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  • FIRST POST
    • sourcrates
    • By sourcrates 21st Jul 19, 2:51 PM
    • 19,081Posts
    • 18,022Thanks
    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 4
    • Fusterclucker
    • By Fusterclucker 9th Oct 19, 4:06 PM
    • 51 Posts
    • 54 Thanks
    Fusterclucker
    I sent in my activation pack and it was received yesterday.

    Up until today i have been 'impressed' with the process, but when i rang today to find out some little bits of information, and the advisor at Step change couldn't get me off the phone quick enough.

    Not interested in my questions, the reasons for them or indeed with any level of reassurance. It has made me wonder if i am doing the right thing.
  • StepChange_Kirsty
    Hi there,

    Thanks for your message.

    Iím sorry to hear about your experience, Iím concerned itís left you questioning if youíre doing the right thing. We are definitely here to answer your questions, so this sounds like something we need to look into for you especially if you didnít feel like you came away with any answers.

    Iíve sent you a private message so we can take some personal details and investigate this further for you.

    Kind regards,

    Kirsty






    I sent in my activation pack and it was received yesterday.

    Up until today i have been 'impressed' with the process, but when i rang today to find out some little bits of information, and the advisor at Step change couldn't get me off the phone quick enough.

    Not interested in my questions, the reasons for them or indeed with any level of reassurance. It has made me wonder if i am doing the right thing.
    Originally posted by Fusterclucker
    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.
    • Fusterclucker
    • By Fusterclucker 10th Oct 19, 9:12 PM
    • 51 Posts
    • 54 Thanks
    Fusterclucker
    i have replied
    • Fusterclucker
    • By Fusterclucker 29th Oct 19, 7:11 PM
    • 51 Posts
    • 54 Thanks
    Fusterclucker
    My DMP has just started.

    American Express defaulted me immediately, and in the last week i have received three letters - one as a late payment fee, one as a default fee and one demanding a double payment.

    I thought they weren't meant to do this?
    • jmb1
    • By jmb1 29th Oct 19, 9:13 PM
    • 78 Posts
    • 9 Thanks
    jmb1
    Major debt advice needed
    Looking for debt advice as frankly a bit distraught with worry. Admission, I've left this go too long, buried my head in the sand, been stupid, call out what you will. But realising I have to do something about it. So here goes.

    I have 3 credit cards with debt amassed mainly due to not having enough saved for my businesses self assessment tax (and other business investments). All paying minimum each month.

    MBNA £3500. 0% ends 2020
    Virgin £4100 0% ends 2021
    Halifax £1900. Interest being charged. currently £25 per month.
    Santander £5300. 0% ends 2020

    I have a pcp car loan with Northridge £9220
    A personal loan with Tesco £11000.

    I have a mortgage with my partner with santander £67000.

    Lastly, I have a pressing issue with my overdraft on my graduate account which I've just been told will convert to a standard account early december and overdraft will accrue interest, £35 per month as it stands.

    Or combined income is 50k,but am running a small business and we simply don't seem to be able to pay the bills, run the business and have anything left to reduce debt. I realise I should pay the higher interest first.

    I know I'm in a mess. As far as I can tell I have a couple of options. Consolidation loan for some of all of the debt. Or remortgage, realising some equity on our house which we know it has. But I realise whilst these reduce monthly payments short term, will cost us more overall in the long run. So any better advice /plan?

    We are doing our best to reduce spending but frankly! struggling esp with pressure of looming interest charging on the horizon and realise it will get far worse once these! payments start.

    Any advice gratefully received. I've tried to be as thorough but if I've missed anything pertinent let me know.
    Thanks.
  • StepChange_Allen
    My DMP has just started.

    American Express defaulted me immediately, and in the last week i have received three letters - one as a late payment fee, one as a default fee and one demanding a double payment.

    I thought they weren't meant to do this?
    Originally posted by Fusterclucker

    Hi there

    Thanks for posting.

    A creditor can issue a default as soon as your contract has been breached, which is usually after around 3 months of missed payments. You'll get default notices from all of your creditors as the agreements break.

    Regarding fees, they can add any fees that are written into your credit agreement, so it's best to check what it says in there. When on a DMP, we ask creditors to freeze interest and charges going forward, but this isn't guaranteed. These may have been added because the DMP his only just starting, but I can't be sure.

    If they're still writing to you about payments then perhaps there's been a crossover between the plan starting and them putting things in place at their end. If you'd like us to contact them to discuss this, please contact our Client Support team and they will do that for you.

    I hope this helps.

    Allen
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • StepChange_Allen
    Looking for debt advice as frankly a bit distraught with worry. Admission, I've left this go too long, buried my head in the sand, been stupid, call out what you will. But realising I have to do something about it. So here goes.

    I have 3 credit cards with debt amassed mainly due to not having enough saved for my businesses self assessment tax (and other business investments). All paying minimum each month.

    MBNA £3500. 0% ends 2020
    Virgin £4100 0% ends 2021
    Halifax £1900. Interest being charged. currently £25 per month.
    Santander £5300. 0% ends 2020

    I have a pcp car loan with Northridge £9220
    A personal loan with Tesco £11000.

    I have a mortgage with my partner with santander £67000.

    Lastly, I have a pressing issue with my overdraft on my graduate account which I've just been told will convert to a standard account early december and overdraft will accrue interest, £35 per month as it stands.

    Or combined income is 50k,but am running a small business and we simply don't seem to be able to pay the bills, run the business and have anything left to reduce debt. I realise I should pay the higher interest first.

    I know I'm in a mess. As far as I can tell I have a couple of options. Consolidation loan for some of all of the debt. Or remortgage, realising some equity on our house which we know it has. But I realise whilst these reduce monthly payments short term, will cost us more overall in the long run. So any better advice /plan?

    We are doing our best to reduce spending but frankly! struggling esp with pressure of looming interest charging on the horizon and realise it will get far worse once these! payments start.

    Any advice gratefully received. I've tried to be as thorough but if I've missed anything pertinent let me know.
    Thanks.
    Originally posted by jmb1

    Hi

    Thanks for posting.

    I can understand that you're worried about the situation you're in, but there will be options to get things under control.

    Because you're running a business, that's an important factor in working out the best and most effective ways of sorting the debts and finances out. Therefore, I'd recommend that you contact Business Debtline for your advice. Their website contains details of how to get started: www.businessdebtline.org

    There may be other options in addition to a consolidation loan or a re-mortgage, both of which would result in further borrowing.

    I hope this is helpful.

    Allen
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
    • PhoenixVal
    • By PhoenixVal 31st Oct 19, 1:01 PM
    • 1 Posts
    • 1 Thanks
    PhoenixVal
    Phoenix
    Hi. I have £12,000 debt on a credit card. A year ago they classified me as being "in persistent debt" and advised that I stop using the card and make much bigger monthly payments (I was paying only just above the minimum payments but have never defaulted). They gave me 18 months to do this. I have not been able to do either of these things as I don't currently earn enough to pay other bills and the card payments so have ended up paying a bit more off the card but then having to still use it. The debt is till going up rather than down!

    The 18 months will be up in February and I am anxious to know what they will be entitled to do at that time. They say they will suspend my account so that I cannot use the card and they also say I will need to pay off the balance. Can you advise me what they are likely and legally-entitled to do about my paying it off. Can they demand it's paid back in full at that time? Or will they suggest a schedule of payments and if so, what if I cannot meet the amounts they ask for? Many thanks.
  • StepChange_Kirsty
    Hello,

    Thanks for your post and welcome to the forum.

    Once the 18-month period has ended and the bank has suspended the account it's likely they will want to come to an arrangement with you to pay the balance by instalments rather than requesting the full balance immediately.

    If you cannot meet the new payments as they fall due, I would recommend you seek debt advice to look at the best options for dealing with this debt. At StepChange we can provide you with free and confidential help and advice for dealing with this and any other debts you may have. There are a couple of ways to get in touch with us:

    ē Firstly, you can use the Debt Remedy tool within our website. This is an anonymous, self-help tool which will guide you through the process of putting a budget together in your own time and will recommend the right solution for your situation.

    ē Alternatively, if you would prefer to speak to us over the phone, you give us a call and have a debt advice session with one of our specialist advisors. You can find our contact details here.

    You donít need to wait until February to seek advice. If youíre paying your card and using it again to pay your bills, this is a sign youíre already experiencing financial difficulties so I would recommend getting in touch much sooner.

    We hope to hear from you soon,

    Kirsty




    Hi. I have £12,000 debt on a credit card. A year ago they classified me as being "in persistent debt" and advised that I stop using the card and make much bigger monthly payments (I was paying only just above the minimum payments but have never defaulted). They gave me 18 months to do this. I have not been able to do either of these things as I don't currently earn enough to pay other bills and the card payments so have ended up paying a bit more off the card but then having to still use it. The debt is till going up rather than down!

    The 18 months will be up in February and I am anxious to know what they will be entitled to do at that time. They say they will suspend my account so that I cannot use the card and they also say I will need to pay off the balance. Can you advise me what they are likely and legally-entitled to do about my paying it off. Can they demand it's paid back in full at that time? Or will they suggest a schedule of payments and if so, what if I cannot meet the amounts they ask for? Many thanks.
    Originally posted by PhoenixVal
    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.
    • ditty1234
    • By ditty1234 1st Nov 19, 3:01 PM
    • 449 Posts
    • 3,445 Thanks
    ditty1234
    Hi SC I have just made my 6th payment to my creditors through StepChange. It is a large debt and very small payments, so in it for the long term. 3 Credit cards are defaulted - so basically on plan.
    The question is about a balance left from an overdraft and the rest of a loan both with HSBC and each about £900. Just called HSBC collections who is now taking care of it, and they thought that defaulting the two balances was the worst idea ever. Because I now pay every month they are happy - do I have to write them to get them to default the loan and overdraft balance?
    Both are just sitting there without interest, so I'm not unhappy, but I don't like having some things defaulted and some not. At the moment my credit score is about as low as it can go anyways, and the loan is showing with missed payments anyways - so why the difference?
    LBM Jan 2019 - £25.928/-£24.095 7% paid off - EF £65.53 Jan 2020
    2020 £1000 EF, get citizenship £1400, run 10 k in 1 hour 10 min
    • piprush74
    • By piprush74 3rd Nov 19, 2:50 PM
    • 1 Posts
    • 0 Thanks
    piprush74
    Very Confused
    Hi
    I hope someone can help.
    My situation is currently this:
    I have an NRAM loan (125% together mortgage) with my ex husband of £26000 (estimated) which we pay half of each (there are occasions where he doesn't pay!) with 20 odd years to run.
    I owe a total of £3500 to Halifax and Barclaycard - I called these and they have put me on a no pay arrangements ( I don't really understand what this means - but I haven't heard from them in many months)
    I owe Simply Be £1400 and have a payment arrangement with Cabot to repay this.
    I owe Very £1300 and pay this monthly at the minimum amount
    I owe Aqua £450 and again pay the minimum amount monthly.

    I am in a new relationship and there has been talk of buying a house together in the future. I know at the moment I will not be able to be accepted for a mortgage. I am looking for advice as to what would be my best move towards becoming debt free? Any help and support welcomed.
    Thank you.
    • Jamsam28
    • By Jamsam28 5th Nov 19, 5:41 PM
    • 1 Posts
    • 0 Thanks
    Jamsam28
    I need help!
    I just feel as if there is no hope anymore. In the past 2 years, I've accumulated what I can officially call "debt" of £8000. I've been able to keep up with payments by getting myself trapped in the loop of borrowing, with having little money left because of impulsive buying and stupidity. It has only been recently when my financial situation has become a reality, I'm currently in university and moved into a privately rented place with my partner. I'm now a month behind on all loan repayments, credit cards, overdrafts, and rent. I've tried to get big loans to consolidate it into one small payment, but this month has impacted my credit score quite badly and now I and my partner are in financial hardship as we are unable to pay bills for the foreseeable future and buy food. I don't know what steps to take, I find it so hard to talk to people on the phone, I'm so embarrassed about our situation.
  • StepChange_Rachael
    Hi

    Thanks for messaging.

    If youíre on a plan with us, weíd include all your debts in this plan as itís the most sustainable way to become debt free. As we advise on all debt solutions, leaving debts out can impact our recommended solutions. If you have some debts not included in your plan with us, then Iíd recommend contacting us and our client support team who can help make sure weíve included all your debts in a plan.

    The creditors would default a debt once the contractual payments have been missed, it sounds like the only reason theyíve advised you not to miss payments, resulting in a default, is because youíre currently up to date and itís not in their interest to recommend you miss your contractual agreement with them.

    From what youíve mentioned, itís unlikely it will have much of a further impact on your credit file if you default on these, as youíve already mentioned itís very low. Credit files can be improved overtime. Once you default, it does mean creditors are open to follow the collections process, however, as youíve probably already realised; as some of your debts are in a plan, itís less likely they would if they are receiving a regular affordable payment.

    I hope this helps.

    Thanks
    Rachael








    Hi SC I have just made my 6th payment to my creditors through StepChange. It is a large debt and very small payments, so in it for the long term. 3 Credit cards are defaulted - so basically on plan.
    The question is about a balance left from an overdraft and the rest of a loan both with HSBC and each about £900. Just called HSBC collections who is now taking care of it, and they thought that defaulting the two balances was the worst idea ever. Because I now pay every month they are happy - do I have to write them to get them to default the loan and overdraft balance?
    Both are just sitting there without interest, so I'm not unhappy, but I don't like having some things defaulted and some not. At the moment my credit score is about as low as it can go anyways, and the loan is showing with missed payments anyways - so why the difference?
    Originally posted by ditty1234
    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
    Hello,

    Thanks for your message.

    It sounds like you would benefit from having some debt advice where we can look at your full situation. At StepChange we can provide you with free and confidential help and advice.

    In order for us to offer you the best advice and further guidance we would need to know a little bit more about your current financial situation by going through a budget with you. In the budget we’d look at your income, monthly spending on household bills and living costs and any debts you have outstanding at the moment. This will give us a clearer understanding of your finances and allow us to find you an affordable solution.

    There are two ways you can get started and we’re here to support you with whichever you choose:

    • Firstly, you can use the Debt Remedy tool within our website. This is an anonymous, self-help tool which will guide you through the process of putting a budget together in your own time and will recommend the right solution for your situation.

    • Alternatively, if you would prefer to speak to us over the phone, you can call and have a debt advice session with one of our specialist advisors. We are open from 8am to 8pm Monday to Friday and 8am to 4pm on Saturdays. Calls are free from all landlines and major mobile phone networks. You can find our contact details here.

    We hope to hear from you soon.

    Kirsty




    Hi
    I hope someone can help.
    My situation is currently this:
    I have an NRAM loan (125% together mortgage) with my ex husband of £26000 (estimated) which we pay half of each (there are occasions where he doesn't pay!) with 20 odd years to run.
    I owe a total of £3500 to Halifax and Barclaycard - I called these and they have put me on a no pay arrangements ( I don't really understand what this means - but I haven't heard from them in many months)
    I owe Simply Be £1400 and have a payment arrangement with Cabot to repay this.
    I owe Very £1300 and pay this monthly at the minimum amount
    I owe Aqua £450 and again pay the minimum amount monthly.

    I am in a new relationship and there has been talk of buying a house together in the future. I know at the moment I will not be able to be accepted for a mortgage. I am looking for advice as to what would be my best move towards becoming debt free? Any help and support welcomed.
    Thank you.
    Originally posted by piprush74
    Last edited by StepChange_Kirsty; 06-11-2019 at 12:40 PM.
    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
    Hello,

    Thanks for your post and welcome to the forum.

    Iím sorry to hear about the difficulties youíre experiencing with debt at the moment. I can appreciate that studying can cause extra financial pressure.

    There are definitely solutions to help with the outstanding debts, but weíd need to know more information about yours and your partners financial situation in order to give you our best advice.

    If you donít feel comfortable speaking over the phone, we do have an anonymous Debt Remedy tool where you can fill in your budget and get your advice online. You can find Debt Remedy here.

    You may need to speak to one of our debt advisors at some point but there is no need to feel embarrassed when you talk to us. Debtís can happen for all sorts of reasons and I can promise that no one at StepChange will judge you.

    I hope this helps.

    Kirsty






    I just feel as if there is no hope anymore. In the past 2 years, I've accumulated what I can officially call "debt" of £8000. I've been able to keep up with payments by getting myself trapped in the loop of borrowing, with having little money left because of impulsive buying and stupidity. It has only been recently when my financial situation has become a reality, I'm currently in university and moved into a privately rented place with my partner. I'm now a month behind on all loan repayments, credit cards, overdrafts, and rent. I've tried to get big loans to consolidate it into one small payment, but this month has impacted my credit score quite badly and now I and my partner are in financial hardship as we are unable to pay bills for the foreseeable future and buy food. I don't know what steps to take, I find it so hard to talk to people on the phone, I'm so embarrassed about our situation.
    Originally posted by Jamsam28
    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.
    • Naomim
    • By Naomim 10th Nov 19, 7:16 PM
    • 1,333 Posts
    • 3,242 Thanks
    Naomim
    Hi,

    My husband and I have a joint mortgage and an overdraft of £4,650 which we may out every month.

    I have approx £30k of credit card debt. Some of it is on 0% interest but I have no more avenues of low interest once these finish.

    My husband cant understand why we are always hitting the end of the overdraft. Our car needs service & MOT but we cant afford it. I cant even afford new trainers for my teenage son and I'm losing sleep over the debts.

    I'm thinking of going on a dmp but I'd like to keep my husband out of it. Can I do it on my own and will it affect our mortgage?

    Thank you.
    Credit Cards £33,220.42 NOV 2019

    Here's my diary: A Ditherer's Diary Again
    • sourcrates
    • By sourcrates 11th Nov 19, 11:22 PM
    • 19,081 Posts
    • 18,022 Thanks
    sourcrates
    Hi,

    This thread is exclusively for contacting a stepchange debt advisor only.
    Please, any other posters, do not respond to posts on here, and only post on this thread if you want specific debt advice from a stepchange debt advisor, if you want general forum opinion on your debts, then start a new thread in the main forum below.

    Thank you.
    Last edited by sourcrates; 12-11-2019 at 9:25 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.
    • terisc87
    • By terisc87 12th Nov 19, 6:27 PM
    • 1 Posts
    • 0 Thanks
    terisc87
    DMP - I am scared
    So first of all... yes I know I am an idiot

    I have a DMP with stepchange and because I didn't face the psychological reasons for my spending at the time I got more loans out whilst on plan and didn't include certain things in thinking my overtime may cover it.

    Well my overtime has stopped and I have faced facts but I am scared but I am struggling to make ends meet and don't know what to say to stepchange?
  • StepChange_Allen
    Hi,

    My husband and I have a joint mortgage and an overdraft of £4,650 which we may out every month.

    I have approx £30k of credit card debt. Some of it is on 0% interest but I have no more avenues of low interest once these finish.

    My husband cant understand why we are always hitting the end of the overdraft. Our car needs service & MOT but we cant afford it. I cant even afford new trainers for my teenage son and I'm losing sleep over the debts.

    I'm thinking of going on a dmp but I'd like to keep my husband out of it. Can I do it on my own and will it affect our mortgage?

    Thank you.
    Originally posted by Naomim

    Hello there

    Thanks for posting.

    I'm sorry to hear that things are a struggle at the moment. It certainly sounds as though you need some debt advice as soon as possible, in order to establish the best way of getting things under control.

    You can get advice on your own yes, however, if your husband has any debts as well as the joint overdraft, it's highly likely that it'd be best if you get advice together. The fact that as a household you're struggling to pay for things like car servicing and essential footwear is of course a concern, and these things need to be prioritised.

    In regards to the mortgage, a debt management plan (DMP) doesn't affect it directly; as long as you keep paying the mortgage, the house will be fine. However, any debt solution affects your credit rating as you're no longer meeting your contractual payments, and this can affect future re-mortgages, for example potentially in the rates you're offered. There's no hard and fast rule on this, but it's certainly a possibility.

    You can register with us free of charge either on the phone or online, please visit our website for more details: www.stepchange.org/contact-us

    I hope this is helpful.

    Allen
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • StepChange_Allen
    I'm new. I am not really sure if this is in the right section but hopefully you can help. I am not too sure how bad my debt really is.
    I have £16000 on credit cards all 3 of which are 0% and have between 18 and 24 months left. The vast majority of that was spent on our house e.g. kitchen, bathroom, flooring...
    I have £9000 approx left on a personal loan with Tesco and the final payment is in May 2021.
    We are mortgage free.

    My gross income is £35200
    My wife's gross income is £21000

    Between us we roughly have £1000 disposable income per month and I was thinking of taking out a car loan for around £11500 at 7.9% APR which would bring our disposable income down to around £720-£750. Am I crazy in taking out another loan and my debts are pretty bad or am I managing ok? I have never missed a payment on anything so far.

    At times I feel like I am managing well and other times I feel like I am doing ok...I need some assurance or a reality check.
    Originally posted by iamwilllavery

    Hi there

    Welcome to the forum and thanks for posting.

    Although we mainly deal with debt solutions, budgeting is part of that. I'll just offer a few thoughts for you to ponder, but I can't advise whether you should or shouldn't go for the car loan.

    As a word of caution, as a debt advisor, I obviously see a lot of people with a lot of debt that has grown and become unmanageable. So the first question perhaps, is, do you really need the car loan? If you do, fine, if you don't, can you buy something cheaper and save the money, or perhaps pay your other debts off quicker?

    Can you currently pay your 0% cards off before the interest free periods end? If you can't, then of course the payments will jump up when the deals end, and make things tighter (plus costing you money). If you can clear them in the 0% period, can you still if you get this car loan?

    I'm on a huge expert on current loan rates, but 7.9% sounds quite high to me, so be sure to check how much you'll end up paying back, and if there are any other deals out there. If you don want or need a loan, it could be worth checking the eligibility calculator on the MSE site: www.moneysavingexpert.com/eligibility/loans-calculator/search/

    A final tip would be to put together a budget, if you haven't already, as this may help you to get a clearer picture about your overall financial position.

    I hope this is helpful.

    Allen
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
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