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Struggling with debt? Ask a debt adviser a question

edited 24 July 2018 at 2:41PM in Debt-Free Wannabe
1.3K replies 268.7K views
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  • DobbibillDobbibill Forumite, Board Guide
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    Sixth Anniversary 1,000 Posts Mortgage-free Glee! Name Dropper
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    ITG wrote: »
    Hi new to the forum
    Is it better to pay off my credit card with a loan as I'm paying more in interest


    Consolidating a credit card is rarely a good idea as you may build up debt on the credit card again before the loan is finished.

    Have you looked at getting a balance transfer card with 0% for x amount of time. This would be a better option but make sure you make a plan to clear the balance before the 0% period ends.
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  • Sheila_HaleSheila_Hale Forumite
    1 posts
    MoneySaving Newbie
    Hello I am already on a DMP with yourselves (thanks it’s been a lifesaver )I have been asked to become a trustee for a local charity I support. I know you cannot do this if you have an IVA but what about a DMP? Would that prevent me being a trustee?
    Thanks
  • edited 16 July 2019 at 10:59PM
    dave_75dave_75 Forumite
    1 posts
    edited 16 July 2019 at 10:59PM
    Hello, I'm looking for some help and advice regarding a debt problem I desperately need to get out of.

    This concerns both myself and my wife. I'm looking at options but want to exclude an IVA. Due to working in the financial services may cause a problem.

    All my essential payments are up to date. The issue relates to credit card debt which we’ve accumulated over years. Amount of credit card debt is £51k. The minimum total monthly payments are £1227.

    Also, we have two overdrafts with the Halifax. The daily charge for both myself and my wife's account is in itself over £200.00. The daily charges are a killer and I can’t see a way to pay it off.

    This has all come to a head when overtime payments stopped at work. Having worked overtime for over nine years, earning an extra £700.00 a month has meant a massive drop in income.

    I had originally hoped to resolve this with a loan. However my bank declined this.

    I've reached out to barclaycard so far. I had sent off income and expenditure form. As of now, I'm trying to negotiate with them. It feels like I’m not making any progress.

    I'm at my wit's end and struggling to see a way forwards.

    I’m not so sure a DMP is the best option and I’m now considering a secured loan for around 35k to pay the major debts and then pay the others off with any remaining. I realise taking out a secured loan is potentially a bad idea but at this moment in time seems potentially easier than DMP.

    Overtime has started back up at work - it could last years or it could be a matter of months and so I want to make the most of that to pay down debt where I can.

    I really need some guidance on this. I can't seem to attach a link to my income and expenditure. In Summary:

    Enter the total amount you pay including towards arrears you may have Payment amount £ How often? e.g. weekly, monthly Average per calendar month
    HOUSING & UTILITY BILLS
    Rent
    Mortgage £880.00 Monthly £880

    Water £78.00 Monthly £78
    Council tax £106.00 Monthly £106
    Gas £70.00 Monthly £70
    Electricity £78.00 Monthly £78


    HOUSEHOLD SERVICES
    Buildings & contents insurance £35.40 Monthly £35
    Telephone and internet £67.00 Monthly £67
    TV licence £12.83 Monthly £13
    Satellite or cable TV
    Repairs, service contracts £84.16 Monthly £84
    Life insurance & private pension £31.01 Monthly £31

    TRAVEL
    Spares & servicing £400.00 monthlyy £33
    Road tax £17.06 Monthly £17
    Car insurance £50.00 Monthly £50
    Fuel & parking £100.00 Monthly £100

    FOOD & HOUSEKEEPING
    Food, toiletries & cleaning products £600.00 Monthly £600
    School meals £160.00 Monthly £160
    Meals at work £40.00 Monthly £40
    Pets (food & insurance) £75.00 Monthly £75

    Clothing & footwear £400.00 monthly £33
    OTHER SERVICES
    School trips & activities £100.00 monthly £8
    Medicines & prescriptions £9.00 Monthly £9
    Dentist & opticians £150.00 monthly £13
    Hairdressing £100.00 monthly £2
    Professional or union fees £45.00 Monthly £45
    PERSONAL & LEISURE
    Newspapers & magazines £5.00 Monthly £5
    Sports, hobbies & entertainment £40.00 Monthly £40
    Children's pocket money £100.00 Monthly £100
    Church or charity donations
    Sundries & emergencies £100.00 Monthly £100
    OTHER COSTS
    Mobile Phones (family of 4) £117.00 Monthly £117

    total 2990 per month


    If income is variable enter an average Amount How often? Per calendar month
    Your wage £28,400.00 Monthly £1,800
    You partner's wage below as part time
    Part-time wages £13,500.00 Monthly £985
    Child benefit £136.00 Monthly £136
    Rent or board received £4,860.00 Monthly £405

    Total Incoming £3326

    Debts
    Name of organisation or lender Type of debt Amount owed Usual payment
    Example: ABC Bank Overdraft £1,000.00 £100.00
    David Halifax Overdraft Overdraft £3,300.00 £180.00
    wife Halifax Overdraft Overdraft £1,700.00 £81.00
    David Barclaycard Credit card £12,949.00 £170.00
    David Barclaycard Credit card £12,747.00 £365.00
    wife Barclaycard Credit card £9,993.00 £224.00
    David Amazon Card Credit card £2,750.00 £78.00
    wife Amazon Card Credit card £1,500.00 £57.00
    wife Vanquis Credit card £2,499.00 £120.00
    David Aqua Credit card £899.00 £20.00
    Sofa Finance Store card £400.00 £35.00
    Asda Credit Card Credit card £2,904.00 £97.00

    Total 51,641


    Many Thanks,

    Dave
  • edited 17 July 2019 at 1:43PM
    fatbellyfatbelly Forumite
    15.5K posts
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
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    edited 17 July 2019 at 1:43PM
    I'm 55, work full-time and can see no way out of my debts.
    I have 3 credit cards which I have used over the years to, mainly help out my daughter and husband financially and to pay household bills - the debt is around £13,000. I have a £1000 overdraft and a £400 loan from work.
    My husband is a musician and 'man with a van' but has no accounts and doesn't earn enough to pay tax so doesn't do tax returns.
    I got paid at the end of last month and have -33p in my account now until 31st July and will get charged interest on that.
    I have spent £8 on personal essentials since I got paid, the rest going on rent, council tax, tv license, water charges, loan repayment and credit card interest payments. I can't afford to pay my £260 utilities bill or make my catalogue payment so both companies are ringing me all the time.
    I work too hard to be in this much of a financial mess. I work too hard to have a 'wish list' with Prescription and Bra on it. They're not expensive items but essential and I can't even afford them.
    I'm sitting in work typing this, trying not to fall apart. I feel so lost.

    Hi Lyn,

    Bankruptcy, debt management, debt relief order, there are plenty of options, all you need is the right advice for your situation, Stepchange advisors will be along shortly.

    Why not in the meantime google your options.
    lyn_d_j wrote: »
    I'm 55, work full-time and can see no way out of my debts.
    I have 3 credit cards which I have used over the years to, mainly help out my daughter and husband financially and to pay household bills - the debt is around £13,000. I have a £1000 overdraft and a £400 loan from work.
    My husband is a musician and 'man with a van' but has no accounts and doesn't earn enough to pay tax so doesn't do tax returns.
    I got paid at the end of last month and have -33p in my account now until 31st July and will get charged interest on that.
    I have spent £8 on personal essentials since I got paid, the rest going on rent, council tax, tv license, water charges, loan repayment and credit card interest payments. I can't afford to pay my £260 utilities bill or make my catalogue payment so both companies are ringing me all the time.
    I work too hard to be in this much of a financial mess. I work too hard to have a 'wish list' with Prescription and Bra on it. They're not expensive items but essential and I can't even afford them.
    I'm sitting in work typing this, trying not to fall apart. I feel so lost.

    Is the £1000 overdraft a different account from the one your wage goes into? You will need an account that is not connected to your debts.


    This sounds like a DRO situation to me - criteria are

    Basic Criteria for a debt relief order :

    •Must not be a homeowner,

    • Debts less than £20,000,

    • Can have a car worth up to £1000,

    • No other assets of more than £1000,

    • Must have £50 or less left at month end, after all essential payments have been made (not inc debt repayments),

    • Cannot have had a DRO in last 6 years.

    If you go for it I'd start saving for the £90 fee and buy those essential items. Water arrears can go in, along with all those other debts, and council tax too, provided you have lost the right to pay in instalments
  • StepChange_RachaelStepChange_Rachael Organisation Representatives - Private Messages may not be monitored
    375 posts
    Third Anniversary 100 Posts
    ✭✭
    Hi

    Welcome to the forum and thanks for posting.

    It depends on the situation, one type of debt isn’t better or worse than the other, however if the minimum payments are affordable and you’re reducing the debt then one that has a lower interest rate is going to get you debt free quicker, and you'll pay less in the end. However, if the payments aren’t affordable and you're struggling to reduce the overall debt, then neither type of debt is going to be beneficial. If this is the case, I’d recommend speaking with a free debt advisory service to look at your alternative options. If you do decide to go down this route, then you can find StepChange’s contact details here.

    Thanks
    Rachael







    ITG wrote: »
    Hi new to the forum
    Is it better to pay off my credit card with a loan as I'm paying more in interest
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • Important update! We have recently reviewed and updated our Forum Rules and FAQs. Please take the time to familiarise yourself with the latest version.
  • StepChange_RachaelStepChange_Rachael Organisation Representatives - Private Messages may not be monitored
    375 posts
    Third Anniversary 100 Posts
    ✭✭
    Hi

    Welcome to the forum.

    It’s important to complete the form as accurately as possible, but I know this is sometimes easier said than done. Looking at the form it’s my understanding that there are two ways that it could be completed. Either by showing only your income, ie: the tax credits and LHA and only include your expenditure, ie: the rent going out and the expenditure the tax credit income goes towards. You can add any other information with the form to help explain your situation, so you could add a note to explain why the budget information is limited.

    The alternative way and probably the better way, would be to include your partners income contributions to the household. On the form under income section 6, you’ll see it says, ‘Others living in my home give me…’. You could add your partners contributions here and include all the household bills and general living costs. As you’ll indicate you have children on the form, under the dependents section, I’d include child benefit in that section as technically it does come to your household for your children.

    Under the section, ‘How to fill out this form’ it also states that you can contact your local County Court for help filling out the form. If you’ve any reservations, then they would be best placed to advise.

    Hope this helps,
    Rachael







    SloughDA wrote: »
    Hi there,
    I have been issued the first set of papers in the CCJ process but am very confused about how to fill out the income and expenses sections of the N9A form.
    I am unemployed and not eligible for any benefits such as JSA. My wife is working and we have 3 children.
    We receive child benefit, in my wife's name.
    We receive her wage, obviously in her name.
    We receive tax credits in both our names.
    We receive LHA in both our names.
    Which of these do i put down? Does my wife's income count as mine? Do i include the full amount of tax credits and LHA?

    Now, the expenses. We have no money left at the end of the month right now. My wife is on a low wage, rent is high, three kids to provide for, etc.
    The expenses section says not to include any payments made by other members of the household out of their income.
    About 65% of the money coming in is in my wife's name (wages and CB).
    Our household bills are some jointly named, some mine, some hers.

    How do i fill in this form without deliberately misleading anyone but still reflect the fact that we have no money to spare?

    Thanks in advance.
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • StepChange_RachaelStepChange_Rachael Organisation Representatives - Private Messages may not be monitored
    375 posts
    Third Anniversary 100 Posts
    ✭✭
    Hi Sheila

    Welcome to the forum.

    I’m glad to hear StepChange has been able to help you find a way forward for you to help manage your debts. In bankruptcy there are restrictions in place for being a trustee, however a DMP (debt management plan) isn’t a type of insolvency and restrictions that are in place for undischarged bankrupts aren’t the same as someone in a DMP. I don’t know of any implications you’d have for being a trustee whilst in a DMP, unless the charity themselves have stipulations in place, otherwise you wouldn’t have anything to worry about.

    Thanks
    Rachael







    Hello I am already on a DMP with yourselves (thanks it’s been a lifesaver )I have been asked to become a trustee for a local charity I support. I know you cannot do this if you have an IVA but what about a DMP? Would that prevent me being a trustee?
    Thanks
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • StepChange_RachaelStepChange_Rachael Organisation Representatives - Private Messages may not be monitored
    375 posts
    Third Anniversary 100 Posts
    ✭✭
    Hi Dave

    Thanks for your post and the detailed statement of your finances.

    I can see from the information you’ve provided that the creditors contractual payments are much more than is available after you’ve paid your household bills and general living costs. Under the circumstances I’d defiantly recommend looking into your alternative options. However, this would be best done directly with a debt advisor so they can review the budget with you and discuss the potential options further and in detail.

    I couldn’t recommend secured lending, as this is taking a debt and securing it to your property which holds greater risk if you still struggle to meet payments further down the line. However, for some people this is a good option and i'd recommend speaking with a financial advisor if you want to consider this option further. It would also come down to whether you’d be able to take out a secured loan.

    I’m not sure why you’re having second thoughts about a DMP but there are many different types of debt solution and by exploring the options in depth, I think it will give you a clearer picture of the best route forward for you. An advisor would also be able to discuss any concerns with you. If you’d like to speak with an advisor for free debt advice you can find our contact details here. We’d be happy to help you and the financial statement you’ve created will come in handy.

    Thanks
    Rachael









    dave_75 wrote: »
    Hello, I'm looking for some help and advice regarding a debt problem I desperately need to get out of.

    This concerns both myself and my wife. I'm looking at options but want to exclude an IVA. Due to working in the financial services may cause a problem.

    All my essential payments are up to date. The issue relates to credit card debt which we’ve accumulated over years. Amount of credit card debt is £51k. The minimum total monthly payments are £1227.

    Also, we have two overdrafts with the Halifax. The daily charge for both myself and my wife's account is in itself over £200.00. The daily charges are a killer and I can’t see a way to pay it off.

    This has all come to a head when overtime payments stopped at work. Having worked overtime for over nine years, earning an extra £700.00 a month has meant a massive drop in income.

    I had originally hoped to resolve this with a loan. However my bank declined this.

    I've reached out to barclaycard so far. I had sent off income and expenditure form. As of now, I'm trying to negotiate with them. It feels like I’m not making any progress.

    I'm at my wit's end and struggling to see a way forwards.

    I’m not so sure a DMP is the best option and I’m now considering a secured loan for around 35k to pay the major debts and then pay the others off with any remaining. I realise taking out a secured loan is potentially a bad idea but at this moment in time seems potentially easier than DMP.

    Overtime has started back up at work - it could last years or it could be a matter of months and so I want to make the most of that to pay down debt where I can.

    I really need some guidance on this. I can't seem to attach a link to my income and expenditure. In Summary:

    Enter the total amount you pay including towards arrears you may have Payment amount £ How often? e.g. weekly, monthly Average per calendar month
    HOUSING & UTILITY BILLS
    Rent
    Mortgage £880.00 Monthly £880

    Water £78.00 Monthly £78
    Council tax £106.00 Monthly £106
    Gas £70.00 Monthly £70
    Electricity £78.00 Monthly £78


    HOUSEHOLD SERVICES
    Buildings & contents insurance £35.40 Monthly £35
    Telephone and internet £67.00 Monthly £67
    TV licence £12.83 Monthly £13
    Satellite or cable TV
    Repairs, service contracts £84.16 Monthly £84
    Life insurance & private pension £31.01 Monthly £31

    TRAVEL
    Spares & servicing £400.00 monthlyy £33
    Road tax £17.06 Monthly £17
    Car insurance £50.00 Monthly £50
    Fuel & parking £100.00 Monthly £100

    FOOD & HOUSEKEEPING
    Food, toiletries & cleaning products £600.00 Monthly £600
    School meals £160.00 Monthly £160
    Meals at work £40.00 Monthly £40
    Pets (food & insurance) £75.00 Monthly £75

    Clothing & footwear £400.00 monthly £33
    OTHER SERVICES
    School trips & activities £100.00 monthly £8
    Medicines & prescriptions £9.00 Monthly £9
    Dentist & opticians £150.00 monthly £13
    Hairdressing £100.00 monthly £2
    Professional or union fees £45.00 Monthly £45
    PERSONAL & LEISURE
    Newspapers & magazines £5.00 Monthly £5
    Sports, hobbies & entertainment £40.00 Monthly £40
    Children's pocket money £100.00 Monthly £100
    Church or charity donations
    Sundries & emergencies £100.00 Monthly £100
    OTHER COSTS
    Mobile Phones (family of 4) £117.00 Monthly £117

    total 2990 per month


    If income is variable enter an average Amount How often? Per calendar month
    Your wage £28,400.00 Monthly £1,800
    You partner's wage below as part time
    Part-time wages £13,500.00 Monthly £985
    Child benefit £136.00 Monthly £136
    Rent or board received £4,860.00 Monthly £405

    Total Incoming £3326

    Debts
    Name of organisation or lender Type of debt Amount owed Usual payment
    Example: ABC Bank Overdraft £1,000.00 £100.00
    David Halifax Overdraft Overdraft £3,300.00 £180.00
    wife Halifax Overdraft Overdraft £1,700.00 £81.00
    David Barclaycard Credit card £12,949.00 £170.00
    David Barclaycard Credit card £12,747.00 £365.00
    wife Barclaycard Credit card £9,993.00 £224.00
    David Amazon Card Credit card £2,750.00 £78.00
    wife Amazon Card Credit card £1,500.00 £57.00
    wife Vanquis Credit card £2,499.00 £120.00
    David Aqua Credit card £899.00 £20.00
    Sofa Finance Store card £400.00 £35.00
    Asda Credit Card Credit card £2,904.00 £97.00

    Total 51,641


    Many Thanks,

    Dave
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • edited 17 July 2019 at 7:12PM
    Samoens12Samoens12 Forumite
    50 posts
    Debt-free and Proud!
    edited 17 July 2019 at 7:12PM
    I am struggling with how to help my 27 yo daughter. I was in debt following a business collapse and I managed to get myself debt free however I seem unable to get my daughter on the straight and narrow. She is a single parent and has already been bailed out by my mum to the tune of £9k, Today whilst my Mum was babysitting a bailiff turned up for £900. She has paid this but said that she can no longer deal with this which I can completely understand. I intend to try to address this all again with my daughter tomorrow night but I really don't know what to do to make her take action. Any advice please
    Business : Landlord[STRIKE] £26k[/STRIKE] HSBC OD [STRIKE]£1225[/STRIKE]0 CC [STRIKE]£3720[/STRIKE] Suppliers [STRIKE]£1326[/STRIKE]

    Personal: CC1 [STRIKE]2923.20[/STRIKE] CC2 9638.29 now £2324 OD[STRIKE]4927.23[/STRIKE]
  • Hello

    Thanks for posting and welcome to the forum.

    I’m sorry to hear about your daughter’s situation, I appreciate that things have been difficult for her and in turn this is making things difficult for the people closest to her. It can be hard to know what do in this scenario: but please be assured, StepChange Debt Charity can help.

    We can provide your daughter with free, impartial and confidential debt advice. There are two ways she can get started: seh can use our online Debt Remedy self-help tool or she can call us on 0800 138 1111, Monday to Friday 8am to 8pm and Saturdays 9am to 2pm.

    Whichever way she chooses, we'll follow a simple, three-step process to help her deal with her debts:

    1. We’ll help her work out her budget, income and debts
    2. We’ll use this information to find a solution to her debt that suits her situation
    3. We’ll set up her debt solution, and offer support however long it's needed

    I hope you’ve found this helpful and we look forward to advising her when she’s ready to get in touch. For now, here’s an overview of the ways in which we may be able to help her on our website

    Thanks

    Joe

    Samoens12 wrote: »
    I am struggling with how to help my 27 yo daughter. I was in debt following a business collapse and I managed to get myself debt free however I seem unable to get my daughter on the straight and narrow. She is a single parent and has already been bailed out by my mum to the tune of £9k, Today whilst my Mum was babysitting a bailiff turned up for £900. She has paid this but said that she can no longer deal with this which I can completely understand. I intend to try to address this all again with my daughter tomorrow night but I really don't know what to do to make her take action. Any advice please
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