Struggling with debt? Ask a stepchange debt adviser a question

Macka09

Can anyone offer me some advice regarding a debt collection letter I’ve received today please?
I have spoke to CAB online today as well as National Debt advice and I’m more confused than I was before. 

StepChange_Patience

Macka09 said:

Can anyone offer me some advice regarding a debt collection letter I’ve received today please?
I have spoke to CAB online today as well as National Debt advice and I’m more confused than I was before. 

Hi there

Thank you for getting in touch. 

I'm sorry to hear you've been left more confused than before. Debt collection letters are a normal part of a collections process which can vary depending on the type of debt that it is.

You can find out more about the collections process here. 

If you would like to get advice or support on any debts you have, you're welcome to contact StepChange who would gladly have a look at your situation.

I hope this helps. 

Patience

fatbelly

Macka09 said:

Can anyone offer me some advice regarding a debt collection letter I’ve received today please?
I have spoke to CAB online today as well as National Debt advice and I’m more confused than I was before. 

Can you take a photo, redact all personal info and reference numbers and post a new thread on the dfw board?

sourcrates

@Macka09

I have answered your PM, your debt will likely be statute barred.

debtermined

I’m sitting on a time bomb of debt and am dreading the moment it blows up on me. 

£40,000 unsecured debt to creditors all from the last few months and all from gambling. I’m getting all the help I need with my addition now before anyone points me towards GamCare, etc. 

I’ve made first repayments on some but not all of the debts. Some of this is zero interest, others high interest cash advances. The total monthly minimum repayments are about £750. 

I have priority outgoings of £1500 p/m and only two months emergency fund and I now have immediate cash flow problems due to losing my job. Although I am more than capable of working have no clear picture of when I will be employed again. My average annual salary when working has been £35k. 

I’m essentially insolvent at this stage but I’m not a homeowner and have absolutely no assets of great enough value to liquidate so I don’t think bankruptcy is the way forward here. 

I have opened up to my family at last and what a relief that is. One very generous, concerned, whatever you want to call it, relative has suggested making full and final settlement offers to all my creditors, offering 50% of the amount owed. My family has offered to lend me 20 grand with much more favourable repayment terms of £2500 per year over eight years from the time I get myself back in permanent employment. 

What I would like to know is how likely creditors are to accept a full and final settlement offer given the circumstances I’ve explained. Would 50% to each of them cut it or are would they probably hold out for more? 

daviesalie_2

Hi, I've recently discovered an old debt that is 9 years old has re-appeared on my Credit Karma.  It's significantly impacted my credit score.  The debt is for £14 and is from 2015.  I've had no correspondence from Vodafone for at least 7 or 8 years.  The last time I contacted them to dispute this bill was in 2015, and then I moved address and heard nothing else from them.  I think this debt is now statute barred and shouldn't be added back onto my credit file.  The account is showing as "Delinquent", last updated 31/05/24 and one missed payment with no previous missed payments prior to the update in May.  There's no mention of it being in default on credit karma - its showing as if its a recent/new missed payment.  I've raised a dispute with Transunion (which was no mean feat and had to use the contact form because the system was sending me around in loops).  I tried ringing Vodafone yesterday to speak to someone about it, but I couldn't pass the security checks because the account is so old.  I therefore went into the vodafone store with ID and she gave me the info about when I last contacted them.  Should I contact Vodafone to challenge this with them directly or should I wait for Transunion.  I've just had a mortgage refused because of it and desperately need to resolve it urgently.  Any help and guidance would be greatly appreciated, thank you.

StepChange_Patience

debtermined said:

I’m sitting on a time bomb of debt and am dreading the moment it blows up on me. 

£40,000 unsecured debt to creditors all from the last few months and all from gambling. I’m getting all the help I need with my addition now before anyone points me towards GamCare, etc. 

I’ve made first repayments on some but not all of the debts. Some of this is zero interest, others high interest cash advances. The total monthly minimum repayments are about £750. 

I have priority outgoings of £1500 p/m and only two months emergency fund and I now have immediate cash flow problems due to losing my job. Although I am more than capable of working have no clear picture of when I will be employed again. My average annual salary when working has been £35k. 

I’m essentially insolvent at this stage but I’m not a homeowner and have absolutely no assets of great enough value to liquidate so I don’t think bankruptcy is the way forward here. 

I have opened up to my family at last and what a relief that is. One very generous, concerned, whatever you want to call it, relative has suggested making full and final settlement offers to all my creditors, offering 50% of the amount owed. My family has offered to lend me 20 grand with much more favourable repayment terms of £2500 per year over eight years from the time I get myself back in permanent employment. 

What I would like to know is how likely creditors are to accept a full and final settlement offer given the circumstances I’ve explained. Would 50% to each of them cut it or are would they probably hold out for more? 

Hi there

Thank you for getting in touch and sharing your situation. 

I'm sorry to hear you've lost your job and I can understand how difficult it must be at the moment, even without the worry of the debts. 

It's great to see you're getting help with your addiction. 

It would be difficult to say how likely your creditors would accept 50% of the debt as it would be at their discretion. If you would like to offer full and final settlement, you can find out more information about how to do that here. 

It's important you get confirmation in writing before sending them any money to them and ensure if they do accept the offer that they confirm they will no longer contact you for the remaining balance and will accept it as partial settlement. 

It may also be helpful to complete a budget to show your creditors that without the lump sum, you would struggle to repay them within a reasonable time frame. 

If you would like help with this, you're welcome to complete your budget online with StepChange. 

I hope this helps and wish you the best of luck with your offers. 

Patience

StepChange_Patience

daviesalie_2 said:

Hi, I've recently discovered an old debt that is 9 years old has re-appeared on my Credit Karma.  It's significantly impacted my credit score.  The debt is for £14 and is from 2015.  I've had no correspondence from Vodafone for at least 7 or 8 years.  The last time I contacted them to dispute this bill was in 2015, and then I moved address and heard nothing else from them.  I think this debt is now statute barred and shouldn't be added back onto my credit file.  The account is showing as "Delinquent", last updated 31/05/24 and one missed payment with no previous missed payments prior to the update in May.  There's no mention of it being in default on credit karma - its showing as if its a recent/new missed payment.  I've raised a dispute with Transunion (which was no mean feat and had to use the contact form because the system was sending me around in loops).  I tried ringing Vodafone yesterday to speak to someone about it, but I couldn't pass the security checks because the account is so old.  I therefore went into the vodafone store with ID and she gave me the info about when I last contacted them.  Should I contact Vodafone to challenge this with them directly or should I wait for Transunion.  I've just had a mortgage refused because of it and desperately need to resolve it urgently.  Any help and guidance would be greatly appreciated, thank you.

Hi there

Thank you for getting in touch and sharing your situation. 

I'm sorry to hear about what has happened with this debt. A debt can show on your credit file for 6 years from the date of default, if a default has recently appeared but you feel this isn't correct then you can query this with Vodafone.

It sounds like you've done the right thing raising a dispute and I would also consider a formal complaint to Vodafone. If you're not happy with the response or don't receive one then you're welcome to escalate this to the Communications Ombudsman after 8 weeks.

I hope this helps. 

Patience

ftb_40

HI I'm currently in around 41k of debt, spread over credit cards, personal loans, and store credit.
I have no assets to protect.
I've been working 7 days a week for years to pay the minimum payments and then I'm using what's left on my cards to get by meaning that at the end of each month, I'm back to square one.
working so much is having a detrimental effect on my physical and mental health and I can't go on like this any longer.
what do you think would be my best course of action?
I have registered with step change and they have suggested an iva but I keep seeing people say that an iva is a bad idea if I don't have assets to protect.
I'm so confused and I want my life back. help!

fatbelly

Did they suggest why you don't qualify for a DRO?

Or why bankruptcy would not work better than an IVA?