Step Change Debt Remedy Tool

john10001

I have used the Step Change Debt Remedy tool a few times and have been trying to accurately calculate my debts, income and expenditure, though it is more difficult for me than most people as a lot of these are variable.

The few times I have used the tool and where my surplus wasn't too disimilar each of the times I used it, it gave me three different recommended solutions!

One occasion is recommended bankruptcy, another occassion an IVA, and another time a Temporary Payment Arrangement and paying token payments of £1 to debtors and writing letters to them asking to freeze interest. Not sure what kind of a solution that was given that the liklihood of them doing that is zero and the only outcome would be my debts increase.

On the Contractual Payments, hardly any of these for my creditors are accurately calculated by the Debt Remedy Tool from Step Change.

There are a couple that are not too far away but still quite inaccurate.

I must only make payment of about 50 to 60% of the amount they calculated and I don't pay just minimum payment I pay slightly more, probably 8 to 10% more than minimum, mainly because I am paid 4weekly (so I make 13 payments a year not 12) and because I like to allow a small amount to cover slight fluctuations e.g. one month minimum payment may be slightly higher depending on the number of days in that month.

Student Loans Company - Reading the IVA advice I was told to include all debts which I did but if the Students Loans Company debt is not included within an IVA and has to be paid separately outside of it, why should this be included? I believe this may be further making this inaccurate?

The amount of salary I have would not require me to repay this student loan at the moment anyway, and as it is a lower rate of interest it doesn't make sense to when I should be concentrating on my main issue which would be essential living expenses and a potential IVA payment?

This leaves me wondering how much surplus you would need in order for the IVA route to be the recommended option with the Debt Remedy Tool as I believe it is not accurate?

I highly believe an IVA is the best option for me but I am now not convinced that Step Change is the right way to go.

Will be spending the next few days trying to get as accurate a picture as I can of expenses and to calculate what my true Contractual Payments are "at the moment", and hopefully knowing what they would be in an IVA will help as well.

Does anyone know roughly what figure of the total debt (excluding Student Loan?) the average accepted IVA would be for percentage wise? This will help give me some idea of what I will be paying out over the 5 or 6 years of an IVA.

Thanks,
John

UpToMyNeckInIt

My understanding is that student loans cannot be included in the IVA. However, I believe that you can put them in your I&E SoA, as you will need to be able to budget for the repayment, if applicable.

If you want to compare IVA providers, a list of reviews can be found at iva . com.

wba31

john10001 wrote: »

I have used the Step Change Debt Remedy tool a few times and have been trying to accurately calculate my debts, income and expenditure, though it is more difficult for me than most people as a lot of these are variable.

The few times I have used the tool and where my surplus wasn't too disimilar each of the times I used it, it gave me three different recommended solutions!

One occasion is recommended bankruptcy, another occassion an IVA, and another time a Temporary Payment Arrangement and paying token payments of £1 to debtors and writing letters to them asking to freeze interest. Not sure what kind of a solution that was given that the liklihood of them doing that is zero and the only outcome would be my debts increase.

On the Contractual Payments, hardly any of these for my creditors are accurately calculated by the Debt Remedy Tool from Step Change.

There are a couple that are not too far away but still quite inaccurate.

I must only make payment of about 50 to 60% of the amount they calculated and I don't pay just minimum payment I pay slightly more, probably 8 to 10% more than minimum, mainly because I am paid 4weekly (so I make 13 payments a year not 12) and because I like to allow a small amount to cover slight fluctuations e.g. one month minimum payment may be slightly higher depending on the number of days in that month.

Student Loans Company - Reading the IVA advice I was told to include all debts which I did but if the Students Loans Company debt is not included within an IVA and has to be paid separately outside of it, why should this be included? I believe this may be further making this inaccurate?

The amount of salary I have would not require me to repay this student loan at the moment anyway, and as it is a lower rate of interest it doesn't make sense to when I should be concentrating on my main issue which would be essential living expenses and a potential IVA payment?

This leaves me wondering how much surplus you would need in order for the IVA route to be the recommended option with the Debt Remedy Tool as I believe it is not accurate?

I highly believe an IVA is the best option for me but I am now not convinced that Step Change is the right way to go.

Will be spending the next few days trying to get as accurate a picture as I can of expenses and to calculate what my true Contractual Payments are "at the moment", and hopefully knowing what they would be in an IVA will help as well.

Does anyone know roughly what figure of the total debt (excluding Student Loan?) the average accepted IVA would be for percentage wise? This will help give me some idea of what I will be paying out over the 5 or 6 years of an IVA.

Thanks,
John

If you are having issues with their online tool you should call their support team and let them look at the situation. It is only a computer system so as accurate as it attempts to be, variables such as those you have mentioned I doubt any computer system can satisfy. I have helped a number of people get debt advice through Step Change's online tool (back when they were CCCS) and 99% of the time it was very accurate and simple for the people needing help. I know of one time where it was a little more complicated and we needed help, we called the freephone support team number and they sorted it out with ease.

Akaths

I have been looking at the advice around and am planning to write to my credit card company and personal loan companies to offer reduced payments. Can anyone tell me how this would affect my credit rating? I have my house up for sale but will still need a mortgage on an alternative (cheaper) house and don't want to find I can't get one. Thanks in advance for any advice

Bella_Smythe

OP - have you tried Payplanplus? i think (im not certain) that they only do IVA's and DMPs, and theyre a lot more straightforward than what you describe? also theyre a free service not one of the sharks who charges? good luck B

FiatFan_2

when i used the tool back when they were cccs, i got a few outcomes. As they all have different reference numbers, pick what you feel is the best one and contact them with that reference. Then they can offer you a greater level of information based on the info you've provided. If you go the iva route then quite a lot can change between filling out the starter budget and what budget is actually set.

good luck with it

wba31

Akaths wrote: »

I have been looking at the advice around and am planning to write to my credit card company and personal loan companies to offer reduced payments. Can anyone tell me how this would affect my credit rating? I have my house up for sale but will still need a mortgage on an alternative (cheaper) house and don't want to find I can't get one. Thanks in advance for any advice

If you write to them yourself you may have difficulty getting them to accept offers without the use of a free 3rd party.

Have you received any advice from someone free. Step Change Debt Charity offer DMP's and you may find that a temporary plan until you are able to downsize your property is the best option. I'm sure Step Change will be able to refer you to a good mortgage broker to help you find a new deal too.

Any reduction in payments will affect your credit rating. Could you maybe ask your current mortgage company for a payment holiday to stay on top of your current debt until your house sells?