Struggling with debt? Ask a debt adviser a question

Steven719

So since 2016 I’ve taken drugs, got in to debt, lost my job, suffering with depression and the drs said I had an ocd issue which they gave me tablets, my mum has had cancer several times and it all just got to much. I’ve thought of taking my own life as I just don’t see a way out of this.

This year I’ve been doing little bits of work trying to get abit of an income but nothing permenant. At the end of 2018 I am at the lowest possible place I could be. 2019 has came and I want to fix this mess I have 36k of legal debt by this I mean debt through creditors never mind the additional debt I have with people now threatening my life.

Enough is enough and I want to sort this out since the start of this year I’ve locked myself away and I’ve been free of any drugs since the start of the year my heads coming together and I want to sort out my finances so I can correct my life and be the happy young lad I used to be it’s so hard for me writing this but I want to fix this hell I am in I still suffer with a few withdrawal symptoms but I’m fighting my demons.

I’m actively looking for work, in 2018 I did do bits of work and I earnt a decent wage but it just funded my drug habit which blocked away the pain and hurt.
I don’t want to fall back, I want to fix this now and finally get my life on track.
Currently I am self employed and some weeks I’m earning nothing and some I do. I’m trying to get more and more work in but as you can imagine I’m also trying to recover from drugs it’s hard.

I just don’t know how to fix it please help me, please.

magic_fairies

HI
first of all I didn't even know how to post. hope fully im in the right place.
where do i start?
ok here goes, im in debt to around £17000, which includes
mortgage £5500
Car Loans £4200
Personal Loans £1000
Credit Cards £4000
Family loan £2000

it seems like im digging deeper and its making me ill.
ive looked on these posts and ive realised my debt is probably lower than most but that doesnt mean its any easier.

what the eck do i do.... i cant release equity in my house because im in debt with mortgage, which in all honesty the equity could clear the lot. i cant take out a big loan to pay it off as my credit rating is really bad. where do i turn

please help

Julianlzb87

AAsking for a friend., really... a female pensioner.
About 15 years ago my friend moved into a new block of, all electric, Housing association flats.
For some reason, possibly because the building work was not complete residents were given
a years free electricity.

But after the first year no one started to receive bills and obviously (but foolishly) no one made a fuss about not being billed..

Then, 4 years later, huge back dated electricity bills arrived... say £2000

My friend was put on to a key meter, guessing near highest rate, and has been there
ever since, 10 years, and still the debt has hardly shrunk.

It looks like she will be stuck in the situation forever, unable to switch etc. and probably still be in debt. Yes, it's no one else's fault, better initial billing might have helped, but it is what it is now.

I'm kind of thinking this situation might not be rare even though how it comes about will differ.
My question is... Is there anyway out of this for someone who couldn't get cheap credit to get rid of the old debt?

Charities? Sink funds? Obscure privatisation legislation? Anything at all?
Now it is out in the open there maybe a chance of a friends and family whip
but on a general level that might not be available to everyone.

The supplier is EON

fatbelly

Julianlzb87 wrote: »

Asking for a friend., really... a female pensioner.
About 15 years ago my friend moved into a new block of, all electric, Housing association flats.
For some reason, possibly because the building work was not complete residents were given
a years free electricity.

But after the first year no one started to receive bills and obviously (but foolishly) no one made a fuss about not being billed..

Then, 4 years later, huge back dated electricity bills arrived... say £2000

My friend was put on to a key meter, guessing near highest rate, and has been there
ever since, 10 years, and still the debt has hardly shrunk.

It looks like she will be stuck in the situation forever, unable to switch etc. and probably still be in debt. Yes, it's no one else's fault, better initial billing might have helped, but it is what it is now.

I'm kind of thinking this situation might not be rare even though how it comes about will differ.
My question is... Is there anyway out of this for someone who couldn't get cheap credit to get rid of the old debt?

Charities? Sink funds? Obscure privatisation legislation? Anything at all?
Now it is out in the open there maybe a chance of a friends and family whip
but on a general level that might not be available to everyone.

Who's the electricity provider?

slellis

Hi all,

I’m looking to possibly consolidate £8k which is across 2 credit cards and 2 catalogues.
After a 7 years, things ended with my partner, we were slowly paying things off but not getting anywhere, and he was paying the minimums. All of the credit was taken out in my name as he has previous bad debt history, and now he’s left, I’m left to deal with it. Biggest mistake I ever made, but now needs sorting.

I’m a single working mum, and have been advised by my friend who works in the bank to get a consolidating loan to reduce monthly outgoings as I cannot afford the minimum payments on my own.

Any thoughts or advice would be welcomed!
I’ve been worried about applying for a loan due to the amount outstanding (I have two cars on finance, one my own and the other my exes though he is paying me each month for that), so I worry I won’t be accepted as my wages aren’t high and large amount outstanding.

Thanks for reading!

StepChange_Rachael

Hi

Thanks for your message.

I know it can be difficult to know the best way forward, especially when trying to help someone else. I’m sure your friend will appreciate the support.

It depends on the situation as to the best way forward, everyone is different. For example if the payments are affordable but they are having to rely on using further credit during the month then the payments won’t be sustainable to pay back the debt. Meaning further borrowing would also not be in their best interest. An alternative route such as a reduced repayment option like a debt management plan or even insolvency options might be more appropriate.

However, if by realistically cutting back the household bills and living costs, they are managing the repayments and could offer more to bring down the overall balance then this helps protect them from potential collections action from creditors and credit file rating. Possibly opening up other options of borrowing at a lesser interest rate.

They can ask the creditors to reduce the interest rates, however this is very unlikely especially when they are meeting the regular payments.

I think the main thing to check is firstly are they cutting back where normal living is becoming difficult and secondly are they having to reuse the credit to keep up with household bills. If the answer is yes then I’d suggest them speaking with a free debt advice service so they can explore their options. You can find our details here if your friend would like further support with this.

Thanks
Rachael

matilda.cs wrote: »

Morning,
I’m helping someone else with their finances, and need some advice...
She was declared bankrupt in May 2013 and since then has racked up £6000 on high interest credit cards.
She is paying minimum payments each month and this is within her means, but extra payments are difficult, meaning she will be an old lady by the time they’re paid off!
She really want these paid quickly, but what’s the best way?
Does she continue as she is?
Does she make cuts elsewhere? (Has already cut a lot)
Can she ask for interest relief, to allow her to make sizeable contributions to her actual debt?
Does she wait until May when the BR drops off and hope that her credit score allows her to get a loan / card at better apr?
Any other ideas?
Thanks

StepChange_Rachael

Hi

Welcome to the forum.

When it comes to any form of self-employment we’d suggest getting specialist advice, this is because there are different routes of collection and steps the creditors can take. There will certainly be a way forward and support for you but I’d suggest contacting the Business Debtline first, for advice regarding business related loans and debts incurred from the folding of the business.

If this is something many people have encountered when starting up a business with this company (franchise) then it’s likely they’ll have more information to provide you with.

There are likely to be many different ways of dealing with any remaining debt from the company and personal debt together but it’s important to know all your options.

It’s a good idea, as you mentioned to contact the creditors, if you’re struggling with the credit contractual payments and keep them updated on the situation.They should hold the accounts for a period of time to give you some breathing space. However, if you’re using the debts to cover household costs it might be worth also checking if you are eligible for any help with your income. Here you can find information on how to check your benefit entitlement.

Thanks
Rachael

LittonLady wrote: »

Hi
after some advise re. a payment arrangement I made with Start Up Loans.

I took a loan out on the advise of a franchise company (who's franchise I was buying into) in 2016. Unfortunately no matter how I tried I couldn't get my business to take off in the way promised by the franchisor (and I know I'm not the only one).

The whys and wherefores are not that important but suffice it to say that i NEVER earned enough to make the loan repayments in full and so entered into an arrangement with the loan company to make token payments. This is still in force 2 years later and obviously is having a major impact on my credit score.

Does anyone have any advise about how to tackle this issue?

I had to fold the franchise and am still waiting to hear what they want to try and charge me!

I also have 3 credit cards which I've relied on recently simply to cover household costs and I plan on contacting them today with a budget statement to show my current situation.

Any help/advise greatly appreciated!

StepChange_Rachael

Hi

Thanks for your message.

I appreciate how frustrating it must have been for you and your partner to be rejected solely on the defaulted debt.

A default is usually issued within a few months of missing or making a reduced payment from the contractual agreement. This will remain on your file for six years and then automatically drop off. This should give you a good idea of when it should naturally drop off.

It’s unlikely a creditor would remove the default even with the debt being settled. On your partners credit file the debt would show as settled and no longer outstanding , although this is likely to improve the chances of getting further credit I couldn’t say how much of an impact it would have on applying for a mortgage.

Mortgages like other forms of credit take into account your full financial situation, income, outstanding debt total, credit file rating etc.

It’s possible you could apply for a mortgage on your own, however, again it depends on your full financial situation and the mortgage you’d be applying for. A person is likely to be able to apply for a larger mortgage if it’s done as a joint application with both incomes.

If you’d like further financial advice on mortgages you can find StepChanges Financial Solutions teams details here.

Take care,
Rachael

Esmondo wrote: »

Hi, I hope you can help. My partner is paying Capquest £10 a month in respect of a defaulted credit card that they took over from Lloyds in 2013. The debt is currently around £9,600. We had recently checked Experian online and the default wasn't showing, so we assumed that, as he has constantly paid it each month since it was taken over, it didn't count as a default. However, we applied for a mortgage and were rejected, and when we obtained the full report, it was actually there. We were stupid not to realise the online version wasn't complete, I know that. Anyway, our mortgage broker suggested offering Capquest a settlement figure. My questions are:

1. If Capquest accept the settlement, would they "remove" the default from his record, or would it still come up in credit searches (in which case I don't really see the point of doing it)?

2. Our other alternative is to apply in my sole name; how likely is it that the rejection will stop me from being successful?

Thank you for your help

StepChange_Rachael

Hi SashaK

Thanks for your message and welcome to the forum.

There is a way to have a debt sent back to court but it’s not a simple process. The form to set a debt aside is called the N244 and can be downloaded online. However this can cost £255. The court will expect strong evidence that shows why you’re setting the debt aside, they’ll expect a debt to only be set aside if you’re disputing the debt being owed either part or in full. For example if you’ve already paid the debt, it’s statute barred or they’ve got the amount wrong and you’re disputing part of the debt.

If you’re not disputing that you owe the debt then a cheaper option is the N245 which sends the debt back to court where an affordable payment can be set in place and stops enforcement action. The cost is £50. If you’re on low income it’s possible to get help with the fees for both forms.

Here is a link where you can find more information on both options and you can also download the forms from this page.

Hope this helps.
Rachael

SashaK wrote: »

Hi,
I found out yesterday I have a CCJ given to me in July 2018, from a credit card that they claim defaulted in 2014, but it was much earlier. The credit card was with my bank at the time, and they knew my address, yet the CCJ was sent to my old address, so I wasn’t even given the chance to defend it. What are my options now? Is there any chance I can get it set aside?

StepChange_Rachael

Hi

Thanks for posting.

I’d strongly recommend speaking with a financial advisory that is specialised in pension’s advice. Deciding on what to do with your pension is a big step that will have an impact on your future income.

Pension Wise is a government advice service where you can explore your pension options. They should also be able to advise you on where you can seek further pension advice if you need it.

If you’d like to look at the options we’d recommend based on your full financial situation, you can find our contact details here but we’d always recommend getting impartial pensions advice when the option to draw down is available, before going ahead with any alternative debt solution.

Thanks,
Rachael

The_neverists wrote: »

Hi
I have some Credit card debt and a loan which total 45k, i have £350k in a pension i can now access, should i pay off the loans in one go and deplete the pension or slowly over time.

Thanks