Struggling with debt? Ask a stepchange debt adviser a question

Burt34

Hi I have £25k in unsecured debt. Have asked step change for help and am awaiting a pack. Do you think I should speak to my bank? I have an overdraft of £2300 with Lloyds with daily fees plus a £10 k loan. Are they likely to help me? Or will I just be directed to step change ? Thanks 

StepChange_Ciaran

Burt34 said:

Hi I have £25k in unsecured debt. Have asked step change for help and am awaiting a pack. Do you think I should speak to my bank? I have an overdraft of £2300 with Lloyds with daily fees plus a £10 k loan. Are they likely to help me? Or will I just be directed to step change ? Thanks 

Hi

Thank you again for using the forum and welcome.

You have mentioned that you are paying daily charges on an overdraft of £2,300.  I would suggest this is your largest priority.  I would suggest contacting each creditor and explaining that you have registered with StepChange and are seeking financial support.

I would ask each creditor for ‘Breathing Space’ - There is guidance available on this online.

The creditors should agree to placing the accounts on hold for 28 days, this would include suspending charges and interest for that period.

You will also need to have a new bank account set up; this needs to have no overdraft facility.  There will be guidance on this in your pack.

Breathing space / Hold – Is industry standard, most will offer you some support when asked.  Make sure you mention that you have registered with the service.

Ciaran

robert1100

Public debt (such as taxes, home help or student loans) is not guaranteed, but gives creditors special collection rights. In most cases, the business essay writing help government can collect your tax refund to pay off your debt and can withhold your salary or social security without first obtaining a court decision

hev3049

I am on self managed DMP but barclays and barclaycard are still charging interest and have not defaulted the accounts and its been 7 months.  - is there a template letter I can use to request default actioned and interest to be stooped? If not is there any advice on how I should word a letter please? Thanks

Trixiesmum

My debt isn't huge, £5k overdraft with NatWest and £1800 on credit card. The charges from the bank put me into the unarranged overdraft rates, so I get charged on my charges. I've contacted them and have been given the statement of account to fill in. My general health is bad (had a stroke, blood clot in lung, congenital heart disease, arthritis) and am disabled. All I get is my PIP (which has been reduced but I'm querying that) and my ESA. I also have mental health issues and having to deal with this is making my health worse. My hubby doesn't want to have his wages included in the statement of account as he says it's my debt, which it is, but it was used to keep the house afloat when he wouldn't pay any bills. I tried to explain to NatWest about my health, the fact that their charges are keeping me in poverty as there is no way to keep my head above water, but I was just told to fill in the statement of account and get my GP to send a letter detailing my health problems. I'm just at the end of my rope at the mo, so any advice would be gratefully accepted. Thank you.

StepChange_Aidan

hev3049 said:

I am on self managed DMP but barclays and barclaycard are still charging interest and have not defaulted the accounts and its been 7 months.  - is there a template letter I can use to request default actioned and interest to be stooped? If not is there any advice on how I should word a letter please? Thanks

Hi,

Thanks for your post.

Normally creditors will default the accounts after three to six months of missed or reduced payments, but some may take longer. 

A default means that you’ve broken the term of your credit agreement and allows the creditors to take further action to recover the debt. Interest and charges will usually stop once the account has defaulted.

I don’t have a template letter to request a default, but I’d recommend contacting the creditors to ask when they intend to issue the default notice and request that they consider reducing or stopping the interest and charges on your account.

If you’ve already told the creditors that you’re in financial difficulties, but they’ve continued to add interest and charges you could consider making a complaint.

I hope this helps.

Aidan

StepChange_Aidan

Trixiesmum said:

My debt isn't huge, £5k overdraft with NatWest and £1800 on credit card. The charges from the bank put me into the unarranged overdraft rates, so I get charged on my charges. I've contacted them and have been given the statement of account to fill in. My general health is bad (had a stroke, blood clot in lung, congenital heart disease, arthritis) and am disabled. All I get is my PIP (which has been reduced but I'm querying that) and my ESA. I also have mental health issues and having to deal with this is making my health worse. My hubby doesn't want to have his wages included in the statement of account as he says it's my debt, which it is, but it was used to keep the house afloat when he wouldn't pay any bills. I tried to explain to NatWest about my health, the fact that their charges are keeping me in poverty as there is no way to keep my head above water, but I was just told to fill in the statement of account and get my GP to send a letter detailing my health problems. I'm just at the end of my rope at the mo, so any advice would be gratefully accepted. Thank you.

Hi,

Thanks for posting and welcome to the forum. I’m sorry to hear about your situation and I hope I can help.

If you’re struggling with overdraft interest and charges, Natwest should be able to help you. They may be able reduce charges and set up a repayment schedule for you to pay off the debt, or they could move the overdraft into a separate account. 

Natwest will have asked you to complete a statement so they can understand your financial situation. If your husband doesn’t want to be included they may accept a form with just your income and expenses, but if you’re unsure I’d recommend going back to them for some additional guidance.

The important thing to remember is that both credit cards and overdrafts are unsecured debts, and you should only offer to repay them with what you can afford after you’ve covered your priority bills and living costs. 

If you feel you’ve been treated unfairly by your bank you could make a complaint.

I can’t give any specific recommendations without knowing more about your situation. I’d suggest discussing your options with a debt advisor if you haven’t already done so. If you’d like to contact StepChange our details can be found on our website.

Kind regards,

Aidan

liambradley7

Hi, I need guidance on how to consolidate 2 debts. A £4000 overdraft and £900 loan with a seperate company. into one monthly payment. 

StepChange_Allen

liambradley7 said:

Hi, I need guidance on how to consolidate 2 debts. A £4000 overdraft and £900 loan with a seperate company. into one monthly payment. 

Hi Liam

Welcome to the forum and thanks for posting.

There are a number of possible options to do this, but the best one depends on your financial situation. We mainly deal with debt solutions at StepChange that will affect your credit rating, for example debt management plans and IVAs. But there could be other options, such as low rate personal loans, that could work for you. If you think that could work, there's useful information on the main MSE site under 'Cheap loans' and related pages.

If you feel that a debt solution may be better, you can register with us free of charge. All the details of what we do and how to get started can be found at http://www.stepchange.org/

I hope this is helpful.

Allen

ditty1234

Hi I have my DMP w Stepchange all steady and I was happy with it. Now with schools closed I am thinking about pausing it for 3 or 6 month as I have lost 2/5 of my income (agency cover work) and have an extra person to feed - son home from uni. Are there any specific provisions for DMP's / covid 19  or do I just call them?