Struggling with debt? Ask a stepchange debt adviser a question

amskordis

Hi there,
Not sure if this is the right place to post as is my first post....
I am currently with Step change, have been since it was the CCCS.
I have a payment plan....and have several creditors that get token payments each month.
I am due my next review in January with step change, but since my last one...i don't have any earnings...i am self employed and currently on Universal Credit. I am worried that my debt plan will get cancelled as i have no spare money at all.
All my creditors debts are all over 10 years old...none no longer show on my credit score. If i was to cancel my plan does this mean that they will all become defaulted again and appear as debts....or because they are over 6 years they wont...or will they because i have been making payments does the 6 years start over again? or is the 6years they no longer show up, from when the original debt was taken out?
Is there any way of them being written off after all this time?
Any help would be appreciated
Regards
Anthony 

Sonny11

Hope I've got the correct thread to ask this question!
My ex-partner is about to set up a DMP with Step Change in relation to her personal debts.  We still have a joint-mortgage together so have a financial association together and I'm trying to establish what impact the DMP will have on my credit score?  Does anyone have any experience of this?  All I can find is that it may affect my file but can't seem to find any certain confirmation so wondering if anyone can help.
Thanks! 

priceey

Hi there,
I'm currently overdrawn with my current back and its a long battle to try to clear the debt.
I've noticed that Starling bank would have a cheaper overdraft than the one I'm currently paying, and if accepted for their lowest % I think I'd be paying 7% less interest than I am now.
Would it be worth investigating if I can have a bank account, then an overdraft with Starling?

MyG

Hello,
I hope you can help me. I have around £700 debt on store cards that have interest being charged on every month and I would like to have one payment a month to pay them off. What is the best way to go about this? Would a 0% balance credit card help?

many thanks,

Amy

StepChange_Aidan

amskordis said:

Hi there,
Not sure if this is the right place to post as is my first post....
I am currently with Step change, have been since it was the CCCS.
I have a payment plan....and have several creditors that get token payments each month.
I am due my next review in January with step change, but since my last one...i don't have any earnings...i am self employed and currently on Universal Credit. I am worried that my debt plan will get cancelled as i have no spare money at all.
All my creditors debts are all over 10 years old...none no longer show on my credit score. If i was to cancel my plan does this mean that they will all become defaulted again and appear as debts....or because they are over 6 years they wont...or will they because i have been making payments does the 6 years start over again? or is the 6years they no longer show up, from when the original debt was taken out?
Is there any way of them being written off after all this time?
Any help would be appreciated
Regards
Anthony 

Hi Anthony,

Thanks for posting and welcome to the forum.

If there’s been a change to your situation, I’d recommend getting in touch so we can update your budget and discuss your options. You don’t need to wait until the next annual review. Our contact details are here.

Debts will show on your credit report for six years from the default date. They can only default once, so if they’ve already dropped off your credit file they can’t come back.

We'd normally suggest token payments as a temporary measure until your situation changes. If there’s no money currently available there could be other solutions better suited to you, such as insolvency options to write off some or all of the debt. 

Kind regards,

Aidan

StepChange_Aidan

Sonny11 said:

Hope I've got the correct thread to ask this question!
My ex-partner is about to set up a DMP with Step Change in relation to her personal debts.  We still have a joint-mortgage together so have a financial association together and I'm trying to establish what impact the DMP will have on my credit score?  Does anyone have any experience of this?  All I can find is that it may affect my file but can't seem to find any certain confirmation so wondering if anyone can help.
Thanks! 

Hi Sonny,

Thanks for your post.

Credit scores are based on your individual credit history, so your ex-partner’s debts should not affect your rating. Please note that credit scores are rarely used on their own by creditors, they will usually look at the full details on your credit file.

However, the DMP could impact your ability to obtain credit. Because you have a joint mortgage, your credit files will be linked. If you apply for credit, lenders may also view your ex-partner’s credit file and see that she's paying her debts through a DMP, which could affect their decision.

I hope this helps.

Aidan

StepChange_Aidan

priceey said:

Hi there,
I'm currently overdrawn with my current back and its a long battle to try to clear the debt.
I've noticed that Starling bank would have a cheaper overdraft than the one I'm currently paying, and if accepted for their lowest % I think I'd be paying 7% less interest than I am now.
Would it be worth investigating if I can have a bank account, then an overdraft with Starling?

Hi,

You can always apply for a new account with Starling, but you may not be able to transfer the overdraft or request a new one with them. 

It may be better to aim to pay off the existing overdraft gradually. Your bank may be able to help you with this. There’s some more information about ways to pay off overdrafts here.

Without knowing more about your finances, I can’t say what would be the best option for you. I’d recommend discussing your situation in more detail with a debt advisor. If you’d like to get in touch with StepChange our contact details are here.

Kind regards,

Aidan

StepChange_Allen

MyG said:

Hello,
I hope you can help me. I have around £700 debt on store cards that have interest being charged on every month and I would like to have one payment a month to pay them off. What is the best way to go about this? Would a 0% balance credit card help?

many thanks,

Amy

Hi Amy

Thanks for posting.

There are a number of different ways of potentially tackling this. Without knowing your budget and financial situation, I can't say what you should do. However, a 0% balance transfer card could be an option, just make sure you check the fee and try and make sure you can afford to pay the £700 off before the 0% period ends. This way, you'll avoid further interest and charges.

For this amount of debt, I'd say you're unlikely to need a debt solution that affects your credit file.

Other than this, you could try your best to overpay the minimum payment as much as possible when you can in order to reduce the total interest you'll pay. Once you've paid all the minimum amounts each month, perhaps try and clear the highest interest one first, and go from there.

I hope this all makes sense.

Allen

Rainbowtrousers

Hello and thanks in advance for any help you are available to offer .... 
Wow where to start?! I am almost embarrassed to share my story but I am a 42 year old lawyer (so bankruptcy and other debt consolidation options unlikely to be applicable) who has never budgeted and has been living far beyond his means for many years.
Currently - loan to high street bank (£25,000), 2 credit cards (both 0% until September 2021), parents (£10,000) and car finance (£8,000).
I do work and after bills I have about £750 per month left over. That includes minimum payment on the credit cards and full monthly payment on the loan (£650 per month due to expire in four years i think). I can return the car in march 2022 and not have to pay the £8,000. 
I am just curious how i go about tackling the other debts that are due. A second job? 
Do feel slightly embarrassed by this but hoping someone here can offer help.
Would love love love to be debt free and have savings (for the first time ever!)
I have two spare rooms but hate having housemates (even though that could generate circa £850 per room per month)
I have a weekly cleaner and some other pretty silly outgoings
As i type this the above just sounds a little loco - good to get some help ....
I still have my sense of humour which is good 

StepChange_Aidan

Rainbowtrousers said:

Hello and thanks in advance for any help you are available to offer .... 
Wow where to start?! I am almost embarrassed to share my story but I am a 42 year old lawyer (so bankruptcy and other debt consolidation options unlikely to be applicable) who has never budgeted and has been living far beyond his means for many years.
Currently - loan to high street bank (£25,000), 2 credit cards (both 0% until September 2021), parents (£10,000) and car finance (£8,000).
I do work and after bills I have about £750 per month left over. That includes minimum payment on the credit cards and full monthly payment on the loan (£650 per month due to expire in four years i think). I can return the car in march 2022 and not have to pay the £8,000. 
I am just curious how i go about tackling the other debts that are due. A second job? 
Do feel slightly embarrassed by this but hoping someone here can offer help.
Would love love love to be debt free and have savings (for the first time ever!)
I have two spare rooms but hate having housemates (even though that could generate circa £850 per room per month)
I have a weekly cleaner and some other pretty silly outgoings
As i type this the above just sounds a little loco - good to get some help ....
I still have my sense of humour which is good 

Hi,

Thank you for your post.

When you say that you have £750 per month left over after you’ve covered your bills, does that also include money for other spending items such as food, clothing and leisure activities? Before we can give any recommendations, we would need some more details so we fully understand your finances. You could put together a budget using our online tool or if you’d prefer to discuss your situation with an advisor you can give us a call.

Due to working in law, you’ve ruled out bankruptcy, but do you have any restrictions on other types of insolvency, such as an IVA (Trust Deed in Scotland) or less formal debt solutions like Debt Management Plans? 

I hope this helps.

Aidan