Struggling with debt? Ask a stepchange debt adviser a question

Oaktreealmondine

Hi,

my debts are hidden from my girlfriend. I am worried she will find out and breakdown even though the DMP is manageable for me. We have separate finances and I have not missed any contributions to mortgage and household bills.

My DMP would be paid off in 3 years. My hope is for my girlfriend not to find out and suffer.

We do have one joint account for the mortgage payments with that bank

My debts include a credit card with the bank that holds our mortgage and another credit card with a second bank.

 We do also  have an empty joint account in the second bank that we use once a month for me to pass her the mortgage money that she then takes out to do the finances.  It is empty 30 days of the year, only has around £1000 in it for a day or so.

I was advised to ask the banks if they will use their right to set off on the joint account and thus my girlfriend would know I was in trouble with debts. Is it hard to explain  to the bank the emotional risks of putting a freeze or taking from a joint account?  I havent sent off the Stepchange Financial Management  Plan yet.

I've opened a fresh basic account for the plan at a third bank.

StepChange_Allen

Abbafan1972 said:

Hi there,

I have a DMP with Stepchange which includes 2 x credit cards (both with the Halifax).

Both credit cards are not currently charging any interest.  A letter has arrived today regarding one of the cards (I expect one for the other will be arriving soon), saying that in 2 months time they will start adding interest again as we are keeping up with the payments. 

What can I do?  I don't want to start paying interest again really, as the balance will take longer to reduce and the estimated date for our debts to be cleared we have with Stepchange will be extended.  Do I have to call the bank and discuss this with them, or will Stepchange do this on our behalf?

Thanks in advance. 

Hi there Abbafan

Thanks for posting.

Whilst we never guarantee interest and charges being frozen on a DMP, in the majority of cases this does happen. I'm not sure what letter this is and in what context it was sent; it could be some sort of automated letter. It'd be unusual if you were keeping up with the contractual payments on the debt if you're on a DMP. If your plan has just started, perhaps this is a letter referring to the 60 days of Breathing Space and that interest will/may resume after it finishes? If so, this is likely to be an automated letter and wouldn't be taking into account that you're on a DMP.

Without knowing any more facts I'd still say it's unlikely that interest and charges would resume whilst on the DMP but I absolutely understand your concerns at the letter. I'd say it's definitely worth calling our Client Support team that is looking after you whilst you're on your plan, just to discuss the letter and see whether they think it's necessary to call Halifax. You shouldn't need to contact your creditors whilst you're on the DMP, as we're looking after you on it.

I hope this helps.

Allen

StepChange_Allen

Oaktreealmondine said:

Hi,

my debts are hidden from my girlfriend. I am worried she will find out and breakdown even though the DMP is manageable for me. We have separate finances and I have not missed any contributions to mortgage and household bills.

My DMP would be paid off in 3 years. My hope is for my girlfriend not to find out and suffer.

We do have one joint account for the mortgage payments with that bank

My debts include a credit card with the bank that holds our mortgage and another credit card with a second bank.

 We do also  have an empty joint account in the second bank that we use once a month for me to pass her the mortgage money that she then takes out to do the finances.  It is empty 30 days of the year, only has around £1000 in it for a day or so.

I was advised to ask the banks if they will use their right to set off on the joint account and thus my girlfriend would know I was in trouble with debts. Is it hard to explain  to the bank the emotional risks of putting a freeze or taking from a joint account?  I havent sent off the Stepchange Financial Management  Plan yet.

I've opened a fresh basic account for the plan at a third bank.

Hi there

Welcome to the forum and thanks for posting.

I understand and appreciate the situation that you describe, and why you're concerned. The good news though is that right of set off cannot be applied from a joint account to an individual account, so they wouldn't be able to take money from your joint account to pay your individual debt.

I hope this is helpful.

Allen

Si73

Hi, i am new here so just looking for a bit of advice.

I owe Very nearly £7,000, i was silly last year as in a bad situation and bought phones on buy now pay a year later and then sold them to keep myself and family going, all the interest has now piled up and the monthly payment will be around £450 once all the interest is applied.

I have reached out to Very saying i am going to struggle to pay, after working everything out i have told them i can pay £50 a month, not suprised but they have not accepted this.

What should i do now? just pay what i can and wait to they default me? Really don't want the interest to pile up to much.

I also have £2400 debt with Argos this is £224 a month, this has been more manageable but not sure if its worth getting help on this at the same time? I have other debt but have been paying this off gradually.Just the Very debt that i will struggle with.

Thankyou in advance.

Abbafan1972

StepChange_Allen said:

Abbafan1972 said:

Hi there,

I have a DMP with Stepchange which includes 2 x credit cards (both with the Halifax).

Both credit cards are not currently charging any interest.  A letter has arrived today regarding one of the cards (I expect one for the other will be arriving soon), saying that in 2 months time they will start adding interest again as we are keeping up with the payments. 

What can I do?  I don't want to start paying interest again really, as the balance will take longer to reduce and the estimated date for our debts to be cleared we have with Stepchange will be extended.  Do I have to call the bank and discuss this with them, or will Stepchange do this on our behalf?

Thanks in advance. 

Hi there Abbafan

Thanks for posting.

Whilst we never guarantee interest and charges being frozen on a DMP, in the majority of cases this does happen. I'm not sure what letter this is and in what context it was sent; it could be some sort of automated letter. It'd be unusual if you were keeping up with the contractual payments on the debt if you're on a DMP. If your plan has just started, perhaps this is a letter referring to the 60 days of Breathing Space and that interest will/may resume after it finishes? If so, this is likely to be an automated letter and wouldn't be taking into account that you're on a DMP.

Without knowing any more facts I'd still say it's unlikely that interest and charges would resume whilst on the DMP but I absolutely understand your concerns at the letter. I'd say it's definitely worth calling our Client Support team that is looking after you whilst you're on your plan, just to discuss the letter and see whether they think it's necessary to call Halifax. You shouldn't need to contact your creditors whilst you're on the DMP, as we're looking after you on it.

I hope this helps.

Allen

Thanks for your reply.

The same letter for the other credit card was received yesterday.

I am just in the process of emailing copies of both letters over to Stepchange and then will follow it up with a call in a few days. 

Regards. 

StepChange_Aidan

Si73 said:

Hi, i am new here so just looking for a bit of advice.

I owe Very nearly £7,000, i was silly last year as in a bad situation and bought phones on buy now pay a year later and then sold them to keep myself and family going, all the interest has now piled up and the monthly payment will be around £450 once all the interest is applied.

I have reached out to Very saying i am going to struggle to pay, after working everything out i have told them i can pay £50 a month, not suprised but they have not accepted this.

What should i do now? just pay what i can and wait to they default me? Really don't want the interest to pile up to much.

I also have £2400 debt with Argos this is £224 a month, this has been more manageable but not sure if its worth getting help on this at the same time? I have other debt but have been paying this off gradually.Just the Very debt that i will struggle with.

Thankyou in advance.

Hi,

Thanks for your post. I’m sorry to hear about your situation and I hope I can help.

It’s important to remember that catalogues are non-priority debts, and you should only offer to pay them what you can realistically afford after you’ve covered your essential living costs.

Even if Very reject your offer, you should pay only what you can. Interest and charges normally stop when the account defaults, usually after a few months of reduced payments.

I would suggest trying to treat your creditors as fairly as possible and offering both Very and Argos a reduced payment based on the money remaining in your monthly budget after you’ve covered your priority expenses and living costs.

If you’re struggling with debt repayments, you may want to consider setting up a Debt Management Plan to pay one reduced amount for both debts. There may also be other debt solutions appropriate for you, depending on your situation.

If you’d like some help to put together a budget and review your options, please get in touch with StepChange. You can use our online debt advice tool or give us a call to speak with an advisor.

I hope this helps.

Aidan

champangelifeonashoestring

Hello,

I’m new here but sadly not new to debt. Trying to correct my bad ways and be more responsible with my debts and credit cards.  I want to live within my means and clean up my credit score. 

I’ve had an agency chasing me for ages over a debt, it’s for just under £100 that technically was for my business which I closed during Covid.  

I think it’s for RAC cover I took out on the company van, but the paperwork was in my name.  

Anyways, I’ve had a letter offering a discounted payment figure of 30% less, or else they’ll issue a ‘letter of claim’. What is this please?  

I want this to be sorted, my question is do I pay the settlement figure or the full amount. It’s only £30 difference… but I’ll be using my nearly maxed credit card to pay, so every penny helps. 

I’m looking to get a mortgage shortly (as soon as financially viable) so will this reduced payment offer show on my credit score?  

Thanks 🍾〰️

Oaktreealmondine

StepChange_Allen said:

Oaktreealmondine said:

Hi,

my debts are hidden from my girlfriend. I am worried she will find out and breakdown even though the DMP is manageable for me. We have separate finances and I have not missed any contributions to mortgage and household bills.

My DMP would be paid off in 3 years. My hope is for my girlfriend not to find out and suffer.

We do have one joint account for the mortgage payments with that bank

My debts include a credit card with the bank that holds our mortgage and another credit card with a second bank.

 We do also  have an empty joint account in the second bank that we use once a month for me to pass her the mortgage money that she then takes out to do the finances.  It is empty 30 days of the year, only has around £1000 in it for a day or so.

I was advised to ask the banks if they will use their right to set off on the joint account and thus my girlfriend would know I was in trouble with debts. Is it hard to explain  to the bank the emotional risks of putting a freeze or taking from a joint account?  I havent sent off the Stepchange Financial Management  Plan yet.

I've opened a fresh basic account for the plan at a third bank.

Hi there

Welcome to the forum and thanks for posting.

I understand and appreciate the situation that you describe, and why you're concerned. The good news though is that right of set off cannot be applied from a joint account to an individual account, so they wouldn't be able to take money from your joint account to pay your individual debt.

I hope this is helpful.

Allen

Thanks Allen,
Can my future bad Experian credit score affect my girlfriend? We have a joint account and a joint mortgage. Cheers!

StepChange_Aidan

champangelifeonashoestring said:

Hello,

I’m new here but sadly not new to debt. Trying to correct my bad ways and be more responsible with my debts and credit cards.  I want to live within my means and clean up my credit score. 

I’ve had an agency chasing me for ages over a debt, it’s for just under £100 that technically was for my business which I closed during Covid.  

I think it’s for RAC cover I took out on the company van, but the paperwork was in my name.  

Anyways, I’ve had a letter offering a discounted payment figure of 30% less, or else they’ll issue a ‘letter of claim’. What is this please?  

I want this to be sorted, my question is do I pay the settlement figure or the full amount. It’s only £30 difference… but I’ll be using my nearly maxed credit card to pay, so every penny helps. 

I’m looking to get a mortgage shortly (as soon as financially viable) so will this reduced payment offer show on my credit score?  

Thanks 🍾〰️

Hi,

Thanks for posting and welcome to the forum.

A creditor must issue a ‘letter of claim’ before taking court action. The letter provides details of the debt and includes a reply form, which you must complete and return to make an offer of payment. If you don’t reply within 30 days or are unable to come to an agreement with the creditor, they can then apply for a County Court Judgment (CCJ).

If you do accept the settlement offer, the debt will show as ‘partially settled’ on your credit file, which could affect future creditors’ decision to lend to you. The debt will show on your file until six years after the date of default.

It’s up to you whether you want if you want to pay the settlement figure or the full amount, but I wouldn’t normally recommend using a credit card pay another debt. It may be better to offer to repay it in affordable instalments.

I hope this helps.

Aidan

StepChange_Aidan

Oaktreealmondine said:

StepChange_Allen said:

Oaktreealmondine said:

Hi,

my debts are hidden from my girlfriend. I am worried she will find out and breakdown even though the DMP is manageable for me. We have separate finances and I have not missed any contributions to mortgage and household bills.

My DMP would be paid off in 3 years. My hope is for my girlfriend not to find out and suffer.

We do have one joint account for the mortgage payments with that bank

My debts include a credit card with the bank that holds our mortgage and another credit card with a second bank.

 We do also  have an empty joint account in the second bank that we use once a month for me to pass her the mortgage money that she then takes out to do the finances.  It is empty 30 days of the year, only has around £1000 in it for a day or so.

I was advised to ask the banks if they will use their right to set off on the joint account and thus my girlfriend would know I was in trouble with debts. Is it hard to explain  to the bank the emotional risks of putting a freeze or taking from a joint account?  I havent sent off the Stepchange Financial Management  Plan yet.

I've opened a fresh basic account for the plan at a third bank.

Hi there

Welcome to the forum and thanks for posting.

I understand and appreciate the situation that you describe, and why you're concerned. The good news though is that right of set off cannot be applied from a joint account to an individual account, so they wouldn't be able to take money from your joint account to pay your individual debt.

I hope this is helpful.

Allen

Thanks Allen,
Can my future bad Experian credit score affect my girlfriend? We have a joint account and a joint mortgage. Cheers!

Hi,

Your credit score is for your information only and is not used by creditors. Their lending decisions will normally be based on the debts and payment history included on your credit file.

If you have any credit agreements in joint names, creditors will be able to see a link or association between both credit files. Unfortunately, this means that a poor credit history on your file could indirectly affect your girlfriend when applying for credit.

I hope this helps.

Aidan