Struggling with debt? Ask a debt adviser a question

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  • sourcrates
    sourcrates Posts: 28,717
    First Anniversary Name Dropper First Post Photogenic
    Ambassador
    Hi there!

    I've worked my !!! off to get my debt from the teenage years sorted - I owed a lot (over 26k) , I now owe not a lot (less than 500£) .. it's taken years! But better that than go bankrupt - for me anyway. Now I've grown up I've realised what I should have back then if I'd spent it wisely, but hindsight eh ?

    I've kept one low credit limit card up to date - and worked my way down to a pretty much satisfied record - with the exception of one thing from 2010 - Lowell Group - £300 - which still appears to be open and active on my file.

    I'm confused - I thought it became Null after 6 years. No I have't had any contact with them at all... ?
    I would much rather pay it off, but it would need to be at a rate I can afford ( would probably only take me 3 - 5 months at the minimum. But if I contact them and make the offer .. are they going to start hounding me? Because they haven't been ...

    Just need to know what's the best route to take .... If I could phone them and pay it in one go I would .. but it's been a rough few months .. so I want to go the best way I can go with it, with minimal "damage"

    Six years with no,payment or written acknowledgement the debt will be statute barred and you should write and tell them so.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Hi looking for some help have ran up large debt 35kafter years burying head in sand time to tackle it . Our mortgage is 30k and house valued at 90k is it good idea to remortgage to become debt free as we are only making minimum payments on credit cards and will take forever to pay off
  • Hi Tom

    Thanks for your post and welcome to the forum.

    There’s no reason why you can’t have your home revalued and look at increasing your mortgage. If you decide to do this, you need to make sure your mortgage repayments are going to be affordable. I’m sure you already know but you can lose your home if you fall behind with your mortgage payments.

    There are other ways to manage unsecured debts such as credit cards and overdrafts without replying on further credit. Before you make a decision I’d recommend you use our Debt Remedy tool to create a budget online.

    This will help you work out what you can afford to pay towards your debts and you’ll be able to access a personal action plan online. This explains how our recommended debt solution works and what the next steps are. Here’s the link for Debt Remedy.

    All the best,

    Linsi

    tomking83 wrote: »
    Hi,

    I'm after some advice. My wife and I have been living in our house for nearly one year. When we bought it we knew that there was a lot of work that needed doing to the house. Over the next few months we saved and saved and my parents loaned us £25,000 to complete the work needed. Unfortunately, as often happens, it has gone over budget by about £10,000 and as a result I have had to use credit cards and overdraft to complete the work.
    I have read that there is the possibility of additional borrowing on our mortgage however we have already borrowed 85% of the value of the house. The work we have had done is extensive such as rewiring, new bathroom, kitchen, lounge etc. Is it worth getting the property revalued by the bank to at least relieve some of the debt?

    Many thanks,

    Tom
  • Hi

    Thanks for getting in touch and welcome to the forum.

    I’m surprised a debt from 2010 is still showing on your credit file. If the original debt was regulated by the Consumer Credit Act, a default must have been registered before the original creditor could sell or ‘assign’ the debt to a third party debt collection agency such as Lowell.

    Once six years has passed from the default date, the whole account should disappear from your credit file, even if there is an outstanding balance. This doesn’t automatically mean the debt becomes null.

    As sourcrates mentioned some debts become unenforceable if you haven’t made any payments or acknowledge a debt for six years or more. You can visit our website for more information about statue barred debts and there’s also a template letter you can use should you believe the debt with Lowell is statute barred.

    If the debt isn’t statute barred then it’s a good idea to work out what you can afford to pay and then contact Lowell to set up an arrangement to repay the debt. If Lowell isn’t happy with your offer it doesn’t mean you have to pay more. This is because unsecured debts are only entitled to a fair share of your disposable income.

    Lowell may look to take further action if the debt isn’t statute barred and you can find more information about the collection process on our website.

    I hope this helps,

    Linsi
    Hi there!

    I've worked my !!! off to get my debt from the teenage years sorted - I owed a lot (over 26k) , I now owe not a lot (less than 500£) .. it's taken years! But better that than go bankrupt - for me anyway. Now I've grown up I've realised what I should have back then if I'd spent it wisely, but hindsight eh ?

    I've kept one low credit limit card up to date - and worked my way down to a pretty much satisfied record - with the exception of one thing from 2010 - Lowell Group - £300 - which still appears to be open and active on my file.

    I'm confused - I thought it became Null after 6 years. No I have't had any contact with them at all... ?
    I would much rather pay it off, but it would need to be at a rate I can afford ( would probably only take me 3 - 5 months at the minimum. But if I contact them and make the offer .. are they going to start hounding me? Because they haven't been ...

    Just need to know what's the best route to take .... If I could phone them and pay it in one go I would .. but it's been a rough few months .. so I want to go the best way I can go with it, with minimal "damage"
  • StepChange_Rachael
    StepChange_Rachael Posts: 375
    First Anniversary First Post
    Organisation Representative
    Hi

    Thanks for your post and welcome to the forum.

    It’s definitely worth looking at all your options when deciding on how to tackle debt. Remortgaging can be a really good idea for some however; it’s worth bearing in mind that remortgaging isn’t a great option for everyone. It would depend on the product offered.

    It’s worth speaking to an independent mortgage advisory service to find out more about this option as you’d need to speak to some specially trained.

    Here you can find a link to this Martin Lewis page on reasons for and against re-mortgaging.

    If you also want to explore other options available to tackle your unsecured debt and find alternative ways to become debt free, then you can use the StepChange online Debt Remedy tool.

    Best of luck
    Rachael

    Ej14 wrote: »
    Hi looking for some help have ran up large debt 35kafter years burying head in sand time to tackle it . Our mortgage is 30k and house valued at 90k is it good idea to remortgage to become debt free as we are only making minimum payments on credit cards and will take forever to pay off
  • Matt_C74
    Matt_C74 Posts: 33
    PPI Party Pooper
    Forumite
    Good Morning

    Here's the situation

    2017 is the year to address things after years of burying my head in the sand, and so far all is well

    - refund from Wonga re payday loans, balance cleared.
    - refund from Wage Day Advance re payday loans, balance cleared.
    - Sunny rejected a complaint so we're with the FOS ATM.
    - Vanqis credit card paid off, zero balance.
    - Capital One credit card paid off, zero balance.
    - Lending Stream loan paid off, zero balance.
    - New bank account with no overdraft facility, healthy in the green.
    - Council tax arrears coming down steadily.

    Very, very happy with what I've achieved so far - feel like a new man!

    Anyway, have 1 outstanding issue ATM

    Several years ago I had a joint bank account with my Santander (I've been with my current bank since this year and was with the Co-Op before that from Sept 2009 to 2017 - Santander was the account before that so no activity on the account since early 2010 at the latest).

    My OH has started getting messages from Robinson Way about a Santander debt, I haven't had any contact from them at all...they haven't provided any detail - just a message asking for contact.

    I'm not sure what the debt is, to the best of my knowledge the account was left dormant/closed with nothing owing.

    What is my best course of action here? Should I or OH contact them or wait for them to put something in writing?

    I've checked my credit file and there's nothing there from Santander at all, no open account or closed account, no default, no CCJ

    Intend to check OHs credit file tonight

    Thanks in advance
  • StepChange_Allen
    StepChange_Allen Posts: 352
    First Anniversary First Post
    Organisation Representative
    Matt_C74 wrote: »
    Good Morning

    Here's the situation

    2017 is the year to address things after years of burying my head in the sand, and so far all is well

    - refund from Wonga re payday loans, balance cleared.
    - refund from Wage Day Advance re payday loans, balance cleared.
    - Sunny rejected a complaint so we're with the FOS ATM.
    - Vanqis credit card paid off, zero balance.
    - Capital One credit card paid off, zero balance.
    - Lending Stream loan paid off, zero balance.
    - New bank account with no overdraft facility, healthy in the green.
    - Council tax arrears coming down steadily.

    Very, very happy with what I've achieved so far - feel like a new man!

    Anyway, have 1 outstanding issue ATM

    Several years ago I had a joint bank account with my Santander (I've been with my current bank since this year and was with the Co-Op before that from Sept 2009 to 2017 - Santander was the account before that so no activity on the account since early 2010 at the latest).

    My OH has started getting messages from Robinson Way about a Santander debt, I haven't had any contact from them at all...they haven't provided any detail - just a message asking for contact.

    I'm not sure what the debt is, to the best of my knowledge the account was left dormant/closed with nothing owing.

    What is my best course of action here? Should I or OH contact them or wait for them to put something in writing?

    I've checked my credit file and there's nothing there from Santander at all, no open account or closed account, no default, no CCJ

    Intend to check OHs credit file tonight

    Thanks in advance

    Hi Matt

    Thanks for posting.

    It's great to hear that you've made such fantastic progress with your debts this year.

    It's up to your partner whether they contact Robinson Way now or wait for a letter; sometimes debt collection companies try calling/texting first as it's cheaper than sending a letter, but eventually they will write.

    As they're contacting your partner, it's probably best if they contact Robinson Way to find out what the debt is. As you think that the old bank account had no debt on it, could it be a different debt that your partner had?

    If it is an old bank account balance that hasn't been paid or acknowledged in writing by either of you for 6 years or more, the debt would be statute barred (legally unenforceable). If you need more information on statute barred debt, please visit www.stepchange.org and type 'statute barred' into the search box. In this case it wouldn't show on your credit file because any debt would have been defaulted over 6 years ago, so it would have dropped off.

    I hope this helps, please let us know if we can offer any further advice.

    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.
  • Matt_C74
    Matt_C74 Posts: 33
    PPI Party Pooper
    Forumite
    Thanks for the reply

    I think we're going to wait for them to write, my OH had no relationship with Santander before we opened the joint account so we're quite confident it's to do with that account and must be at least 7 years old. Will wait to see what arrives in the post

    Cheers
  • Hi im after a bit of advice.
    I have acumilated around £8000 in debt over 4 credit cards, ive been paying around £40-£50 per card per month and until recently its been fine as i did have a decent paid job. However i recently lost my full time job and am now only part time meaning it is a struggle to keep scraping the money together to pay these debts.
    I wrote a letter to the company's i owed, explaining my situation, giving them proof of my income and what my outgoings are and offered a lower monthly payment. However it is now a week later and they have sent me my usual statement at the usual minumum payments, meaning obviously they have completely ignored my letter.
    Is there anything else i can do?
    Wins: Cushelle Koala, Mama tea bundle, coconut ice cream recipe book
  • Good morning,

    Thank you for your post and welcome to the forum.

    I’m sorry to hear you lost your full-time job; it’s completely understandable why you’re not able to pay as much as you have previously.

    You’ve done the right thing to tell your creditors about the change in your employment. As your letters were sent a week ago they may not have reach the right department yet. You could try to email or call the creditors instead as this is usually quicker.

    You can also use our Debt Remedy tool to create a budget online. We’ll then be able to let you know which solutions are available to help you with your debts going forward.

    As your income has reduced it’s also worth checking your benefit entitlement as there may be benefits you can claim to help cover your living costs. There’s a benefits checker on our website, here’s the link.

    I hope this helps,

    Linsi
    Gellerbing wrote: »
    Hi im after a bit of advice.
    I have acumilated around £8000 in debt over 4 credit cards, ive been paying around £40-£50 per card per month and until recently its been fine as i did have a decent paid job. However i recently lost my full time job and am now only part time meaning it is a struggle to keep scraping the money together to pay these debts.
    I wrote a letter to the company's i owed, explaining my situation, giving them proof of my income and what my outgoings are and offered a lower monthly payment. However it is now a week later and they have sent me my usual statement at the usual minumum payments, meaning obviously they have completely ignored my letter.
    Is there anything else i can do?
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