Struggling with debt? Ask a stepchange debt adviser a question

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  • I have just applied for a DPP. I don’t fully understand what needs to be done but I’m at the end of all options. What’s happens when I received, complete and return the form for DPP? Will my family and employer find out? I have the below debts with an income of £1455 each month.
    Loan £12618 (£178 per month)
    CC £4325 (£175 per month)
    CC £1328 (£78 per month)
    CC £500 (£40 per month)
    CC £500 (£40 per month)
    Catalogue £1289 (£89 per month)
    Catalogue £876 (£76 per month)
    Catalogue £652 (43 per month)
    Rent £400 per month
    Family loan (bank loan in their name that I pay £12600 - £249 per month)
    I don’t own my home or car. I have two young children. My partner works (approx £270 per week and has his own loans/CC of £340 per month) but his job is ending in 3 weeks which causes even more worry.

    I just want to be able to pay my bills and not have anxiety attacks because of the stress. I just don’t see a way out of this. I have searched for soooo many CC with 0% and consolidation loans but I can’t get any. I need help before something silly happens 😢. My last hope is for a DPP to be good for me so I’m really hoping it is! Any advice? Anything at all please?

    Thank you to anyone who reads this and responds ❤️
  • StepChange_Rachael
    StepChange_Rachael Posts: 375
    First Anniversary First Post
    Organisation Representative
    Hi

    Welcome to the forum and thanks for posting.

    It sounds as though you’re going through a very difficult time at the moment and I’m sorry to hear your finances are causing you anxiety attacks.

    From the information you’ve provided, it looks like you’d definitely benefit from a solution that would make the payments more affordable, as they are very high. Hopefully I’ll be able to answer your concerns, but I’d also recommend speaking with the money advisory service who is helping you arrange the DPP (debt payment programme) if you’ve any concerns about the process. As a DPP is a formal solution available in Scotland, supported by the Scottish government, it means there are benefits such as interest and charges being stopped while you pay the debt back. Because it’s a more formal solution than a debt management plan (DMP) you will be listed on the DAS register, because a DPP is not insolvency it’s much less likely to impact your job and your work wouldn’t be directly made aware, unless you wanted the payment to be taken directly from your income. However, with any debt solution, it’s worth double checking your contract to make sure. For someone to be located on the register, they would have to be searched for directly.

    I’d recommend double checking the budget you’ve created with the money advisory service that recommended a DPP, making sure all the costs have been included for the expenditure you’ve mentioned, to help make sure payments are maintainable.

    I’m sure once you start a plan things will feel better and the anxiety will start to reduce. There are also lots of helpful forums on MSE that can help support you on your debt free journey and it might be worth speaking with your GP to get immediate help with anxiety in the interim.

    Thanks
    Rachael



    I have just applied for a DPP. I don’t fully understand what needs to be done but I’m at the end of all options. What’s happens when I received, complete and return the form for DPP? Will my family and employer find out? I have the below debts with an income of £1455 each month.
    Loan £12618 (£178 per month)
    CC £4325 (£175 per month)
    CC £1328 (£78 per month)
    CC £500 (£40 per month)
    CC £500 (£40 per month)
    Catalogue £1289 (£89 per month)
    Catalogue £876 (£76 per month)
    Catalogue £652 (43 per month)
    Rent £400 per month
    Family loan (bank loan in their name that I pay £12600 - £249 per month)
    I don’t own my home or car. I have two young children. My partner works (approx £270 per week and has his own loans/CC of £340 per month) but his job is ending in 3 weeks which causes even more worry.

    I just want to be able to pay my bills and not have anxiety attacks because of the stress. I just don’t see a way out of this. I have searched for soooo many CC with 0% and consolidation loans but I can’t get any. I need help before something silly happens 😢. My last hope is for a DPP to be good for me so I’m really hoping it is! Any advice? Anything at all please?

    Thank you to anyone who reads this and responds ❤️
  • Hi - I did ask this question to the general audience, but I am hoping a StepChange rep might pick up on this. I have emailed in but not had a reply.

    I have today made only my second dmp payment. However, I have found that I underestimated a couple of essential monthly expenses. I need to amend my payment.

    I appreciate this is early days in my agreement, however, can I ask to lower my payments?

    I am presently paying £336 but would like that to be £260.
  • StepChange_Rachael
    StepChange_Rachael Posts: 375
    First Anniversary First Post
    Organisation Representative
    Hi

    Thanks for getting in contact.

    I’m sure an advisor will email back soon, we’re very busy at the moment which is why you might not have had a reply yet.

    Your budget needs to be as accurate as possible so that a solution is maintainable. If you need to update your expenditure that’s no problem, but you’d need to contact the team that’s dealing with your plan and they’ll help discuss this with you. You can find our contact page here, the number would also be in your welcome pack.

    Thanks
    Rachael







    Hi - I did ask this question to the general audience, but I am hoping a StepChange rep might pick up on this. I have emailed in but not had a reply.

    I have today made only my second dmp payment. However, I have found that I underestimated a couple of essential monthly expenses. I need to amend my payment.

    I appreciate this is early days in my agreement, however, can I ask to lower my payments?

    I am presently paying £336 but would like that to be £260.
  • margaretkb
    margaretkb Posts: 40
    First Post First Anniversary Combo Breaker
    Forumite
    edited 4 December 2019 at 3:09PM
    Hi
    A long story but in a nut shell I have hidden debts (£11,000) which I am now paying off. I know the sensible thing is to come clean and tell my husband but am not in a position to do this - the advice I am looking for is: we have talked about moving, if we were to buy another property and take out a mortgage will my debts be exposed and will this stop us getting a mortgage? My credit score is good as I have always made payments on time. My husband is very goid with money and has lots of savings. He asked his bank about a mortgage and they agreed - but assuming this was in principle they didn't do a full credit check on both of us?? I hope people won't judge me, I don't really want to discuss why it is a hidden debt, believe me it has been a huge weight to carry....
  • Meant to say thank you !
  • Hi,

    I currently owe just over £40k across different accounts. Two with Lowell, one with Robinson Way and one with DMS.
    I am seperating from my partner and he is going to buy me out of my share of the house. After paying off the car I should be left with about £15k, but I will need to keep a bit behind to help me set up and find somewhere new to live. I would like to use £10 - £12k of that to get rid of my debts. What is the likelyhood of them accepting a 20% F & F settlement offer? Considering, I will no longer own the house and have any equity left in it, the only other asset I will have is my car which is worth just under £5k. Clearly my financial situation is now in a worse position? Would this make them more inclined to accept my offer?
  • StepChange_Allen
    StepChange_Allen Posts: 352
    First Anniversary First Post
    Organisation Representative
    margaretkb wrote: »
    Hi
    A long story but in a nut shell I have hidden debts (£11,000) which I am now paying off. I know the sensible thing is to come clean and tell my husband but am not in a position to do this - the advice I am looking for is: we have talked about moving, if we were to buy another property and take out a mortgage will my debts be exposed and will this stop us getting a mortgage? My credit score is good as I have always made payments on time. My husband is very goid with money and has lots of savings. He asked his bank about a mortgage and they agreed - but assuming this was in principle they didn't do a full credit check on both of us?? I hope people won't judge me, I don't really want to discuss why it is a hidden debt, believe me it has been a huge weight to carry....


    Hi Margaret

    Thanks for your post.

    I don't know for sure, but I suspect this was an affordability assessment, advising how much they'd likely to be able to lend you, so you know what house prices to look at. I say this as it doesn't sound like you've got a specific house in mind.

    If your credit rating is good, that's positive, but there may be one issue, which could make your husband aware of the debts. The debts will be classed as spending commitments, which they look at to consider your affordability of monthly payments. So, you will have to declare any debt repayments and debt balances to the mortgage lender. I'd imagine that it's likely that your husband would become aware of this as a result.

    It wouldn't necessarily stop you getting a mortgage, but it could reduce the amount you can borrow, or how much you can pay each month (which could lead to a longer term with more interest payable, for example).

    I hope this is helpful.

    Allen
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • StepChange_Allen
    StepChange_Allen Posts: 352
    First Anniversary First Post
    Organisation Representative
    mia52 wrote: »
    Hi,

    I currently owe just over £40k across different accounts. Two with Lowell, one with Robinson Way and one with DMS.
    I am seperating from my partner and he is going to buy me out of my share of the house. After paying off the car I should be left with about £15k, but I will need to keep a bit behind to help me set up and find somewhere new to live. I would like to use £10 - £12k of that to get rid of my debts. What is the likelyhood of them accepting a 20% F & F settlement offer? Considering, I will no longer own the house and have any equity left in it, the only other asset I will have is my car which is worth just under £5k. Clearly my financial situation is now in a worse position? Would this make them more inclined to accept my offer?


    Hi Mia

    Welcome to the forum and thanks for posting.

    Decisions on settlement offers are almost impossible to predict, so I can't say what the chances of acceptance are for you. They vary based on at least the following factors:

    - Payment history (e.g. less likely to accept if not missed any payments yet)
    - Percentage being offered (the higher, the better)
    - Age: The older the person, the more likely acceptance could be, as there's in theory less years left to pay
    - The company itself. Some are more open to settlement offers than others
    - What the alternative is. For example, if your budget shows you could clear the debts in 5 years, they may prefer that, but if you were never realistically going to be able to clear via instalments, it's more likely they'd accept.

    So basically, when the dust has settled, if you want to offer settlements to everyone, I'd recommend taking the following steps:

    - Offer everyone the same percentage of their balance. i.e. if you have 25% of the total balance, I'd offer them all 25% of their balance
    - Make the offer in writing, stating that this is an full and final offer, on the basis that the rest of the debt is written off. Include a budget and list of debts in there to demonstrate your situation
    - Only make the payments when they've all confirmed acceptance

    I hope this helps.

    Allen
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • The girl I'm seeing had an outstanding council tax debt of around £1800 from when she lived with her ex over a year ago.

    She was paying all the bills and he was responsible for paying the council tax. Anyway, 6 months ago he outright agreed over text that he would take care of the debt as it was his to pay.

    Fast forward 6 months our lass has had a letter through her door from Jacobs debt recovery saying they are persuing her for the full amount and for her to give them a phone call immediately. She's obviously panicked and phoned them and she's been told that he's taken his name off the bill and that she needs to agree to a payment plan to pay the amount back which is £50 per month for however long. Now I have 2 questions...

    Even though he has agreed to pay the debt via text I know this won't be a legitimate cause for her not to be liable. What I'm asking is has she accepted responsability by agreeing to a payment plan? The other question is more of a legality but they were both on the tenancy and registered as paying bills so how has he managed to take his name off the debt and leave it solely to her? Any advice will be appreciated before we approach CAB / Stepchange?
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