Struggling with debt? Ask a debt adviser a question

Former_StepChange_Joe

Hello

Thanks for your message and welcome to the forum.

First of all, I’m sorry to hear that this debt is making you feel stressed. Please be assured you’ve done the right thing by getting in touch and we’ll do everything we can to help.

If you believe the debt is statute barred, you can certainly send them a letter that states you do not admit liability (there’s a template on our website here).

It may be that Robinson Way write back to confirm that the debt is in fact statute barred, and no further action will be taken.

However, if they write back with evidence that the debt isn’t statute barred, please don’t panic. They can’t make you pay the balance in one go, or even make you pay them what you can’t afford. All they can do is follow the collections process, which is outlined on our website here

If you need any more help and support with this, please don’t hesitate to get in touch with us on 0800 138 1111 Monday to Friday 8am – 8pm and Saturdays 8am – 4pm.


Thanks

Joe

Dory2k wrote: »

Hi

I have received a letter from Robinson's way about a debt which from an old credit report says was defaulted in 30/04/09 I've not made any payments to this however I cannot for the life of me remember if I've responded via letter or email Ive tried going back on emails and can't seem to find anything but i have a niggly feeling .. what would happen if I sent them the statued barred letter... If they responded with evidence that I have contacted them could they make me pay the full balance in once or would they then allow me to set up token payments as I couldn't afford to make big payments ... Every thing is such a mess.. the stress is awful .. please can you advise

Dory2k

Thank you so much.. yes I set up payments with other creditors which I have been paying weekly since and every week feel that little bit better seeing the numbers coming down slowly .. very slowly I must admit but it's a good feeling!
Thanks for the advice I will certainly check the links out.

Thanks again

Ms_Dalton

Hi everyone - i'm at a loss where to go!

so i've used the revolver website but O2 dont seem to be replying any further. My problem is back in 2012 my cousin was going to get a mobile phone from Phones4U - who no longer trade - she couldnt get the phone in her name so the lady in Phones4U said it could be transferred into her name if i took the phone out and 3 months later she can get it in her name.

Anyhow she didnt pay it and i've been saddled with the bill. i've been paying £1 a month for ages now; my cousin wont cough up the money. The debt has been sold to Moorcroft who say i've to contact O2 about the debt but they say i've to contact phones4u. Ive asked for the debt to be removed and explained all the circumstances around it.

Is there anything i can do to get this account closed or do i have to continue paying for it? in the interim my cousin has been told she owes a debt to O2 and the debt was sold to lowells - but it's impossible to find out if its the same debt but i do know she hadnt taken out any further O2 phones since I blew the lid with her lol

I have no information on the debt in my name (no bank account info, no info from phones 4u etc because it was so long ago) i'm at a complete loss what to do!

StepChange_Allen

Ms_Dalton wrote: »

Hi everyone - i'm at a loss where to go!

so i've used the revolver website but O2 dont seem to be replying any further. My problem is back in 2012 my cousin was going to get a mobile phone from Phones4U - who no longer trade - she couldnt get the phone in her name so the lady in Phones4U said it could be transferred into her name if i took the phone out and 3 months later she can get it in her name.

Anyhow she didnt pay it and i've been saddled with the bill. i've been paying £1 a month for ages now; my cousin wont cough up the money. The debt has been sold to Moorcroft who say i've to contact O2 about the debt but they say i've to contact phones4u. Ive asked for the debt to be removed and explained all the circumstances around it.

Is there anything i can do to get this account closed or do i have to continue paying for it? in the interim my cousin has been told she owes a debt to O2 and the debt was sold to lowells - but it's impossible to find out if its the same debt but i do know she hadnt taken out any further O2 phones since I blew the lid with her lol

I have no information on the debt in my name (no bank account info, no info from phones 4u etc because it was so long ago) i'm at a complete loss what to do!

Hi there

Thanks for posting.

I can appreciate that this sort of thing is frustrating and difficult to deal with. Only one person should be liable for the debt; originally this would have been you, so it just depends whether it ever got transferred into your cousin's name. It's possible an error was made if it was ever transferred into your cousin's name, in that they're chasing you both, but I think it's unlikely.

If it was never transferred into your cousin's name, then you'd be fully liable for the debt.

Phones4U should have details of who is liable, so the company collecting the debt from your cousin should be able to get details of where it was taken out, what the phone number was and so on. Hopefully you can get somewhere if you contact them.

If you'd like some advice on dealing with the debt if it is yours, you can register with us free of charge. Details of how to do this can be found on our website: www.stepchange.org/Contactus

Best wishes

Allen

StepChange_Rachael

Hi

Welcome to the forum.

I’m sorry to hear you’re struggling with your mental health and it’s caused you to feel out of depth with your finances.

I can appreciate it would be difficult to keep on top of payments when the income is so sporadic. I’d recommend getting something in place to help get things more under control and so there is a plan in place and a time scale to get you debt free. It hopefully will also help with your mental health if there is a realistic plan in place.

I know it might be difficult to work out a budget with your income being spread throughout the month but I’d recommend trying as best you can so that you’ve got something to work from each month. Then you’ll have a good idea of what could be available towards the overdraft as a repayment.

It can be a good idea to open up a new account to bank from without an overdraft, as it can be difficult to see the separation between bills, spending money and the overdraft debt when they are together. Also, the bank could close the overdraft at any time, so it means you wouldn’t have to worry about any income being taken for the overdraft last minute. Some people feel by having seperare accounts it helps them to visualise the debt so they can see it reducing and to have that separation from their ongoing finances.

Without details of your full financial situation it’s hard to say what would be the best route, if you’re unsure about the advice you got previously from the financial advisor it might be worth getting a second opinion.

If you want to contact us directly to review your options you can find our contact details here on the StepChange website.

Thanks
Rachael

lottie88 wrote: »

Hi,
I've been struggling with my mental health for the past couple of years and in the midst of all that I began to spend more on non essential things as a way of dealing with my low mood. I am now in £1k in debt in my main account and the only incoming I have is my benefits (ESA, Housing benefit and PIP - which I've been told I'm getting the highest rates of). I know ultimately the main thing I need to do is curb my spending and budget more wisely which I am aiming to do, but I am scared that with my overdraft being set at £1k and my benefits not always being set to go into my account on a specific date each month (sometimes I can get 3 benefits in 1 week, then the last 1 in the 4th week; then next month it might be 2 in the 1st week then 2 in the 3rd week) its just going to be easier to get into that spiral as I'll be gaining interest with the overdraft.
I've thought about moving my incomings into a new bank account, paying my essentials like rent, social care costs, gas/electric etc... from there and then slowly paying some of my incomings into my old account to pay off my overdraft as having a separate account is something some people (friends, social worker, free one off telephone consult with a financial advisor) have advised me might be worth doing, but then I've spoken to my Dad (who's always been pretty good with organising finances) and he thinks that idea wouldn't really get anywhere or help me much, so I'm not sure what to do.
Do you have any advice?

moneymatters19

Hello,

Around 18 months ago I got myself in a position to leave my job and re train for a new self employed career. I built up savings and used them and credit cards to get by thinking I would get caught up when I’m trading.....long story short, I’m not making much money and still using credit cards to pay bills etc.

I haven’t missed payments and no defaults etc.

The cards are now accumulating a lot of interest and I can’t get a new 0% card due to my credit rating being low and having limited income.

I’m also u able to get a consolidation loan due to having limited income as well.

I have a mortgage and have about £120000 equity in my property.

Can you advise if there is any way to use around £30000 of this equity somehow to harp clear my debt?
Bear in mind I’m recently self employed so adding to my mortgage doesn’t seem to be an option because I don’t have accounts and my income has came down.
FYI I pay around £700 to my credit card and loan debt and if I could reduce or clear this using the equity I would be just fine with what I’m doing in business just now.

Thanks
G

StepChange_Rachael

Hi

Welcome to the forum and thanks for posting.

There will definitely be a way forward to deal with the debts but it’s important to find the best one for you but this it’s impossible to do without knowing your full financial situation. Using equity and re-mortgaging can be a good option for some people, but it’s securing the debt, so it’s not always the best option for everyone.

I’d recommend contacting the Business Debtline and discussing your situation with them so they can give you accurate recommendations. You don’t need to have business debts to get advice from them, as they do advise on personal debt, but it’s important your advice takes into account that you’re self-employed.

Hope this helps.

Take care,
Rachael

moneymatters19 wrote: »

Hello,

Around 18 months ago I got myself in a position to leave my job and re train for a new self employed career. I built up savings and used them and credit cards to get by thinking I would get caught up when I’m trading.....long story short, I’m not making much money and still using credit cards to pay bills etc.

I haven’t missed payments and no defaults etc.

The cards are now accumulating a lot of interest and I can’t get a new 0% card due to my credit rating being low and having limited income.

I’m also u able to get a consolidation loan due to having limited income as well.

I have a mortgage and have about £120000 equity in my property.

Can you advise if there is any way to use around £30000 of this equity somehow to harp clear my debt?
Bear in mind I’m recently self employed so adding to my mortgage doesn’t seem to be an option because I don’t have accounts and my income has came down.
FYI I pay around £700 to my credit card and loan debt and if I could reduce or clear this using the equity I would be just fine with what I’m doing in business just now.

Thanks
G

nellie36

Hi

I have been on a DMP for 10 years and still owe around £26000. I am thinking of selling my house but will only have about £10000 of equity available. In your experience, How likely would my creditors be to accept a partial settlement. None of my debts are with the original creditors now they have all been passed on.

Thanks

BumpingBuzzards

I had a Wonga loan which was one of the unsold ones and am waiting for compensation which I know won’t be much.

However I didn’t manage to pay that debt to Wonga so it was passed to a debt collector and they are still taking payments off me. As the loan was originally missold would I have a case to get the debt collector to wipe it?

StepChange_Rachael

Hi

Thanks for posting.

Ten years seems a long time to be on a DMP. I’d definitely consider looking into your options to see if there are other debt solutions that would be more suitable. Especially if you’re with a fee payer as the DMP will last longer due to the fee’s they are taking. There maybe unexplored solutions that are suitable that mean you can get debt free sooner but also won’t risk your property. However, I can’t say for certain without knowing your full financial situation.

Selling assets including homes and offering a partial settlement can be a really good option for some people and this is something that can be done yourself or through a free support service. I wouldn’t recommend paying someone to help you to do this. However, selling your property and using the equity may be extreme if there are other options available that would protect your asset. You can find more information about settlements here.

If you’ve not already I’d recommend speaking with us at StepChange or using another free debt advice service. You can find our contact details here.

Thanks
Rachael

nellie36 wrote: »

Hi

I have been on a DMP for 10 years and still owe around £26000. I am thinking of selling my house but will only have about £10000 of equity available. In your experience, How likely would my creditors be to accept a partial settlement. None of my debts are with the original creditors now they have all been passed on.

Thanks