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  • FIRST POST
    • MSE Andrea
    • By MSE Andrea 18th Nov 16, 1:05 PM
    • 9,003Posts
    • 21,788Thanks
    MSE Andrea
    Struggling with debt? Ask a debt advisor a question
    • #1
    • 18th Nov 16, 1:05 PM
    Struggling with debt? Ask a debt advisor a question 18th Nov 16 at 1:05 PM
    If you need help with your debts, this is the thread for you.

    Trained advisors from StepChange Debt Charity (formerly CCCS) are here and waiting to answer your debt questions. They!!!8217;re a friendly bunch so please don!!!8217;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 !!!8211; 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 advisor 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.

    Finally, follow @MSE_Forum on twitter for debate and discussion on all things MoneySaving and more.

    If you haven!!!8217;t already, join the forum to reply!
    This Forum tip was included in MoneySavingExpert.com's weekly email!
    Last edited by MSE Andrea; 07-12-2017 at 2:44 PM.
    Could you do with a Money Makeover?


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Page 32
    • olliebears
    • By olliebears 4th Feb 18, 7:08 PM
    • 19 Posts
    • 10 Thanks
    olliebears
    Credit card refusing to assist
    Hi, my Granddaughter has gotten herself in credit card debt to a total of £4k She started missing the minimum payments and it is now £7k She spoke to the company to try and come to some arrangement and was told they will keep applying maximum interest until it is paid which will be never at the current rate. She is a single mother with three girls of 1 3 and 6 and struggling to make ends meet. the charged interest monthly is more than she can pay monthly and she is becoming more desperate mentally.


    Any options? Scots law would apply. I worry for her mental state and obviously her children. I tried to talk to the company but they said sorry it is her debt and she knows the position!
  • StepChange_Kirsty
    Hi there,

    Thanks for your post and welcome to the forum.

    The debt is only unenforceable until the creditor provides a copy of the agreement which they have now done. The agreement itself doesnít have to be an original copy of the agreement it just needs to be a ďtrue copyĒ which means that it contains the same information as the original agreement.

    If youíre in doubt as to the legitimacy of the agreement you could seek independent legal advice. The Law Society has information on their website about how to find a Solicitor here.

    Alternatively, if itís a case that you admit the debt but are struggling to repay it then I would recommend seeking debt advice. At StepChange we can provide free and confidential help and advice for dealing with debts. The easiest way to access our service is through our online Debt Remedy tool where you can input details about your income, expenditure and debts then Debt Remedy will provide you with a personal action plan of advice for your situation.

    Regards,

    Kirsty

    hello sorry if i have posted in the wrong place but i dont seem to be able to find a new post button anywhere...
    anyhow i would like to ask what to next.
    i have an old debt of 3600 pounds off an old sainsburys credit card dating back to 2004. Arrow global now seem to own the debt. i am unemployed so was unable to pay any payments for some years now just paying a small amount back till about 6 months ago when i sent a cca request as they were threating to take me to court . i got a letter stating that they will put collection on hold till they provide me with cca. 6 months have passed and they have just sent me what looks like a badly recontructed photocopy of cca with my signature on and a few trems of charges on rear of sheet in tiny text that looks like its been copied and pasted!.should i send a letter stating the cca deadline of 12 plus 2 days has passed and the debt is unenforceable ?
    Originally posted by mst1973
    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.
    • COYIhammer
    • By COYIhammer 5th Feb 18, 3:51 PM
    • 3 Posts
    • 0 Thanks
    COYIhammer
    Remortgage with DMP
    Thank you for replying. It is the mortgage which has become unmanageable. We took it when we had some money behind us, my wife's work was good and we had supportive and generous parents. Unfortunately they have all passed on and my wife's work has all but dried up. All I want to do is spread the remaining mortgage (£53000) over ten years and not three and even though I told Santander from the start I had a DMP it took them two weeks of being passed around their departments to say they couldn't extend the terms because of it.
  • StepChange_Kirsty
    Hi Joey,

    Thanks for your post and welcome to the forum.

    When a default is entered on your credit file, the creditor is only allowed to register this once even if itís passed onto a debt collection agency. Given that the debt originally defaulted in 2012, the default should be coming off your credit file within the next year. There is some useful information about default notices which you can find on our website here.

    If youíve not made any payment or acknowledged this debt in six years, then the debt may be statute barred. Whilst the debt is not written off and the creditor can still attempt to collect the debt, under The Limitations Act 1980 the creditor cannot take legal action against you. If they did you would be able to defend the claim on the grounds that it is statute barred. You can learn more about statute barred debt here.

    Alternatively you can try to contact Opus to find out if theyíre still looking after the debt or if itís been passed onto another company in order to make an arrangement to pay. If this is not your only debt and you need advice about the best way to deal with this and other debts you can contact us at StepChange for free and impartial debt advice. Our online Debt Remedy tool will guide you through the process of putting a budget together and will then give you advice about the best way of dealing with your debts.

    I hope this helps.

    Kirsty

    Hello,

    I have checked my credit report and have a recurring default for a debt back in 2012 originally through Mini Credit for £200. It then got passed through to Opos in 2012 with an escalated amount of £1800. At this point I buried my head in the sand as there was no way I could afford to pay this back.

    Is there anything I can do or anyone I can contact? I need to get my credit back on track and this is a dark cloud over my report.

    Any help will be appreciated, thank you.
    Originally posted by Joey91p
    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_Rachael
    Hi

    Thanks for posting.

    Iím sorry to hear your Granddaughter is struggling with this debt, there's certainly a way forward for her but I would advise that she speaks with a free debt advice organisation. There are many options available for people struggling to meet their minimum payments so it's important she gets the right advice for her.

    You can get an idea of the types of debt solutions available by following this link. Also by Following this link you can access the contact details for StepChange for impartial debt advice.

    She can ask the creditor to put the account on hold for 30 days while she's looking for help and advice. This should give her some breathing space from the creditors for now while she decides on a more long term plan.

    Take Care
    Rachael



    Hi, my Granddaughter has gotten herself in credit card debt to a total of £4k She started missing the minimum payments and it is now £7k She spoke to the company to try and come to some arrangement and was told they will keep applying maximum interest until it is paid which will be never at the current rate. She is a single mother with three girls of 1 3 and 6 and struggling to make ends meet. the charged interest monthly is more than she can pay monthly and she is becoming more desperate mentally.


    Any options? Scots law would apply. I worry for her mental state and obviously her children. I tried to talk to the company but they said sorry it is her debt and she knows the position!
    Originally posted by olliebears
    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_Rachael
    Hi

    Thanks for getting back in contact.

    Iíve read the previous message and Kirstyís reply to catch up.

    From what youíve mentioned I do think itís worth speaking with your DMP company first. If the payments to your mortgage are unaffordable Iíd always suggest trying to reduce other costs first.

    By reducing the cost of your DMP or finding an alternative solution it may make the mortgage payments more affordable. However, without knowing your full financial situation itíd be hard to say for certain. As Kirsty mentioned you can also contact our Financial Solutions team at StepChange to discuss your mortgage options.

    Thanks
    Rachael



    Thank you for replying. It is the mortgage which has become unmanageable. We took it when we had some money behind us, my wife's work was good and we had supportive and generous parents. Unfortunately they have all passed on and my wife's work has all but dried up. All I want to do is spread the remaining mortgage (£53000) over ten years and not three and even though I told Santander from the start I had a DMP it took them two weeks of being passed around their departments to say they couldn't extend the terms because of it.
    Originally posted by COYIhammer
    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.
    • COYIhammer
    • By COYIhammer 7th Feb 18, 11:13 PM
    • 3 Posts
    • 0 Thanks
    COYIhammer
    If I stopped my DMP payments completely(hypothetically of course) it wouldn't make much difference compared to my mortgage. That's why I need to extend the term but nobody seems to want to help.
  • StepChange_Rachael
    Thanks for replying.

    In that case Iíd suggest speaking with our Financial Solutions team. Theyíll be able to discuss mortgage options with you further. Here's the link.

    Take care,
    Rachael



    If I stopped my DMP payments completely(hypothetically of course) it wouldn't make much difference compared to my mortgage. That's why I need to extend the term but nobody seems to want to help.
    Originally posted by COYIhammer
    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.
    • alitlebitbrit
    • By alitlebitbrit 9th Feb 18, 7:27 PM
    • 1 Posts
    • 0 Thanks
    alitlebitbrit
    where to go from here.....
    Hello,

    I am a Canadian pensioner married to a British man. My Leave to Remain is dependent on our relationship. Since his verbal abuse has recently turned to physical violence, I left him. So now I must return to Canada...which breaks my heart.

    I would appreciate suggestions with regard to my financial situation.

    My financial obligations:
    Credit card: £2,250 (minimum monthly payment, mostly interest of course, approx. £60)
    Local council: £945 - an interest-free loan to pay first month's rent and deposit on studio flat to help me escape the violence. (monthly payment £25)
    Electrics supplier: £395. (monthly payment £50) I left my husband once before and rented a studio flat. It had just been refurbished, splitting a former shop into two flats. The other flat got a new meter. My flat got the old meter meant for a night storage heater which the flat did not have. For the 8 months I was there, I begged for a bill and got none. I paid £25 a month and when I left I was presented with a bill for £945. Both the supplier and the landlord agreed that it was the wrong meter and not reliable but no-one took responsibility so I was left with the bill. (I have paid £555 so far plus the £200 I had already paid...for a tiny studio flat with two panel heaters...turned on for two months... and three light bulbs, a microwave oven and a computer). Incidentally, the meter was replaced for the next tenant.
    Mobile phone: three months left to the contract: (monthly payment £50)
    My rent and council tax are paid up to date. I am not in arrears on any bills.
    My tenancy agreement has 4 more months to go. (£395 x 4)

    I maxed out my credit card to purchase the cheapest flight back to Canada that I could find. I will stay with family for a few months 'til I can afford to pay rent and buy a bit of furniture etc. I have nothing but what I can get into a suitcase.

    I will not be able to pay the £185 a month in payments when I leave. If I am held responsible for the 4 months left on the flat, I will be in worse trouble.

    I want to meet my financial obligations but am overwhelmed as to what to do. If you can give me any advice, I'd be very grateful. I am frighteningly near to emotional collapse and can't get my head /round what to do.

    Thanks kindly
  • Vodafone
    HI, My husband took out a phone contract for his 22 year old daughter under the proviso that after 2 months she would take over the contract and the payments. She did this (Vodaphone have confirmed that a phone call instigated this change of contract name) but then proceeded to default on the payments. We have now received a letter from a collection agency for £750. Vodaphone have tried to trace the call that was made to them by the daughter to see what was agreed with regards to changing the payments as well as the name on the contract - but they can't find it. Can you advise what they need to prove to make this debt legally land with my husband? We are now caught between Vodaphone and the collection agency with no-one seemingly willing to provide any proof that this debt is ours. My husband is estranged form his daughter so we cannot get anything off her. Many thanks
    Originally posted by jaydow72
    Hi jaydow72,

    It's a shame to hear about your husband's experience.

    If he'd like me to take a look at the account to see what's happened, please ask him to email me via the form here.

    To access the form, he'll need to enter the code WRT135.

    As well as stating his query in the question box, he'll also need quote "MSE Forum".

    Once sent, he'll receive an automated reply with a reference number. Post it on here and I'll check that I've received it.

    Kind regards,

    Lee

    Vodafone Social Media
    ďOfficial Company Representative
    I am the official company representative of Vodafone. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"
  • StepChange_Linsi
    Hello,

    Thanks for your post and welcome to the forum.

    Iím very sorry to hear about whatís happened. It must have taken a lot of courage to leave your husband. If you need any additional support you can contact organisations such as National Domestic Violence Helpline and Rights of Women.

    We can only give advice and offer debt solutions to clients living in the UK in England, Wales, Scotland or Northern Ireland. As youíll be moving back to Canada Iíd recommend seeking long term advice from a Canadian advice organisation.

    If you do need any emergency advice whilst youíre still in the UK you can call our Helpline or visit our website for more information. We may be a bit limited on the solutions we can recommend but we can certainly give you some guidance until you move.

    I hope this helps.

    Linsi

    Hello,

    I am a Canadian pensioner married to a British man. My Leave to Remain is dependent on our relationship. Since his verbal abuse has recently turned to physical violence, I left him. So now I must return to Canada...which breaks my heart.

    I would appreciate suggestions with regard to my financial situation.

    My financial obligations:
    Credit card: £2,250 (minimum monthly payment, mostly interest of course, approx. £60)
    Local council: £945 - an interest-free loan to pay first month's rent and deposit on studio flat to help me escape the violence. (monthly payment £25)
    Electrics supplier: £395. (monthly payment £50) I left my husband once before and rented a studio flat. It had just been refurbished, splitting a former shop into two flats. The other flat got a new meter. My flat got the old meter meant for a night storage heater which the flat did not have. For the 8 months I was there, I begged for a bill and got none. I paid £25 a month and when I left I was presented with a bill for £945. Both the supplier and the landlord agreed that it was the wrong meter and not reliable but no-one took responsibility so I was left with the bill. (I have paid £555 so far plus the £200 I had already paid...for a tiny studio flat with two panel heaters...turned on for two months... and three light bulbs, a microwave oven and a computer). Incidentally, the meter was replaced for the next tenant.
    Mobile phone: three months left to the contract: (monthly payment £50)
    My rent and council tax are paid up to date. I am not in arrears on any bills.
    My tenancy agreement has 4 more months to go. (£395 x 4)

    I maxed out my credit card to purchase the cheapest flight back to Canada that I could find. I will stay with family for a few months 'til I can afford to pay rent and buy a bit of furniture etc. I have nothing but what I can get into a suitcase.

    I will not be able to pay the £185 a month in payments when I leave. If I am held responsible for the 4 months left on the flat, I will be in worse trouble.

    I want to meet my financial obligations but am overwhelmed as to what to do. If you can give me any advice, I'd be very grateful. I am frighteningly near to emotional collapse and can't get my head /round what to do.

    Thanks kindly
    Originally posted by alitlebitbrit
    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.
    • cosmicherb
    • By cosmicherb 13th Feb 18, 11:04 AM
    • 1 Posts
    • 0 Thanks
    cosmicherb
    Hi,
    Apologies, this is a long story, but I am in a bit of a mess, and I need to get it out.

    I'm a UK based, mid-management type who works in construction (office-based). I've been working on a freelance/contract basis with my own limited company for the last 5 years now. I changed from a permanent role to go into a job in the oil and gas sector, which in 2013 was booming. Day rates were good; very good. I worked in Scotland, away from home in Yorkshire, but had plenty of money and lived a good lifestyle with nice holidays, cars, etc. We could expense anything and ate out in nice places on a weekly basis. In mid-2014 the oil price started dropping like a stone. This wasn't a massive issue for me as the project I was working on was already well under way and it would have cost more to pull it. Some companies dropped their day rates, but ours didn't. All that happened was the free-and-easy days of expenses were over, but we kept working and the project's physical phase ended in mid-2015.

    I worked in London for the last 6 months of the project, tying up final accounts and paperwork. I was reimbursed for hotel, travel and reasonable food bills. It was then that I made a big mistake, which I have regretted ever since. I left the job, unsure of how much longer it would last and not given any assurances, to take what I thought would be a nice number near home working for a small company set up by friends, even if the rate was a lot lower (but no travelling costs). At this point I was not debt free (a couple of credit cards had built up) but was up to date with taxes, VAT and so on.

    The new job was a disaster. The company fell apart and was asset stripped by vulture capitalists within a year after the directors fell out, one of them getting sacked from the company he set up, and sensing where it was going, I took another contract job with a pipeline contractor near Aberdeen. Rate wasn't brilliant, but the costs for living away were high (I had to pay for all travel costs myself). It was at this point that I started falling behind on corporation tax. I had bills to pay at home, including the two credit cards (now maxed out) and to support myself and where I would have been saving some money for tax, I wasn't doing it any more.

    That job came to an end when again there were no assurances forthcoming as to length of contract. Another job was lined up, but I was out of work for a month, finishing just before Christmas. The debts continued to grow, and at the end of January 2017 I had a larger-than-expected corporation tax bill hitting the doormat. I had to take out a personal loan of £12k with my personal bank to pay it, managing to scrape together the other £2-3k together somehow. That was an additional £600 payment to service.

    So in late January I finally started the new contract job and it paid a pittance. Pretty much half the rate I had been on only a year before. I was reimbursed capped expenses, but they didn't cover the costs of even the cheapest hotels available where I was working (Rosyth dockyard in Fife, with hundreds of people working on aircraft carriers and bridges). I was basically surviving at this point, struggling to keep head above water. And then the boiler at home packed in and we had to borrow 3 grand from my in-laws.

    Within a month, the person I reported to was sacked for undisclosed reasons. Move forward 5 months. A new manager arrived in our client!!!8217;s organisation and decided to trim the team and I was in the firing line as the most expensive asset in our team. Fan-bloody-tastic. Within a couple of weeks I was gone, and the long-term stability seemed further away than ever.

    What followed was 3 months of desperate job-searching. I travelled all over the UK and to various places in Europe trying to get a job. I got very close on multiple occasions, even having jobs offered and withdrawn within 24 hours (ARRRGGHHH), borrowing more money from relatives, going to the Job Centre and claiming JSA. it was massively dispiriting. I had to make an arrangement with HMRC for a VAT bill of £4,500.

    I ended up getting yet another job in Scotland. Right up the top, near John O'Groats. Decent-ish rate, but again I had to fork out for travel and accommodation, which again wan't cheap. The 3 months off have put me on my backside now, however. I've got another VAT bill outstanding and also a corporation tax bill for £12k which I have been unable to save up for and now pay. The personal debts are becoming unserviceable. I am paying nearly £4k a month just to keep my head above water. If this job ends, I'm really in deep do-do. I've been working away from my family for nearly 5 years and ended up in a lot of debt. I am giving serious consideration to taking a job overseas, somewhere like Dubai, but even with the kind of money I could get, I'd still just be managing. I'm seriously worried about the impact on my family. I have nothing in the way of assets; my wife owns our house. Will they come after her? (I have 2 cars on HP as well which I'm not including in my numbers).

    By my reckoning I have personal debts of £33.5k made up of:
    Bank loan (to pay off corp tax) - £8k remaining
    Credit cards (3 separate) - £13.5k
    HMRC Self-Assessment tax - £2k
    Family loans - £10k

    I also have company debts of £30k made up of:
    Corporation tax - £12.5k
    VAT - £6k
    Company Credit Cards - £11.5k

    Wow, when I write it out, it looks ridiculous. I can't believe how quickly it's spiralled and I can't believe I've let it get to this state.

    I can't see many options. I could let the HMRC and other creditors put my limited company into liquidation, but I'm sure I'll still be liable personally, which is fine. I do want to pay it back, but I also want to live and allow my family to remain unaffected.

    So my question is: would I be able to get into a DMP including these company debts, or do I need to wait for the creditors to take my company down and then roll it in with my personal debt? Would taking a job in Dubai be a wise move?

    Thanks for reading!
    Last edited by cosmicherb; 13-02-2018 at 11:11 AM.
    • PETRA798
    • By PETRA798 13th Feb 18, 11:52 AM
    • 12 Posts
    • 24 Thanks
    PETRA798
    AOS missed deadline
    Hi there
    Long story short, following a voluntary liquidation of my ltd company, Santander repossessed my van as apparently I was in breach of the lease purchase contract, despite asking them to assign it to my other ltd company and my offer to continue making payments. They have now issued a CCJ claim for £6k for the shortfall now they have auctioned the van. I thought I had sent the AOS by email as I had no bounce back, but when I was sending the email to file the defence, I noticed that I had missed one letter out of the email address. I have now emailed both the AOS and the defence to the correct address at Salford Court, and had acknowledgment. I've told them I never got acknowledgement on the AOS and I'm hoping that they don't notice the mistake in the email address but knowing my luck they will realise I have missed the 14 day deadline. What are my options? I am dealing with nasty solicitors who are refusing to accept the TPP with Stepchange, and if I get a CCJ registered against me it affects my ability to get insurance (public liability and van etc). If they get an enforcement straight away can I still apply to pay in instalments ? Feel really stupid that I have made this mistake on something so important, especially as Santander appear to be so cutthroat.
  • StepChange_Rachael
    Hi

    Welcome to the forum and thanks for explaining your situation in detail.

    Youíve clearly been through a very difficult time of unforeseen circumstances. Itís understandable that the debts would have built up taking into account these changes in your situation.

    Thereís certainly help available; there are always options available to find a realistic way to become debt free. When debts arenít serviceable and become unmanageable itís really important to look at your options.

    Iíd suggest contacting the Business Debtline to discuss your options in more detail. Debt types such as corporation tax and HMRC debts do have different rights of collection to personal debts such as credit cards and need specialised advice. As youíre still registered and working under a self-employed basis itís important to know exactly what any debt solutions or advice youíre given would mean for your limited company.

    Depending on the advice it could impact you and possibly your wife differently, again this is important to discuss with a specialist debt advisor.

    The Business Debtline offer free specialised debt advice but can also include any personal debt you or your partner have.

    I hope this helps, all the best going forward.

    Thanks
    Rachael




    Hi,
    Apologies, this is a long story, but I am in a bit of a mess, and I need to get it out.

    I'm a UK based, mid-management type who works in construction (office-based). I've been working on a freelance/contract basis with my own limited company for the last 5 years now. I changed from a permanent role to go into a job in the oil and gas sector, which in 2013 was booming. Day rates were good; very good. I worked in Scotland, away from home in Yorkshire, but had plenty of money and lived a good lifestyle with nice holidays, cars, etc. We could expense anything and ate out in nice places on a weekly basis. In mid-2014 the oil price started dropping like a stone. This wasn't a massive issue for me as the project I was working on was already well under way and it would have cost more to pull it. Some companies dropped their day rates, but ours didn't. All that happened was the free-and-easy days of expenses were over, but we kept working and the project's physical phase ended in mid-2015.

    I worked in London for the last 6 months of the project, tying up final accounts and paperwork. I was reimbursed for hotel, travel and reasonable food bills. It was then that I made a big mistake, which I have regretted ever since. I left the job, unsure of how much longer it would last and not given any assurances, to take what I thought would be a nice number near home working for a small company set up by friends, even if the rate was a lot lower (but no travelling costs). At this point I was not debt free (a couple of credit cards had built up) but was up to date with taxes, VAT and so on.

    The new job was a disaster. The company fell apart and was asset stripped by vulture capitalists within a year after the directors fell out, one of them getting sacked from the company he set up, and sensing where it was going, I took another contract job with a pipeline contractor near Aberdeen. Rate wasn't brilliant, but the costs for living away were high (I had to pay for all travel costs myself). It was at this point that I started falling behind on corporation tax. I had bills to pay at home, including the two credit cards (now maxed out) and to support myself and where I would have been saving some money for tax, I wasn't doing it any more.

    That job came to an end when again there were no assurances forthcoming as to length of contract. Another job was lined up, but I was out of work for a month, finishing just before Christmas. The debts continued to grow, and at the end of January 2017 I had a larger-than-expected corporation tax bill hitting the doormat. I had to take out a personal loan of £12k with my personal bank to pay it, managing to scrape together the other £2-3k together somehow. That was an additional £600 payment to service.

    So in late January I finally started the new contract job and it paid a pittance. Pretty much half the rate I had been on only a year before. I was reimbursed capped expenses, but they didn't cover the costs of even the cheapest hotels available where I was working (Rosyth dockyard in Fife, with hundreds of people working on aircraft carriers and bridges). I was basically surviving at this point, struggling to keep head above water. And then the boiler at home packed in and we had to borrow 3 grand from my in-laws.

    Within a month, the person I reported to was sacked for undisclosed reasons. Move forward 5 months. A new manager arrived in our client!!!8217;s organisation and decided to trim the team and I was in the firing line as the most expensive asset in our team. Fan-bloody-tastic. Within a couple of weeks I was gone, and the long-term stability seemed further away than ever.

    What followed was 3 months of desperate job-searching. I travelled all over the UK and to various places in Europe trying to get a job. I got very close on multiple occasions, even having jobs offered and withdrawn within 24 hours (ARRRGGHHH), borrowing more money from relatives, going to the Job Centre and claiming JSA. it was massively dispiriting. I had to make an arrangement with HMRC for a VAT bill of £4,500.

    I ended up getting yet another job in Scotland. Right up the top, near John O'Groats. Decent-ish rate, but again I had to fork out for travel and accommodation, which again wan't cheap. The 3 months off have put me on my backside now, however. I've got another VAT bill outstanding and also a corporation tax bill for £12k which I have been unable to save up for and now pay. The personal debts are becoming unserviceable. I am paying nearly £4k a month just to keep my head above water. If this job ends, I'm really in deep do-do. I've been working away from my family for nearly 5 years and ended up in a lot of debt. I am giving serious consideration to taking a job overseas, somewhere like Dubai, but even with the kind of money I could get, I'd still just be managing. I'm seriously worried about the impact on my family. I have nothing in the way of assets; my wife owns our house. Will they come after her? (I have 2 cars on HP as well which I'm not including in my numbers).

    By my reckoning I have personal debts of £33.5k made up of:
    Bank loan (to pay off corp tax) - £8k remaining
    Credit cards (3 separate) - £13.5k
    HMRC Self-Assessment tax - £2k
    Family loans - £10k

    I also have company debts of £30k made up of:
    Corporation tax - £12.5k
    VAT - £6k
    Company Credit Cards - £11.5k

    Wow, when I write it out, it looks ridiculous. I can't believe how quickly it's spiralled and I can't believe I've let it get to this state.

    I can't see many options. I could let the HMRC and other creditors put my limited company into liquidation, but I'm sure I'll still be liable personally, which is fine. I do want to pay it back, but I also want to live and allow my family to remain unaffected.

    So my question is: would I be able to get into a DMP including these company debts, or do I need to wait for the creditors to take my company down and then roll it in with my personal debt? Would taking a job in Dubai be a wise move?

    Thanks for reading!
    Originally posted by cosmicherb
    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.
    • DellBoy
    • By DellBoy 14th Feb 18, 11:15 AM
    • 2 Posts
    • 0 Thanks
    DellBoy
    6 Years of DMP
    Hello,
    Will just start by saying what a great site this is, and appreciate all the advice that comes with it.
    So I built up debts over the years which all caught up with me 7 years ago. I had consolidated and re-consolidated and continued to rack up credit cards etc. In the end my total debt was 38K. My own fault as I was earning good money at the time, but when that stopped I was in trouble. So in the end I setup a DMP with Payplan and to date have paid in 8K.
    Now I have been monitoring my credit files and scores over the years, and as of December my last default has now been removed from my credit file. My credit score is quickly improving and is now considered very good on Clearsocre and Noodle. I still owe 30K to the creditors and am continuing with the DMP. I had tried to do some full and final offers as had a family member willing to help out. Offered 20% but all (5 creditors in total) rejected offers, and some asked me to raise them, or made counter offers that I just couldnít afford. Iím currently paying £200 a month at the moment into the DMP which is obviously going to take a long time to clear.
    Most of the debts are post 2007 so havenít gone down the CCA route, is that worth doing regardless? Some of the credit cards which have been sold on are probably from 2005/6.
    Another question I hoping someone can help with is regarding a Homeowner loan I had years ago. I took this out with Barclays, however as I had a shared ownership mortgage I should never of had this. I panicked and took out two personal loans to pay this off asap, as the second charge was against the share I didnít own. In total I had this loan for around 12-18 months before I paid it all back in full. Iím wondering if I should follow this up as I paid them about £5000 in loan repayments over that time, plus the full settlement.
    Any advice is much appreciated, along with suggestions on negotiating settlements.
    Debts are with Link Financial, Moorcroft, PRS Group, Barclay, Tesco Bank.
  • StepChange_Kirsty
    Hi,

    Thanks for your post.

    The first thing to do here is contact Salford Court to find out if theyíve received your defence before the creditor has requested judgment. The court itself doesnít automatically enter the judgment after the 14 days; the creditor has to request it therefore if you have filed your defence before that you should be ok.

    If the judgment has already been entered you will need to start by applying to set it aside on the grounds you want to defend the claim. There is some guidance on setting aside a judgment here on our website.

    If youíre on a token payment plan (TPP) with us I would recommend getting in touch with us as soon as possible so we can give you further help and advice on this debt based on your individual situation. You can find our contact details here.

    We look forward to hearing from you.

    Kirsty

    Hi there
    Long story short, following a voluntary liquidation of my ltd company, Santander repossessed my van as apparently I was in breach of the lease purchase contract, despite asking them to assign it to my other ltd company and my offer to continue making payments. They have now issued a CCJ claim for £6k for the shortfall now they have auctioned the van. I thought I had sent the AOS by email as I had no bounce back, but when I was sending the email to file the defence, I noticed that I had missed one letter out of the email address. I have now emailed both the AOS and the defence to the correct address at Salford Court, and had acknowledgment. I've told them I never got acknowledgement on the AOS and I'm hoping that they don't notice the mistake in the email address but knowing my luck they will realise I have missed the 14 day deadline. What are my options? I am dealing with nasty solicitors who are refusing to accept the TPP with Stepchange, and if I get a CCJ registered against me it affects my ability to get insurance (public liability and van etc). If they get an enforcement straight away can I still apply to pay in instalments ? Feel really stupid that I have made this mistake on something so important, especially as Santander appear to be so cutthroat.
    Originally posted by PETRA798
    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.
    • silentsmith
    • By silentsmith 14th Feb 18, 1:24 PM
    • 3 Posts
    • 0 Thanks
    silentsmith
    Hi I posted this question on a different forum. We will be contacting StepChange shortly to look at a DMP. I wondered if a question could be answered first. My mortgage product comes to an end at April and I will have to contact my existing lender to discuss a new product. We really don't want to sell our house to repay our debts. Should I organise this first and then contact SC to look into a DMP? We are struggling with a considerable amount to unsecured debt.
  • StepChange_Kirsty
    Hi,

    Thanks for your post and welcome to the forum.

    Iím sorry to hear of the difficulties youíve experienced with debt. As youíve seen for yourself debt can quickly spiral out of control and consolidation is rarely the answer. Youíve made a very positive step by contacting Payplan and setting up a DMP.

    Based on you having £30K left to pay at £200pcm, itís going to take over 12 years to repay the remaining balance so you may want to look at whether an alternative debt solution might be better for your situation. Iíd recommend contacting Payplan in the first instance to see what they would recommend but if youíd like a second opinion, you could enter your details on our online Debt Remedy tool to see what weíd recommend for you.

    There is some very useful information on our website regarding making full and final settlements. Please bear in mind that the creditors are under no legal obligation to accept lower sums than the outstanding balance so they can refuse the offer. If the creditors are unwilling to accept an informal full and final settlement you could consider looking at a lump sum individual voluntary arrangement (IVA). If you would like to discuss this please feel free to contact us on 0800 138 1111 or speak to Payplan who may be able to help.

    If you believe there has been some discrepancy in the contracts with your creditors you are free to make a request for a true copy of the agreement under ss77-79 of the Consumer Credit Act 1974 with a fee of £1 at any time . However, it does sound to me that you admit you owe the debt but it has become overwhelming so reviewing your debt solution would be key here.

    In regards to the homeowner loan, are you suggesting Barclays have made an error in giving you the loan because you had shared ownership? Iím not sure if youíd have any recourse here but if you wanted to review the contract Iíd recommend you seek independent legal advice. You could contact your local Citizens Advice Bureau or you could find a Solicitor through the Law Society website.

    I hope this helps.

    Kirsty


    Hello,
    Will just start by saying what a great site this is, and appreciate all the advice that comes with it.
    So I built up debts over the years which all caught up with me 7 years ago. I had consolidated and re-consolidated and continued to rack up credit cards etc. In the end my total debt was 38K. My own fault as I was earning good money at the time, but when that stopped I was in trouble. So in the end I setup a DMP with Payplan and to date have paid in 8K.
    Now I have been monitoring my credit files and scores over the years, and as of December my last default has now been removed from my credit file. My credit score is quickly improving and is now considered very good on Clearsocre and Noodle. I still owe 30K to the creditors and am continuing with the DMP. I had tried to do some full and final offers as had a family member willing to help out. Offered 20% but all (5 creditors in total) rejected offers, and some asked me to raise them, or made counter offers that I just couldnít afford. Iím currently paying £200 a month at the moment into the DMP which is obviously going to take a long time to clear.
    Most of the debts are post 2007 so havenít gone down the CCA route, is that worth doing regardless? Some of the credit cards which have been sold on are probably from 2005/6.
    Another question I hoping someone can help with is regarding a Homeowner loan I had years ago. I took this out with Barclays, however as I had a shared ownership mortgage I should never of had this. I panicked and took out two personal loans to pay this off asap, as the second charge was against the share I didnít own. In total I had this loan for around 12-18 months before I paid it all back in full. Iím wondering if I should follow this up as I paid them about £5000 in loan repayments over that time, plus the full settlement.
    Any advice is much appreciated, along with suggestions on negotiating settlements.
    Debts are with Link Financial, Moorcroft, PRS Group, Barclay, Tesco Bank.
    Originally posted by DellBoy
    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.
    • DellBoy
    • By DellBoy 14th Feb 18, 1:47 PM
    • 2 Posts
    • 0 Thanks
    DellBoy
    If I were to apply for a full and final IVA now, would that or my debts re-appear back on my credit report?
  • StepChange_Kirsty
    Hi there,

    Thanks for your post.

    Youíre welcome to contact us at any time to discuss options for dealing with your debts including the debt management plan.

    If youíre struggling to make payments to your unsecured debts, if you were to miss a payment or make a reduced payment this could have an impact on your credit rating. In turn this could affect the mortgage options available to you.

    I would recommend contacting your mortgage provider now to see what options might be available to you at the end of your current mortgage term. However, if you do urgently need advice please do not hesitate to contact us on 0800 138 1111. Weíre available Monday to Friday 8am to 8pm and Saturdayís 8am to 4pm.

    All the best,

    Kirsty

    Hi I posted this question on a different forum. We will be contacting StepChange shortly to look at a DMP. I wondered if a question could be answered first. My mortgage product comes to an end at April and I will have to contact my existing lender to discuss a new product. We really don't want to sell our house to repay our debts. Should I organise this first and then contact SC to look into a DMP? We are struggling with a considerable amount to unsecured debt.
    Originally posted by silentsmith
    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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