Struggling with debt? Ask a debt advisor a question

StepChange_James

k-flynn-0180 wrote: »

I have a guarantor loan for £5000 with whom my partner is the guarantor. I have lost my job and the money is coming out of his account now. I want to get a DRO for this and another couple of debts I have. Can i do this without affecting my partners credit? And can I actually do this anyway? I'm incredibly confused!!!:(

Hello,

If you did a DRO it shouldn't have too much effect on your partner's credit file providing you aren't financially linked (with things such as a joint bank account).

Your DRO would deal with your responsibility to repay the loan but then your partner would be fully responsible for the full balance of the loan. It would bascially be a debt in his name after the DRO was complete.

We can give in depth advice about things like DROs and all the other debt solutions. You can do this using our online advice tool Debt Remedy (http://www.stepchange.org/msehelp) or by giving us a call and speaking to a debt advisor (http://www.stepchange.org/Contactus.aspx).

Hope this helps.

James

StepChange_James

whirlwind999 wrote: »

I am currently in debt to the tune of £4.5K.
(Overdraft £2500, Council Tax,£800,smaller debts £400. No credit cards or other & £750 mortgage arrears)

I earn £16K in full time job & £3K part time. (working 65 hrs per week)
I have £1300 per month income.
I have £1200 per month outgoings
HSBC collections dept. are offering to consolidate my debts.
(they have not mentioned yet length of loan or % interest or wether it is secured / unsecured).
Would you advise i accept this or do you know of other companies i could go to for cheaper rates??

Thank you in advance for any help you can offer.

Hi Whirlwind and welcome to the forum,

Without knowing the interest rate, payment amount or timescale it's hard to know if this would be a good idea. I'd suggest doing the sums once you know the details and seeing if it would save you money.

It's also important to make sure any potential loan is affordable and will stay that way in the future. It sounds like you've already planned out a budget and you can spare about £100 a month but I'd recommend double checking to make sure you've covered every possible expense that's likely to crop up over a typical year.

If the proposed loan is a secured loan I'd suggest giving it a wide berth. I'd expect it probably won't be given the amount of your debt (secured loans tend to be for quite large sums of money) but I'd make doubly sure before agreeing to anything.

I'm afraid I don't know of any good companies to go to. We spend the majority of our time advising people to avoid taking out credit, so we're not the best people to ask really. You can read more about current loan deals here though: http://www.moneysavingexpert.com/loans/cheap-personal-loans.

If you think that managing these debts (or future loans) is a struggle then I'd suggest getting in touch with us for some advice - the contact details are in my signature.

Kind regards

James

Suseka

Hi there,

We spoke with an advisor last Thursday, just before the Bank Holiday and are now awaiting the pack to drop through the letterbox.

I've tried to call the office, but your lines are very busy - and have sent an email (but guess you're busy with that too). So I thought this might be the way to get the quickest answer.

We think we left out travel (to and from work) costs (the excuse being our heads were in a bit of a spin during the conversation) - anyway, when we get the pack can we amend and return, or will you need to know the revision beforehand and send another pack?

Also - the advisor suggested the DMP could start 1Apr, but that wont leave us much time to organise our salary switch to the new joint account, nor give us (well me) time to organise all my DD transfers and get my house in order. So can we delay the start to the next month (1 May) and just say so on the form (or whatever it is) when we return it? I realise this may mean we need to contact creditors and offer a token payment in the interim.

Finally - we are hoping to use our N&P joint account for this, but is there a way to check whether they have any association to any of our creditors (although I don't think they do, but we need to be sure).

Many thanks in advance for your help.

chiconoa

i currently have a debt of $38467[pounds] which i am wanting to clear as these were created when i had a really good job, no children and were for a good cause for helping my stupid brother who nearly lost his house with debts. i have had themfr 5 years and have been onbenefits because i was depressed and had 2 children but now want to clear them so i can have a better life for them.i have got a job i am about to start on friday. i have tried couponing and cutting my bills but they are on basic already can anyone help????

gigi7

Hi I'm new to the forum so not sure whether I'm in the right place (lol) but here goes..

I'm trying to find out about how my partner's debts can affect us both in the future. ( we arent married). Basically my partner owes a bank quite a large loan. This was taken out before we met so not joint or whatever. The problem is he hasn't paid anything back, for various reasons. He's basically left it a bit long to start sorting things out I think its roughly around 4 years since he borrowed the money.

He's planning to sort this out within the next month or so once things like work are sorted out. However we are also planning to move in together by the end of this year(renting not buying) so if things arent sorted or starting to get sorted by then I'm a bit worried about things like debt collectors and such. ( I've never been in debt myself so I don't know the exact consequences or procedures).

Basically the main things I'd like to know are what are the first steps to take for him to start paying back, should he go through one of these debt management places, and if things like debt collectors start occurring when we move in together what happens, do they just take everything in the property? Will it affect me at all if we're living together. (not being selfish but just would like to be prepared)

Considering the fact that he's not been in contact with the bank for a few years and things like that what's likely to happen once he finally makes he first step?

Again sorry if this is in the wrong section or if I've been vague but unsure what info you need and stuff. Would really appreciate any info about this type of situation and the best way we can deal with it.

This is in the UK btw. Many thanks x

StepChange_James

Suseka wrote: »

Hi there,

We spoke with an advisor last Thursday, just before the Bank Holiday and are now awaiting the pack to drop through the letterbox.

I've tried to call the office, but your lines are very busy - and have sent an email (but guess you're busy with that too). So I thought this might be the way to get the quickest answer.

We think we left out travel (to and from work) costs (the excuse being our heads were in a bit of a spin during the conversation) - anyway, when we get the pack can we amend and return, or will you need to know the revision beforehand and send another pack?

Also - the advisor suggested the DMP could start 1Apr, but that wont leave us much time to organise our salary switch to the new joint account, nor give us (well me) time to organise all my DD transfers and get my house in order. So can we delay the start to the next month (1 May) and just say so on the form (or whatever it is) when we return it? I realise this may mean we need to contact creditors and offer a token payment in the interim.

Finally - we are hoping to use our N&P joint account for this, but is there a way to check whether they have any association to any of our creditors (although I don't think they do, but we need to be sure).

Many thanks in advance for your help.

Hello,

Thanks for posting.

When you get your advice pack there'll be a copy of your income and expenditure budget in there. I'd be surprised if travel costs were missed all together as a debt advisor would usually specifically ask about this sort of thing.

It's no problem if they have been missed off though, we can still amend the budget. I'd suggest giving us a call to make updates (I know it can be tricky to get through) as significant changes could lead to considering whether it brings other debt solutions into play and an advisor can talk you through this.

There's no problem with pushing the start date back as long as you're happy to make a gesture payment to your debts of whatever you can afford this month. Most creditors are quite understanding when they know a DMP is being set up. If you could just put a note in with the paperwork you send back to let us know that's what's happening.

I've had a quick look at Norwich and Peterborough's website and they're owned by Yorkshire Building Society but otherwise I can't see any other connections.

Hope this helps.

James

StepChange_James

chiconoa wrote: »

i currently have a debt of $38467[pounds] which i am wanting to clear as these were created when i had a really good job, no children and were for a good cause for helping my stupid brother who nearly lost his house with debts. i have had themfr 5 years and have been onbenefits because i was depressed and had 2 children but now want to clear them so i can have a better life for them.i have got a job i am about to start on friday. i have tried couponing and cutting my bills but they are on basic already can anyone help????

Hello there,

It's definitely not the first time I've heard of someone getting into difficulty themselves from helping out other people with financial problems. It's a shame that doing a good deed has lead to you having these problems but hopefully we can help.

If you've already cut back on your non-essential costs then you've taken a big first step. Often that's not enough to deal with a debt problem though and that's usually the point where debt advice is most needed.

We can help you plan out an income and expenditure budget, look at your debts and give you advice about what debt solutions would suit your circumstances. We'll also support you through whatever solution we recommend.

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

gigi7 wrote: »

Hi I'm new to the forum so not sure whether I'm in the right place (lol) but here goes..

I'm trying to find out about how my partner's debts can affect us both in the future. ( we arent married). Basically my partner owes a bank quite a large loan. This was taken out before we met so not joint or whatever. The problem is he hasn't paid anything back, for various reasons. He's basically left it a bit long to start sorting things out I think its roughly around 4 years since he borrowed the money.

He's planning to sort this out within the next month or so once things like work are sorted out. However we are also planning to move in together by the end of this year(renting not buying) so if things arent sorted or starting to get sorted by then I'm a bit worried about things like debt collectors and such. ( I've never been in debt myself so I don't know the exact consequences or procedures).

Basically the main things I'd like to know are what are the first steps to take for him to start paying back, should he go through one of these debt management places, and if things like debt collectors start occurring when we move in together what happens, do they just take everything in the property? Will it affect me at all if we're living together. (not being selfish but just would like to be prepared)

Considering the fact that he's not been in contact with the bank for a few years and things like that what's likely to happen once he finally makes he first step?

Again sorry if this is in the wrong section or if I've been vague but unsure what info you need and stuff. Would really appreciate any info about this type of situation and the best way we can deal with it.

This is in the UK btw. Many thanks x

Hi Gigi,

Thanks for posting - you're definitely in the right place.

Firstly, your partner's debts would only affect your credit rating if you're financially linked in some way. This would mean having joint bank accounts, joint loans and that sort of thing.

In terms of moving in together, it's likely that this debt will have made his credit rating not great. Most landlords do some sort of credit check, so it might make things a bit trickier.

It's great that he's looking to get back on top of this debt. I would think that the company he owes the money to will be very pleased to hear from him. They'll more than likely want him to pay the debt back in full all at once if that's possible and may even be willing to reduce the balance to encourage him to make a one off payment.

If he's not got the money available to clear the debt all at once then they'll probably want to negotiate a monthly instalment with him. They'll obviously want as much as possible but it's important to get the payment agreed as a manageable level, so he'll be able to stick to it every month.

I'd expect that the debt has probably been transferred to other debt collection agencies at some point, so it might take a bit of detective work to see where it's currently held. Ringing up the original bank would be the first thing to do and they'll be able to say where it's been passed to if they've sold it on.

There's no need for your partner to go to a debt management company. If he needs help dealing with this debt then he can get in touch with us and we'll be able to advise him on what to do. He can get advice from us using our online advice tool called Debt Remedy (http://www.stepchange.org/msehelp) or by giving us a call (http://www.stepchange.org/Contactus.aspx).

Kind regards

James

Ox1987

Please could you advise
I have opened up my new bank account but am still awaiting the details as I have to sign something and send back
However my work need to know my bank details for the payroll and I am concerned in giving them the old one as if the DMP is in place will they take the money to offset. The payroll cut off is Tuesday.

Also they want to do a credit check I think mainly for BR and IVA but will they discover something that may make me lose my job

Also i have some payment protection on two of the cards and other things should i cancel this or will it get cancelled anyway

I was getting better but now this has threw it out

Suseka

StepChange_James wrote: »

Hello,

Thanks for posting.

When you get your advice pack there'll be a copy of your income and expenditure budget in there. I'd be surprised if travel costs were missed all together as a debt advisor would usually specifically ask about this sort of thing.

It's no problem if they have been missed off though, we can still amend the budget. I'd suggest giving us a call to make updates (I know it can be tricky to get through) as significant changes could lead to considering whether it brings other debt solutions into play and an advisor can talk you through this.

There's no problem with pushing the start date back as long as you're happy to make a gesture payment to your debts of whatever you can afford this month. Most creditors are quite understanding when they know a DMP is being set up. If you could just put a note in with the paperwork you send back to let us know that's what's happening.

I've had a quick look at Norwich and Peterborough's website and they're owned by Yorkshire Building Society but otherwise I can't see any other connections.

Hope this helps.

James

Thanks James - all very helpful.

Will check the I&E statement carefully when received, but I think I underestimated my travel costs (not by much, around £30) and OH's fuel costs isn't excessive (£80), so if that's the case I hope it doesn't change the solution - but of course will speak with an advisor. Will keep trying the phone - should I be calling the 0800 number or a different one?