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FreeMama17 · 12 July 2017 at 10:51PM

Ok, have just read the letter properly (I couldn't even bear to hold it when I received it, and stuffed it back into its envelope). The balance is £238.81, it's possibly from Vodafone. I'm still going to send the 'info request' letter, to buy myself some time and also to confirm what it's all about.

I'm really in debt crisis and so may look into some sort of minimum repayment plan, maybe £2 a month?

Former_StepChange_Richard · 13 July 2017 at 9:05AM

Hi there,

To help with your debts and to work how best to deal with them, try using our Debt Remedy tool. This will help you build a budget and then you will be given advice on how best to deal with your debts.

If you would prefer to speak with an advisor about your situaiton you can get in touch here.

I hope this helps.

Richard.

FreeMama17 wrote: »

Ok, have just read the letter properly (I couldn't even bear to hold it when I received it, and stuffed it back into its envelope). The balance is £238.81, it's possibly from Vodafone. I'm still going to send the 'info request' letter, to buy myself some time and also to confirm what it's all about.

I'm really in debt crisis and so may look into some sort of minimum repayment plan, maybe £2 a month?

bengunn71 · 18 July 2017 at 6:28AM

Morning,

I currently have just under £6000 debt, £3000 overdraft and £2600 credit card. Both accounts sit near the limit and I'm currently paying around £100 a month between fees and interest. My credit rating hasn't been great until very recently and on credit expert now sits at 991.

I'm just looking for advice on the most sensible way to stop paying fees/interest and pay off the debt. Initially I was looking at personal loans but having looked around it sounds like a 0% credit card balance transfer may be the best option.

Any help would be greatly appreciated.

Many thanks

StepChange_Allen · 18 July 2017 at 8:22AM

bengunn71 wrote: »

Morning,

I currently have just under £6000 debt, £3000 overdraft and £2600 credit card. Both accounts sit near the limit and I'm currently paying around £100 a month between fees and interest. My credit rating hasn't been great until very recently and on credit expert now sits at 991.

I'm just looking for advice on the most sensible way to stop paying fees/interest and pay off the debt. Initially I was looking at personal loans but having looked around it sounds like a 0% credit card balance transfer may be the best option.

Any help would be greatly appreciated.

Many thanks

Hi Ben

Welcome to the forum and thanks for posting.

There are a number of different options open to you but without knowing a lot more about your situation I couldn't say what would be best to do. I personally have a reasonable amount of knowledge about this sort of thing, but StepChange specialises in finding debt solutions for people that can't afford to repay their debts, so we don't normally advise much on this.

My advice would be to have a look on here: www.moneysavingexpert.com/borrowing/ - it has sections on balance transfer credit cards and low interest loans as well eligibility calculators for both. These help you to establish what you're likely to get before you apply.

I think you'll find this really useful, so good luck.

Allen

hightides · 19 July 2017 at 10:09AM

Hi All

Im wanting to get my finances in line.

I have recently had to undergo a lot of building work within the house. So my debts have had to increase due to it.

My situation is live in home with 1 dependent and 1 partner.

We have 2 credit cards 1 on a 0% that just ticks over every month and reduced in balance. We have another credit card near enough maxed out to its limit.

We also have a loan (building work)

I want to get rid of the non 0% credit card as currently i pay a minimum balance of 144 a month but then 89 is added in interest.

I am looking at trying to get a 0% balance transfer for the maxed out card if possible.

My mortgage is also due soon and i dont want to but im considering borrowing more on my mortgage to clear the maxed out card.

Im not sure which way yo go but any help or advice would be much appreciated

Thanks in advance

StepChange_Kirsty · 19 July 2017 at 1:49PM

Hi,

Thanks for your post and welcome to the forum.

At StepChange we specialise in dealing with problem debt rather than balance transfers so unfortunately I wouldn’t be able to advise on this. As my colleague Allen has mentioned on the post above, this article is very good for advice about balance transfer cards and low interest loans: www.moneysavingexpert.com/borrowing/.

In terms of the mortgage, we have a Financial Solutions team who can provide expert mortgage advice. You can find information about how the team can help and how you can get in touch with them here.

Of course if you’re finding it difficult to pay the credit card and loan payments, we can certainly offer you help and advice. The best way to access our advice is by using our online Debt Remedy tool where you can input details about your income, expenditure and debts and we’ll provide you advice in the form of a personal action plan. You can access our Debt Remedy tool here.

I hope this helps.

Kirsty

hightides wrote: »

Hi All

Im wanting to get my finances in line.

I have recently had to undergo a lot of building work within the house. So my debts have had to increase due to it.

My situation is live in home with 1 dependent and 1 partner.

We have 2 credit cards 1 on a 0% that just ticks over every month and reduced in balance. We have another credit card near enough maxed out to its limit.

We also have a loan (building work)

I want to get rid of the non 0% credit card as currently i pay a minimum balance of 144 a month but then 89 is added in interest.

I am looking at trying to get a 0% balance transfer for the maxed out card if possible.

My mortgage is also due soon and i dont want to but im considering borrowing more on my mortgage to clear the maxed out card.

Im not sure which way yo go but any help or advice would be much appreciated

Thanks in advance

CurlyCD · 20 July 2017 at 7:41AM

Hi There,

I have an up an coming HMRC bill to pay which is going to be 10k. I have the means to pay 1/3 cash and the rest ether a loan or credit card. The problems are the cash is a savings for my new born due in Jan for child care/bits and bobs, so I don't want to touch that.

My thoughts were...

I have a 12k limit on my Amex (but unfortunately HMRC don't take Amex)

So...

Apply for two credit cards, one big 10k limit, one 0% balance transfer.

To apply for a 10k Credit Card (is this possible?) pay on that, then...
Balance transfer to the other card. (is this possible to apply for two?)

Any help would be greatly appreciated, payment due early September.

Best

Curly

StepChange_Rachael · 20 July 2017 at 8:53AM

Hi Curly

Thanks for your post.

HMRC do have more rights of collection compared to most collecting for unsecured debt, however taking out large amounts of debt to cover this payment is a big step.

It's possible to borrow high levels of credit on credit cards, however, as far as how much you’d be eligible to borrow and at what percentage, this would be determined by the creditors themselves, as they’ll have their own eligibility criteria.

You’d have to apply to find out if you’d be eligible, you can do soft searches that have little impact on your credit file and the MoneySavingExpert can give you more advice on this.

The creditors criteria will depend on your borrowing history (credit file rating), income etc.

In general I wouldn’t advise to further borrow to pay back an outstanding debt; instead I’d advise to get some free debt advice. The HMRC may agree to affordable monthly payments to pay back the debt, which means you wouldn’t have to take out credit which could result in high interest rates, charges and fees, if at a later date you were unable to manage the contractual payments.

It’s a good idea to use savings but only when there aren’t priority costs to pay for. It might not be advisable to use these savings for the HMRC debt if it’s then going to leave you struggling further down the line.

I’d suggest speaking with a free debt advice organisation so advice can be tailored to suite your situation. You can speak with StepChange or if you’re self-employed and the debt relates to a current business you could also seek advice from the Business Debt line.

Thanks
Rachael

CurlyCD wrote: »

Hi There,

I have an up an coming HMRC bill to pay which is going to be 10k. I have the means to pay 1/3 cash and the rest ether a loan or credit card. The problems are the cash is a savings for my new born due in Jan for child care/bits and bobs, so I don't want to touch that.

My thoughts were...

I have a 12k limit on my Amex (but unfortunately HMRC don't take Amex)

So...

Apply for two credit cards, one big 10k limit, one 0% balance transfer.

To apply for a 10k Credit Card (is this possible?) pay on that, then...
Balance transfer to the other card. (is this possible to apply for two?)

Any help would be greatly appreciated, payment due early September.

Best

Curly

Blueyes1 · 21 July 2017 at 2:36AM

Hi. I am due in court next week for an old phone bill with lowells. I don't think my chances are good as I missed sending my witness statement in due to a family member dying. There is no way I will be able to afford to repay this debt. In total I owe about £4000 and are considering a dro. Should I lose this court case, would it be included in the dro, also I have read that you shouldn't show preference in paying off debts prior to a dro, how long is that as I was paying a ccj up until May this year when I paid it off. I also have paid off the last of my magistrates fine recently too.

StepChange_Allen · 21 July 2017 at 12:33PM

Blueyes1 wrote: »

Hi. I am due in court next week for an old phone bill with lowells. I don't think my chances are good as I missed sending my witness statement in due to a family member dying. There is no way I will be able to afford to repay this debt. In total I owe about £4000 and are considering a dro. Should I lose this court case, would it be included in the dro, also I have read that you shouldn't show preference in paying off debts prior to a dro, how long is that as I was paying a ccj up until May this year when I paid it off. I also have paid off the last of my magistrates fine recently too.

Hi there

Welcome to the forum and thanks for posting.

As you've mentioned a witness statement, there's a number of possibilities about where this debt is at, so I can't be sure what to advise. We can certainly have a look at this if you'd like to contact us; details are on our website: www.stepchange.org/Contactus

In regards to preferential treatment, a magistrates fine shouldn't be classed as this because it's a priority debt, and if you were paying what was ordered on a CCJ that's unlikely to be a problem either. In this case you were paying what was ordered by the court. If you paid it in full or in a lump sum, that possibly could be, it's hard to be certain.

I hope this has been helpful and we hope to speak with you soon.

Allen

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