Struggling with debt? Ask a debt advisor a question

napes99

Hi there,

I am looking to find out where I stand with a credit union loan that I took out in 2006 of £9000 and defaulted in 2007 (no payments have been made since). I am finally looking to try and clear my debt so I got a copy of my credit file whick I notice a lot of my debt has dropped of due to the amount of time that has lapsed.

My credit union loan is not on my credit report but the are still calling me from time to time ( I never answered). When I first defaulted they did refer it over to a debt recovery company who wrote to me saying they were going to present a charge for payment. I can't remember if this ever happend but quite possibly could have as I was in some mess with debt back then.

I only have £900 of other unsecured debt on my credit file and I want to clear this but I am scared that if I update my credit report to my new address this will trigger the credit union to start chasing me for my debt and I just don;t have it.

Is it possible that as it has been more than 6 years they are not legally entitled to pursue the debt?

My other big debt is for about £3500 council tax to SLC, I know that this will never go away and I know that it is with Scott & Co sheriff officers. I am not sure how to approach them as I now live with my partner and do not want people knocking at the door but I do want to arrange a payment plan. Will they demand a certain amount a month in order to keep it out of court?

I really want to put all this behind me and pay what I can and learn from my mistakes.

Any advise is appreciated.

Thanks

StepChange_James

Ox1987 wrote: »

If cards are close to limits and interest and charges are applied and then reduced payments are made, surely there is a chance that they will go over the limit.
Is this to be expected and what will happen

Also think I may have asked this one, will my child trust funds be ok left with HSBC and they will not try and attack those...

Hi Ox,

This isn't usually a problem as most of the time interest and charges are stopped. However, if the creditor doesn't agree then the debt can go up.

There's potential for monthly over limit charges to be added but they don't tend to be added indefinitely - usually the account will be passed somewhere else that doesn't have this sort of charging structure after a little while. This might be an internal or external debt collector. They don't have any extra powers and are often more willing to listen to payment offers.

The child trust fund is fine as it's in the name of the child rather than your name.

Cheers

James

StepChange_James

anne61 wrote: »

Hello,

First post here. I have tried searching for this and can not find an answer...perhaps my search terms were not exact.
Here is my issue; I used a well known name lawn care company and apparently forgot to send in a payment. I did ignore further bills as I knew I had paid. Some months later got a letter from a collection agency concerning this and was angry that my payment went ignored. Come to find out, I did write out the check, but forgot to mail it. So I mailed it and lawn care company cashed the check. Then they called wanting to know if I was going to treat my lawn this year. I told them no. Then I got a bill from them for the same amount (under $200) for payment and it says debt recovery.
What is this? They accepted payment, account should be clear and now "debt recovery" ?
Is this legal or are they scamming me.
Thank you in advance for your answers/advice.

Hi Anne,

It sounds like you might be based in the USA, where the rules surrounding debt are a bit different to ours in the UK. I'd suggest trying to get in touch with a CCCS organisation in your state.

Having said that - it sounds strange that you're being chased for a debt that you've already paid. If you were based in the UK I'd recommend sending proof that the debt has been paid to this company (making sure not to reveal any confidential details just in case they're scammers).

All the best.

James

StepChange_James

Cenedra41 wrote: »

hello

I posted a while back for some advice and was told a debt mgmt plan would be a good idea as we have some substantial unsecured debts. I'm just a bit confused as to when to speak to step change however. At the moment we are JUST managing to cover minimum payments but with no contingency for anything unusual that comes up eg car repairs etc. I am starting maternity leave on the 10th May and after 6 weeks will be dropping to smp which cuts my salary down by two thirds so there's no way we can cover the minimum payments as they are. I really don't want to wait until I give birth (I'm having twins) before sorting out a plan but I believe I have to wait until I know my new income before anything can be done. My worry is that it will take time to arrange at a time when I'll be stressed out anyway and I'll end up having to stop payments for a period of time until the plan is up and running and possibly have the lenders harrassing me for payment.

Is this correct or can I start to sort something out now with a view to starting the plan as soon as my salary drops? I won't be returning to work full time as child care costs are more than I earn so I'll be dropping down to part time hours after my maternity leave finishes anyway so my pay will be at roughly the same rate (or lower) for the foreseeable future

many thanks and apologies for the rambling!

Hello,

I'd suggest getting in touch with us now. We can set you up on our system, plan an income and expenditure budget based on your current finances and give advice that's relevant for now. From what you've said it may be that you need debt help even before the reduction in your income.

Even if a DMP isn't the right option for your current situation you'll be set up on our system and then it'll just be a quick phone call to update us once you know for sure what your income is going to be.

I should add that DMPs aren't always the best option, so we'll look at all the available debt solutions and recommend a strategy. If a DMP is the best route then we'll be able to set you up on our free one.

If you'd prefer to carry on as you are and wait until nearer your maternity leave then that would be fine too but you'll probably find it a bit easier if you get advice now and then make adjustments to your details nearer the time.

I'd suggest using our phone service (http://www.stepchange.org/Contactus.aspx)rather than the online tool as speaking to a debt advisor will allow you to look at your options both before and after maternity and it's hard to make a computer understand that than a real person.

All the best.

James

StepChange_James

napes99 wrote: »

Hi there,

I am looking to find out where I stand with a credit union loan that I took out in 2006 of £9000 and defaulted in 2007 (no payments have been made since). I am finally looking to try and clear my debt so I got a copy of my credit file whick I notice a lot of my debt has dropped of due to the amount of time that has lapsed.

My credit union loan is not on my credit report but the are still calling me from time to time ( I never answered). When I first defaulted they did refer it over to a debt recovery company who wrote to me saying they were going to present a charge for payment. I can't remember if this ever happend but quite possibly could have as I was in some mess with debt back then.

I only have £900 of other unsecured debt on my credit file and I want to clear this but I am scared that if I update my credit report to my new address this will trigger the credit union to start chasing me for my debt and I just don;t have it.

Is it possible that as it has been more than 6 years they are not legally entitled to pursue the debt?

My other big debt is for about £3500 council tax to SLC, I know that this will never go away and I know that it is with Scott & Co sheriff officers. I am not sure how to approach them as I now live with my partner and do not want people knocking at the door but I do want to arrange a payment plan. Will they demand a certain amount a month in order to keep it out of court?

I really want to put all this behind me and pay what I can and learn from my mistakes.

Any advise is appreciated.

Thanks

Hello,

The limitations periods for debts in Scotland is different to the timescales in England and Wales, so the six year period rule isn't the same.

Debts in Scotland tend to have either a five year limitation period or a twenty year one. Unsecured credit debts (your credit union loan should fall under this category) have a five year period and council tax arrears have a twenty year limitation period.

The other difference is that after the limitation period expires the Scottish law states that the debt is extinguished, meaning it doesn't exist anymore. In England and Wales debts are classed as unenforceable - meaning they exist but can't use the courts to enforce them.

I'd suggest getting in touch with us for advice about sorting out the Council Tax debt. You can do this online using our advice tool, Debt Remedy (http://www.stepchange.org/msehelp).

Kind regards

James

anne61

StepChange_James wrote: »

Hi Anne,

It sounds like you might be based in the USA, where the rules surrounding debt are a bit different to ours in the UK. I'd suggest trying to get in touch with a CCCS organisation in your state.

Having said that - it sounds strange that you're being chased for a debt that you've already paid. If you were based in the UK I'd recommend sending proof that the debt has been paid to this company (making sure not to reveal any confidential details just in case they're scammers).

All the best.

James

Thank you James for your fast answer and help. Appreciate it very much. Yes, I am in the USA and will search a site there. Thanks again.

AnnM48

Hi,
I'm new to posting here, so I really hope I've got my question in the right place and that I can navigate the forum to use it properly!
I'm really struggling with my debt and the thought of it seems to be taking up every waking moment in my head, I can't even buy my kids an ice-cream without almost having a breakdown thinking about the cost!
I have actually worked for a bank for the past 10years and never had debt until I started there, since then credit cards and overdrafts have just spiralled out of control, of course with life situations adding to that, like maternity leave and mortgage! Anyway, each month I kid myself that I'm not in a bad situation, but at the back of my head I know its just getting worse.
I now have 4 credit cards, two with MBNA totalling £4196, one with Barclaycard at £9901 and one with Tesco at £1879. I have two overdrafts with Halifax, one is £650 and one is £2500. Aside from those debts I have my mortgage at £700 per month and then car insurances, rates, phone, electric etc coming out each month approx £300 per month in total, a car payment of £207 and a caravan payment of £115.
I earn around £980 per month and my husband gets around £300 per week.
I really don't know where to turn, but if we are going to argue, its about money, if i can't sleep, its because of money. I really want to pay back what I have borrowed as I know it is our fault that we have managed to get here, but I am really struggling every month! any advice would be very very welcome!
thanks

Ox1987

Ok need some advice been doctor so was hoping to distress but have not

New bank has still not sent details to sign to get account open and was due to switch DD by the 20th for priority payments etc. This looks a bit impossible now. Salary is also set to go into that account on last day of month. However I would as you have described continue to use my HSBC account and make sure they get paid as normal as not to invoke setting off. Will they not get wind of DMP when I cancel all other DD and set off anyway. Also if I have to pay HSBC which is approx 360 then it would leave me short for the month and not able to feed the kids etc

iT IS WORRYING ME LIKE HELL ESPECIALLY IF I MISS PRIORITY PAYMENTS

Cenedra41

StepChange_James wrote: »

Hello,

I'd suggest getting in touch with us now. We can set you up on our system, plan an income and expenditure budget based on your current finances and give advice that's relevant for now. From what you've said it may be that you need debt help even before the reduction in your income.

Even if a DMP isn't the right option for your current situation you'll be set up on our system and then it'll just be a quick phone call to update us once you know for sure what your income is going to be.

I should add that DMPs aren't always the best option, so we'll look at all the available debt solutions and recommend a strategy. If a DMP is the best route then we'll be able to set you up on our free one.

If you'd prefer to carry on as you are and wait until nearer your maternity leave then that would be fine too but you'll probably find it a bit easier if you get advice now and then make adjustments to your details nearer the time.

I'd suggest using our phone service rather than the online tool as speaking to a debt advisor will allow you to look at your options both before and after maternity and it's hard to make a computer understand that than a real person.

All the best.

James

brilliant thanks very much James, I'll try and get through some time this week, I appreciate your advice and swift response!

StepChange_James

AnnM48 wrote: »

Hi,
I'm new to posting here, so I really hope I've got my question in the right place and that I can navigate the forum to use it properly!
I'm really struggling with my debt and the thought of it seems to be taking up every waking moment in my head, I can't even buy my kids an ice-cream without almost having a breakdown thinking about the cost!
I have actually worked for a bank for the past 10years and never had debt until I started there, since then credit cards and overdrafts have just spiralled out of control, of course with life situations adding to that, like maternity leave and mortgage! Anyway, each month I kid myself that I'm not in a bad situation, but at the back of my head I know its just getting worse.
I now have 4 credit cards, two with MBNA totalling £4196, one with Barclaycard at £9901 and one with Tesco at £1879. I have two overdrafts with Halifax, one is £650 and one is £2500. Aside from those debts I have my mortgage at £700 per month and then car insurances, rates, phone, electric etc coming out each month approx £300 per month in total, a car payment of £207 and a caravan payment of £115.
I earn around £980 per month and my husband gets around £300 per week.
I really don't know where to turn, but if we are going to argue, its about money, if i can't sleep, its because of money. I really want to pay back what I have borrowed as I know it is our fault that we have managed to get here, but I am really struggling every month! any advice would be very very welcome!
thanks

Hi Ann,

It sounds like a really tough time at the moment. I hope we can help you get back on top of things.

From what you've said it looks like you could do with some in depth advice - we can help with this.

If you get in touch with us we'll plan an income and expenditure budget (which I'm sure can include a bit of money for ice creams in the park). Once we know what you need to live off we'll be able to see what options you've got to deal with the debts and advise you on your options.

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.

I hope this helps.

James