Struggling with debt? Ask a debt adviser a question

purplepaws

Hello,
I am currently sorting out my OH's finances following a very long term illness - which is still on going. It will probably result in him having to take early retirement.
We have set up a DMP but, if he has to retire, we will be in a worse place than we are now.
I have trawled the internet, this site and the AAD website, to try to find a simple explanation of Unenforceable credit card debts. I accept that there is lots of legal jargon around this issue but I want to see if this is something worth pursuing but I can't find out a simple 'idiots guide' to begin with. If anyone could point me in the right direct, that would be great. We have cards with MBNA (formerly Virgin money) and a 2nd MBNA, initially a card taken out in the late 1990's.
Thank you in advance.

Former_StepChange_Linsi

Hi

Thanks for posting.

I’m sorry to hear about your partner’s ill health. If he does have to retire you wouldn’t have to continue with a DMP if it’s no longer affordable. If this is the case, it’s likely other debt solutions will become more appropriate.

You can find further guidance about retirement and pensions here on the MAS website.

A debt can become unenforceable if it’s statute-barred. You can find more information about this here on our website, but if you have been making payments it’s unlikely the debts are statute-barred.

If a creditor was to apply for a county court judgement (CCJ), your partner could have grounds for a defence if the creditor cannot provide a copy of the credit agreement (pre-April 2007 agreements only) or the original agreement was drafted incorrectly. If a claim was successfully defended the debt would be unenforceable.

If you need further guidance managing your debts you can speak to your DMP provider or you can use our online Debt Remedy tool.

I hope this helps.

Linsi

purplepaws wrote: »

Hello,
I am currently sorting out my OH's finances following a very long term illness - which is still on going. It will probably result in him having to take early retirement.
We have set up a DMP but, if he has to retire, we will be in a worse place than we are now.
I have trawled the internet, this site and the AAD website, to try to find a simple explanation of Unenforceable credit card debts. I accept that there is lots of legal jargon around this issue but I want to see if this is something worth pursuing but I can't find out a simple 'idiots guide' to begin with. If anyone could point me in the right direct, that would be great. We have cards with MBNA (formerly Virgin money) and a 2nd MBNA, initially a card taken out in the late 1990's.
Thank you in advance.

NoleneM

Hey folks. I have 2 large outstanding debts that I am looking to manage. These two debts were originally secured on a property, but a company negotiated me out of the negative equity - but i still have a balance with 2 companies - the mortgage provider (16k approx) and a loan company (25k) approx. I am currently paying them back about 30 per month each but would really like to offer them each a lump sum. I started off low and offered each about 5k, Obviously they refused but I don't really know how to negotiate. Any ideas about this? Should I get someone to do it for me who knows what they are at? Thanks!
N

uk_luk8

Hi,

So I was struggling with MASSIVE debt about 4 years ago and I'm nearly out of it. I've recently been claiming back Payday Loan interest successfully from the likes of Safety Net Credit, QQ, Piggy Bank, Lending Stream etc etc.

During the height of my borrowing, 118 118 money loaned me £2000, (£4.5k repayable).

My question is, does this fall under the same bracket as Payday loans? Its down on my credit file as an unsecured loan, and had they carried out a proper credit check they would have seen at the time I applied I had a default and had at least 4 Payday loans active at the time, if this doesn't count as irresponsible lending I don't know what is. Do you think this is something I could potentially claim on?

Thank you.

zmblake

Hi there

Wondering if I can get some advice, this past year have sunk into more and more debt and now struggling to keep on top of everything. Have tried to get a debt consolidation loan but my debt to salary ratio doesn't work and I have a low credit rating again I believe this is due to my debt to salary ratio. I owe the following -

Lloyds Credit Card - £750 / paying £35 monthly
Barclaycard - £2300 / paying £60 monthly
Capital - £300 / £25 monthly
MBNA - £1300 / £40 monthly
Very - £1300 / £65 monthly
Next - £800 / £40 monthly
Barclaycard (owe on my husbands card) - £400 / £40 monthly

i have 2 loans, one with Avant Credit which I pay £134 a month, and have 29 payments left to go, Likely Loans where I pay £133.14 a month and have 30 payments to go.

I have no money to live on every month and scramble around to try and make all the payments.......if I could get a loan of £10,000, I would pay off all the debts, cut the cards up, and carry on paying plus put extra down on each on the loans so I could pay them off quicker etc however no-one will give me a loan. Apart from with a Guarantor which I do not have.

On top of the above, household bills are roughly £650/700 a month for my half, I bring home £1383.

I work 25 hours a week, I can't up my hours any more as then I'd have to pay out for childcare for my 2 boys (8 and 6 yrs old). I'm stuck............

I'm annoyed and disappointed with myself as was on a DMP previously (about 6 yrs ago) got a couple of defaults, paid all my debt off etc and now I've done it again.

dazzammm

Hi,
Ive recently filled in a Budget sheet for Link Financial as part of our 6 monthly review of our repayment plan and the sheet asked for my current employer (i left this blank) - is this over and above the data they should be asking for (I thought so). (The main reason I left it blank is because I now work for the company I original took the credit card out with!)

Former_StepChange_Patience

Hi there

Thanks for getting in touch and sharing your situation.

You mentioned that these debts were originally secured against a property, does this mean the property was sold with a negative equity? If so these debts could now be considered as a non priority as they’re no longer secured. It may make it more manageable to discuss a settlement.

If the debts are still secured, as the creditor has the potential to wait to see if there is equity in the property in the future, they may be less willing to accept less than the full balance.

Even if the creditor doesn’t agree to the settlement, the lump sums will still help reduce the overall debt balance and help reduce the time you’re repaying the debt.

The main thing I would recommend when trying to negotiate with your creditors like this, is make sure that you keep a record of all correspondence sent and received for future reference, ensure the creditor accepts the offer in writing before sending the funds and If the £30 a month is still affordable, I would continue to pay this while you’re trying to offer a lump sum.

Is the lump sum to try and offer a full and final settlement? You can find out further information here: https://www.stepchange.org/debt-info/settlement-offers-to-creditors.aspx

If you would like help looking at your options to deal with the debt, StepChange have an anonymous self help tool that you can look at here: https://www.stepchange.org/Debtremedy.aspx

I hope this helps a little.

Patience

NoleneM wrote: »

Hey folks. I have 2 large outstanding debts that I am looking to manage. These two debts were originally secured on a property, but a company negotiated me out of the negative equity - but i still have a balance with 2 companies - the mortgage provider (16k approx) and a loan company (25k) approx. I am currently paying them back about 30 per month each but would really like to offer them each a lump sum. I started off low and offered each about 5k, Obviously they refused but I don't really know how to negotiate. Any ideas about this? Should I get someone to do it for me who knows what they are at? Thanks!
N

Former_StepChange_Patience

Hi there

Thanks for getting in touch.

It’s great to hear you’re nearly debt free, that’s wonderful news.

If you feel the creditor provided credit irresponsibly, you could consider putting in a complaint like the others to see if you can claim back the interest but there may not be any guarantee of this being successful.

Typically payday loans are high interest loans designed to be repaid by the next payday, but some organisations may take payments longer than this.

I would suggest checking any paperwork to see whether it indicates it’s a payday loan over a personal loan.

I hope this helps.

Patience

uk_luk8 wrote: »

Hi,


So I was struggling with MASSIVE debt about 4 years ago and I'm nearly out of it. I've recently been claiming back Payday Loan interest successfully from the likes of Safety Net Credit, QQ, Piggy Bank, Lending Stream etc etc.

During the height of my borrowing, 118 118 money loaned me £2000, (£4.5k repayable).

My question is, does this fall under the same bracket as Payday loans? Its down on my credit file as an unsecured loan, and had they carried out a proper credit check they would have seen at the time I applied I had a default and had at least 4 Payday loans active at the time, if this doesn't count as irresponsible lending I don't know what is. Do you think this is something I could potentially claim on?

Thank you.

Former_StepChange_Patience

Hi there

Thanks for getting in touch, I’m sorry to hear you’re feeling annoyed and disappointed with yourself.

I know that sometimes it can feel like you have no other option to deal with the debt than to take out further credit to ‘consolidate’ what you already have outstanding.

Sometimes this can work if the debt is affordable and the Money Advice Service gives further guidance on this: https://www.moneyadviceservice.org.uk/en/articles/debt-consolidation-loans

You could potentially look at alternative means of borrowing, such as a local credit union and you can find out further information here: www.citizensadvice.org.uk/debt-and-money/borrowing-money/types-of-borrowing/loans/credit-union-loans/

However sometimes this can make the situation worse, it may be worthwhile considering if what you’re currently paying towards your debts is affordable and whether taking out further debt will fix this?

I know right now a loan to make one set payment per month might sound ideal, but it’s worth considering the interest a creditor may charge or the risks to obtain the loan such as a guarantor.

If you would like to get an idea of the alternative options you could look at, StepChange have an anonymous online tool you could try and you can find it here: https://www.stepchange.org/Debtremedy.aspx

I hope this helps a little.

Patience

zmblake wrote: »

Hi there

Wondering if I can get some advice, this past year have sunk into more and more debt and now struggling to keep on top of everything. Have tried to get a debt consolidation loan but my debt to salary ratio doesn't work and I have a low credit rating again I believe this is due to my debt to salary ratio. I owe the following -

Lloyds Credit Card - £750 / paying £35 monthly
Barclaycard - £2300 / paying £60 monthly
Capital - £300 / £25 monthly
MBNA - £1300 / £40 monthly
Very - £1300 / £65 monthly
Next - £800 / £40 monthly
Barclaycard (owe on my husbands card) - £400 / £40 monthly

i have 2 loans, one with Avant Credit which I pay £134 a month, and have 29 payments left to go, Likely Loans where I pay £133.14 a month and have 30 payments to go.

I have no money to live on every month and scramble around to try and make all the payments.......if I could get a loan of £10,000, I would pay off all the debts, cut the cards up, and carry on paying plus put extra down on each on the loans so I could pay them off quicker etc however no-one will give me a loan. Apart from with a Guarantor which I do not have.

On top of the above, household bills are roughly £650/700 a month for my half, I bring home £1383.

I work 25 hours a week, I can't up my hours any more as then I'd have to pay out for childcare for my 2 boys (8 and 6 yrs old). I'm stuck............

I'm annoyed and disappointed with myself as was on a DMP previously (about 6 yrs ago) got a couple of defaults, paid all my debt off etc and now I've done it again.

Former_StepChange_Patience

Hi there

Thanks for getting in touch.

I think the most important thing is that you’re open an honest with any reviews you have with your creditors and make them aware of any financial changes as that's what's going to help work out what you can realistically afford.

The creditor would have to have a county court judgement (CCJ) in place for them to do this but technically if a creditor was to issue an order to obtain information, the court can ask for things like your job, income and outgoings or any properties you might own.

You can find out further information on this here: https://www.citizensadvice.org.uk/debt-and-money/action-your-creditor-can-take/how-a-creditor-can-get-information-about-your-finances/

I hope this helps.

Patience

dazzammm wrote: »

Hi,
Ive recently filled in a Budget sheet for Link Financial as part of our 6 monthly review of our repayment plan and the sheet asked for my current employer (i left this blank) - is this over and above the data they should be asking for (I thought so). (The main reason I left it blank is because I now work for the company I original took the credit card out with!)