Struggling with debt? Ask a debt adviser a question

StepChange_Kirsty · 24 August 2017 at 3:10PM

Hi,

Thanks for your message.

If you have an account with funds and an account with arrears and both accounts are in the same names then yes the right of set off does apply. This means we would recommend moving the money to a bank you don’t have any debts with in order to make sure it is safe. You can find more information about bank accounts here.

Depending on the amount of your savings, you might want to consider using some of these funds to pay towards the debts in order to reduce the amount you have outstanding. There is very useful article on the main MSE site which talks about repaying debts with savings. If this is something you wanted to do whilst in a debt management plan (DMP), we can give you help and advice. You can find our contact details here.

I hope this helps.

Thanks

Kirsty

Bewildered_Banshee wrote: »

Hi.
I'm going to do a dmp as my debt remedy suggested but wondered what would happen with a joint savings account and offset? could a c.c debt offset against a joint account?
Thanks

StepChange_Kirsty · 24 August 2017 at 3:26PM

Hi,

Thanks for your post and welcome to the forum.

As a Debt Advice charity I’m afraid we do not specialise in providing advice on balance transfers. You would need to contact HSBC directly to find out if you can transfer the balance from Very to that card. This article on the main MSE site also provides some useful information about using credit cards for balance transfers.

If you’re struggling with any existing debt we can certainly give you some help and advice on dealing with it. To do this we would need you to complete a budget with us and there are a couple of ways you can access our service:

• Firstly, you can use the Debt Remedy tool within our website. This is a self-help tool which will guide you through the process of putting a budget together in your own time. If you have any questions you can call one of our Digital Debt Advisors who will talk you through the process.

• Alternatively, if you would prefer to speak to us over the phone, you can call our Helpline on 0800 138 1111 and have a debt advice session with one of our specialist advisors. We are open from 8am to 8pm Monday to Friday and 8am to 4pm on Saturdays. Calls are free from all landlines and major mobile phone networks.

All the best.

Kirsty

Scoofie wrote: »

Hi there. I have a hsbc balance transfer card. I am looking to transfer the balance from my very credit card to this new card to save money. Can this be done? Thanks

kairiozuki · 29 August 2017 at 3:28PM

Dear StepChange_Kirsty,

I Been told that i can finish off my DRO while i already moved away, as long as you do it in 3 years period. As you suggested, i did contact StepChange DRO Team, and one person looked like wanted to help, and send my all info from previous Debt concerns to Advice Team.

However, after few days i got a very disappointing advice, which says like:
As you have permanently moved out of the UK, we are no longer able to provide you with the best advice. We can advise you on the actions your creditors could take to collect debts within the UK or Ireland, but not on the actions they can take in the country you’re now living.

I recommend you seek advice in your current country and determine the best way forward.

It doesn't sound that they really keen on helping me anymore. Since i moved out, they don't care what's gonna happen for me... By Debt is UK Based, if i go somewhere in my country who gonna bother to do anything anyway? This is very frustrating... 1 says that you can do it within 3 years after you leave, but when you actually leave over says that he don't care about my debt anymore...

StepChange_Allen · 30 August 2017 at 5:52PM

kairiozuki wrote: »

Dear StepChange_Kirsty,

I Been told that i can finish off my DRO while i already moved away, as long as you do it in 3 years period. As you suggested, i did contact StepChange DRO Team, and one person looked like wanted to help, and send my all info from previous Debt concerns to Advice Team.

However, after few days i got a very disappointing advice, which says like:
As you have permanently moved out of the UK, we are no longer able to provide you with the best advice. We can advise you on the actions your creditors could take to collect debts within the UK or Ireland, but not on the actions they can take in the country you’re now living.

I recommend you seek advice in your current country and determine the best way forward.

It doesn't sound that they really keen on helping me anymore. Since i moved out, they don't care what's gonna happen for me... By Debt is UK Based, if i go somewhere in my country who gonna bother to do anything anyway? This is very frustrating... 1 says that you can do it within 3 years after you leave, but when you actually leave over says that he don't care about my debt anymore...

Hi there

Thanks for posting.

I'm sorry for any confusion that has occurred with regards to your application for a debt relief order (DRO). I have double checked our process and procedures around this and can confirm the following:

- If you qualify for a DRO via all other criteria, it is possible to still apply for a DRO as long as you have lived in the UK within the last three years.

- However, we have a policy at the charity now that we can't give debt advice to people that don't live in the UK any more. This is because we can't guarantee that the advice is the best for those people. Debt solutions, debt collections processes and so on vary between different countries, so even though your debt is all UK debt, creditors could use your country's processes to collect it.

We advise to seek debt advice within your country of residence. However if you wish, you could look to apply for a DRO with a different organisation (intermediary) in the UK.

I'll send you a direct message with some information on if you'd like to discuss things any further.

Best wishes.

Allen

andyst · 5 September 2017 at 1:01PM

HI - I currently have an IVA and am (slowlyl!) paying off debts owed to various banks/credit cards.
Over the years these debts have been bought/transferred to other companies who have written to me saying they are now handling my debt and to keep paying as normal.
My question is: I have heard from someone who said that he had various 'sold-on' debts, and filled in a template letter asking the companies to PROVE that the debt they had was his. Apparently they couldn't and he was let off £45,000 of debt.
Has anyone heard of this, or have I been fed nonsense!
Thanks!

StepChange_Private_Messages · 7 September 2017 at 8:59AM

Hi

Welcome to the forum and thanks for your post.

Creditors can sell debts on and often do once the original contract has defaulted.

This is less common when the debts are included in an individual voluntary arrangement (IVA) but can still happen. This won’t impact the IVA as it’s a legally binding agreement.

If a debt has been sold on the creditor now collecting for the debt is legally liable to do so.

If you weren’t in an IVA, the new creditor could collect for the debt under the original contractual agreement, but as you are they’ll be bound under the terms of the IVA.

A creditor will have to provide evidence that a debt is outstanding and that they are legally collecting for the debt, otherwise they won't be able to take further action to collect.

In most circumstances the creditor will be able to provide this information, particularly as the debt is in a legally binding arrangement through the IVA.

If you’ve any queries regarding your IVA your insolvency practitioner or the Insolvency Service should be able to help further.

Thanks
Rachael

andyst wrote: »

HI - I currently have an IVA and am (slowlyl!) paying off debts owed to various banks/credit cards.
Over the years these debts have been bought/transferred to other companies who have written to me saying they are now handling my debt and to keep paying as normal.
My question is: I have heard from someone who said that he had various 'sold-on' debts, and filled in a template letter asking the companies to PROVE that the debt they had was his. Apparently they couldn't and he was let off £45,000 of debt.
Has anyone heard of this, or have I been fed nonsense!
Thanks!

laurenmarsters · 8 September 2017 at 2:05PM

Hello, I am writing about debts that I have incurred over the past few years. I am only 22 but have 2 credit cards, two overdrafts and a loan. I took out a £4000 loan but my dad needed it more than me so I gave him the money and he hasn't been able to pay me back. I find that I am paying so much out every month in interest but always continue spending on my credit card because I need to by the end of the month. I dont know whether I should look into getting an IVA? or DMP? the problem is that I will be wanting to buy a house in a few years and at the moment I cant afford to save any. I have been speaking to Payplan and they have said that they think an IVA is more suitable, but I dont want it to affect me for years.

Former_StepChange_Linsi · 8 September 2017 at 5:55PM

Hi Lauren

Thank you for your message and welcome to the forum.

I’m sorry to hear you’re struggling and have to rely on your credit card at the end of the month.

Without knowing more about your situation I can’t say whether an IVA or a DMP would be right for you. If you’d like a second opinion on the best way to manage your debts I’d recommend you use our online Debt Remedy tool, here’s the link.

The tool will help you create a budget and then recommend a solution tailored to your circumstances. You’ll be able to download a personal action plan which will explain the benefits and considerations of the recommended solution and any alternative solutions to help you decide on the best way forward.

I hope this helps.

Linsi

laurenmarsters wrote: »

Hello, I am writing about debts that I have incurred over the past few years. I am only 22 but have 2 credit cards, two overdrafts and a loan. I took out a £4000 loan but my dad needed it more than me so I gave him the money and he hasn't been able to pay me back. I find that I am paying so much out every month in interest but always continue spending on my credit card because I need to by the end of the month. I dont know whether I should look into getting an IVA? or DMP? the problem is that I will be wanting to buy a house in a few years and at the moment I cant afford to save any. I have been speaking to Payplan and they have said that they think an IVA is more suitable, but I dont want it to affect me for years.

meme86 · 14 September 2017 at 12:34PM

I've been in a DMP for several years now, but now things are very stable and better, I could get off this, and start to rebuild

I have just looked at my credit report and 2 entries from Lloyds and Sainsburys both say Current status: Default/Ended and credit agreement has ended and also the accounts were settled in June 2012...
With it saying the accounts were settled in 2012, does it just mean that the agreement was cancelled?

Would it be wise to get in touch (in writing) to ask about going back to the 'normal/original' monthly repayments from when I originally took the loans out, or could they stick many late charges on top, and therefore would it be better so stay on the DMP, and just significantly increase the repayments that way because there would be no benefit for me coming off?
Or maybe hold fire for a couple of months, and then send them settlement offers?

StepChange_Rachael · 15 September 2017 at 8:56AM

Hi

Thanks for posting.

Credit files can be difficult to understand. Once a debt has a reduced payment made towards it, like in a DMP or there have been missed payments the debt will default at some point.

This will be noted on your credit file as a default. The credit agreement will end at this point. Defaults come off automatically after 6 years from the date it was issued.

When a debt is classed as settled on your credit file, as far as I’m aware this means that the debt repayment agreement has finished and the debt is settled.

Settled can either mean the debt has been paid back in full or the creditor has agreed to stop collecting for a debt. A creditor agreeing to a reduced payment and settling the account usually happens when a partial lump sum has been agreed as payment to the creditor and usually shows as a partial settlement on the credit file.

It may be worth checking with the provider of your DMP as to what is left to pay and to which creditors. The DMP company should be providing you with updates.

You’ve mentioned you’ve been in the DMP for several years; it’d be worth checking where you are and how much is left to be paid. If it’s a long time then I’d suggest seeking free, impartial debt advice to see if there are other options available, especially if there are changes in your financial situation.

However, if you feel that you can afford to increase your payments to the original amount then it’s worth doing as the debts will clear quicker.

A creditor won’t remove a default on your credit file once you start the original payments again but it will show the debts have been paid off sooner.

I hope this helps.

Thanks
Rachael

meme86 wrote: »

I've been in a DMP for several years now, but now things are very stable and better, I could get off this, and start to rebuild

I have just looked at my credit report and 2 entries from Lloyds and Sainsburys both say Current status: Default/Ended and credit agreement has ended and also the accounts were settled in June 2012...
With it saying the accounts were settled in 2012, does it just mean that the agreement was cancelled?

Would it be wise to get in touch (in writing) to ask about going back to the 'normal/original' monthly repayments from when I originally took the loans out, or could they stick many late charges on top, and therefore would it be better so stay on the DMP, and just significantly increase the repayments that way because there would be no benefit for me coming off?
Or maybe hold fire for a couple of months, and then send them settlement offers?

Struggling with debt? Ask a debt adviser a question

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free