Struggling with debt? Ask a debt adviser a question

MoneySavingSheps

Thanks Rachel

I tried that tool and it simply says that I can afford the repayments so keep going and try to pay more where I can.

This is what I have been doing, but only by reducing spending to absolute essentials, having the constant fear of not having enough money for these essentials, and being unable to save, for example for a house deposit, for our children's education etc. The debt will not be paid off quick enough as we are mostly paying interest, so to continue as we are really means to write off the next decade with the stress of living like this, by which time we will be too old for house buying anyway and the kids will be grown up.

I know it's our own fault for having these debts (partly, there were times we were so desperate it was the only way to pay bills, buy using the credit card) but it's really hard to know that we might just have to continue a huge chunk of our monthly income going out on debt interest each month, and what if our income reduces? I can't think about that.

StepChange_Rachael wrote: »

Hi

Thanks for posting on the forum.

It sounds like you’ve already made good steps to help reduce the debt by managing your budget and findng ways to increase your income. However, if you’re still struggling to meet minimum payments then I’d recommend looking at alternative options. If your partner is struggling as well then it might be worth looking at options together to get you both debt free as soon as possible.

I’d recommend getting advice based on your full financial circumstances as their may potentiall be different options available for you to choose from.

If you want to explore your options further you can use our tool to access your free and advice and recommendations.

Hope this helps.

Thanks,
Rachael

StepChange_Allen

MoneySavingSheps wrote: »

Thanks Rachel

I tried that tool and it simply says that I can afford the repayments so keep going and try to pay more where I can.

This is what I have been doing, but only by reducing spending to absolute essentials, having the constant fear of not having enough money for these essentials, and being unable to save, for example for a house deposit, for our children's education etc. The debt will not be paid off quick enough as we are mostly paying interest, so to continue as we are really means to write off the next decade with the stress of living like this, by which time we will be too old for house buying anyway and the kids will be grown up.

I know it's our own fault for having these debts (partly, there were times we were so desperate it was the only way to pay bills, buy using the credit card) but it's really hard to know that we might just have to continue a huge chunk of our monthly income going out on debt interest each month, and what if our income reduces? I can't think about that.

Hi there

Thanks for your reply.

If the Debt Remedy tool shows you can afford your minimum payments comfortably, it suggests that either your income/spending figures aren't accurate or sufficient in the case of the spending; or that your debts cost you more than we estimate.

I'd recommend giving a debt advisor a call to discuss the budget and situation if it's not obvious where anything isn't right, or indeed if it's definitely all accurate. If you log into Debt Remedy and click on 'Need help?' it will give you the number to call.

Best wishes

Allen

Harvs6

Hi


I have a debt of circa £5k with PRA Group (it started out as terribly mismanaged credit card). Based on my current financial situation (income Vs. outgoings) they have determined I can afford to pay £17.30 a month. I've managed to increase to £20.00 but it will still take forever and a day to clear. This debt hangs over me like the sword of Damocles but I can't see what else I can do speed up clearing the debt, without increasing another. We've reduced outgoings to a point that we cannot see any more savings to be had. Please help.....


Thank you

TW82

Hi, all.
Hope I'm posting this in the correct way/forum! Please forgive me if it's in the wrong place... found it quite confusing!
Here goes....
I received a letter today from 'Robinsin way' stating that I owe them money from a loan taken out years ago. To put in context, I believe the loan was taken out when I was about 20 , I'm now 36. I got into a lot of debt when I was around 18-20 and subsequently went into a DMP to clear and help.
I am no longer in a DMP and haven't been for years, I have a good credit rating and I'm a homeowner. I have not received any communication about this debt for I don't know how long , 5 years at least I'd say (probably more) . I genuinely believed this debt to have been settled. However, I can't find any communication/paperwork to back this up.
My question is , how should I respond to their letter? They suggest they will put a default on my credit report, however nothing shows about this debt on Experian or Equifax, they also say they will take me to court and CCJ. , is this possible?
My fixed term is about to come to an end with my mortgage provider, so I will be applying for a new mortgage soon, so I'm worried this will effect my being able to secure a new mortgage deal , and my mortgage payments will then sky rocket (due to ending fixed term rate) risking spiralling into debt.
I may still owe money to them, but I may not. and I certainly would contest the 4.5k they are chasing, if not the whole amount. What are my options, do I ask them to prove what I owe, knowing that my own records of this are either lost or non existent? Do I offer to pay a lump sum to get it settled? Or do I ignore?

Many thanks in advance for any advice

lrb7691

Hey!

I’ve got three credit cards and a bank loan. The bank loan is achievable; the credit card payments are becoming unmanageable. I’m paying as much off as I can each month and additional if possible but I just seem to be getting nowhere. What’s the best way for me to get back on track? It’s really starting to get me down because I just seem to be treading water! How am I best to get it cleared?

ReadyfortheHills

Hi there,
I am in need of urgent help!
Following the breakdown of my marriage my bank failed to freeze a joint current account which enabled my ex to empty the overdraft. This incurred charges etc. The bank have admitted liability for this, however, they will not remove a default they put against the account and therefore both of us! Due to further failures by the bank they did not send me any correspondence about the account, only him, they failed to update their records for both parties as well. Only through a credit check did I become aware of the default notice. Through a formal complaint the bank have admitted fault, but will not remove default as they say I should have known and should have been paying back the overdraft. I dispute this as I was never notified, never given the opportunity to address the overdraft and never made aware of the consequence if I did not (plus the ex said he was paying it) I have not used the account nor have a debit card for it in approx. 5years! The bank continue to say default stays and have gone as far as reactivating this month on the grounds of no payment plan (their dept told me not to set one up until outcome of complaint!!) my credit score dropped 344 points this month due to the reactivation and I have been told I cannot get my new mortgage as a result!


Is there anything legally that obliges them to have informed me before default, that could make it invalid?? I can pay the debt but the default has floored me.
Iam waiting on the Financial Ombudsman getting back to me also


Thank you!

StepChange_Allen

Harvs6 wrote: »

Hi


I have a debt of circa £5k with PRA Group (it started out as terribly mismanaged credit card). Based on my current financial situation (income Vs. outgoings) they have determined I can afford to pay £17.30 a month. I've managed to increase to £20.00 but it will still take forever and a day to clear. This debt hangs over me like the sword of Damocles but I can't see what else I can do speed up clearing the debt, without increasing another. We've reduced outgoings to a point that we cannot see any more savings to be had. Please help.....


Thank you

Hi Harvs

Welcome to the forum and thanks for posting.

If you're struggling to make headway with your debts, you can register with us free of charge and we can look at different options for you.

You can either speak to an advisor on the phone, or complete our online Debt Remedy tool. Details can be found here: www.stepchange.org/Contactus

I hope this is helpful.

Allen

Pixie_Fairydust

Thanks Rachael. I will fill in the form on StepChange and take it from there.

Pix
Xx

Former_StepChange_Patience

Hi there

Thanks for posting and welcome to the forum.

I’m sorry to hear about the confusing letter from Robinson way, I can imagine how much of a surprise this must have been after the debts were settled.

The next steps depend on a few factors, there’s a possibility the debt could be statute barred, it could still be outstanding, or it could have been a debt which was included within your plan and an error on the collection agencies part.

In the case where the debt is statute barred, it isn’t usually wiped off after 6 years, but it does mean that a creditor can’t take any further action apart from asking for the debt to be paid. That means in this situation, the creditor can't issue a County Court Judgement (CCJ)

A debt can be statute barred under the limitations act 1980 as long as:

• The creditor has not registered a CCJ against you
• You (or with joint debts, you and the other person) have not made a payment in the last six or twelve years depending on the debt
• You have not admitted the debt in writing in the last six or twelve years depending on the debt

If you can remember who the company was that supported you with the Debt Management Plan (DMP) they might be able to confirm whether or not the debt was included and when the last payment might have been paid.

You could also try writing to the creditor to, as you said provide you with details of the account, so if you wish to dispute the account, this might help.

If the debt is no longer showing on your credit file and with the debt already being with a collection agency, it’s likely the default was already registered once the loan was passed on the Robinson way, they may not be able to re default the account once it’s already been done.

If they do, you could write to the creditor to complain, explaining that the account should have been defaulted by the original creditor and ask for it to be back dated.

Lastly if you wish to settle the debt or offer a lump sum, that's your choice but if you don't believe you owe all or some of the debt it might be worthwhile looking into it further.

I apologise for the long post and I hope this helps a little.

Patience

TW82 wrote: »

Hi, all.
Hope I'm posting this in the correct way/forum! Please forgive me if it's in the wrong place... found it quite confusing!
Here goes....
I received a letter today from 'Robinsin way' stating that I owe them money from a loan taken out years ago. To put in context, I believe the loan was taken out when I was about 20 , I'm now 36. I got into a lot of debt when I was around 18-20 and subsequently went into a DMP to clear and help.
I am no longer in a DMP and haven't been for years, I have a good credit rating and I'm a homeowner. I have not received any communication about this debt for I don't know how long , 5 years at least I'd say (probably more) . I genuinely believed this debt to have been settled. However, I can't find any communication/paperwork to back this up.
My question is , how should I respond to their letter? They suggest they will put a default on my credit report, however nothing shows about this debt on Experian or Equifax, they also say they will take me to court and CCJ. , is this possible?
My fixed term is about to come to an end with my mortgage provider, so I will be applying for a new mortgage soon, so I'm worried this will effect my being able to secure a new mortgage deal , and my mortgage payments will then sky rocket (due to ending fixed term rate) risking spiralling into debt.
I may still owe money to them, but I may not. and I certainly would contest the 4.5k they are chasing, if not the whole amount. What are my options, do I ask them to prove what I owe, knowing that my own records of this are either lost or non existent? Do I offer to pay a lump sum to get it settled? Or do I ignore?

Many thanks in advance for any advice

Former_StepChange_Patience

Hi there

Thanks for getting in touch with us.

I understand how it can make you feel when you’re trying to manage your debts, I’m sorry to hear it’s getting you down.

There may be a few options available for you to consider, each will have their benefits and their risks so it’s your choice what you feel might be best.

Firstly, you could consider using a balance transfer to a card which provides you with an interest free period to allow you to repay the debts. You can find out further information here: https://www.moneyadviceservice.org.uk/en/articles/deciding-whether-to-transfer-your-credit-card-balance

It’s worth bearing in mind whether this is something you may be accepted for, there are usually balance transfer fees which would increase the balance and it’s worth considering whether any new payments are going to be affordable with the bank loan on top.

Secondly, you could also try to pay more to the credit cards than the minimum payment, but I appreciate how difficult this might be when you’re already trying to pay wheat you can.

If you want to look into this I would recommend creating a budget and trying to stick to this to allow you to make the higher payments. You can create one here: https://www.moneyadviceservice.org.uk/en/tools/budget-planner

Thirdly, an option would be to seek debt advice from an impartial organisation.

If you would like us to have a look at your circumstances, you can start a budget with us either online or over the phone and see what options we can suggest. There's no obligation to go ahead with anything we recommend and details of how you can contact us can be found here: www.stepchange.org/Contactus

I hope these help.

Patience

lrb7691 wrote: »

Hey!

I’ve got three credit cards and a bank loan. The bank loan is achievable; the credit card payments are becoming unmanageable. I’m paying as much off as I can each month and additional if possible but I just seem to be getting nowhere. What’s the best way for me to get back on track? It’s really starting to get me down because I just seem to be treading water! How am I best to get it cleared?