Struggling with debt? Ask a debt adviser a question

Former_StepChange_Linsi · 29 March 2017 at 11:32AM

Hello

Welcome to the forum and congratulations on the birth of your third child.

It’s understandable why the repayments to the loan have become unaffordable now that your circumstances have changed. It’s important to remember that unsecured debts are only entitled to a fair share of your disposable income after you’ve covered your living costs.

Speaking to Nationwide and explaining your situation would be a good starting point. They may be able to extend the term of the loan which would reduce the monthly repayments, however you may end up paying more back in the long run.

Alternatively, you can use our Debt Remedy tool to find the best solution to make managing your debts easier. Bankruptcy and DROs are good debt solutions, but there’s other ways to deal with debt. You can find general information about these other solutions on our website.

You can create a budget online using the Debt Remedy tool, to do this you’ll need information about your income, living costs and debts. Once you’ve completed your budget you’ll be able to access a personal action plan. This contains our tailored advice and recommended debt solution for you along with advice about the next steps to take. Here’s the link to Debt Remedy.

I hope this helps.

Linsi

ch1978 wrote: »

Just looking for a bit of advice here really. I currently have a personal unsecured loan with Nationwide with an outstanding balance of £11,000 and I am paying back £200 a month on it.

In the past year my job has changed(reduced hours and wages) , have had another child(3rd child all under 8) and now my Wife is no longer working.

Ideally I need to reduce this monthly outlay on the loan as we are seriously struggling to have anything left at the end of the month.

If I approach Nationwide and explain my situation and change of circumstances, is there a chance that they would allow me to drop the monthly repayments to an amount that does not leave us struggling each month?

Other alternatives could be to go bankrupt or look for a debt relief order but would sooner just get a reduced monthly payment to make

Former_StepChange_Linsi · 29 March 2017 at 11:59AM

Good morning,

Thanks for your post and welcome to the forum.

I’m sorry you’ve not been able to transfer the balance of your credit card. You may want to speak to your current lender as they may be able to offer you a low-rate deal on the card you already have. There’s more information about this on the MSE website.

If you’re struggling to maintain the monthly payments to your credit card then I’d recommend creating a budget to work out what you can realistically afford to pay. You can do this online by using our free Debt Remedy tool, here’s the link.

After you’ve created a budget you’ll be able to download your personal action plan. This contains our tailored advice for you. We’ll also be able to recommend a debt solution that will make managing your credit card easier and help you to become debt free.

I hope this helps.

Linsi

eesha wrote: »

Hi,
I have accumulated £1500 worth of debt on my credit card and I bank with HSBC. I tried using the MSE tool to find a lender that would let me switch my debt to give me more time to pay it with the added interest. Unfortunately I am eligible for none of them. Is there anything I can do/anywhere else I can try?
I am currently on benefits and I think my address history (moved a lot since 2012) isn't helping either.

Thanks

Weakmoments · 29 March 2017 at 1:51PM

Hi I'm currently on a dmp after my annual review my payments have decreased due to decrease in income. One of my creditors has refused the payments. Does that mean they will now take me to court.
Any advice welcome

EBarton · 29 March 2017 at 2:16PM

Hi,
I'm not too sure if I've come to the right forum-first time forum posting too.
I defaulted in on 2 HSBC accounts in 2009, credit card and loan. Stupid mistakes that I have started paying off through various different debt agencies as it was sold and passed around. I then stuck my head in the sand and stopped. Moved house and the letters have just started coming again.
The defaults are now spent, and these cleared from my file last year, if not year before. I haven't made contact with the agency for over a year and probably reveive at least 2 phone calls a day.
I have a mortgage now (debt was unsecured) and owe approx 7k. I don't know what I should do, or what they can enforce or do to me at this stage. I don't want to ruin my current status and realistically can only afford a small amount each month. It's just how long it goes on for and how I manage them hounding me.
Many thanks for any guidance and advice.

Former_StepChange_Richard · 30 March 2017 at 8:59AM

Hi there

Thanks for getting in touch.

This does not necessarily mean that your creditor will take court action agaist you, but it could happen depending on what the debt is for and what else has happened with it.

Assuming we're talking about an unsecured debt under the Consumer Credit Act, the creditor would have to have issued you with a notice of default before they are able to apply for a County Court Judgement against you. However, there is no obligation for your creditor to follow this course of action and they may never choose to do this.

Some creditors will choose to sell your debt to a debt collection agency if they are not happy with the payments. Some creditors will contact you to try and make alternate arrangements. It will be up to each creditor to decide which course of action they will take.

I would suggest that you contact your DMP provider to discuss this and to see if there's anything you're able to do to help the situation. If you're on a DMP with us, you can find the contact details on our website here.

I hope this helps,

Richard

Weakmoments wrote: »

Hi I'm currently on a dmp after my annual review my payments have decreased due to decrease in income. One of my creditors has refused the payments. Does that mean they will now take me to court.
Any advice welcome

Former_StepChange_Richard · 30 March 2017 at 9:36AM

Hi there

Thanks for your message and welcome to the forum. You've come to the right place. We can certainly help.

I know it can be worrying when you can only make small payments, but it's important in these situaitons to look at your financial situation as a whole to work out what you can afford to pay to your debts. To do this, I would suggest making a budget to start off. You can do this with us if you like. You can use our Debt Remedy tool on our website which or you can call and speak with one of our advisors who will make the budget for you. Our contact details can be found here.

Once we have created the budget with you we can advise you on the best way to deal with your debts and we may be able to set up a plan to help manage them for you.

In terms of enforcing the debts against you, this is dependent on what the debts are and what has happened so far. When you have payed less than the minimum contractual payments to your unsecured debts, the options and process the creditors can take is as follows: they may issue a notice of default against you (if any haven't yet), they may sell the debt to a debt collection agency, they may pursue court action against you through a County Court Judgement (if they have issued a default notice already). They also may do none of these things.

I hope this helps and we look forward to hearing from you soon,

Richard.

EBarton wrote: »

Hi,
I'm not too sure if I've come to the right forum-first time forum posting too.
I defaulted in on 2 HSBC accounts in 2009, credit card and loan. Stupid mistakes that I have started paying off through various different debt agencies as it was sold and passed around. I then stuck my head in the sand and stopped. Moved house and the letters have just started coming again.
The defaults are now spent, and these cleared from my file last year, if not year before. I haven't made contact with the agency for over a year and probably reveive at least 2 phone calls a day.
I have a mortgage now (debt was unsecured) and owe approx 7k. I don't know what I should do, or what they can enforce or do to me at this stage. I don't want to ruin my current status and realistically can only afford a small amount each month. It's just how long it goes on for and how I manage them hounding me.
Many thanks for any guidance and advice.

EBarton · 30 March 2017 at 1:23PM

Hi,
Thanks for your reply.
Can a CCJ be raised if a default on the debt is spent?
I'd there a time period on debt when a CCJ can no longer be raised?
Thank you

Chris01989 · 30 March 2017 at 1:29PM

Hi
I am in around 14000 in debt I'm 23 and have a credit score of 349 out off 7000
I have been looking at balance transfer credit cards but I have been declined for like 10 in a row now I'm starting to think that I'm not going to be able to do anything about it.
Please help

RY52ARD · 30 March 2017 at 1:32PM

Hi there,

Today I received an SMS from Hellix Ltd staying that they have been instructed as FCA Authorised Debt Collector to collect an insurance debt with a company I've never been with.
They are requesting I call or email them with my payment request....is this some sort of scam?

Regards

Vickie123 · 30 March 2017 at 1:44PM

Hi

This is my very first post so please bare with me.

My question is that I have very poor credit rating and have been looking into getting a secured credit card to improve my score. I already have a credit card that is no longer in use but I am paying back an agreed amount but it is less that the minimum payment and I wondered that if I get a secured credit card will that help with my credit rating or will my old credit card always hold me back?

Many thanks
Vickie

Struggling with debt? Ask a debt adviser a question

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