Struggling with debt? Ask a debt advisor a question

StepChange_James

lboj1 wrote: »

HI guyz, here my problem i hope someone could give me ideas of what to


I came into this country bout 5years ago to study and gain experience, i recently finished my university with good grades but the problem is i messed up my visa renewal and i was rejected because of a mere £40 dip in my maintenace fees.


I have some outstanding overdraft from my uni days and some other debts i woud like to clear, i currently have a plan set up but it will take me a year atleast to clear them all up.


The problem i have is my ongoing dispute with UKBA and there are chances i may be asked to leave the UK anytime soon if my appeal doesnt go to well, What do i do in these circumstances? I dont want to leave debts that will hinder me in the future when i come back to the uk.


I havn't spoken to any of my debtors as i fear they will ask me to provide money i dont have at the moment. what do i do ? i want to clear my debt but it doesnt seem that i would be given the opportunity to.

Hi lboj1,

If you're current arrangements are affordable and your creditors are happy with the payments then it's best to continue with these. If you can pay more then you might clear it quicker but otherwise there isn't a lot more you can do really.

If you do have to leave the country then it'll be a matter of reviewing your situation once you've left and informing your creditors of the situation.

You can still make payments to your debts if you're in another country and you could look to review the arrangements you've got so your payments are affordable.

We can help you with this. Here's the page of our website that covers getting advice when you live outside the UK: http://www.stepchange.org/LivingoutsidetheUK.aspx.

Hope this helps.

James

StepChange_James

Stuckinarutt wrote: »

Hi,

Please can someone point me in the right direction as I am so confused about my out of control debt and have no idea how to tackle it.

Brief Overview

I started taking out loans and credit cards while I was at Uni 12 years ago, this quickly got out of control and severley affected my credit file, I was very naive.

Since then I have never really managed to get on top of my debt situation, I have always moved debt around, taking out loans to pay other ones and so forth. The truth is that I have suffered with a gambling addiction for many years which has ruined me financially and have only recently managed to get on top of this and start turning my life around, but now though I have to face my responsibilities and debts that I have been running from for so long.

My debts total around £17k of unsecured debt, these included banks loans, overdrafts, paydays loans, unpaid gym memberships, basically everything over the last for years just spiralled and now it is such a mess.

It has got to the stage where all of these debts are with debt collector companies and resulted in a bailiff visiting my mums house this morning, which has really shock her up and I feel dreadful, I really need to get a grip on this.

I am fully employed now and am renting a room in a friends house, I am really starting to turn things around but just have no idea where to start with this, whether bankruptcy would be a good idea, IVA or a debt management plan, I know my credit file is ruined already but not sure of the real implications these will have later on.

I know I have been extremely irresponsible with these debts and letting them all get to this stage but I am ready to face it now, if anyone could give me any advice it would be greatly appreciated.

Thank you

Hi there,

Firstly congratulations on getting on top of your gambling problem and taking the first steps to getting your finances back in order.

Bankruptcy, IVA or Debt Management Plan are all potential options and one, two or all three of these solutions might suit your situation. I'd recommend that you get in touch with us and we'll go through your finances and advise you on how best to move forward.

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 Helpline on 0800 138 1111 (free including from mobiles). We’re open Monday to Friday 8am - 8pm and Saturdays 9am – 3pm.

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

Kind regards

James

StepChange_James

jimmyhull wrote: »

Hi I have amassed £8500 in debt, mainly due to gambling. the debt consists of overdraft, loans, credit cards, and pay day loans which are killing me. My gambling has reoccurred in the last few months which has eroded any inrode into what I have previously paid off my debt. About 10 months ago I was in the same situation and my parents bailed me out of the pay day loans. On which I took help and started to save a little to pay off my overdraft. This last few months I have totally imploded. Got loans to pay off loans, gambled more and lost mire in a tragic attempt to pay it off. I have extended the loans this month but have now found myself unable to pay my car insurance or main bank loan of £150. over drawn on my overdraft which i'll be charged for and literally have no money available. I am so ashamed of mysel, strugggle to sleep at night with worry. I dont know what to do as I know this will break my mums heart aswell as mine. lie after lie has built up and I dont know where to turn.

Hi Jimmy,

Thanks for posting. Worrying about money has caused many a sleepless night but hopefully we can help you feel better about things.

I'm not sure what stage you're at, but if you feel like you might need help with your gambling this webpage will point you towards some useful organisations: http://www.nhs.uk/Livewell/addiction/Pages/gamblingaddiction.aspx.

If you're able to stop gambling it will put you in a much stronger position to sort the debts out. We can then help you plan out a realistic income and expenditure budget and then see if there's any money left to deal with the debts.

From there we'll talk you through the debt solutions available and recommend what we think is the best solution.

You can get our help using our online advice tool, Debt Remedy (http://www.stepchange.org/msehelp) or by giving our helpline a call (http://www.stepchange.org/Contactus.aspx). Either way our service is free, confidential and completely impartial.

All the best.

James

Ox1987

James I can PM you my details and I have my SOA on the Scared thread... I am concerned about ruining my childrens lifes I have 3 beautiful kids and need to work but if I cannot and have to file BR we may lose house. I can send my case number if you want to take a look I have been struggling to get work I now have a 12month contract at 70k I have been struggling to rearrange an appt as when I rang could not get through and I dont want to go through it all at work but I need to get DMP if that is the best route sorted asap otherwise I wont be able to afford the mins due to the salary drop I have never defaulted before as I was on a higher salary

mum2one

ox1987 - if I was I would remove your case number from the post,

caroline233

Hi. My ex and I had a joint account with Cahoot, which he used exclusively for his business. We split up in August 2010 and I moved out. In April 2012 I looked at my credit file to find a default registered for that account, which I immediately paid in full. It is now marked as satisfied. I need to get a mortgage and, with the exception of the default, my rating is quite good. Cahoot admit that the default notice was only sent to his address, as he was the primary cardholder. Is there anything I can do to dispute the default on my report? It seems unfair that I did everything I could, short of neigh psychic!

Ox1987

Hi
I have just left your line booking an appointment and am a bit concerned again now as they suggested that you like to get a DMP within 10 years to work otherwise it may be bankruptcy. Last week I was told a DMP should be possible the best Here is my thread with my SOA below can you advise to put my mind at rest as there is little point working on as bankruptcy would prevent it. I was hoping to try and get it paid back and especially if we can up the payments eventually but as you can see its tight. I am extremely worried and stressed as you can see from my other threads and concerned about my kids. Have you ever seen any other CIMA accountants in this position ...was having a good day not now


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1 (on a lease)

Monthly Income Details
Monthly income after tax................ 3963.5
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3963.5

Monthly Expense Details[/b]
Mortgage................................ 1132
Secured/HP loan repayments.............. 725.09 (includes car lease)
Management charge (leasehold property).. 25 (for shared car park)
Council tax............................. 187
Electricity............................. 75
Gas..................................... 75
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 50 (12 month contract BT)
Mobile phone............................ 41 (18 mnth / 12 left)
TV Licence.............................. 13
Satellite/Cable TV...................... 0 got rid
Internet Services....................... 0
Groceries etc. ......................... 450 (suggested by charity for 5)
Clothing................................ 70
Petrol/diesel........................... 300 (for work 40 miles round trip)
Road tax................................ 0
Car Insurance........................... 53
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 100 (wife to take kids to school as in town centre catholic school 46 a month her pass then oldest has to pay)
Childcare/nursery....................... 0 stopped it
Other child related expenses............ 38
Medical (prescriptions, dentist etc).... 10.4
Pet insurance/vet bills................. 10
Buildings insurance..................... 0
Contents insurance...................... 27.71 includes building
Life assurance ......................... 148.66
Other insurance......................... 20
Presents (birthday, christmas etc)...... 30
Haircuts................................ 35
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 50
Total monthly expenses.................. 3760.87


Assets
Cash.................................... 0
House value (Gross)..................... 180000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 180000


Secured & HP Debts[/b]
Description....................Debt......Monthly.. .APR
Mortgage...................... 157000...(1132).....4.95
Secured Debt.................. 32000....(385)......0
Hire Purchase (HP) debt ...... 9500.....(340.1)....0
Total secured & HP debts...... 198500....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
Credit Cards...................28744.....697.......0
Catalogue......................2786......86....... .0
Storecards.....................2268......160...... .0
Overdraft......................1500......0........ .0
BNPL...........................1147......70....... .0
Total unsecured debts..........36445.....1013......


Monthly Budget Summary
Total monthly income.................... 3,963.5
Expenses (including HP & secured debts). 3,760.87
Available for debt repayments........... 202.63
Monthly UNsecured debt repayments....... 1,013
Amount short for making debt repayments. -810.37

Personal Balance Sheet Summary
Total assets (things you own)........... 180,000
Total HP & Secured debt................. -198,500
Total Unsecured debt.................... -36,445
Net Assets.............................. -54,945


Due to go through with NFP agency this week and need to change bank account but also worried that might cause missed payments.

I am a hard worker and don't want to spend the rest of my days on benefits this is the issue I am a CIMA member also who on website said i wont be banned, though I have heard of people getting work after bankruptcy, but not at my usual level but not bothered about that as long as kids are OK. We have 3 beautiful kids and lost a daughter at birth in 2007 which I think it where is all started. Surely nothing can be as bad as that...... The stress at the moment is bad and also the wife is threatening to leave with the kids as i am unbearable.

StepChange_James

Ox1987 wrote: »

James I can PM you my details and I have my SOA on the Scared thread... I am concerned about ruining my childrens lifes I have 3 beautiful kids and need to work but if I cannot and have to file BR we may lose house. I can send my case number if you want to take a look I have been struggling to get work I now have a 12month contract at 70k I have been struggling to rearrange an appt as when I rang could not get through and I dont want to go through it all at work but I need to get DMP if that is the best route sorted asap otherwise I wont be able to afford the mins due to the salary drop I have never defaulted before as I was on a higher salary

Hello,

If a DMP is your best option then it'll usually take a little while to get set up. Creditors know this too, so if you inform them you're getting advice from us and give them your reference number they'll usually give you some time to get things set up.

If payments are due soon and you can't afford them then you can cancel your direct debts and make a one off payments yourself of whatever you can afford as a gesture while your plan is being arranged.

Your advisor will be able to talk you through this in more detail when you next speak to us.

Kind regards

James

p.s. I'll reply to your later post in a moment.

StepChange_James

caroline233 wrote: »

Hi. My ex and I had a joint account with Cahoot, which he used exclusively for his business. We split up in August 2010 and I moved out. In April 2012 I looked at my credit file to find a default registered for that account, which I immediately paid in full. It is now marked as satisfied. I need to get a mortgage and, with the exception of the default, my rating is quite good. Cahoot admit that the default notice was only sent to his address, as he was the primary cardholder. Is there anything I can do to dispute the default on my report? It seems unfair that I did everything I could, short of neigh psychic!

Hi Caroline,

It's true to say that you couldn't possibly have known about the debt if they didn't communicate with you about it. There are a couple of possible routes you could take to try to improve how this looks on your credit report.

You could add a notice of correction to your credit history with each of the credit rating agencies (experian, equifax and call credit). This allows you to add a short explanatory message to your file. It's debatable how much notice mortgage lenders would take of this but it would at least explain the circumstances of the default if they were to look at it.

The alternative would be to make a complaint to Cahoot and request they remove the default. If you submit a complaint they'll have to investigate it and respond. This doesn't guarantee they'll take the default off your credit history but if they accept they made a mistake then they may remove it.

Hope this helps.

James

StepChange_James

Ox1987 wrote: »

Hi
I have just left your line booking an appointment and am a bit concerned again now as they suggested that you like to get a DMP within 10 years to work otherwise it may be bankruptcy. Last week I was told a DMP should be possible the best Here is my thread with my SOA below can you advise to put my mind at rest as there is little point working on as bankruptcy would prevent it. I was hoping to try and get it paid back and especially if we can up the payments eventually but as you can see its tight. I am extremely worried and stressed as you can see from my other threads and concerned about my kids. Have you ever seen any other CIMA accountants in this position ...was having a good day not now


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1 (on a lease)

Monthly Income Details
Monthly income after tax................ 3963.5
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3963.5

Monthly Expense Details[/b]
Mortgage................................ 1132
Secured/HP loan repayments.............. 725.09 (includes car lease)
Management charge (leasehold property).. 25 (for shared car park)
Council tax............................. 187
Electricity............................. 75
Gas..................................... 75
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 50 (12 month contract BT)
Mobile phone............................ 41 (18 mnth / 12 left)
TV Licence.............................. 13
Satellite/Cable TV...................... 0 got rid
Internet Services....................... 0
Groceries etc. ......................... 450 (suggested by charity for 5)
Clothing................................ 70
Petrol/diesel........................... 300 (for work 40 miles round trip)
Road tax................................ 0
Car Insurance........................... 53
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 100 (wife to take kids to school as in town centre catholic school 46 a month her pass then oldest has to pay)
Childcare/nursery....................... 0 stopped it
Other child related expenses............ 38
Medical (prescriptions, dentist etc).... 10.4
Pet insurance/vet bills................. 10
Buildings insurance..................... 0
Contents insurance...................... 27.71 includes building
Life assurance ......................... 148.66
Other insurance......................... 20
Presents (birthday, christmas etc)...... 30
Haircuts................................ 35
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 50
Total monthly expenses.................. 3760.87


Assets
Cash.................................... 0
House value (Gross)..................... 180000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 180000


Secured & HP Debts[/b]
Description....................Debt......Monthly.. .APR
Mortgage...................... 157000...(1132).....4.95
Secured Debt.................. 32000....(385)......0
Hire Purchase (HP) debt ...... 9500.....(340.1)....0
Total secured & HP debts...... 198500....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
Credit Cards...................28744.....697.......0
Catalogue......................2786......86....... .0
Storecards.....................2268......160...... .0
Overdraft......................1500......0........ .0
BNPL...........................1147......70....... .0
Total unsecured debts..........36445.....1013......


Monthly Budget Summary
Total monthly income.................... 3,963.5
Expenses (including HP & secured debts). 3,760.87
Available for debt repayments........... 202.63
Monthly UNsecured debt repayments....... 1,013
Amount short for making debt repayments. -810.37

Personal Balance Sheet Summary
Total assets (things you own)........... 180,000
Total HP & Secured debt................. -198,500
Total Unsecured debt.................... -36,445
Net Assets.............................. -54,945


Due to go through with NFP agency this week and need to change bank account but also worried that might cause missed payments.

I am a hard worker and don't want to spend the rest of my days on benefits this is the issue I am a CIMA member also who on website said i wont be banned, though I have heard of people getting work after bankruptcy, but not at my usual level but not bothered about that as long as kids are OK. We have 3 beautiful kids and lost a daughter at birth in 2007 which I think it where is all started. Surely nothing can be as bad as that...... The stress at the moment is bad and also the wife is threatening to leave with the kids as i am unbearable.

Hello again,

I've spoken to quite a few accountants over the years. I'm embarrassed to say I can't remember the bodies they were members of but I'd expect there would be CIMA ones among them.

I think when my colleague suggested it's best to not do a DMP over 10 years, they were saying that it's a very long time to take to repay debts. It wouldn't be right for us to recommend a DMP to someone if it was going to keep them in debt for a very long time with little chance of improvement if other solutions were more suitable.

From what I know about your circumstances it sounds like there's potential for your situation to improve and for payments to increase as a DMP progressed. While this might not happen in the short term, if you can increase payments within the next few years it'll still give you chance to decrease the estimated timescale to something more manageable.

It's worth adding that we can't make you go bankrupt. We might discuss it with you as an option but we'd only ever give advice, not tell you what to do. Also, I generally avoid recommending bankruptcy to people where it will affect their employment.

I hope this helps set your mind at ease a little bit.

Kind regards

James