order for around £35,000 which leaves £55.000 of unsecured debt to pay..

    I am self employed and based on my estimated average earning's over the next 5 years after tax will be around £24,000 pa, my living costs are currently £17.400 pa which means providing living costs don't rise i have around £6600 disposable income pa..

    What i really need to know is, should i keep my mortgage on interest only for the next 5 years and apply for an IVA to clear the debt? Tecnically with the secured loans i am in negative equity..

    The only reason i don't use the extra £6600 currently is because for some reason i can never live to my budget as i have no saving's, there always seem to be something that goes wrong from car repairs to house hold goods need replacing, i was trying to save a large some of money before taking out an IVA as i know it would limit my cash flow every month to the max with nothing spare.. If i pay the mortgage in full and i pay the mortgage off before the debt i will be forced to sell the house or remortgage the house in my late 50's to pay the remaining debt which means i would have noting and worked all my life for nothing.. Am i wrong to feel it so crucial to want to keep my house for retirement?

    Any advise would be much appreciated, sorry for any poor spelling and grammer in advance as it's not my strong point..

    Hi and thanks for your post.

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


    I’d recommend that you give us a ring so that we can look at your situation in more detail. Technically, you can go bankruptcy and retain a property that is in negative equity if you can show a balanced budget. This may not be the best advice overall though and we’d need to run through a budget before we could see what’s the best way forward.

    If you did go for an IVA any money you had saved would have to go into the arrangement from the start.

    In regards your property if you come to us for debt advice we may be able to recommend an independent financial advisor who can talk you through your options for the long term which you could then combine with our debt advice.

    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 counsellor for immediate advice. Alternatively, we will arrange for an appointment to be booked at a time convenient for you.

    I’d recommend you gather details of your income, expenditure, assets and debts before you call.

    I hope this helps.

    Kind regards,

    Mat
  • System
    System Posts: 178,116 Community Admin
    Photogenic Name Dropper First Post
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    Serinapuk wrote: »
    Hi,

    Me and my partner have natwest accounts. I previously banked with Barclays but got into financial difficulty so now have current account with Natwest and trying to pay off my Barclays overdraft (with difficulty)!!!
    We have received a letter advising that our joint, his current and business (he is self employed) will be closed if we can't pay the overdrafts off! This is as a result of my partners current account being £4k overdrawn! My partner has attempted to contact natwest to explain that he was made redundant over 3 times in the past 2 years which meant he had to go self employed but this does not guarantee a regular income! He was told that it was not their problem and he needed to pay it off! Since then, the interest has been building and building and at no point did they offer to stop interest charges which has now resulted in the current situation!
    My current account is ok, I have never gone over limit. I am wondering whether I should pay all wages into my account for now and set up the direct debits for utility bills, mortgage etc from my account but I am worried that they will try to take that money to repay debt on our other accounts with them which would leave us in a position where we would be unable to meet our monthly outgoings! Please help!
    Thank you

    Hi and welcome to the forum.

    If you have an overdrawn joint account with Natwest, then they can dip into other accounts that are held just in your name using the Right of Offset.


    You can read more about the Right of Offset here.


    http://moneyaware.co.uk/2012/02/bank-takes-your-money-right-of-offset/

    I think the safest thing to would be to open a new basic bank account with another bank that is not connected to any of your other creditors. You and your partner can then start making regular payments to reduce the overdrawn accounts with Natwest.


    It sounds generally like you could do with some advice in regards budgeting, if you do need this advice please call 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 counsellor for immediate advice. Alternatively, we will arrange for an appointment to be booked at a time convenient for you.


    I hope this helps.


    Kind regards,


    Mat
  • System
    System Posts: 178,116 Community Admin
    Photogenic Name Dropper First Post
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    AllenL wrote: »
    Hi,
    I took out an EFG for £50,000 for my business approximately 30 months ago and now still owe £39,000. I now cannot afford the repayments and the company in whose name the loan was taken out has ceased trading.
    I have no personal assets apart from my house.
    Can anyone tell me what my options are? The name suggests that the government will guarantee the loan, so surely if I cannot pay, the government are expected to cover the shortfall.
    Any help gratefully received.

    Hi and thanks for your post.

    I’d recommend that in the first instance you speak to Business Debtline on 0800 197 6026.


    Their website is http://www.bdl.org.uk/

    I hope this helps.

    Kind regards,

    Mat
  • System
    System Posts: 178,116 Community Admin
    Photogenic Name Dropper First Post
    Options
    Chalkie77 wrote: »
    Hiya - bit of an embarassing question really but was hoping for some anonymous help. I have a DMP with Step Change (CCCS) that I have been happily paying for over five years and have light at the end of the tunnel with under two years left. However, it has been a long slog and I have built up some additional credit card debt since and dare not mention it in my annual review.

    I am currently maintaining the minimum payments - and a little extra but my husband and I are hoping to get pregnant soon (the booming biological clock cannot be kept at bay now I'm in my mid-30s) and I worry what will happen if my wage drops as I am the main wage earner in my household.

    Hubby also has a seperate DMP and when I drop to SMP we will not be able to make any debt payments. I am mostly scared that we will be dumped by CCCS and end up bankcrupt - and hubby doesn't quite know the scale of the problem as I deal with all the accounts / budgeting.

    Any advice graciously received - thanks, Claire

    Hi Claire and thanks for your post.

    Best thing is to give us a call to discuss the additional debt, we can also talk you through what options you have for the future.

    It’s probably best to call with your husband so that we can look at your situation as a whole.

    I hope this helps.

    Kind regards,

    Mat
  • Cenedra41
    Cenedra41 Posts: 6 Forumite
    edited 16 November 2012 at 5:58PM
    Options
    Hi Tina and welcome to the forum.

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

    In your situation we don’t normally recommend taking out any further lending to consolidate loans, this often makes the situation worse over the long run. We also wouldn’t normally recommend taking out any further secured lending for the same reason.

    The best thing to do is to put together a budget and look at what realistic options are available. If your husband cannot have an IVA or go bankrupt this will be taken into consideration and it could be that a less formal solution such as a debt management plan (DMP) would be best suited.

    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.

    I’d recommend that both you and your partner call together once you have the paperwork you require for the debts and your monthly income and expenditure.

    It’s worth noting that debt solutions will have an impact on your partner’s credit rating and he should check to see if this will impact his employment also. If you call us we may still be able to give more advice regards this.

    I hope this helps.

    Kind regards,

    Mat[/QUOTE]


    thanks for your response mat - just one more quick question as this sounds like a sensible plan - the citizens advice bureau said that:

    Thereis a risk to making payments that are less than the monthly contractual ascreditors can make a claim for money through the courts which would result inyou having a County Court Judgment.

    could this happen even if we make payments through step change? And if so how common is it for creditors to do this in your experience?

    thanks very much again!

    Tina
  • DJGat
    Options
    Taken from a topic i posted

    Hi

    Recently i have received 3 letter from the alleged creditors, i looked at my credit report to see if these debts were on there and they weren't! not a mention of them by company or amount details.

    The first is from "transcom worldwide" on behalf of "arrow global gurnsey limited"

    Firstly this was on my credit report 3 moths ago but has since then disappeared or been removed from my report. If this happens what does it mean? does the debt become statute barred and unenforceable or does it mean nothing?

    Secondly i have no idea what this debt is for so i was going to send them a Validation of debt letter

    This letter is a formal request pursuant to s.77/78 of the Consumer Credit Act 1974. I require you to provide me with a true copy of the credit agreement relating to the above account, together with any other documentation the Act requires you to provide.

    I expect you to comply fully and properly with this request, within the statutory time limit. You are reminded that should you fail to comply with my request, the provisions of s.77 will apply.

    If it is your view that you are not the creditor, s.175 of the CCA 1974 applies in the case of a simple assignment, and places a duty upon you to pass this request to the creditor. In the case of an absolute assignment, you are a creditor as defined by s.189. If you contend that you purchased the rights but not the duties of any agreement, you are reminded that s.189 of the Act is clear that an assignment is of both rights and duties.

    Your attention is drawn to ss.5(2), 3(b),6 and 7 of the [FONT=&quot]Consumer Protection From Unfair Trading
    [/FONT][IMG]file://localhost/Users/deangatenby/Library/Caches/TemporaryItems/msoclip/0clip_image002.png[/IMG] Regulations 2008 (CPUTR).


    I enclose a postal order in the sum of £1.00, which is the statutory fee. Note that these funds are not to be used for any other purpose.


    If you are unable to comply fully and properly with this request, you should confirm this in writing at the earliest opportunity, and certainly within the statutory time limit for compliance, and return the fee.


    We look forward to hearing from you.


    Followed by a dispute letter 12 days later.

    [FONT=&quot]Account In Dispute

    Ref:

    Dear Sir/Madam

    Thank you for your letter of xx/xx/xx, the contents of which have been noted.

    You have failed to respond to my legal request to supply me a true copy of the original Consumer Credit Agreement for the above account.

    On **DATE** I made a formal request for a true signed agreement for the alleged account under consumer credit Act 1974 s77/8. A copy of which is enclosed for your perusal and ease of reference.
    You have failed to comply with my request, and as such the account entered default on **DATE**.

    The document that you are obliged to send me is a true copy of the executed agreement that contained all of the prescribed terms, all other required terms and statutory notices and was signed by both your company and myself as defined in section 61(1) of CCA 74 and subsequent Statutory Instruments. If the executed agreement contained any reference to any other document, you are also obliged to send me a copy of that document.In addition a full statement of this account should have been sent to me detailing all debits and credits to the account.

    Furthermore


    You are aware that the Consumer Credit Act allows 12 working days for a request for a true copy of a credit agreement to be carried out before your client enters into a default situation.

    This limit has expired.

    As you are no doubt aware section 77(6) states:

    If the creditor fails to comply with Subsection (1)

    (a) He is not entitled , while the default continues, to enforce the agreement.

    Therefore this account has become unenforceable at law.

    As you have Failed to comply with a lawful request for a true, signed copy of the said agreement and other relevant documents mentioned in it, Failed to send a full statement of the account and Failed to provide any of the documentation requested.

    Consequentially any legal action you pursue will be averred as both UNLAWFUL and VEXATIOUS.

    Furthermore I shall counterclaim that any such action constitutes unlawful harassment.

    Please note you may also consider this letter as a statutory notice under section 10 of the Data Protection Act to cease processing any data in relation to this account with immediate effect.

    This means you must remove all information regarding this account from your own internal records and from my records with any credit reference agencies.

    Should you refuse to comply, you must within 21 days provide me with a detailed [FONT=&quot]Breakdown[/FONT][/FONT][FONT=&quot][IMG]file://localhost/Users/deangatenby/Library/Caches/TemporaryItems/msoclip/0/clip_image002.png[/IMG][/FONT][FONT=&quot] of your reasoning behind continuing to process my data.

    It is not sufficient to simply state that you have a ‘legal right’; You must outline your reasoning in this matter and state upon which legislation this reasoning depends.

    Should you not respond within 14 days I expect that this means you agree to remove all such data.

    Furthermore you should be aware that a creditor is not permitted to take ANY
    Action against an account whilst it remains in dispute.

    The lack of a credit agreement is a very clear dispute and as such the following applies.

    * You may not demand any payment on the account, nor am I obliged to offer any payment to you.
    * You may not add further [FONT=&quot]interest[/FONT][/FONT][FONT=&quot][IMG]file://localhost/Users/deangatenby/Library/Caches/TemporaryItems/msoclip/0/clip_image004.png[/IMG][/FONT][FONT=&quot] or any charges to the account.
    * You may not pass the account to a third party.
    * You may not register any information in respect of the account with any credit reference agency.
    * You may not issue a default notice related to the account.


    I reserve the right to report your actions to any such regulatory authorities as I see fit.
    You have 14 days from receiving this letter to contact me with your intentions to resolve this matter which is now a formal complaint.

    I would appreciate your due diligence in this matter.

    I look forward to hearing from you in writing.

    Yours faithfully[/FONT]



    [FONT=&quot]All to be sent by recorded delivery.

    is this the right course of action? what would i need to do after this point?
    [/FONT]



    __________________________________________________ _______________________

    [FONT=&quot]
    [/FONT]

    [FONT=&quot]As well as this debt i have another which was for HBOS credit card from 2002, who have sold the debt to Lowell financial who have sent me a letter regarding the debt and also a letter from red debt collection services.

    Again this debt does not show on my report and i cant remember the last time i made a payment, must of been 2006. so my question is should i follow the same process as above but send to lowell and red at the same time. or ?
    [/FONT]



    __________________________________________________ ______________________

    [FONT=&quot]
    [/FONT]

    [FONT=&quot]regarding statute bared debts, is there a way to find out when i last made a payment without alerting the creditor of why i am requesting this info and without having to confirm my details which i assume would qualify as recognizing the debt is mine.
    [/FONT]



    [FONT=&quot]Hope this makes sense, any help massively appreciated
    [/FONT]

    [FONT=&quot]
    [/FONT]

    [FONT=&quot]many thanks[/FONT]


    [FONT=&quot]Dean[/FONT]
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