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  • FIRST POST
    • MSE Andrea
    • By MSE Andrea 18th Nov 16, 1:05 PM
    • 9,262Posts
    • 22,116Thanks
    MSE Andrea
    Struggling with debt? Ask a debt adviser a question
    • #1
    • 18th Nov 16, 1:05 PM
    Struggling with debt? Ask a debt adviser a question 18th Nov 16 at 1:05 PM
    If you need help with your debts, this is the thread for you.

    Trained advisers from StepChange Debt Charity (formerly CCCS) are here and waiting to answer your debt questions. They're a friendly bunch so please don't be shy!

    There are three ways to get in touch:

    1 - Simply post your question below and the team will reply. If your question is about bankruptcy, then pop over to the Bankruptcy board.

    2 - If you would prefer to ask a question in private, feel free to send a message to StepChange Private Messages.

    3 - StepChange Debt Remedy is a free and confidential online debt advice tool. You can put a budget together at your pace, and you can also talk it over with an adviser through online chat.

    If you're a StepChange Debt Charity client already, please contact its Aftercare team rather than posting in this thread (their contact details are in your Welcome Pack).

    If you're self employed and need debt help please get in touch with Business Debtline.

    This is discussion thread part four, see parts one, two and three.


    If you haven't already, join the forum to reply!
    This Forum tip was included in MoneySavingExpert.com's weekly email!
    Last edited by MSE Luke; 24-07-2018 at 2:41 PM.
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Page 49
  • StepChange_Allen
    Hi,

    I have been in financial difficulty for some time now, and had taken out various payday loans to help pay for essential expenses (like car repairs). I also have a personal loan with Lloyds bank which I was struggling keeping up the repayments with and have been living in a sizeable overdraft for some years. Something had to give...

    After missing various repayments on some of these payday loans, I contacted all of them individually to arrange repayment plans at a more affordable rate. All of them agreed to more favourable terms.

    My biggest squeeze was the £196 a month cost towards the personal loan. After missing a scheduled payment with Lloyds, I contacted them in August by telephone asking them to consider a repayment plan that I could afford (£20 a month) which I could increase as and when my circumstances improve. They agreed to this, but said that as it was not substantial enough, they would have to refer my loan to one of their partners to arrange this (probably a debt collection agency). They said this whole process could take 2 months.

    On September 24th, I contacted them again after having received a number of scary looking loan default notices in the post (also advising of my arrears that needed paying) just to check that all was processing OK, and that I didn't need to do anything else. They assured me that all was fine with this and that my loan was still in the process of being transferred. Later in the phone call, the advisor brought up that I was in a substantial overdraft, and asked if I'd considered transferring this over to the new arrangement. As I thought this might be a way of consolidating my bank debts, I thought this would be a good idea and agreed to this. They advised in time that I would need to open a new bank account up as my current account would eventually be closed. No timescale was ever mentioned, or cut off date given. I got around to opening a new account up with Natwest in October, but when I'd finally received all the paperwork it was too late for the cut off for my October salary.

    On Friday 26th October, my salary was paid into my Lloyds current account. I was still in an overdraft, but massively reduced. I was able to make my usual manual payments to credit cards, manually paid a few of my payday loan repayments a couple of days early and could take cash out of a cash machine. On Saturday 27th October, I could still take cash out of a cash machine. By Saturday evening, my available balance had been reduced to zero (by Lloyds) when I should have still had access to between £800-£900.

    Obviously irate, I phoned up Lloyds and was transferred to collections to be advised that I had been made aware that my account was going to be closed from my conversation on 24th September. I wasn't disputing this with them. I explained to the advisor that I have a new bank account set up elsewhere, and that I'd planned for the October salary to be the last into the Lloyds account. I argued that if I'd been given a specific date when this would happen, I could have potentially made other arrangements as I'd have no excuse, but nothing had been communicated with me. The fact that they've shut my account at some point during Saturday afternoon, to leave me with zero cash for the rest of the weekend when I have three children is disgusting. The lady on the phone said that she will arrange for me to be able to go into my local branch on Monday morning (so that's time off from work) and withdraw what I haven't spent out of my salary in cash, if I ring the collections department from within the branch. I'm sure that won't go according to plan, but I'll reserve judgement for now.

    I have rent due to leave my Lloyds account in a few days, and a few other payday loan repayments due to go out by direct debit. Obviously, these are all going to fail as my account is effectively closed, and I may now be slammed with notices of non-payment from these payday lenders, and ire from my landlady.

    I appreciate that all debts are repayable on demand but am I wrong to expect that they should have done more to keep me informed of their intentions / timescales, and that they shouldn't just leave me with no money for the rest of the weekend?

    Its caused me so much anguish and upset. Has anyone else had this happen to them? Is this something I could complain about?

    Thanks,

    (ps. I'll update this with my experience at the bank tomorrow morning)
    Originally posted by tricardo

    Hi there

    Thanks for posting and giving detail on this situation.

    My understanding is that an overdraft facility can be removed at any time by a bank, though I can appreciate the distress and inconvenience that it caused you. Whilst there are no guarantees I also believe that if you then contact the bank and explain that this has caused serious financial hardship, for example, meaning no money for essentials like food and rent, that they're likely to allow you to access some of the money.

    If you feel that someone at Lloyds has promised or guaranteed you something that they've gone back on, or that they've breached the terms and conditions of your overdraft agreement, then you could make a formal written complaint. A copy of their complaints procedure should be available on their website.

    If you'd like some advice on dealing with your debts, we can help you free of charge. Please have a look on our website at how to register via phone or our online Debt Remedy tool: www.stepchange.org/Contactus

    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.
    • yoyo33
    • By yoyo33 29th Oct 18, 9:33 PM
    • 14 Posts
    • 1 Thanks
    yoyo33
    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.
  • StepChange_Joe
    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




    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.
    Originally posted by yoyo33
    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.
    • Knitqueen
    • By Knitqueen 1st Nov 18, 11:20 AM
    • 10 Posts
    • 3 Thanks
    Knitqueen
    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
  • StepChange_Joe
    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



    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
    Originally posted by Knitqueen
    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.
    • Natalie1209
    • By Natalie1209 2nd Nov 18, 11:10 PM
    • 1 Posts
    • 0 Thanks
    Natalie1209
    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.
    • Nautiyal
    • By Nautiyal 3rd Nov 18, 10:36 AM
    • 2 Posts
    • 0 Thanks
    Nautiyal
    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.
    Best real estate investing podcast
    • Bearflower
    • By Bearflower 4th Nov 18, 6:13 PM
    • 1 Posts
    • 0 Thanks
    Bearflower
    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
    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.
    Originally posted by Natalie1209
    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
    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


    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.
    Originally posted by Nautiyal
    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
    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



    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.
    Originally posted by Bearflower
    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.
    • Ziggydiamonddogs
    • By Ziggydiamonddogs 6th Nov 18, 10:58 AM
    • 18 Posts
    • 1 Thanks
    Ziggydiamonddogs
    I don't know if I've posted in right place. I was wondering if you could advise me on how to handle a situation please. I have been contacted with reference to an outstanding debt by Howard Cohen solicitors, their clients Hoist portfolio. I had no information on this debt so was unsure what it was relating to. I had an inclining it was reference to a debt from 2011, Halifax credit card. I paid my creditors settlement figures following divorce /house sale and this particular creditor declined. They wouldn't accept anything but the whole amount and advised they'd contact me. The last contact I had was approx Oct 2012. I heard nothing until now. I followed advice and admitted no liability to the debt. Requesting further documentation. This got ignored and I then received court papers (approx back in June 2018). I defended this online on the basis I had no knowledge, information and hadn't received a letter before action etc. I received another letter from Howard Cohen enclosing the notice of assignment. I then sent recorded delivery, a cca request. I have now received all the relevant documentation from Howard Cohen, giving me 14 days to respond before a CCJ is applied for. The debt is now just over 6 years old (October) but wouldn't have been when they made the initial court application. I'm wondering if they could still apply for a CCJ if they had made this application prior to the 6 years being up. I'm Unsure how to deal with this now. I have not to yet returned to work (due to the 14 hour shift pattern I worked ) as I care for my 3year old child. Her father supports us financially but I have no income of my own at present. I have other debts I cannot pay and currently pay just £1per month. I now live in social housing and have no assets. I'm considering writing to Howard Cohen but unsure how to approach this as I can't offer any reasonable amount. I'm concerned how/if to acknowledge the debt as they could then apply for a CCJ if they can't already? I'm equally concerned to challenge it as they could apply for a CCJ which I can't afford. I can't find any information that' the 6 years' relates to an application for a CCJ or any court application process. I'm trying to approach this in a way that is going to cause me least impact on an already difficult financial situation. I appreciate any advice you could give on this.
  • StepChange_Kirsty
    Hi there,

    Thanks for your post. I have also replied to your private message.

    The creditor has 6 years from the date of the last acknowledgement or payment towards the debt in order to start court proceedings. This means the date they issued the claim form not the date they obtain the county court judgment (CCJ) so if they issued the claim in June this would not be statute barred under the Limitations Act 1980.

    Just to clarify, when a debt becomes statute barred it is not written off it just means that the creditor has lost the chance to pursue the debt through the court.

    If you feel you have any other defence to the claim we would recommend seeking independent legal advice as it can be quite a complicated and expensive process.

    Alternatively if you admit the debt exists it’s important to respond to the claim form with an offer of repayment. If you’re experiencing financial difficulties at the moment and you’re not sure what to offer we can always provide you with help and advice.

    I would recommend giving us a call on 0800 138 1111 in order to speak to one of our specialist Debt Advisors. We are available Monday to Friday 8am to 8pm and Saturdays 8am to 4pm.

    I hope this helps.


    Kirsty



    I don't know if I've posted in right place. I was wondering if you could advise me on how to handle a situation please. I have been contacted with reference to an outstanding debt by Howard Cohen solicitors, their clients Hoist portfolio. I had no information on this debt so was unsure what it was relating to. I had an inclining it was reference to a debt from 2011, Halifax credit card. I paid my creditors settlement figures following divorce /house sale and this particular creditor declined. They wouldn't accept anything but the whole amount and advised they'd contact me. The last contact I had was approx Oct 2012. I heard nothing until now. I followed advice and admitted no liability to the debt. Requesting further documentation. This got ignored and I then received court papers (approx back in June 2018). I defended this online on the basis I had no knowledge, information and hadn't received a letter before action etc. I received another letter from Howard Cohen enclosing the notice of assignment. I then sent recorded delivery, a cca request. I have now received all the relevant documentation from Howard Cohen, giving me 14 days to respond before a CCJ is applied for. The debt is now just over 6 years old (October) but wouldn't have been when they made the initial court application. I'm wondering if they could still apply for a CCJ if they had made this application prior to the 6 years being up. I'm Unsure how to deal with this now. I have not to yet returned to work (due to the 14 hour shift pattern I worked ) as I care for my 3year old child. Her father supports us financially but I have no income of my own at present. I have other debts I cannot pay and currently pay just £1per month. I now live in social housing and have no assets. I'm considering writing to Howard Cohen but unsure how to approach this as I can't offer any reasonable amount. I'm concerned how/if to acknowledge the debt as they could then apply for a CCJ if they can't already? I'm equally concerned to challenge it as they could apply for a CCJ which I can't afford. I can't find any information that' the 6 years' relates to an application for a CCJ or any court application process. I'm trying to approach this in a way that is going to cause me least impact on an already difficult financial situation. I appreciate any advice you could give on this.
    Originally posted by Ziggydiamonddogs
    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.
    • Slan73
    • By Slan73 7th Nov 18, 8:45 PM
    • 1 Posts
    • 0 Thanks
    Slan73
    DMP or Debt Relief Order
    Hi


    I have been in a DMP with Payplan for a number of years my current outstanding owed is £19000
    My circumstances have recently changed and have lost my ex -partner's wage contribution.


    I am at the stage now where I just want rid of the debt as feel I will be paying it forever, I have looked at a debt relief order and was wondering if this would be a good route to go down, I have done a budget calculator for each month and I have less than £50 spare each month.
    • OwenPerkins
    • By OwenPerkins 8th Nov 18, 12:21 PM
    • 3 Posts
    • 0 Thanks
    OwenPerkins
    Hello,
    I have 2 credit cards. RBS (formally Mint) on £9000 and MNBA on £2500. For years I have only been paying the minimum amounts funded by a part time job. I have never missed a payment or gone over my limit etc. I am retired on a state pension only and live with my wife who is also retired on a state and small NHS pensions plus some disability benefits.

    I am about to loose the part time job and that, along with RBS doubling my minimum payments (Can they do that?) I'm in a real quandary. I've tried applying for 0% cards but were refused due to being over extended even though I said I would close the old account if accepted.

    A friend has offered to loan me £5000, interest free, with a very long repayment time. I'm thinking of trying for a full and final settlement on both cards for this amount. Please could you advise me if this is a good idea and if I have much chance of success.
    Thank you for any advice.
  • StepChange_Linsi
    Good evening,

    Thank you for getting in touch and welcome to the forum.

    Without knowing more about your financial situation I can't say for certain a DRO is the right solution for you, but you do seem to meet the criteria.

    I'd recommend creating a budget online using our Debt Remedy tool. It takes about 20 minutes to complete and if a DRO is suitable you'll be able to request an application pack on the last page. Here's the link.

    If a DRO isn't suitable we'll be able to recommend an alternative solution to help you manage your debts and become debt free as soon as possible.

    I hope this helps.

    Linsi


    Hi


    I have been in a DMP with Payplan for a number of years my current outstanding owed is £19000
    My circumstances have recently changed and have lost my ex -partner's wage contribution.


    I am at the stage now where I just want rid of the debt as feel I will be paying it forever, I have looked at a debt relief order and was wondering if this would be a good route to go down, I have done a budget calculator for each month and I have less than £50 spare each month.
    Originally posted by Slan73
    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_Joe
    Hello

    Thanks for your post, and welcome to the forum.

    I’m sorry to hear about you losing the part-time job, I can appreciate this is causing you some distress, along with the increase in your minimum payments. Please be assured you’ve done the right thing by getting in touch and I’ll do everything I can to help.

    RBS, and banks in general, can increase your minimum payments, in line with the terms and conditions in your credit agreement (for example, when a 0% interest period ends).

    However, while creditors are within their rights to increase your interest rate, that doesn’t mean they’ve done so fairly. Because your cards are quite old, it seems in this case that RBS have done something called ‘rate-jacking’. There’s a useful article on the Money Saving Expert website about this here.

    The article is definitely worth a read in full, but the key take-aways from it are as follows:

    1. You should ask RBS to clarify why they’ve increased the minimum payment, and also ask them to stop the increase.
    2. If you feel their explanation is unfair, you should follow their internal complaints procedure.
    3. If you’re unhappy with their response to the complaint or they don’t respond within 8 weeks, you can escalate the complaints to the Financial Ombudsman Service.

    In terms of making a settlement offer, the amount you’ve mentioned may be enough, but there are obviously no guarantees. There’s a useful article on our website about making a settlement offer here. However, there may also be other ways of managing the debts without having to borrow additional money from a friend.

    In both cases, StepChange can provide you with some free, impartial and confidential advice on the best way forward. A good place to start with this is building a budget using our Debt Remedy self-help tool. Debt Remedy is available 24 hours a day and takes about 20 minutes to complete. The tool will guide you through creating a budget and will then offer the best debt solution for your situation.

    I hope you’ve found this helpful, and we look forward to hearing from you soon.


    Joe




    Hello,
    I have 2 credit cards. RBS (formally Mint) on £9000 and MNBA on £2500. For years I have only been paying the minimum amounts funded by a part time job. I have never missed a payment or gone over my limit etc. I am retired on a state pension only and live with my wife who is also retired on a state and small NHS pensions plus some disability benefits.

    I am about to loose the part time job and that, along with RBS doubling my minimum payments (Can they do that?) I'm in a real quandary. I've tried applying for 0% cards but were refused due to being over extended even though I said I would close the old account if accepted.

    A friend has offered to loan me £5000, interest free, with a very long repayment time. I'm thinking of trying for a full and final settlement on both cards for this amount. Please could you advise me if this is a good idea and if I have much chance of success.
    Thank you for any advice.
    Originally posted by OwenPerkins
    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.
    • romuk76
    • By romuk76 11th Nov 18, 9:28 PM
    • 2 Posts
    • 0 Thanks
    romuk76
    Separated, in debt, 2 kids...in despair needing some advice please
    I have accumulated 35k debts in credit cards, overdrafts and pay day loans. I know big mistake but I thought I could manage it but then I had a second child and husband run away from problems.

    So today I am on DMP, I set it up too high to start with and in 5 months I missed 2 payments. Now I lowered the payment and it is estimated that it will take me 10 years to settle (If I can remain sane in such a long time with 2 kids to support!)

    My credit score is very low, non existent...

    I moved in with my parents as I cannot afford a house on my own

    My parents offer to sell, help me settle the debts and buy another house for all of us. The questions I have are:

    - would approx 23k be adequate to settle dedts?
    - If I then put 100k as a deposit would I be able to get a mortgage if the house is 230k?
    - my parents are pensioners and will not be able to be considered in the mortgage. Would they be able to gift me the deposit and 22k without losing their benefits (pension credit)?
    - My income is approx 58k + company car (irrelevant I know but it does affect how much I get home per month)
    - There is no way I can wait for 6 years renting for the defaults to disappear. How quick can I realistically get a mortgage?

    I know too many questions! Any advise would be greatly appreciated. I do not want my parents to sell a mortgage free property and fail again!
  • StepChange_Rachael
    Hi

    Thanks for messaging on the forum and welcome.

    There are a few things to take into consideration. Firstly 10 years would seem like a longer DMP, although not unreasonable, generally if a DMP will take a long time other options may be more suitable. If you’re on a DMP with us at StepChange I’d advise to contact us and to discuss the other options. There is probably a very good reason you went for the DMP if other options were available. However, if you’re with a fee paying company and they only offer DMP’s I’d highly recommend getting some impartial debt advice and you can find our details here to do this, as there is very likely other options you can explore.

    It’s a risk of course for your parents to sell their property and you’d need specialist mortgage advice to explore mortgage options, as being able to get a mortgage will be determined on lots of factors.

    Settlements are also an option but ultimately it’s down to the creditors as to whether they’d accept or not. You might find one creditor accepts a settlement and others don’t.

    If your long term plan is to live with your parents then I’d recommend looking at other options available to you to try and reduce the time frame for paying back the debt, rather than your parents selling their house.


    Take care,
    Rachael









    I have accumulated 35k debts in credit cards, overdrafts and pay day loans. I know big mistake but I thought I could manage it but then I had a second child and husband run away from problems.

    So today I am on DMP, I set it up too high to start with and in 5 months I missed 2 payments. Now I lowered the payment and it is estimated that it will take me 10 years to settle (If I can remain sane in such a long time with 2 kids to support!)

    My credit score is very low, non existent...

    I moved in with my parents as I cannot afford a house on my own

    My parents offer to sell, help me settle the debts and buy another house for all of us. The questions I have are:

    - would approx 23k be adequate to settle dedts?
    - If I then put 100k as a deposit would I be able to get a mortgage if the house is 230k?
    - my parents are pensioners and will not be able to be considered in the mortgage. Would they be able to gift me the deposit and 22k without losing their benefits (pension credit)?
    - My income is approx 58k + company car (irrelevant I know but it does affect how much I get home per month)
    - There is no way I can wait for 6 years renting for the defaults to disappear. How quick can I realistically get a mortgage?

    I know too many questions! Any advise would be greatly appreciated. I do not want my parents to sell a mortgage free property and fail again!
    Originally posted by romuk76
    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.
    • romuk76
    • By romuk76 12th Nov 18, 7:40 PM
    • 2 Posts
    • 0 Thanks
    romuk76
    Many thanks for the quick response

    I am with stepchange and unfortunately other options may affect my employment and hence dismissed.

    I am stuck!
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