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CreditHelpNeeded

Hi all,

I am 33, living in the UK. I was very foolish and irresponsible when I was younger, racked up debt via credit card, an overdraft, numerous contract phones, utility bills and most recently a repossessed house all of which left me with a credit score of 431 in the 'very poor' category. I desperately want to fix this but do not know the best foot forward. I am dubious of these debt free fast companies all offering services online, eager to call you up and 'help' you out. They all have an end game so are surely biased when giving advice.

All I can say for certain right now is that I am registered with Experian, my credit rating has improved slightly since I last checked to 520. I think this is due to me not pursuing credit applications and the age of my defaults.

Some of these defaults are due to be removed in the next year or so and although I question whether or not its ethically right to just ignore them and hide away from it until they disappear, I feel it's probably the best option.

According to Experian I have 3 CCJ's, a mixture of utilities and one phone contract. I know for a fact I have had much more in my lifetime but it doesn't seem to be showing? Does that mean it's gone? Surely there must be some form of ruling that regulates the information held by ALL credit reporting agencies to ensure they are all giving the same information?

My most worrying debt however is the repossession of my house. £203,000. According to Experian, it was registered as a default with the balance showing as 'satisfied' even though I have never paid them a penny. I have read on other threads that it is possible for these debts to be sold on, is this correct? If so, why haven't I heard from these people? Admittedly i'm probably not that easy to find, I am not on the electoral role and have moved from the address obviously since the repossession. In my mind it makes absolutely no sense whatsoever for a company to pay even a reduced amount to purchase that debt when they have no way of tracking me down and securing it. It has been a year since the debt was classed as satisfied and I haven't heard anything.

My question to you is this. What should I do?! Should I ignore the debt and hope the 6 years passes by without contact? To be honest I have gone for so long with such terrible credit, it makes no difference to me not having it for another 5 years but what are the chances that this can come back and bite me again? If thats a likely option then I would rather get a plan in place now and make a start towards sorting this all out once and for all.

PLEASE HELP!!!

Mossop01

Hi i was wondering if someone could advise me, my dmp started with SC on 1st march, payments went to all creditors on 25th march, however a statement from NEXT showed no payment recieved and interest added back on and fees. I rang next who told ne that because they havent recieved a payment in march they have stopped my payment plan and reintroduced interest and fees. They advised i spoke to SC to find out where the payment is. I have tried ringing and been on hold many times, no luck. I have emailed SC a week ago and no reply yet, next are advising that u should pay the agreed sum myself again to keep the plan in place, should i?
Many thanks in advance of reply x

StepChange_James

moohound wrote: »

I am in a DMP with PayPlan and I pay £372 a month for 9 debts. A relative has offered to help me clear these if the creditors will take a reduced payment.

Payplan would not look at helping me get full and final settlements unless I had the money in my account. I explained that the money was not mine and would not be in my account, so we hit a wall there.

I sent out Full and Final payment offers myself of 40% to all creditors. I signed these - is this the wrong thing to do? I don't know.

I have Stake your claim looking at PPI for me. If I made Full and Final settlements, what would happen to this, I don't expect money back and a reduced final settlement , but I don't want to be paying fees for abandoning the PPI process with them, I realise I could have attempted to claim this back myself, but I have already filled all the forms in and one account has PPI on it but I don't think it will be very much. I wish I had not bothered really.

4 creditors are still applying large charges and interest, some are twice than the monthly payment they receive. I emailed PayPlan about this and they suggested I write and complain.

I am currently very stressed about all this, even though a relative has offered to help, I don't sleep or eat properly. I have panic attacks and feel sick and faint and I vomit with worry and stress.

I can't seem to get any answers from PayPlan since my advisor changed. I wish I had gone with CCCS (as was)

Please Please help and tell me what to do next, I feel lost at the moment.

Hi Moohound,

Thanks for posting. You've not done anything wrong at all. It sounds perfectly reasonable to negotiate directly with your creditors if Payplan weren't able to.

The important thing is to make sure any agreements with your creditors for full and final settlements are agreed in writing before you send them any money over - just so you're covered if ever they try and chase you for the money they want to write off.

I'd expect your PPI claim to be dealt with completely separately to the full and final settlement negotiations. So there's no reason that you couldn't get a refund of the PPI you paid and still negotiate a settlement.

In terms of what to do next, it sounds like you're already on top of things. Once you start getting responses from your creditors from the full and final offers it'll be a matter of working out if it's going to be a viable way to sort out the debts.

It sounds like the stress of these debts is having quite dramatic consequences to your health. I'm no expert but it might be worth seeing your doctor about some of your symptoms to see if there is any help available for that side of things.

If you can afford to keep with the Payplan DMP payments then I'd recommend carrying on with those as normal while you are negotiating with your creditors, as it will show that you are committed to dealing with them one way or another.

I hope this helps and good luck with the offers!

James

MARKA

A friend of mine got behind with her council tax,foolishly let them in her house and signed a walking possesion order,which included her car,now sold and a worthless dvd player
She kept to a payment plan with them until over Xmas due to it being quiet at her work she's self employed she missed 2 payments.
She told me of her predicament and i said I'd give her the money,which I did,last Tues,she paid the money into her account and rang bailiffs to clear the debt.
She was told they'd paid another visit that day and now there'd be another £110 costs to pay! of course she hasn't got this,informed them they've given her until friday.
Surely these charges can't be racked up like this? Any help would be most useful.

StepChange_James

CreditHelpNeeded wrote: »

Hi all,

I am 33, living in the UK. I was very foolish and irresponsible when I was younger, racked up debt via credit card, an overdraft, numerous contract phones, utility bills and most recently a repossessed house all of which left me with a credit score of 431 in the 'very poor' category. I desperately want to fix this but do not know the best foot forward. I am dubious of these debt free fast companies all offering services online, eager to call you up and 'help' you out. They all have an end game so are surely biased when giving advice.

All I can say for certain right now is that I am registered with Experian, my credit rating has improved slightly since I last checked to 520. I think this is due to me not pursuing credit applications and the age of my defaults.

Some of these defaults are due to be removed in the next year or so and although I question whether or not its ethically right to just ignore them and hide away from it until they disappear, I feel it's probably the best option.

According to Experian I have 3 CCJ's, a mixture of utilities and one phone contract. I know for a fact I have had much more in my lifetime but it doesn't seem to be showing? Does that mean it's gone? Surely there must be some form of ruling that regulates the information held by ALL credit reporting agencies to ensure they are all giving the same information?

My most worrying debt however is the repossession of my house. £203,000. According to Experian, it was registered as a default with the balance showing as 'satisfied' even though I have never paid them a penny. I have read on other threads that it is possible for these debts to be sold on, is this correct? If so, why haven't I heard from these people? Admittedly i'm probably not that easy to find, I am not on the electoral role and have moved from the address obviously since the repossession. In my mind it makes absolutely no sense whatsoever for a company to pay even a reduced amount to purchase that debt when they have no way of tracking me down and securing it. It has been a year since the debt was classed as satisfied and I haven't heard anything.

My question to you is this. What should I do?! Should I ignore the debt and hope the 6 years passes by without contact? To be honest I have gone for so long with such terrible credit, it makes no difference to me not having it for another 5 years but what are the chances that this can come back and bite me again? If thats a likely option then I would rather get a plan in place now and make a start towards sorting this all out once and for all.

PLEASE HELP!!!

Hello,

I wouldn't worry too much about credit rating systems as the scores they give is an indication - each individual lender interprets the information in their own way and they'll usually take into account all sorts of other information about you too.

Having said that, it's likely that the problems you've had with your finances in the past are going to show up on your credit history for a while and they'll make lenders less keen to lend to you.

There's not a great deal you can do to stop this. The companies that claim they can are either selling you services you can do yourself (variations on the advice here: http://www.moneysavingexpert.com/loans/credit-rating-credit-score#improve) or potentially asking you to break the law (by making false statements to court which might be seen as perjury). Either way it's worth giving them a wide berth.

It's not a good idea to hide from debts, it's much better to face up to them and try to find a way to deal with them. We can help you with this if you've got twenty minutes spare to go through our online advice process (http://www.stepchange.org/msehelp) it'll look at your finances and work out what options you've got.

It's strange that you've not heard anything from either your old mortgage company or the debt collector who've taken over the mortgage shortfall. Though I get the feeling that you might have been trying to avoid them too.

I think ignoring the debt is a stressful and risky strategy. When I've spoken to people in similar situations in the past they usually wish they'd dealt with the debt sooner as then they'd have been on their way to being debt free quicker too.

I hope this helps.

James

StepChange_James

Mossop01 wrote: »

Hi i was wondering if someone could advise me, my dmp started with SC on 1st march, payments went to all creditors on 25th march, however a statement from NEXT showed no payment recieved and interest added back on and fees. I rang next who told ne that because they havent recieved a payment in march they have stopped my payment plan and reintroduced interest and fees. They advised i spoke to SC to find out where the payment is. I have tried ringing and been on hold many times, no luck. I have emailed SC a week ago and no reply yet, next are advising that u should pay the agreed sum myself again to keep the plan in place, should i?
Many thanks in advance of reply x

Hi Mossop,

I noticed your post over on the DMP Support thread after you'd managed to get through to us. Really please that this is all resolved now.

Kind regards

James

StepChange_James

MARKA wrote: »

A friend of mine got behind with her council tax,foolishly let them in her house and signed a walking possesion order,which included her car,now sold and a worthless dvd player
She kept to a payment plan with them until over Xmas due to it being quiet at her work she's self employed she missed 2 payments.
She told me of her predicament and i said I'd give her the money,which I did,last Tues,she paid the money into her account and rang bailiffs to clear the debt.
She was told they'd paid another visit that day and now there'd be another £110 costs to pay! of course she hasn't got this,informed them they've given her until friday.
Surely these charges can't be racked up like this? Any help would be most useful.

Hello,

Unfortunately bailiffs are allowed to charge for visits.

There's a good article on the CAB website about bailiffs and their charges: http://www.adviceguide.org.uk/england/debt_e/debt_action_your_creditor_can_take_e/debt_bailiffs_e/bailiffs__charges.htm#how_much_can_they_charge_you

Your friend may be able to negotiate with the bailiff to get an arrangement to pay them off by installments. I'd recommend your friend gives our helpline a call for advice: http://www.stepchange.org/Contactus.aspx.

Kind regards

James

Scoobert

Posted this in the card forum but was advised to seek advice here too :

Really need help to do sums for card shuffle! I have 2 available 0% balance transfer deals available but they are on the highest APR cards I have. I'm trying to work out if its worthwhile transferring current balance from these cards first, to then transfer money back. If so, how to do it best? I'm aware there are transfer fees, so unsure if wise.

Current cards:

MBNA 1: 25% APR, Bal £4360, Credit limit £7000. Offer 0% for 12mth
MBNA 2: 25% APR, Bal 810, Limit £1000
N'Wide: 15.9% APR, Bal 3100, Limit 4500
Barclaycard: 6.9% for life. Bal 8970, Limit 12000, Offer 6.9% for life
Mint: 20.83%, Bal 1500, Limit 4900. Offer 0% for 12 months

I think MBNA charge 5% transfer fee, rest charge 3%.

So is it worth for example transferring all Mint balance to nationwide, and then all MBNA 1 to the mint for example? I'm trying to end up with all all money on 0% deal and rest on 6.9%,

Phew! Any advice?
If I follow shuffle advice to end up with all debt on 0% or 6.9% it will have cost me about £600 in bal transfer fees.

Thanks

nannymcphee

I hope someone can help me as feel like I'm abt to crumble !

So have a cc of 4800 which is a 0% apr and slowly bringing it down . The problem I have is after a series of life difficulties losing a couple of jobs in quick procession (made redundant) I struggled with paying a halifax back acct. had used the overdraft for paying bills. I then sunk into depression and couldn't handle life no more. I ignored their calls etc hoping it would just all go away. However as u find out it doesn't. Fast forward to know and I have now got a job and this morning trying to deal with it to b told that it has gone on to an outside agency and I have to fone the first company who can tell me who is now dealing with it at tue end of the month. I just want to get rid of it it's abt 500 (the last few weeks have been putting money into the acc to bring it down. ) what do I do ? Just go and pay it and then speak to whoever at the end of the month and tell them bank account is now at £0 or in credit and accept all the extra charges I had recieved for going overdrawn or wait and find out the agency and deal with it then ?

I'm not very good at dealing with things like this and even worse when have to face my probs to someone ?

Thanks

StepChange_James

Scoobert wrote: »

Posted this in the card forum but was advised to seek advice here too :

Really need help to do sums for card shuffle! I have 2 available 0% balance transfer deals available but they are on the highest APR cards I have. I'm trying to work out if its worthwhile transferring current balance from these cards first, to then transfer money back. If so, how to do it best? I'm aware there are transfer fees, so unsure if wise.

Current cards:

MBNA 1: 25% APR, Bal £4360, Credit limit £7000. Offer 0% for 12mth
MBNA 2: 25% APR, Bal 810, Limit £1000
N'Wide: 15.9% APR, Bal 3100, Limit 4500
Barclaycard: 6.9% for life. Bal 8970, Limit 12000, Offer 6.9% for life
Mint: 20.83%, Bal 1500, Limit 4900. Offer 0% for 12 months

I think MBNA charge 5% transfer fee, rest charge 3%.

So is it worth for example transferring all Mint balance to nationwide, and then all MBNA 1 to the mint for example? I'm trying to end up with all all money on 0% deal and rest on 6.9%,

Phew! Any advice?
If I follow shuffle advice to end up with all debt on 0% or 6.9% it will have cost me about £600 in bal transfer fees.

Thanks

Hi,

Thanks for posting. It looks like you've already had advice on the mechanics of moving around balances on the other thread.

I suspect the posters will have referred you to this board in case you need debt advice.

Obviously I don't know enough about your finances to know if this is true but it's worth a thought. I've spoken to many people over the years who've used balance transfers to try to keep afloat but found that it only prolonged the issue.

I'd suggest, if you've not done it already, to prepare a detailed income and expenditure budget and work out if you can cover all your own personal costs and still make inroads into these debts. If you're just treading water it's likely you need to consider other options.

We're a charity and we give people free and impartial advice about how to get out of debt. You can get a detailed recommendation from our online advice tool in about 20 minutes and it's completely confidential. I'd suggest giving that a go before moving any balances.

It may be that things are fine and getting the cards on the best deals will be enough to sort them out but we can at least check that you and give you an independent viewpoint.

Kind regards

James