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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 268.1K views
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  • StepChange_KirstyStepChange_Kirsty Organisation Representatives - Private Messages may not be monitored
    180 posts
    Hi there,

    Thank you for your posts.

    I noticed you sent two separate queries but I will answer them both in the same post, I hope that’s ok.

    Starting with the Cabot debt; The Limitations Act 1980 sets a time limit for which the creditor has to begin court action in England and Wales for an unpaid debt. For an unsecured debt like a Tesco credit card this time limit is six years.

    The six years start from either the last date you made a payment to the debt, or the last date you acknowledged the debt in writing, whichever is the most recent.

    If it has been longer than 6 years since you did either of the above then the debt will be “statute barred” which means that the creditor can no longer take legal action to recover the debt. It does not mean the debt is written off.

    Just to let you know, if the creditor took legal action within the six year time frame, then the Limitations Act no longer applies.

    Our website has more information about statute barred debts which you may find useful.

    In terms of the Lowell debt, you would need to contact Lowell directly to make an offer of full and final settlement. Full and final settlement of a debt is discretionary so the court has no power to make the creditor accept a lower sum to settle the debt in full.

    If you’re planning to make an offer I would always recommend you do this in writing. If Lowell accept the offer, always ask that this is confirmed in writing and that they state no further action will be taken before you make the payment.

    I hope this is helpful, please do not hesitate to contact us if you have any further questions.

    All the best,

    Kirsty
    emeyetee11 wrote: »
    Hello,
    I have recently been receiving letters, emails and texts from a company called Cabot who recently brought an old credit card debt i had with Tesco Finance.
    However, the old debt no longer shows on my credit file having checked my Equifax report and having recently re-mortgage, it never came up on any checks either.
    As i understand it, there is something called statute barred which means after so long the original debtor can no longer chase the debt, although it is still unpaid.
    So, where do i stand with this Cabot lot who are chasing me for the full debt, even though they clearly brought it for very little?!!!!
    emeyetee11 wrote: »
    My wife has a CCJ set against her by Lowell, nice bunch!!!

    It is for £3,500, she tried to mediate a settlement figure but they were no interested and were happy for her to set up a £5/month direct debit!

    I may be in a position to obtain some funds and would look to try and arrange a settlement against this CCJ, is this possible and if so, who do i contact, Lowell or the Courts?

    I look forward to hearing from you soon!
    :beer:
    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_KirstyStepChange_Kirsty Organisation Representatives - Private Messages may not be monitored
    180 posts
    Hi,

    Thank you for your post and welcome to the forum.

    In either situation, whether the debt is marked as “satisfied” or “partially satisfied”, the debt will come off your credit file six years after the date it was defaulted. This means in terms of timescale, it would really make no difference.

    The main difference is that when a debt is “partially satisfied”, until it drops off your credit file other creditors will be able to see that you have paid less than the full amount to settle the debt. Each creditor will have individual lending criteria so it is difficult to say how much impact that would have on your ability to get credit.

    I would recommend contacting the main reference agencies, Experian, Equifax and Call Credit as they will be able to give you more information about how this may impact your credit score.

    I hope this is useful. If you have any further questions please do not hesitate to get back in touch.

    Kind regards,

    Kirsty
    Hi, I have a bank account that was closed and in collections. It defaulted as I moved address. I owe £1900 but they have offered £1300 settlement. If I settle, then it will be marked on my credit file as partially satisfied rather than fully. As the account has already defaulted it will be on there for 6 years. How much difference will the account being partially rather than fully satisfied have on my credit file? They have agreed it would be final, so I wouldnt be chased for the outstanding £600 if I settled.
    Please advise...
    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.
  • Good afternoon!

    I come to the forums today with a troubled mind so I'm in search of advice and guidance..

    I am 28 years old and got engaged this year. As We're planning to get married in late summer 2018 i want to be in control of my finances and not plague myself with worry - theres more tk life than this, right? - From there I would love to be able to be in a position to start saving for a deposit on a house and eventually get a mortgage. However, after all of my mothly outgoings dissapear (I think everyone relates) I am not left with enough money to live on, let alone start saving for a wedding/mortgage.

    The last few months I have had major difficulties buying food without asking my dad for assistance as I have moved from a weekly paying job to a more secure permenant monthly paid job.

    Income: 1500 (after tax)

    Household bills (Fiance pays the other half of these)
    Rent: 350
    Council tax: 65
    Water: 25
    Eon (gas and elec) 33
    Sky package: 32 ( I pay all of this as Fiance pays tv licence)
    Pet insurance 15
    Phone 45
    Car tax 12
    Petrol + Parking 200

    Personal Debt
    Halifax credit card: 60 minmum - 2000 outstanding.
    Barclaycard: 30 minimum - 800 outstanding.
    Zopa loan: 110 a month - 5100 outstanding
    Car (Hire Purchase): 123 a month - I can't afford the insurance payment so fiance pays this - 5000 outstanding
    Very: 30 a month - 750
    Overpayment of housing benifits(from 2012): 1100
    Overpayment of wages from previous employer: 500

    This month I also have a parking ticket to pay, payments to my family and a lower than normal pay pack as I haven't quite worked a full month.

    I haven't offered the housing department a payment plan at the moment nor have I set anything up with previous employer however that will of course push my outgoings further.

    So with this in mind I am left with around 250/300 a month for food and living expenses.

    Instead of being full of excitement to plan my wedding im full of guilt and worry. Instead of enjoying my Christmas holiday I am on the MSE Forum talking about my debts. It's depressing and I can't wait to find some Kind of way out.

    Is a DMP my only way forward? Would an IVA help my situation?

    I'm not really aware of the long term effects of these soloutions so would really appreciate someone being honest and very frank.

    Tell me to stop being dramatic too...
  • sourcratessourcrates Forumite, Board Guide
    20.7K posts
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭
    Hi dashdotcom,

    You might want to post this in the general forum as the guys an gals at stepchange won't be back till after the Christmas holidays I suspect.

    Click the big blue "NEW THREAD" button on the top left hand side, then copy and paste your post.

    Cheers
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    [email protected].
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
  • StepChange_Private_MessagesStepChange_Private_Messages Organisation Representatives - Private Messages may not be monitored
    120 posts
    Part of the Furniture Combo Breaker
    DashDotCom wrote: »
    Good afternoon!

    I come to the forums today with a troubled mind so I'm in search of advice and guidance..

    I am 28 years old and got engaged this year. As We're planning to get married in late summer 2018 i want to be in control of my finances and not plague myself with worry - theres more tk life than this, right? - From there I would love to be able to be in a position to start saving for a deposit on a house and eventually get a mortgage. However, after all of my mothly outgoings dissapear (I think everyone relates) I am not left with enough money to live on, let alone start saving for a wedding/mortgage.

    The last few months I have had major difficulties buying food without asking my dad for assistance as I have moved from a weekly paying job to a more secure permenant monthly paid job.

    Income: 1500 (after tax)

    Household bills (Fiance pays the other half of these)
    Rent: 350
    Council tax: 65
    Water: 25
    Eon (gas and elec) 33
    Sky package: 32 ( I pay all of this as Fiance pays tv licence)
    Pet insurance 15
    Phone 45
    Car tax 12
    Petrol + Parking 200

    Personal Debt
    Halifax credit card: 60 minmum - 2000 outstanding.
    Barclaycard: 30 minimum - 800 outstanding.
    Zopa loan: 110 a month - 5100 outstanding
    Car (Hire Purchase): 123 a month - I can't afford the insurance payment so fiance pays this - 5000 outstanding
    Very: 30 a month - 750
    Overpayment of housing benifits(from 2012): 1100
    Overpayment of wages from previous employer: 500

    This month I also have a parking ticket to pay, payments to my family and a lower than normal pay pack as I haven't quite worked a full month.

    I haven't offered the housing department a payment plan at the moment nor have I set anything up with previous employer however that will of course push my outgoings further.

    So with this in mind I am left with around 250/300 a month for food and living expenses.

    Instead of being full of excitement to plan my wedding im full of guilt and worry. Instead of enjoying my Christmas holiday I am on the MSE Forum talking about my debts. It's depressing and I can't wait to find some Kind of way out.

    Is a DMP my only way forward? Would an IVA help my situation?

    I'm not really aware of the long term effects of these soloutions so would really appreciate someone being honest and very frank.

    Tell me to stop being dramatic too...

    Hi DashDotCom

    Welcome to the forum. Thanks for your post. You're certainly not alone in wanting to get your finances sorted, but that doesn't make your situation any less unique or daunting for you and I can completely understand how worrying this situation must be. We can definitely help with this though and we'll work out the best soltuion for you and your future.

    To be able to tell you what is the right way forward (DMP, IVA, other) we need to build a budget with you that will cover all aspects of your finances. You've made a great start by putting your details up on here and I appreciate your honesty in doing so.

    Try using our Debt Remedy tool on our website. This takes you step by step through a complete budget and at the end it will tell you what is best suited for your situation (DMP, IVA, other). It's then up to you to decide if you want to go ahead with our advice, speak to an advisor about it or walk away from the advice.

    If you'd prefer you can call us direct and speak with an advisor here at StepChange. We can build the budget for you and then discuss the options you have available. All our contact details are here. For the rest of this week we're open until 18:00pm by the way.

    I hope you've been able to enjoy your Christmas a little. Let us know if you need anything else.



    Take care
    Richard
    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.
  • Hi
    I was a client of DCM Apex when they went in to administration in 2011. After recovering from the shock of losing our money we contacted each creditor and set up payment arrangements with them and have been paying ever since.

    I recently received a County Court claim form from PRA group regarding an MBNA credit card. An arrangement had been made with experte credit and I have been paying for a number of years.

    They informed me that they took over the debt in July and I have defaulted so they are seeking a CCJ. They said that they had written to me since August informing me, I can't recall these letters, however I am on maternity leave and had assumed payments were ticking along so I can be sure that I hadn't received something and thought it was a mistake.

    The original default on the account was in 2009 and this debt no longer shows on my credit file. I am happy to set up a payment arrangement with them (I hadn't cancelled my previous arrangement) but am surprised that they can still seek a CCJ on this debt. When I called they said that as I had been paying that they can proceed with this at any time (rather than 6 years after the original default).

    They have said that we can't set an arrangement up now until I return the paperwork to the courts.

    Are they able to seek a CCJ on this debt and should I accept things as they are or contest any part of this?

    Thanks
  • Former_StepChange_RichardFormer_StepChange_Richard Organisation Representatives - Private Messages may not be monitored
    119 posts
    Derbs wrote: »
    Hi
    I was a client of DCM Apex when they went in to administration in 2011. After recovering from the shock of losing our money we contacted each creditor and set up payment arrangements with them and have been paying ever since.

    I recently received a County Court claim form from PRA group regarding an MBNA credit card. An arrangement had been made with experte credit and I have been paying for a number of years.

    They informed me that they took over the debt in July and I have defaulted so they are seeking a CCJ. They said that they had written to me since August informing me, I can't recall these letters, however I am on maternity leave and had assumed payments were ticking along so I can be sure that I hadn't received something and thought it was a mistake.

    The original default on the account was in 2009 and this debt no longer shows on my credit file. I am happy to set up a payment arrangement with them (I hadn't cancelled my previous arrangement) but am surprised that they can still seek a CCJ on this debt. When I called they said that as I had been paying that they can proceed with this at any time (rather than 6 years after the original default).

    They have said that we can't set an arrangement up now until I return the paperwork to the courts.

    Are they able to seek a CCJ on this debt and should I accept things as they are or contest any part of this?

    Thanks

    Hi there

    Thanks for your message.

    Establishing when a debt is no longer enforcable through the courts can be difficult and without knowing more it's hard to say for sure. However, for unsecured debts (which I assume we're talking about here) the Limitation period starts from whichever of the following is most recent:

    · Earliest date the creditor could take court action to recover the full amount
    · Date of last payment
    · Date of last written acknowledgement


    If a six year period has passed since any of these occured the Limitation Act provides an absolute defence against any court action.

    You mention that the debt defaulted in 2009. Provided you have made no payments to this debt or made any written acknowledgement of the debt for a period of six years, you have an absolute defense against the County Court claim.

    I suspect from what you have written though that you have made payments to this debt since 2009? Did six years pass from the default and before you made a payment?

    As you can see it can be difficult to determine these dates and you may find it easiest to call and speak with an advisor.

    I hope this gives you the information you need otherwise. Please let us know if you need anything else.

    Take care
    Richard
    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.
  • Thanks for getting back to me.

    It's been a lovely Christmas thank you.. even though Santa didn't leave us any presents this year I refused to let that put me in a bad mood.

    I have gone through the debt remedy tool and have been recommended an IVA...

    Must admit an IVA sounds alot scarier than a DMP. As mentioned in my previous post, I don't really know what they both entail but am I right in thinking they're both very similar arrangments in that I would give a monthly amount to SC. SC then distribute that money to my creditors. The only difference with a DMP/IVA is that the IVA will only be paying back a portion of the debt? Whereas the DMP pays it all back?

    There also seem to be alot more repercussions with an IVA in that some employers do not allow you to enter into one?

    Thanks for all the help everyone.
  • E.ON_Company_Representative:_MalcE.ON_Company_Representative:_Malc Organisation Representatives - Private Messages may not be monitored
    6.6K posts
    Part of the Furniture 1,000 Posts Name Dropper
    ✭✭✭✭
    DashDotCom wrote: »
    Good afternoon!

    I come to the forums today with a troubled mind so I'm in search of advice and guidance..

    I am 28 years old and got engaged this year. As We're planning to get married in late summer 2018 i want to be in control of my finances and not plague myself with worry - theres more tk life than this, right? - From there I would love to be able to be in a position to start saving for a deposit on a house and eventually get a mortgage. However, after all of my mothly outgoings dissapear (I think everyone relates) I am not left with enough money to live on, let alone start saving for a wedding/mortgage.

    The last few months I have had major difficulties buying food without asking my dad for assistance as I have moved from a weekly paying job to a more secure permenant monthly paid job.

    Income: 1500 (after tax)

    Household bills (Fiance pays the other half of these)
    Rent: 350
    Council tax: 65
    Water: 25
    Eon (gas and elec) 33
    Sky package: 32 ( I pay all of this as Fiance pays tv licence)
    Pet insurance 15
    Phone 45
    Car tax 12
    Petrol + Parking 200

    Personal Debt
    Halifax credit card: 60 minmum - 2000 outstanding.
    Barclaycard: 30 minimum - 800 outstanding.
    Zopa loan: 110 a month - 5100 outstanding
    Car (Hire Purchase): 123 a month - I can't afford the insurance payment so fiance pays this - 5000 outstanding
    Very: 30 a month - 750
    Overpayment of housing benifits(from 2012): 1100
    Overpayment of wages from previous employer: 500

    This month I also have a parking ticket to pay, payments to my family and a lower than normal pay pack as I haven't quite worked a full month.

    I haven't offered the housing department a payment plan at the moment nor have I set anything up with previous employer however that will of course push my outgoings further.

    So with this in mind I am left with around 250/300 a month for food and living expenses.

    Instead of being full of excitement to plan my wedding im full of guilt and worry. Instead of enjoying my Christmas holiday I am on the MSE Forum talking about my debts. It's depressing and I can't wait to find some Kind of way out.

    Is a DMP my only way forward? Would an IVA help my situation?

    I'm not really aware of the long term effects of these soloutions so would really appreciate someone being honest and very frank.

    Tell me to stop being dramatic too...

    Hello DashDotCom and welcome to the Forums. Sorry to intrude but thought I might be able to offer some suggestions to help with your energy bills.

    Do you pay with a Monthly Direct Debit? If you don't, you can save about £35 per fuel per year by paying this way. These can be set up through our website and there's also an online tool called the Direct Debit Manager that gives you more control over the arrangement. You can track what you're paying against the energy being used and make changes to the monthly amount to better suit different circumstances.

    Keep on top of bills by letting us have regular meter readings. Helps stop unexpected high bills once we receive an actual reading after a series of estimates. You can do this online through our website. If you wish, you can even create your own bill through our online Real Time Billing tool.

    Is there an outstanding balance on the account? If there is, talk to us about a payment arrangement to spread this over a longer, more manageable period. If there are arrears, we might be able to help with these through the E.ON Energy Fund. The fund can also help with replacement white goods like cookers, fridges, freezers as well as helping to repair or replace gas boilers. There's more information on our website including what's needed to qualify and an application form.

    Make sure you're on the best deal for you. Pop your annual usage in kWh into the Price Comparison sites. See what's best.

    A great way to save money is by saving energy and we can help with this too. There are lots of tips on the Saving Energy pages of our website. There's also the Energy Company Obligation (ECO). This is a Government led scheme that aims to cut usage by providing help with energy saving stuff like loft and cavity wall insulation. Again, more about this on our website.

    Sorry if you're already doing this stuff and I'm trying to teach you how to suck eggs. Hope it helps, though, and congratulations on your engagement.

    Best of luck DashDotCom.

    Malc
    Official Company Representative
    I am an official company representative of E.ON. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to [email protected] This does NOT imply any form of approval of my company or its products by MSE"
  • Hi!

    I have 2 credit cards and a PayPal Credit account. I owe £220 on 1 credit card (NatWest) and £2000 on the other (Capital One), and £1000 to the PayPal account.

    I'm able to keep up with minimum payments with all but the interest on the Capital One card is ridiculous. I was sent a lovely letter from Capital One telling me if I kept up with the minimum payment I'll have my card paid off in 24 years!

    I'm thinking of getting a consolidation loan, but due to being part time and having a low credit score I'm limited to where I can borrow, same goes for balance transfer cards.

    What would be the best course of action? Myself and my partner are looking to save for a house, and I really don't want to be paying off my credit card until I'm in my 50's!

    Many thanks!
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