Struggling with debt? Ask a debt adviser a question

StepChange_Rachael

Hi

Thanks for getting in contact.

An individual voluntary arrangement (IVA) is a legally binding arrangement with creditors to pay back some of the debt usually through monthly instalments although it’s possible to arrange a lump sum IVA.

There are always fee’s involved with IVAs as they have to be arranged through an Insolvency Practitioner. These fees will normally come out of the monthly payments at no added cost to the client. However, some IVA companies do charge up front or excessive fees so it’s important to double check the paperwork and proposal before agreeing to sign and go ahead with an IVA.

As an IVA is legally binding with the creditors, to make changes to the regular payments the agreement would have to go back to the creditors. For an IVA to go ahead 75% of the creditors have to agree to the terms. However, overtime etc. is taken into account and part of this extra income will be expected to go into the IVA as extra payments.

I can’t comment on your daughter’s individual advice and recommendations but a debt level under £7000 seems like a relatively low amount of debt to be advised of an IVA. Not to say that this isn’t the right solution but if your daughter has any doubts I’d recommend a second opinion before going ahead.

StepChange debt charity offer free and impartial debt advice you can find the website and contact details here.

Hope this helps.
Rachael

Foxymum1977 wrote: »

Hi I'm looking for help for my daughter from a debt advisor she is in roughly just under 7000 of debt from credit cards and a pay day loan and has been looking at an IVA I have no knowledge of these at all is it normal to have to pay fees for this?
Also they said she can over pay if she has extra money is this true? Thanks

steadytom

Hi, This is my first post.
I have had a list of credit card debt accrue due to a health issue that made it very hard for me to continue working.I have worked all my life in construction but now my spine is crumbling and i am in constant pain. I have kept all of my health reports from scans and surgeons etc and passed on my issues to the credit card companies along with a budget planner from Stepchange, which shows i have no income.
We struggle by on my wifes part time income. The defaults first happened some 6 years ago and i have been paying them £1 a month as advised by stepchange. Many debts had been sold on to other companies of which i did the same process.Over time due to my condition getting worse,many companies have written the debts off. I am very grateful for this, however i have one company that bought a debt from mbna called link financial that keep trying to enforce monthly payments upon me. My question is can this still be done after this time? All other companies have been sympathetic but this company even with all my medical background wont leave me alone. Im seriously stressed. i hope you can advise please?
Thankyou for your time.

StepChange_Allen

steadytom wrote: »

Hi, This is my first post.
I have had a list of credit card debt accrue due to a health issue that made it very hard for me to continue working.I have worked all my life in construction but now my spine is crumbling and i am in constant pain. I have kept all of my health reports from scans and surgeons etc and passed on my issues to the credit card companies along with a budget planner from Stepchange, which shows i have no income.
We struggle by on my wifes part time income. The defaults first happened some 6 years ago and i have been paying them £1 a month as advised by stepchange. Many debts had been sold on to other companies of which i did the same process.Over time due to my condition getting worse,many companies have written the debts off. I am very grateful for this, however i have one company that bought a debt from mbna called link financial that keep trying to enforce monthly payments upon me. My question is can this still be done after this time? All other companies have been sympathetic but this company even with all my medical background wont leave me alone. Im seriously stressed. i hope you can advise please?
Thankyou for your time.

Hi there

Welcome to the forum and thanks for posting.

I'm sorry to hear of your health difficulties and also the fact that this creditor is causing distress. If you have paid or acknowledged the debt in writing within the last 6 years then they are within their rights to ask you to pay something. If they're not happy with what you're offering because they feel you can afford more, they can consider taking court action to recover the debt. There are more details of what creditors can do on our website: www.stepchange.org/debt-info/debt-collection/what-creditors-can-do

They can't get more money from you than what you can afford though, whatever they try and do, so please try not to worry too much.

It could be worth writing to Link Financial again about your health situation, perhaps enclosing a copy of your most recent health report from your doctor and copies of any letters from your other creditors that confirmed those debts have been written off. It's possible that if they see proof that others have written the debt off, they might re-consider it.

I hope this is helpful.

Allen

Loui123

Hi
I have recently received a letter from a Dept company called Robinson way, that states on this HPH Lts Ex Black horse for £1312. Im really confused as I though black horse was a car loan company. I do not drive. and have never had any money from them. I have checked my Experiam account and it is not on there. Please can some one advise me


Thanks Lou

Sterling_Archer

Hi

Wondering my best options as I am a bit clueless on what to do:

I have about 8-9 separate debts (ccs, payday loans) which I have neglected for a couple of years and are now with various debt collection agencies.

I have noticed they offer discounts on settlements but this would mean partially settled, or pay by direct debit a small amount each month etc.

I can't afford to pay all the debts outright, but I could probably afford to pay like 50% or I can afford to pay small amounts like £5 every month for each of them.

My end goal would be to fix my credit file and raise my rating so that I would be able to borrow for e.g. a mortgage 10 years down the line.

What is the best thing to do?

Thanks

StepChange_Rachael

Hi Lou

Thanks for posting.

I’d definitely advise asking more about this debt from Robinson way. A collections company should be able to supply you with the original agreement otherwise they wouldn’t be able to chase for the debt further. The agreement should confirm where the debt has originally come from.

Blackhorse debts are finance loans for moto vehicles; this can include cars, moto homes, bikes etc.

If this isn’t your debt then I’d raise this with Robinson way and Blackhorse as soon as possible. If it’s not yours it’s important finding out where the debt came from and how they came about having your contact details. This could be a simple address mistake from the collections agency.

Hope this helps.
Rachael

Loui123 wrote: »

Hi
I have recently received a letter from a Dept company called Robinson way, that states on this HPH Lts Ex Black horse for £1312. Im really confused as I though black horse was a car loan company. I do not drive. and have never had any money from them. I have checked my Experiam account and it is not on there. Please can some one advise me


Thanks Lou

StepChange_Rachael

Hi

Welcome to the forum and thanks for your post.

Once you start to deal with your debts most people find their credit file starts to improve. The main thing that impacts your credit file negatively when you've missed payments are defaults. As you’ve mentioned you’ve not been paying these they’d probably already defaulted a while ago. Defaults drop off your credit file after the 6 years from when they added.

As you start paying back the debt and once the debts have been repaid your credit file is likely to improve further.

It’s a difficult question to answer because so many different things impact a credit file positively and negatively.

By paying the debts back as a settlement this will show on your credit file as partially settled. This is likely to be less positive than the debts being fully repaid however, as the creditors will stop updating your credit file the debts that have been settled will drop off your credit file sooner.

If you make smaller repayments the debts eventually will show as full and finally paid but depending on the debt total and what you can afford this could take a very long time, meaning the debts will be showing on your credit file for longer.

Ultimately it’ll come down to what you can afford to do. Without knowing your full financial breakdown it’d be impossible to say what the best option is. There might also be other options suitable for you to deal with these debts.

I’d suggest speaking with a debt advisor who can discuss these options with you in more detail. If you’d like to look into your options you can find StepChange’s contact details here.

You can also find a link to the MSE forum here on how you can look to improve your credit file.

Thanks
Rachael

Sterling_Archer wrote: »

Hi

Wondering my best options as I am a bit clueless on what to do:

I have about 8-9 separate debts (ccs, payday loans) which I have neglected for a couple of years and are now with various debt collection agencies.

I have noticed they offer discounts on settlements but this would mean partially settled, or pay by direct debit a small amount each month etc.

I can't afford to pay all the debts outright, but I could probably afford to pay like 50% or I can afford to pay small amounts like £5 every month for each of them.

My end goal would be to fix my credit file and raise my rating so that I would be able to borrow for e.g. a mortgage 10 years down the line.

What is the best thing to do?

Thanks

Head_In_The_Sand

Hi,

We are in need of advice please.

We have a household income of 80k and my spouse has a credit default for an unpaid credit card of 6k.

Aside from this we have almost 30kbof additional credit card debt between us.

We need to find a way at to consolidate or somehow bring our finances under control as we only get part way through a month before we run out of money.

Who can we go to for advice?

StepChange_Rachael

Hi

Thanks for your post.

Firstly there’s certainly help and advice available for you to access. It’s best to get tailored advice based on your full financial situation as there are many different options available for people struggling with debt.

As a debt advice charity StepChange can offer debt advice which is free and impartial.

You can find StepChange’s contact details here.

Take Care,
Rachael

Head_In_The_Sand wrote: »

Hi,

We are in need of advice please.

We have a household income of 80k and my spouse has a credit default for an unpaid credit card of 6k.

Aside from this we have almost 30kbof additional credit card debt between us.

We need to find a way at to consolidate or somehow bring our finances under control as we only get part way through a month before we run out of money.

Who can we go to for advice?

Kieleyw

I am looking for some advised as I feel like I'm banging my head against a wall !!!128546; and going round in circles.
My Partner has a default notice on his record from 2015 – it was paid in full in 2016 however does not show as paid, it is a zero balance on his credit report but still says 'defaulted' in the status. My Partner has contacted virgin media to ask them to remove it and to mark it as 'satisfied' but haven’t heard anything back from them. Is there anything I can do?
We are currently trying to get a mortgage ( which has been declined twice now due to this default notice) for our first family home and are worried that we will loose the house of our dreams if this can't be sorted.

Any help would be much appreciated