Struggling with debt? Ask a debt adviser a question

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  • yoyo33
    yoyo33 Posts: 20
    First Anniversary Combo Breaker
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    Hi, id be very grateful for a bit of advice please.


    Me and my husband owe 60k, I know this a hell of a lot, this includes 24k unsecured loan to nram , we didn't realise until recently how much we owed, we've been plodding along for what feels like forever, paying at least minimum pymts each month but finding ourselves using cards again to get through,
    recently I had to leave my previous job and I've become self employed, this is due to childcare issues, i went through so many options but this seemed the best way to manage my own childcare, but I'm just starting out so business is a bit slow at the moment, my husband has a good income and gets monthly commission bonuses depending on his sales that month.


    I contacted stepchange origionally who referred me to business debtline as im self employed, I've had numerous conversations with them they've been very helpful, but each time I get slightly different advice. about the bonus.


    business debtline say, to have a debt management put in place we have to have at least £500 spare each month as the dmp has to be cleared in 10 years and they said this is the criteria of stepchange. which is fine... if my husbands bonus is taken into consideration or at least an average of it. but today they said they will only take the basic, which will leave us short but about £200 off that £500 payment,
    the thing is, they said once they've gone through my budget plan this dmp will be passed back to stepchange. and I know stepchange set up dmps longer than 10 years, they lady on the phone today said once the budget is set up (which they wont do till the end of nov so they can get an average of my self employed income) I can then ask stepchange if my partners bonuses can be considered, his bonuses are at least 500 a month and upto 1500 .
    this seems weird that we couldn't use money that been so regular,
    the lady mentioned that maybe an IVA may be a better option, but im very unsure of them but I don't want to go down that route as it worries me because we rent, so could find ourselves in a situation if our landlord decides to sell up. and really don't want to bring this up with my landlord
    this is all really worrying me.
    I really don't feel I can cope with doing a self managed dmp, ive spent so long on the phone to creditors lately, that's a part time job on its own. and being pressurised is so stressful.
    could you shine some light on this bonus situation please its making me feel really low at the moment, im so worried about all of this and don't know which way to turn.


    thankyou in advance for any replies.
  • Hello

    Thanks for your message and welcome to the forum. I’m sorry to hear you’ve been feeling under pressure from your creditors. However, I’m glad to hear that StepChange and the Business Debtline have been giving you advice and support alongside this. It sounds like you’re getting closer to a solution, and the creditors are more likely to start giving you some space once a plan is in place.

    If you’ve completed an assessment with BDL and they’ve referred you back to us at StepChange, then we should be able to support you with a DMP. You don’t need to consider an IVA any further if you’re concerned about the impact it could have on your ability to get onto a future tenancy or remortgage. In any case, an IVA could have an impact on your business in ways that StepChange are unable to advise you on, so you’d need to speak to Business Debtline or Aperture about this.

    When and if you’re referred back to StepChange for a DMP, I’d recommend reviewing your budget with us so we can take your partner’s bonuses and commission into account, especially if they’re regular and he wants to contribute towards your debt payments. If we’re able to support you with a DMP, ideally we’ll help you clear the debt in less than 10 years, but it’s also possible to be on a DMP for longer than this.

    I hope you’ve found this helpful.

    Joe



    yoyo33 wrote: »
    Hi, id be very grateful for a bit of advice please.


    Me and my husband owe 60k, I know this a hell of a lot, this includes 24k unsecured loan to nram , we didn't realise until recently how much we owed, we've been plodding along for what feels like forever, paying at least minimum pymts each month but finding ourselves using cards again to get through,
    recently I had to leave my previous job and I've become self employed, this is due to childcare issues, i went through so many options but this seemed the best way to manage my own childcare, but I'm just starting out so business is a bit slow at the moment, my husband has a good income and gets monthly commission bonuses depending on his sales that month.


    I contacted stepchange origionally who referred me to business debtline as im self employed, I've had numerous conversations with them they've been very helpful, but each time I get slightly different advice. about the bonus.


    business debtline say, to have a debt management put in place we have to have at least £500 spare each month as the dmp has to be cleared in 10 years and they said this is the criteria of stepchange. which is fine... if my husbands bonus is taken into consideration or at least an average of it. but today they said they will only take the basic, which will leave us short but about £200 off that £500 payment,
    the thing is, they said once they've gone through my budget plan this dmp will be passed back to stepchange. and I know stepchange set up dmps longer than 10 years, they lady on the phone today said once the budget is set up (which they wont do till the end of nov so they can get an average of my self employed income) I can then ask stepchange if my partners bonuses can be considered, his bonuses are at least 500 a month and upto 1500 .
    this seems weird that we couldn't use money that been so regular,
    the lady mentioned that maybe an IVA may be a better option, but im very unsure of them but I don't want to go down that route as it worries me because we rent, so could find ourselves in a situation if our landlord decides to sell up. and really don't want to bring this up with my landlord
    this is all really worrying me.
    I really don't feel I can cope with doing a self managed dmp, ive spent so long on the phone to creditors lately, that's a part time job on its own. and being pressurised is so stressful.
    could you shine some light on this bonus situation please its making me feel really low at the moment, im so worried about all of this and don't know which way to turn.


    thankyou in advance for any replies.
  • I have a question specifically about StepChange. Once you have done the Debt Remedy Tool and it has advised a DMP and then you download the pack sent to you and complete all the paperwork, is the amount you are recommended to pay via the Debt Remedy Tool definitely the amount you would be required to pay each month or is it possible that when Stepchange receive all the paperwork and a person there reviews it, might they suggest a higher payment per month, for example if they considered some of you outgoings too high? I am just wondering if the online tool would have flagged up if some expenses were too high or if a person reviews it when it goes to StepChange. Thanks
  • Hello

    Thanks for your post and welcome to the forum.

    The advice we give is always tailored to you. Your budget has to be livable and realistic going forwards. The amount we advise you pay towards a DMP is calculated by subtracting your monthly household expenditure from your monthly income. As long as the budget you’ve built with us is correct, we’ll never recommend a monthly repayment you can’t afford.

    Debt Remedy does flag up expenditure that’s higher than average so we can discuss it with you in further detail. We can either recommend reductions, or leave notes on your budget explaining why your costs are higher.

    We recommend you make reductions to your spending if it looks like your DMP will take a long time to finish, or if you’re spending more than the average whilst offering less than the minimum payments to your creditors. This is because in these cases your creditors are more likely to keep adding interest & charges and take collections action.

    However, until you decide to review the budget again with us, we won’t change the recommended monthly payment to your DMP. If you want to review your budget in further detail, I recommend getting in touch with us by calling the contact number in your personal action plan.

    We look forward to hearing from you soon.


    Thanks

    Joe


    Knitqueen wrote: »
    I have a question specifically about StepChange. Once you have done the Debt Remedy Tool and it has advised a DMP and then you download the pack sent to you and complete all the paperwork, is the amount you are recommended to pay via the Debt Remedy Tool definitely the amount you would be required to pay each month or is it possible that when Stepchange receive all the paperwork and a person there reviews it, might they suggest a higher payment per month, for example if they considered some of you outgoings too high? I am just wondering if the online tool would have flagged up if some expenses were too high or if a person reviews it when it goes to StepChange. Thanks
  • Hello, I am wAnting some advice, me and my husband both work full time and have a good salary comming in each month. We have made stupid financial mistakes in the past and have ended up with 4 loans between us- totalling 27,000 debt. We are home owner and have a mortgage. We are able to make all the payments and our bills but have very little left over and due to overspending are struggling to enjoy life lately. All our loans are finished in 3 years but this just seems too long to be in this position for. The loans are a result of consolidating debts on credit cards which has meant less payments a month but our total payments for debt a month are £900.
  • Hi all,
    I am looking for some advice on reducing my credit card debt.. I have embarrassingly let things go slightly and ended up acquiring a lot of interest with out realizing.. so my current credit card balance is 15,000.
    I would like to transfer this to a 0% balance transfer card, but cannot find one which would allow me to transfer this much. Does anyone have any ideas?
    Many thanks in advance.
  • Hello

    Thank you so much for the opportunity to ask for advice!

    Since 2010 have been making token payments for two banks, Barckleys and Natwest. One pound each.
    I took out the loans to study. I completed my courses but my health in the process started to decline so much that I have not been able to recover it
    and since 2011 have been unemployed. I am solely relying on my family and friends to survive. I am Hungarian and left the UK at the end of 2011.

    Have been trying to keep up with the payments but its a struggle even to pay as little as £2 a month because I don't have any money and I am not given any funds to support myself.

    I was wondering if there is a possibility to stop the payments and be free from them.

    Thank you very much.
  • StepChange_Kirsty
    StepChange_Kirsty Posts: 180 Organisation Representative
    Hi there,

    Thanks for your post and welcome to the forum.

    You mention at the moment you’re in a position to make all your payments and your household bills. If you’re also able to maintain your day to day living costs then we would recommend continuing to make your payments as they fall due. There is no quick fix to dealing with debts so whilst I understand 3 years may seem a long time, when dealing with debts it’s quite reasonable.

    I’d recommend you both put together a budget of your income, expenditure and debts so you can get a full understanding of your current financial position. If you felt your budget would be unsustainable moving forward I would recommend getting in touch with us in order we can give you some further advice.

    If you’d like to contact us by phone you can find our contact telephone number here. Alternatively you could use our online Debt Remedy tool which guides you through putting a budget together in your own time and will produce a personal action plan at the end to explain what your best options are for dealing with debts. You can find our Debt Remedy tool here.

    I hope this helps.

    Kirsty


    Hello, I am wAnting some advice, me and my husband both work full time and have a good salary comming in each month. We have made stupid financial mistakes in the past and have ended up with 4 loans between us- totalling 27,000 debt. We are home owner and have a mortgage. We are able to make all the payments and our bills but have very little left over and due to overspending are struggling to enjoy life lately. All our loans are finished in 3 years but this just seems too long to be in this position for. The loans are a result of consolidating debts on credit cards which has meant less payments a month but our total payments for debt a month are £900.
    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_Kirsty
    StepChange_Kirsty Posts: 180 Organisation Representative
    Hi there,

    Thanks for your post.

    As a debt advice charity we cannot advise on taking out further credit so we don’t know if there are any suitable 0% credit cards you can transfer to. If you’re looking at this option you just need to make sure you’ll be able to meet the payments on the new card as they fall due and we would always recommend paying more than the minimum payments in order to reduce the balance more quickly.

    If you’re finding it a struggle to meet the minimum payments on your existing credit card we can certainly give you advice on managing this debt. You can either give us a call or use our online Debt Remedy tool for further help and advice.

    I hope this helps.

    Kirsty

    Nautiyal wrote: »
    Hi all,
    I am looking for some advice on reducing my credit card debt.. I have embarrassingly let things go slightly and ended up acquiring a lot of interest with out realizing.. so my current credit card balance is 15,000.
    I would like to transfer this to a 0% balance transfer card, but cannot find one which would allow me to transfer this much. Does anyone have any ideas?
    Many thanks in advance.
    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_Kirsty
    StepChange_Kirsty Posts: 180 Organisation Representative
    Hi Bearflower,

    Thanks for your post and welcome to the forum.

    As you’re living outside of the UK at the moment unfortunately we are unable to offer you advice. I appreciate the debts were taken out in the UK but the laws which govern debt recovery in Hungary are very different to those in the UK and we do not have the required knowledge to advise you.

    We’d recommend speaking to a debt advice organisation for further support with this.

    I’m sorry we’ve not been able to help you at the moment.

    All the best,

    Kirsty


    Bearflower wrote: »
    Hello

    Thank you so much for the opportunity to ask for advice!

    Since 2010 have been making token payments for two banks, Barckleys and Natwest. One pound each.
    I took out the loans to study. I completed my courses but my health in the process started to decline so much that I have not been able to recover it
    and since 2011 have been unemployed. I am solely relying on my family and friends to survive. I am Hungarian and left the UK at the end of 2011.

    Have been trying to keep up with the payments but its a struggle even to pay as little as £2 a month because I don't have any money and I am not given any funds to support myself.

    I was wondering if there is a possibility to stop the payments and be free from them.

    Thank you very much.
    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.
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