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  • FIRST POST
    • sourcrates
    • By sourcrates 21st Jul 19, 2:51 PM
    • 19,131Posts
    • 18,057Thanks
    sourcrates
    Struggling with debt? Ask a stepchange debt adviser a question
    • #1
    • 21st Jul 19, 2:51 PM
    Struggling with debt? Ask a stepchange debt adviser a question 21st Jul 19 at 2:51 PM
    If you need help with your debts, this is the thread for you.

    This is a new thread, as the old one was getting a tad long.


    Trained advisers from StepChange Debt Charity 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 five, see parts one, two three and four: https://forums.moneysavingexpert.com/showthread.php?t=5559140.


    If you haven't already, join the forum to reply!
    Last edited by sourcrates; 22-07-2019 at 12:47 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    forumteam@moneysavingexpert.com.
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
Page 1
    • Skintma
    • By Skintma 22nd Jul 19, 7:14 PM
    • 1 Posts
    • 0 Thanks
    Skintma
    • #2
    • 22nd Jul 19, 7:14 PM
    • #2
    • 22nd Jul 19, 7:14 PM
    My partner and I have racked up over £50k on credit cards/store cards and we are selling our house so we can downsize to clear the debt. Nothing is in arrears, but we are simply struggling to meet minimum payments due to interest. I am reluctant to get help as I feel this will affect our chances of securing our mortgage again when we finally sell. Is there any help I can get without affecting our mortgage chances.
  • Former StepChange_Patience
    • #3
    • 23rd Jul 19, 4:26 PM
    • #3
    • 23rd Jul 19, 4:26 PM
    Hi there

    Thanks for your post and sharing your situation.

    I’m sorry to hear you’re struggling with the interest on the cards and can understand your concern about future mortgage chances.

    You could try speaking to the credit card companies directly, explain your circumstances and see if they’d be willing to reduce the interest for a set time period, but this would be at your creditor’s discretion to agree to any changes.

    These agreed arrangements may also show on your credit file and could potentially impact which mortgage provider and which interest rate they could offer to you.

    I know you're reluctant to get help, but there's no obligation to go ahead with anything we recommend or impact on your credit file by finding out what your options could be. If you would like us to have a look at your circumstances, you can start a budget with us either online or over the phone and see what options we can suggest.

    Details of how you can contact us can be found here: www.stepchange.org/Contactus

    It might also be worthwhile considering contacting our mortgage advice team here: https://www.stepchange.org/how-we-help/mortgages.aspx to see if there is anything we could otherwise do to help.

    I hope this helps.

    Patience


    My partner and I have racked up over £50k on credit cards/store cards and we are selling our house so we can downsize to clear the debt. Nothing is in arrears, but we are simply struggling to meet minimum payments due to interest. I am reluctant to get help as I feel this will affect our chances of securing our mortgage again when we finally sell. Is there any help I can get without affecting our mortgage chances.
    Originally posted by Skintma
    • Singlemum47
    • By Singlemum47 25th Jul 19, 1:27 PM
    • 19 Posts
    • 20 Thanks
    Singlemum47
    • #4
    • 25th Jul 19, 1:27 PM
    • #4
    • 25th Jul 19, 1:27 PM
    Will i be able to rent or gt a mortgage if i defaulted and been on a DMP (self managed) in the last 6 years?
    Current Debt £39,000 Aiming to be debt free in 4 years
  • Former StepChange_Patience
    • #5
    • 26th Jul 19, 9:59 AM
    • #5
    • 26th Jul 19, 9:59 AM
    Hi there

    Thanks for your post.

    This is a difficult one to say for certain, the answer would be maybe as it would depend on your circumstances.

    Any defaults you have received would technically no longer show on your credit file after 6 years from the date it was registered on there, but it’s worth considering a few other things too.

    With mortgages, while they look at your credit file they also look at your affordability, so even if the records are no longer on your credit file but you’re still repaying the debts, this could impact your application.

    If you’re looking to get a mortgage, it would be worthwhile considering the time it would take to save up a deposit which would be difficult to do if you’re also repaying debts. This article explains a little more about mortgages while in a debt management plan (DMP, self-managed would also apply: https://moneyaware.co.uk/2017/07/can-i-get-a-mortgage-while-on-a-dmp/

    Renting may be a little different, once the default records no longer show on your credit file, this would theoretically mean (depending on what the landlord checks for) that it may be simpler to rent than get a mortgage. It would also be worthwhile considering how you'll save up for any deposits. Here's a little more information about this: https://www.stepchange.org/debt-info/dmp-mortgage-home-tenancy.aspx

    However, if your creditors do decide to take legal action to collect the debt (a county court judgement) it may make it harder to take out a new tenancy or mortgage.

    I hope this helps a little.

    Patience



    Will i be able to rent or gt a mortgage if i defaulted and been on a DMP (self managed) in the last 6 years?
    Originally posted by Singlemum47
    • Earth Rocker
    • By Earth Rocker 26th Jul 19, 6:43 PM
    • 1 Posts
    • 1 Thanks
    Earth Rocker
    • #6
    • 26th Jul 19, 6:43 PM
    • #6
    • 26th Jul 19, 6:43 PM
    Sorry if I'm in the wrong place. I'm struggling to navigate the site.

    I'll cut to the chase.
    My wife had to stop work due to Ill health. Unbeknownst to me she had racked up a debt on a credit card and then proceeded to grow it to 5 figures, after stopping work. I had my own card debt which I set about reducing, using 0% transfers.

    I have nearly paid this off and have made a final payment on my mortgage.

    She didn't share the state of her finances until last year or so. (We have separate accounts). She had just been making minimum payments. I gave her extra money to help make some impact on the debt, but the interest rate is very high.
    Now, with my finances so healthy, we can get about sorting hers.

    Is it possible for me to transfer her debt to me, so I can secure a better interest rate? Or, is there another way, like a loan, that would help us pay it off quicker and cheaper?

    Thanks in advance
    Earth Rocker
  • StepChange_Rachael
    • #7
    • 29th Jul 19, 3:23 PM
    • #7
    • 29th Jul 19, 3:23 PM
    Hi

    Welcome to the forum.

    It’s unlikely that you’d be able to transfer the debt over into your name, creditors generally won’t transfer a contract to someone else. I wouldn’t recommend doing this anyway, as it just transfers the liability into your name but won’t change the contractual agreement. Meaning the situation won’t make you or your wife any better off.

    Potentially by taking out debt at a better interest rate and using this to pay off the debt to reduce the interest your wife would pay, could be an option. As you mentioned, if you decided to go down this route it would likely be in your name and so I couldn’t recommend this. If the contractual payments are affordable, then your partner could check their eligibility to transfer to a cheaper product to bring down the interest. Either way, it might be difficult to do this with the full amount outstanding.

    As a debt advisor I can’t advise on products for further lending. However, if you decided to look down alternative debt solution routes, then I’d recommend speaking with a free debt advice service to investigate your partners options. If you want to go down this route, you can find our contact details here.

    Thanks
    Rachael









    Sorry if I'm in the wrong place. I'm struggling to navigate the site.

    I'll cut to the chase.
    My wife had to stop work due to Ill health. Unbeknownst to me she had racked up a debt on a credit card and then proceeded to grow it to 5 figures, after stopping work. I had my own card debt which I set about reducing, using 0% transfers.

    I have nearly paid this off and have made a final payment on my mortgage.

    She didn't share the state of her finances until last year or so. (We have separate accounts). She had just been making minimum payments. I gave her extra money to help make some impact on the debt, but the interest rate is very high.
    Now, with my finances so healthy, we can get about sorting hers.

    Is it possible for me to transfer her debt to me, so I can secure a better interest rate? Or, is there another way, like a loan, that would help us pay it off quicker and cheaper?

    Thanks in advance
    Earth Rocker
    Originally posted by Earth Rocker
    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.
    • smltidy
    • By smltidy 29th Jul 19, 3:42 PM
    • 1 Posts
    • 0 Thanks
    smltidy
    • #8
    • 29th Jul 19, 3:42 PM
    Debt Repayment Options
    • #8
    • 29th Jul 19, 3:42 PM
    Hi. Hope this is the right place for this.

    I have been trying to get out of debt for quite a few years, but it seems very difficult to make consistent progress despite being on a decent salary.

    At present, I have two overdrafts (from student years) at a total of £2,700 and a credit card at £1,900.

    The maintenance payments make it very challenging to make a lot of progress. Do you have any advice that might help?

    To illustrate my ineffective approach, the credit card was designed to help me get out of one of those, but I am an idiot and now my situation is all the worse.

    Kind regards,
    Paul
    • HannahRG
    • By HannahRG 29th Jul 19, 7:32 PM
    • 1 Posts
    • 0 Thanks
    HannahRG
    • #9
    • 29th Jul 19, 7:32 PM
    • #9
    • 29th Jul 19, 7:32 PM
    Hello,

    I have 10000 worth of debt.
    I have looked at my credit reports and I have £6000 worth of CC debt which is charged off and 4000 in other debts (all in collections) what should I prioritize? Is it worth doing a consumer propsal? If I pay off some of the smaller debts will it improve me credit score?
    • Ian42
    • By Ian42 31st Jul 19, 1:09 PM
    • 1 Posts
    • 0 Thanks
    Ian42
    Hi, I have debts of £15000 on 2 credits (one was a zero interest balance transfer card) Both cards are almost at their limit. I had always cleared the full balance on my cards until the last few years. While.I can afford minimum payments i don't really have any access to cash with both cards maxed and all my wages going towards the cards.
    I don't have any other debts with my car finance cleared and my mortgage was paid off about 10 years ago. My house is worth approximately £90,000.
    Would a personal loan or a partial mortgage of my home be a good way to clear the debt on the cards? I could afford monthly payments of around £300 from my income of £29,000 gross annually
  • Former StepChange_Patience
    Hi Paul

    Thanks for posting on the forum, you've come to the right place.

    I’m sorry to hear about the challenges you’re facing to pay the debts. I think it would be a good idea to create a budget to see where you are financially each month. This might help if you feel you could offer more to your creditors to help clear these quicker.

    You can find a budget planner here: https://www.moneyadviceservice.org.uk/en/tools/budget-planner

    If you’re finding you’re struggling with the payments, due to the maintenance and other important living costs I would suggest seeking impartial debt advice.

    If you would like us to have a look at your circumstances, you can start a budget with us either online or over the phone and see what options we can suggest. There's no obligation to go ahead with anything we recommend and details of how you can contact us can be found here: www.stepchange.org/Contactus

    I hope this helps.

    Patience



    Hi. Hope this is the right place for this.

    I have been trying to get out of debt for quite a few years, but it seems very difficult to make consistent progress despite being on a decent salary.

    At present, I have two overdrafts (from student years) at a total of £2,700 and a credit card at £1,900.

    The maintenance payments make it very challenging to make a lot of progress. Do you have any advice that might help?

    To illustrate my ineffective approach, the credit card was designed to help me get out of one of those, but I am an idiot and now my situation is all the worse.

    Kind regards,
    Paul
    Originally posted by smltidy
  • Former StepChange_Patience
    Hi Hannah

    Thanks for getting in touch.

    I’m afraid I’m not familiar with a consumer proposal as a way of managing debt, but there are lots of different ways that debt can be dealt with. You can find out further information about the different solutions here: https://www.stepchange.org/debt-info/debt-solutions.aspx

    When dealing with debt, it’s useful to try and find the best way to manage all of them fairly, so I would suggest trying to not prioritise one debt over another.

    Paying off a smaller debt may not improve the credit file as the record of the missing or reduced payments will still show on there for 6 years from the date it was first registered with the credit referencing agencies.

    If you would like us to have a look at your circumstances, you can start a budget with us either online or over the phone and see what options we can suggest. You can find out the different ways we can start things with you here: https://www.stepchange.org/start.aspx

    I hope this helps.

    Patience



    Hello,

    I have 10000 worth of debt.
    I have looked at my credit reports and I have £6000 worth of CC debt which is charged off and 4000 in other debts (all in collections) what should I prioritize? Is it worth doing a consumer propsal? If I pay off some of the smaller debts will it improve me credit score?
    Originally posted by HannahRG
    • Changingtimes
    • By Changingtimes 8th Aug 19, 7:53 PM
    • 59 Posts
    • 15 Thanks
    Changingtimes
    Just wanted to update you all and ask for some further advice.
    I started my DMP in Jan 19 with circa £22,000 of debt.

    From getting refunds from a few complaints to PDL etc and paying just short of £1000 a month I am down to £12,000 so in 12 months I should be debt free ( family support helps me pay the £1000 a month).

    Now the problem my car has died. Engine issues which I have had a quote to repair of £750 the car is worth £1500 and gets me from A to B. I need it for commuting to work.

    Obviously I cannot take out credit and wouldn't even attempt to try BUT are there any options for me to sort this? I was thinking of speaking to SC and asking their advice on missing payments for 2 months that way I would have £2000 to pick up another little runaround. How would the creditors react to this and of course SC?

    Any advice welcome. Thanks all

    DEBT FREE MISSION ☆☆DMP COMMENCING 01/01/19 ☆☆
    - CURRENT DEBT £22,000 - DEBT FREE BY OCTOBER 2020
    UPDATE 01/09/2019 - BUSTED £10,000 - CURRENT DEBT £12,0000
    • marriedworriedmum
    • By marriedworriedmum 10th Aug 19, 9:09 AM
    • 34 Posts
    • 44 Thanks
    marriedworriedmum
    Good morning.
    My husband and I have been with Stepchange for almost 10 years, its been a hard slight but we've paid a large chunk of our debt off and I can honestly say you've been amazing.
    Over the last 12 months everything that could go wrong, has gone wrong From a car that seems to need repairing constantly to a..quite literally.. blowing up washing machine. To more personal issues such as family bereavement. Whenever these mishaps have arised you have always been great at giving us a break or reducing our payments. As , typically our emergency fund never seems to quite cover these expenses
    You did explain when we took a break recently that if this happens again the next step has to be to close the plan, and then look at re opening it again but going through a full budget check list to make sure everything is affordable for us and that its the right plan for us. Because of plain stupidity on my part the direct debit wasn't set up for last month. Completely my fault. I spoke to someone straight away to explain, but the plan had to naturally close.
    I spoke to someone on Thursday about re setting up the plan and they were so helpful and said we could re set up the plan if we do a full budget review and if it still looks like its the right plan for us. I believe it is, but your advisor was saying perhaps we should look at taking into account a higher ' pot' for emergencies etc.
    I said I would ring back yesterday to compete the full budget review when I had all my figures to hand......except I was late getting out of work and by the time I got out your office had closed!
    We are in a position to pay the usual dd amount this month but I've got myself into a complete state all night worrying that because I didn't call back when I said I would that its all too late. I'm tired and full of cold and have a very moody teenager this morning so that night not be helping me to think rationally of course, but if I call Monday will that be too late? I'm so sorry I'm not usually this disorganised and have taken such pride in reducing our debt that I feel so stupid. Its just been quite a year.
    Apologies if I've rambled!
    • LadybirdE
    • By LadybirdE 11th Aug 19, 6:59 PM
    • 1 Posts
    • 0 Thanks
    LadybirdE
    Hi, I wonder if you can help, no worries if not. I have a mortgage shortfall debt with my ex husband, of nearly £30k as a consequence of a repossession after he left and stopped contributing towards the mortgage. I have now re-married and my current husband would like to one day have a joint mortgage with me. To help with this, and to improve my financial situation he has offered to make a full and final settlement offer to my previous mortgage lender. I have a few concerns/ questions:
    1) Is it possible to agree a F&F settlement which concludes your liability but not the liability of the other person (ie can they agree I am no longer liable for the remainder but that my ex husband is)? Or does a F&F settlement agreement conclude the liability of all parties under a joint debt?
    2) When we took out the mortgage there was a higher lenders fee as we had a small deposit, which I understand probably means the lender purchased mortgage indemnity insurance (or an MIG) and could potentially have claimed on this after the repossession to recover some of their loss. I have read that even if you agree a partial payment in F&F settlement to the mortgage lender, you could still be pursued months or even years later for the remainder of the debt by the insurance company if they want to recover their losses in respect of the amounts they paid out for the claim. Is this true?
    3) When we make this offer to the mortgage lender I would use one of the letter templates found online and ensure that it states that they must update my credit file to show it is settled, however I have also read that they could mark it with a ‘P’ as ‘partially settled’. If so, could this affect my ability to get a mortgage in the future?
    Many thanks in advance for your time.
    • StepChange Private Messages
      Verified User verified user
    • By StepChange Private Messages Verified User verified user 13th Aug 19, 12:46 PM
    • 120 Posts
    • 117 Thanks
    StepChange Private Messages
    Hi Ian,

    Thanks for you post and apologies for the delay in responding.

    At StepChange we’re not able to advise on credit products I’m afraid as our specialism is in tackling problem debt without the use of further credit.

    You may find some good information regarding personal loans on the main MoneySavingExpert website. If you do decide to take out a loan to pay off the credit cards then make sure you cut up the credit cards and close the accounts so you would not be tempted to use them again.

    Alternatively, if you’re finding yourself struggling with the credit card payments you can get in touch with us in order to have a Debt Advice session with one of our expert advisors. You can find our contact details here.

    Kirsty



    Hi, I have debts of £15000 on 2 credits (one was a zero interest balance transfer card) Both cards are almost at their limit. I had always cleared the full balance on my cards until the last few years. While.I can afford minimum payments i don't really have any access to cash with both cards maxed and all my wages going towards the cards.
    I don't have any other debts with my car finance cleared and my mortgage was paid off about 10 years ago. My house is worth approximately £90,000.
    Would a personal loan or a partial mortgage of my home be a good way to clear the debt on the cards? I could afford monthly payments of around £300 from my income of £29,000 gross annually
    Originally posted by Ian42
    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 and apologies for the delay in responding.

    It sounds like you’ve done very well in being able to clear £10,000 worth of debt in such a short period of time. When you’re in a debt management plan (DMP) we understand that you'll have unexpected costs from time to time and this sounds like one of those times.

    I’d recommend getting in touch with our DMP team in order to look at arranging a payment break so you can deal with this unexpected cost. We can also discuss how your creditors will be informed.

    You can find our contact details here under the DMP section and specifically ongoing plans.

    I hope this helps.

    Kirsty







    Just wanted to update you all and ask for some further advice.
    I started my DMP in Jan 19 with circa £22,000 of debt.

    From getting refunds from a few complaints to PDL etc and paying just short of £1000 a month I am down to £12,000 so in 12 months I should be debt free ( family support helps me pay the £1000 a month).

    Now the problem my car has died. Engine issues which I have had a quote to repair of £750 the car is worth £1500 and gets me from A to B. I need it for commuting to work.

    Obviously I cannot take out credit and wouldn't even attempt to try BUT are there any options for me to sort this? I was thinking of speaking to SC and asking their advice on missing payments for 2 months that way I would have £2000 to pick up another little runaround. How would the creditors react to this and of course SC?

    Any advice welcome. Thanks all
    Originally posted by Changingtimes
    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.
  • Former StepChange_Patience
    Hi there

    Thanks for getting in touch, no apologies needed at all for your message.

    It’s fantastic to hear that the debt management plan (DMP) although has been a hard slight, has actually been such a big help.

    It sounds like it’s been a difficult 12 months for you as a family and I know it’s easier said than done but try not to worry about not calling us when you originally thought you could.

    We usually provide someone longer than a few days to get in touch to review their plan to get it set back up, so if you call us when you’re ready (and feeling a little better) we’ll happily do the review and support you from there.

    As my colleague mentioned, it may be worthwhile thinking about a bigger ‘pot’ for emergencies to help you in the future, if you have this ready for us when you call, we’ll add this on.

    I hope this helps.

    Patience




    Good morning.
    My husband and I have been with Stepchange for almost 10 years, its been a hard slight but we've paid a large chunk of our debt off and I can honestly say you've been amazing.
    Over the last 12 months everything that could go wrong, has gone wrong From a car that seems to need repairing constantly to a..quite literally.. blowing up washing machine. To more personal issues such as family bereavement. Whenever these mishaps have arised you have always been great at giving us a break or reducing our payments. As , typically our emergency fund never seems to quite cover these expenses
    You did explain when we took a break recently that if this happens again the next step has to be to close the plan, and then look at re opening it again but going through a full budget check list to make sure everything is affordable for us and that its the right plan for us. Because of plain stupidity on my part the direct debit wasn't set up for last month. Completely my fault. I spoke to someone straight away to explain, but the plan had to naturally close.
    I spoke to someone on Thursday about re setting up the plan and they were so helpful and said we could re set up the plan if we do a full budget review and if it still looks like its the right plan for us. I believe it is, but your advisor was saying perhaps we should look at taking into account a higher ' pot' for emergencies etc.
    I said I would ring back yesterday to compete the full budget review when I had all my figures to hand......except I was late getting out of work and by the time I got out your office had closed!
    We are in a position to pay the usual dd amount this month but I've got myself into a complete state all night worrying that because I didn't call back when I said I would that its all too late. I'm tired and full of cold and have a very moody teenager this morning so that night not be helping me to think rationally of course, but if I call Monday will that be too late? I'm so sorry I'm not usually this disorganised and have taken such pride in reducing our debt that I feel so stupid. Its just been quite a year.
    Apologies if I've rambled!
    Originally posted by marriedworriedmum
  • StepChange_Kirsty
    Hi LadybirdE,

    Thanks for your post and welcome to the forum.

    I’ll answer each of your questions in turn:

    1) Is it possible to agree a F&F settlement which concludes your liability but not the liability of the other person (ie can they agree I am no longer liable for the remainder but that my ex husband is)? Or does a F&F settlement agreement conclude the liability of all parties under a joint debt?

    Yes, it's possible to agree to a full and final settlement for only your liability and not that of your ex-husband. You should make it clear in your letter that the intention is only to satisfy your liability for the debt.

    2) When we took out the mortgage there was a higher lenders fee as we had a small deposit, which I understand probably means the lender purchased mortgage indemnity insurance (or an MIG) and could potentially have claimed on this after the repossession to recover some of their loss. I have read that even if you agree a partial payment in F&F settlement to the mortgage lender, you could still be pursued months or even years later for the remainder of the debt by the insurance company if they want to recover their losses in respect of the amounts they paid out for the claim. Is this true?

    If your lender claimed on the Mortgage Indemnity Insurance, then yes is it true that both the mortgage lender can chase you for the shortfall and the insurance provider can chase for the money they paid out. You will need to check with the mortgage lender if they did or do intend to claim on this. If they have or do you need to be very careful with your full and final settlement offer as whilst it may satisfy the mortgage lender, you may still be chased by the insurer.

    3) When we make this offer to the mortgage lender I would use one of the letter templates found online and ensure that it states that they must update my credit file to show it is settled, however I have also read that they could mark it with a ‘P’ as ‘partially settled’. If so, could this affect my ability to get a mortgage in the future?

    It’s the decision of the mortgage lender if they would be prepared to mark the debt as settled or partially settlement. Both of these would be marked on your credit file for 6 years from the date of settlement. This could impact your ability to get a mortgage during this time.

    Whilst I appreciate this might not be the ideal outcome, I hope this helps answer your questions.

    Kirsty



    Hi, I wonder if you can help, no worries if not. I have a mortgage shortfall debt with my ex husband, of nearly £30k as a consequence of a repossession after he left and stopped contributing towards the mortgage. I have now re-married and my current husband would like to one day have a joint mortgage with me. To help with this, and to improve my financial situation he has offered to make a full and final settlement offer to my previous mortgage lender. I have a few concerns/ questions:
    1) Is it possible to agree a F&F settlement which concludes your liability but not the liability of the other person (ie can they agree I am no longer liable for the remainder but that my ex husband is)? Or does a F&F settlement agreement conclude the liability of all parties under a joint debt?
    2) When we took out the mortgage there was a higher lenders fee as we had a small deposit, which I understand probably means the lender purchased mortgage indemnity insurance (or an MIG) and could potentially have claimed on this after the repossession to recover some of their loss. I have read that even if you agree a partial payment in F&F settlement to the mortgage lender, you could still be pursued months or even years later for the remainder of the debt by the insurance company if they want to recover their losses in respect of the amounts they paid out for the claim. Is this true?
    3) When we make this offer to the mortgage lender I would use one of the letter templates found online and ensure that it states that they must update my credit file to show it is settled, however I have also read that they could mark it with a ‘P’ as ‘partially settled’. If so, could this affect my ability to get a mortgage in the future?
    Many thanks in advance for your time.
    Originally posted by LadybirdE
    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.

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    • Keefvilla
    • By Keefvilla 14th Aug 19, 5:33 PM
    • 1 Posts
    • 0 Thanks
    Keefvilla
    New to this forum, hope I am doing this right.
    I was divorced in 2001. My ex wife was given the house in the settlement and I kept my pension. Recently I have received a letter from a company called Dryden Fairfax Solicitors concerning a joint debt we have to Arrow Global Limited. I have never had any dealings with either company. They were offering a discounted debt settlement.I would like to know if the debt I supposedly owe is statute barred under the limitation act as I have not paid any money or had any contact with either firm? I believe my ex wife was making minimal payments. I was not able to get off the mortgage when we divorced as my ex was not earning at the time, she has not bothered to have me removed since. I am concerned she has used the joint mortgage to get a joint loan somehow. I do not want to contact the solicitors yet in case it affects any possible action against me. Please help!
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