Struggling with debt? Ask a stepchange debt adviser a question

peony1gardens · 29 August 2019 at 5:36PM

I have contacted Stepchange and they have advised me to set up a DMP. Forming part of the debt are 2 overdrafts on 2 bank accounts. My question is if these overdrafts are included in the plan will I have to give up my current bank account which I have had for several years. If I paid off the overdrafts before setting up the plan would that make a difference ie could I hold on to my present account with the same bank. My son is helping me with these debts.
I would be grateful for some advice.

Former_StepChange_Joe · 30 August 2019 at 1:10PM

Hello

Thanks for your post and welcome to the forum.

I’m glad to hear you’ve been in touch with us and we’ve offered you a DMP.

Yes, the overdraft balances will need to be included in your DMP. I recommend you ask your bank how they can help – they may:

Separate the overdraft from the existing account. If they do this, you’ll need to provide us with the overdraft account details to add to your DMP
Set up a new ‘clean’ basic bank account for you
Allow you to reduce your overdraft at an affordable rate and in line with your other debts on the DMP

They may close your existing account but be happy for you to apply for a new, basic account with them.

It’s important you ask them not to take any further payments towards debts you have with them; these will be paid through the DMP.

If they are unable to help, then you should move to a bank you don’t owe any money to. If you use the current account Switching Service, make sure that:

Any overdraft balance is not carried over to the new account
Payments to non-priority debts are not carried over to the new account
Cancel all direct debit, standing orders and continuous payment authorities to non-priority debts.

Interest and charges can be added to the old account, but we will ask them to stop as part of the DMP

If your son is happy to pay these overdrafts off for you, then you won't need to take the above steps. However, he would have to transfer the money to the accounts himself to avoid preferential treatment. If your son expects you to pay him back, please do give us a call so we can calculate a fair amount to offer him alongside the debts in the DMP.

If you have any further questions, please call the number in your application pack.

I hope you've found this helpful.

Thanks

Joe

peony1gardens wrote: »

I have contacted Stepchange and they have advised me to set up a DMP. Forming part of the debt are 2 overdrafts on 2 bank accounts. My question is if these overdrafts are included in the plan will I have to give up my current bank account which I have had for several years. If I paid off the overdrafts before setting up the plan would that make a difference ie could I hold on to my present account with the same bank. My son is helping me with these debts.
I would be grateful for some advice.

peony1gardens · 30 August 2019 at 3:10PM

Hi Joe,
Many thanks for that very useful advice. It has helped me to clarify my situation and I'll let you know how I get on.

Clairefb31 · 31 August 2019 at 1:52PM

Hi, I need some help. My situation is as follows: Me and my hubby have always been in debt and just lived with it but now we're in our early 40's with a 9 year old son we want to clear our debt and think about having a debt free future! We have about 30k debt with credit cards and loans. In the past the hubby was in and out of work and so we lived off cc's as my job was low paid. Back in 2007 we were advised to take out an interest only mortgage. I was naïve at the time and was just thinking about our current situation and it suited at the time. Now I'm wanting to go onto payment and the monthly payment the mortgage company are wanting is too high for us and we won't have the 75k to pay in 13 years time!! They also can't extend the term

The house is probably only worth about 50k too! I don't know which way to turn..i can't get interest free credit cards to transfer my balances as my credit score is poor:( We're managing to pay our debts but really need to sort our Mortgage out. Please can someone advise us the best thing to do as we're stuck. Thanks

xmasfriend1 · 1 September 2019 at 5:55PM

Hi I’m in debt. I’ve just been passed to a collection agency called NCO. they say were sending me a letter and I’m worried about two things. 1) is it going to have there logo on it and everyone will know I’m in debt?

2) is it an a4 size or just a standard letter size...?

pendramoon · 2 September 2019 at 1:41PM

.
.
Hi all

Thank you for taking the time to read my post. I am in 40k debt with two credit cards + a personal loan. I have been working over 50 - 70 hours a week to pay everyone out but in the end of the day I always have to use what I pay back on my credit cards. I getting very tired and emotionally drained out as this has been going on for 4-5 years now. I can feel that this put a huge risk on my health now.I can feel that I can't do too much over time now.

SO I came to the conclusion I have to file for bankruptcy. Just want to know what is the process, what step it will take place? I have to complete an online form. upon submitting the for I have to pay the fee or after, before? what happens next? would people come to my rented property to take away my stuff? Don't have too much stuff. Also my Grandmother is very old and recently become more sick. She still manages OK but I think very soon she would need even more help from me. She lives abroad and just worried that they would take my passport away from me, I wouldn't be able to see her. Also my wife has a nice car what is in her name but she worries that they might take it away from us. (all my debt is in my name and I don't even drive). Also my wife is sceptical about me applying for bankruptcy as she say it has hidden issues. can you explain to me the possible negative impact on me please?

Thank you for your answers

Smileyt · 3 September 2019 at 1:38PM

Thank you for your help. I will pass the advice on to my friend.

StepChange_Allen · 5 September 2019 at 12:46PM

bestfootie wrote: »

why on earth don't any of these credit card companies have an email address to send documents to?! It's like they're trying to make life as difficult as possible for people in debt!

Hi there

Thanks for posting.

I'm not really sure what I can say to that I'm afraid, it's up to companies themselves whether they offer this option of getting in touch. If you feel they should implement it, perhaps you could send them this as a suggestion.

Best wishes

Allen

StepChange_Allen · 5 September 2019 at 1:02PM

Clairefb31 wrote: »

Hi, I need some help. My situation is as follows: Me and my hubby have always been in debt and just lived with it but now we're in our early 40's with a 9 year old son we want to clear our debt and think about having a debt free future! We have about 30k debt with credit cards and loans. In the past the hubby was in and out of work and so we lived off cc's as my job was low paid. Back in 2007 we were advised to take out an interest only mortgage. I was naïve at the time and was just thinking about our current situation and it suited at the time. Now I'm wanting to go onto payment and the monthly payment the mortgage company are wanting is too high for us and we won't have the 75k to pay in 13 years time!! They also can't extend the term The house is probably only worth about 50k too! I don't know which way to turn..i can't get interest free credit cards to transfer my balances as my credit score is poor:( We're managing to pay our debts but really need to sort our Mortgage out. Please can someone advise us the best thing to do as we're stuck. Thanks

Hi Claire

Welcome to the forum and thanks for posting.

I'm sorry to hear that you're struggling with debts and to see how to get the mortgage paid. We can certainly have a look at your situation and see whether there's a better way to tackle the debts. We may be able to suggest and discuss elements around the mortgage, but our standard debt advisors aren't qualified to give personal mortgage advice.

We do have a mortgage team here, but they can only assist people that fit certain criteria, so we can assess that at the time if you get in touch.

Our contact details to get started can be found here: www.stepchange.org/contact-us

I hope this is helpful.

Allen

StepChange_Allen · 5 September 2019 at 1:11PM

xmasfriend1 wrote: »

Hi I’m in debt. I’ve just been passed to a collection agency called NCO. they say were sending me a letter and I’m worried about two things. 1) is it going to have there logo on it and everyone will know I’m in debt?

2) is it an a4 size or just a standard letter size...?

Hi there

Welcome to the forum and thanks for posting.

Envelopes containing debt collection letters shouldn't be made obvious as to what they are, as far as I know, though I'm not sure of the precise rules around them. However, they will likely have a company name/logo on and a return address, at the very least.

Different companies may send letters out in different envelopes, though I'd imagine most use an A5 size or similar.

If you need any help and advice regarding your debt, you can register with us free of charge. Our contact details to get started can be found here: www.stepchange.org/contact-us

I hope this helps.

Allen

Struggling with debt? Ask a stepchange debt adviser a question

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