Steps to Change query

erinsg94

Hi, I am considering using either a 0% credit card or a debt consolidation personal loan to clear £3500 of overdraft debts I currently have. 

I contacted steps to change and I'm wondering whether they are in fact an independent charity, or a bank similar to other debt consolidation banks which I have heard horror stories about overcharging on interest etc. before I invest any time to researching it. I have been offered a loan of £4000 with a 22.9% APR from Barclays, and I'm wondering whether this is considered cheaper than most for someone with my credit score (on the lower side). 

As a side question, I am also struggling to try and budget, and struggling to work out how much I can definitely afford to pay back a month, this scares me as I am very worried about defaulting on payments/having more debts whilst paying back any debt consolidation cards/loans. 

Thanks very much in advance. 

sourcrates

I think your a tad confused here, first off, forget consolidation, very bad idea, as you learn nothing from it, you admit your struggling to budget, and before long, you will rack up that debt again on another card/loan/OD whatever, and you`ll find yourself in an even deeper hole.

Are you refereeing to stepchange ?

They are a debt charity, nothing to do with banks or consolidation loans, there funding comes from creditors yes, but that does not effect the advice given to you.

As your debts are relatively small, debt management may be a more appropriate response rather than attempting to borrow further funds, its a course of action which hasn't worked out very well for many.

EssexHebridean

Agree that consolidation should be a hard no for you. it *can* work, on a very occasional basis, for some people. Those people tend to be those who have, in spite of a good solid budget, ended up with debt through circumstances outside of their control though. it is NOT a solution for anyone starting from a position of literally not knowing how much spare money they have each month - or indeed, even if anything is spare at all! 

Before you do anything else, your first step is to complete your SOA (Statement of Affairs) - as that will allow you to get a proper grasp on exactly what you spend. If you post it into here we can also help you identify areas where savings can be made, and also areas where you might not be conscious of expenditure. 

You do need to get the situation sorted though - overdrafts are a particularly dangerous form of debt as they can quite literally be recalled at any time. 

SusieT

I thought it odd that the OP said about steps to change, so googled it and it seems that it may be step de6t change who were told off in 2019 for imitating stepchange. 
Just in case the OP does want to use them, please make sure that the website is called stepchange as others may well be fee paying. 
I totally agree with the above posters, consolidation will not help you and could make things worse. You have done well coming here to get advice, I hope you manage to sort it out

erinsg94

Thank you for the advice re consolidation, I agree they are a big risk but I am struggling to make ends meet at the minute and thought that a loan with dedicated repayments would help, I will avoid them for the time being based on this advice. 

Is StepChange the same as the website StepChange? Seems an obvious question, but I put my details (name, email address & phone number) into their website (I have checked this on my history and am very confused as it very much seemed to be the StepChange website and is listed as that website 😭) to see if they could help and I received an email from admin@debthelp.team - I have attached a screenshot of and a call from  030003336780427 who went straight to a hold tune when I rang them back. I am now worried that instead of contacting a charity a private debt consolidation company has access to my details which is very worrying!!! I have googled it and a very similar sounding company/org is listed on the Financial Conduct Authority website as an unauthorised business, although the number has changed it is still 0300 and they do change numbers all the time. (I cannot link The FCA listing as I am too new to MSE but it just came up on Google).  

Thanks so much for the replies so far and the help. Commited to getting this sorted and any help is appreciated, will look into what an SoA is this evening and post on here. 

EssexHebridean

You can find the link to am SOA (Statement of Affairs) calculator in my signature, below

SusieT

erinsg94 said:

Thank you for the advice re consolidation, I agree they are a big risk but I am struggling to make ends meet at the minute and thought that a loan with dedicated repayments would help, I will avoid them for the time being based on this advice. 

Is StepChange the same as the website StepChange? Seems an obvious question, but I put my details (name, email address & phone number) into their website (I have checked this on my history and am very confused as it very much seemed to be the StepChange website and is listed as that website 😭) to see if they could help and I received an email from admin@debthelp.team - I have attached a screenshot of and a call from  030003336780427 who went straight to a hold tune when I rang them back. I am now worried that instead of contacting a charity a private debt consolidation company has access to my details which is very worrying!!! I have googled it and a very similar sounding company/org is listed on the Financial Conduct Authority website as an unauthorised business, although the number has changed it is still 0300 and they do change numbers all the time. (I cannot link The FCA listing as I am too new to MSE but it just came up on Google).  

Thanks so much for the replies so far and the help. Commited to getting this sorted and any help is appreciated, will look into what an SoA is this evening and post on here. 

I have just googled debt changING team email https://www.fca.org.uk/news/warnings/step-changing and this warning came up, Please do not use them and instead look at stepchange who are a debt charity.

Brie

You have said you were considering using a 0% credit card.  Do you mean doing a 0% balance transfer?  Is this from a card you already have?  If yes and yes then that's what I would look at doing.

And this potential loan from Barclays at 22.9% - how does that compare to the current rate of your £3500 card debt?  And why take more than you need?  I know that sometimes there's a lower interest rate for different loan amounts but sounds like you shouldn't be taking on anything extra if you can help it.  

Whatever happens you need to find a way to exist without using the card - especially if you manage to shift the debt.  That would be a definite downward spiral!!

flipflopflo

This is the official @StepChange site, is it the one that you used?

https://www.stepchange.org/

MalMonroe

Hi, this is Stepchange's website - https://www.stepchange.org/

and this is their phone number - 0800 138 1111

The number you have given - 030003336780427 - seems a bit too long to be a UK number? 

Stepchange is a fabulous, free, debt help organisation who managed to help me when I was in much more debt than you are now and I was on the verge of a nervous breakdown. 

Try phoning the number I've given above. They will be able to tell you all about their service and what they can do for you.
If your SOA is ready, all the better. They'll want to know about it. 

They can help you. Their website has orange and purple on it.

There are other people who can also help you, free of charge. Look at the bottom of sourcrates' message, above, where they are listed so you can click on them. 

Stepchange's website says they are still open from 8am to 8pm each weekday. You have nothing whatsoever to lose by giving them a call. Even if you have to wait a while to speak to someone. Because it's not only free help, it's a free phone call.

An SOA is simply a Statement Of Account - that is, all your incomings and outgoings. 

MalMonroe

PS Sorry I don't know why my message is blue!