Struggling with debt? Ask a stepchange debt adviser a question

StepChange_Aidan

bluebell_on_track said:

Hello. If on a DMP, is there ever the point where you can offer creditors a final settlement figure that’s less than you owe or if you still owe £6700 they’d want exactly that as a final settlement? Thanks 

Hi,

Thanks for your post.

While on a DMP, if you receive a lump sum of money which is less than amount you owe, you can certainly offer this to your creditors as a full and final settlement. However, I can’t really say whether or not they are likely to accept it without knowing more about your situation.

If you’re on a DMP with StepChange and have a lump sum of money available to pay towards your debts, please get in touch with us for a review. We have a specialist team who may be able to help you make settlement offers to your creditors.

There’s some more information on making full and final settlement offers to creditors here.

I hope this helps.

Aidan

Cherryjack

Good Morning,
I had a debt with Simply B back in 2011 which was £800.00.  Back then i was in awful financial difficulty and could not meet the minimum payment.  I offered them a token payment of £1 which they did not accept and they added interest and charges which soon added up to £2500.  It came off my credit file but they are now pursuing me for £82.00 per month.  They have also issued a notice under section 86c.
Help i would appreciate any advice.  Im happy to pay back the £800 but not all the rest.  The letter doesn't state how much I owe.

Thanks for taking the time to read

MonkeysUncle87

Hi
I have a debt across 2 credit cards. Almost half of the repayments goes on paying the interest!
I want to get a balance transfer card to swap over to but I dont know what limit I would get.
What would be the best way to reduce this debt? Should I get 1 balance transfer card, move over however much I can and then get a second balanace transfer card?
Would this hurt my credit score overall?

I was also advised to get a low interest loan to pay them both off, Is this a viable option?

StepChange_Aidan

Cherryjack said:

Good Morning,
I had a debt with Simply B back in 2011 which was £800.00.  Back then i was in awful financial difficulty and could not meet the minimum payment.  I offered them a token payment of £1 which they did not accept and they added interest and charges which soon added up to £2500.  It came off my credit file but they are now pursuing me for £82.00 per month.  They have also issued a notice under section 86c.
Help i would appreciate any advice.  Im happy to pay back the £800 but not all the rest.  The letter doesn't state how much I owe.

Thanks for taking the time to read

Hi,

Thanks for your post.

If you feel that Simply Be has acted unfairly by continuing to add interest and charges to the account after you informed them of financial difficulties, I’d recommend making a complaint. If you’re not happy with their response, it can then be raised to the Financial Ombudsman Service.

There’s some more advice about making complaints to creditors here.

Section 86c is a notice that a creditor has to send by law. It’s to inform you that your credit agreement is in arrears, but you don’t need to respond to it.

If you’re paying back the debt, you should only offer Simply Be an amount that you can afford each month after you’ve covered your priority bills and living costs.

If you’d like some further advice about the debt or would like to discuss your situation in more detail, please get in touch with us.

I hope this helps.

Aidan

StepChange_Aidan

MonkeysUncle87 said:

Hi
I have a debt across 2 credit cards. Almost half of the repayments goes on paying the interest!
I want to get a balance transfer card to swap over to but I dont know what limit I would get.
What would be the best way to reduce this debt? Should I get 1 balance transfer card, move over however much I can and then get a second balanace transfer card?
Would this hurt my credit score overall?

I was also advised to get a low interest loan to pay them both off, Is this a viable option?

Hi,

I can’t really say what would be the better option, as I’d need details about your income, expenses and debts to be able to make a recommendation. 

It would be best to put together a budget so we fully understand your situation. You can do this yourself online using our website, or if you’d prefer to talk with a debt advisor, please give us a call.

Kind regards,

Aidan

Robmanic1

Hi, another desperate plea for help from someone who's paying for past mistakes.

A fimilliar situation looking at these threads, I have debts totalling £23000 comprising credit cards, overdraught and loan, all my debts are met every month but leave me with very little, I'm paying the minimum on the majority of my credit cards, concentrating on paying off one at a time (which I think is the right thing to do?).

At 54 I see a long road ahead of trying to make ends meet, the loan is paid off Feb 2020 which will free up £367 per month to go a long way towards paying off another debt, mortgage is due to end when I'm 62.

I've contacted Stepchange to discuss my situation and they strongly suggest taking out an IVA, this worries me immensley but it does seem the quickest way to become debt free. They're very keen on me doing this which rings alarm bells, I wonder if who's best interest this would be in.

My debts are just about manageable but seem never-ending, I don't have an exotic lifestyle, I work in a job I don't particularly enjoy but it just about pays the bills. My ultimate dream is to hit 60 and be in a position to maybe reduce my working hours or maybe find a less stressful job that pays less. I'm resigned to the fact that I'll never be rich and will probably work to some degree until I die, I blame no-one but myself for my financial position.  

I'm more comfortable trying to sort out my own problems than taking out an IVA which seems like a huge step to me, almost like a 6 year prison sentence! The IVA route just doesn't sit right with me in my position although I am conflicted.

I suppose I'm just looking for confirmation that the route I think I need to take is the best option, ie sorting out my own finances by contacting the variuous lenders and asking for help, maybe a mortgage holiday to pay off the overdraught or a 0% balance transfer card?

Looking at the cost of the debts the overdraught seems to be the highest and probably the first one I should tackle.

Any help/ advice apreciated in advance.

Rob 

StepChange_Patience

Robmanic1 said:

Hi, another desperate plea for help from someone who's paying for past mistakes.

A fimilliar situation looking at these threads, I have debts totalling £23000 comprising credit cards, overdraught and loan, all my debts are met every month but leave me with very little, I'm paying the minimum on the majority of my credit cards, concentrating on paying off one at a time (which I think is the right thing to do?).

At 54 I see a long road ahead of trying to make ends meet, the loan is paid off Feb 2020 which will free up £367 per month to go a long way towards paying off another debt, mortgage is due to end when I'm 62.

I've contacted Stepchange to discuss my situation and they strongly suggest taking out an IVA, this worries me immensley but it does seem the quickest way to become debt free. They're very keen on me doing this which rings alarm bells, I wonder if who's best interest this would be in.

My debts are just about manageable but seem never-ending, I don't have an exotic lifestyle, I work in a job I don't particularly enjoy but it just about pays the bills. My ultimate dream is to hit 60 and be in a position to maybe reduce my working hours or maybe find a less stressful job that pays less. I'm resigned to the fact that I'll never be rich and will probably work to some degree until I die, I blame no-one but myself for my financial position.  

I'm more comfortable trying to sort out my own problems than taking out an IVA which seems like a huge step to me, almost like a 6 year prison sentence! The IVA route just doesn't sit right with me in my position although I am conflicted.

I suppose I'm just looking for confirmation that the route I think I need to take is the best option, ie sorting out my own finances by contacting the variuous lenders and asking for help, maybe a mortgage holiday to pay off the overdraught or a 0% balance transfer card?

Looking at the cost of the debts the overdraught seems to be the highest and probably the first one I should tackle.

Any help/ advice apreciated in advance.

Rob 

Hi there Rob, thank you for your post.

 

I'm sorry to hear about the difficulties you're facing with your debts, I understand how never ending it can feel like. 

It sounds like you’ve already taken some positive steps by contacting a free and impartial organisation, just to reassure you at StepChange Debt Charity, the advice we provide is would entirely be for an individual’s benefit based on an accurate and fair budget. We’re here to help anyone with problem debt and to help you find a way forward. 

If you feel the Individual Voluntary Arrangement (IVA) isn’t the best way to help you, we will happily have a look at your situation to see if there are any other options available. If you would like to discuss those further you can contact us here: www.stepchange.org/contact-us

If you would like to contact your creditors to come to an arrangement directly, this website: www.stepchange.org/debt-info/arranging-payment-with-creditors.aspx contains some useful information as well as a template letter you can use.
 

I hope this helps. 

Patience

dojoron

Hi there! I need help with debt. Because of corona virus i have been unable to work. Slightly complicated because i was self employed and employed. I can't do my self employment but am on furlough from my part time job. Where can i get the best advice? I can't pay my credit card debt and i've already had payment holidays.
Many thanks.
Joyce

StepChange_Aidan

dojoron said:

Hi there! I need help with debt. Because of corona virus i have been unable to work. Slightly complicated because i was self employed and employed. I can't do my self employment but am on furlough from my part time job. Where can i get the best advice? I can't pay my credit card debt and i've already had payment holidays.
Many thanks.
Joyce Armstrong

Hi Joyce,

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

If you’re no longer self-employed, StepChange will be able to give you advice and support. You can get help on our website using our online tool or give us a call to speak with a debt advisor.

If you’re going back to self-employed work when you’re feeling better or your business is still trading, I would recommend Business Debtline, who are another organisation that will be able to give specialist debt advice.

Kind regards,

Aidan

Mike1006

Hi, I’m currently on a dmp with StepChange, been on this about a year. I have a debt with piggybank which is my lowest debt of £148. They have contacted me offering a settlement offer of a 40% reduction on my balance. And they would report back to my credit file that the loan was paid in full and not partially settled. This seems a good offer to me and if I could pay this Would StepChange be ok with me doing this ?