Struggling with debt? Ask a debt adviser a question

Akelly wrote: »

I have had a letter from one of my debts they have sent a default notice.
I am on a DMP, but this actually makes me feel sick.
I don't know what to do, will I end up on court?

Hi there

Thanks for posting.

This is a standard part of the debt collection process, creditors have to send you a default notice just before they're about to terminate your original credit agreement. If you're on a DMP, and creditors have accepted your payments, you don't need to do anything about the default notice.

You can end up with a county court judgment (CCJ) for a debt on a DMP, but if a creditor has accepted your plan, it's very unlikely they'd seek to take further action against you. If you have any further concerns during your DMP, I'd recommend you contact the team that's looking after you at whichever organisation is managing your plan.

I hope this provides some reassurance.

Allen

Hi there,

Thanks for your post.

If you’re on a debt management plan (DMP) with us, when you move house you just need to let us know your up to date address and any changes you’ve had to your budget. If it means you will free up more money to pay your debts that’s great; you’ll then be able to clear your debts a lot more quickly.

You don’t need to worry that selling the house will only clear the mortgage and not your debts as your mortgage is always the priority. If this move means you’re going to become mortgage free then I’m sure your creditors will be happy to see their payments increase as a result.

I hope this helps.

Kirsty

desperate_housewife wrote: »

We are currently on a DMP....a long way to go but we have equity in the house. If we moved it would mean we could pay off our mortgage but sadly not enough for the debts. However this would obviously mean we had more money to pay our creditors.....I am desperate to clear the debts ASAP ....any advice please. Many thanks

natlie wrote: »

Hi

I am currently paying around 23% of my income out as debt repayment and although I am managing month to month - no defaults at all I am living off a ridiculously low budget, I can't afford to put anything in my budget except bills and food and petrol - there is no room for anything like haircuts, leisure, dentist, I can't even save for christmas etc I have 3 children and I feel really bad

I have 2 jobs already so additional income is out

My head tells me to plough on but my heart wants my children to have some treats - what can I do?

Nat

Hi Nat

Thanks for posting.

From my experience, a lot of people end up in this situation, really trying hard to keep debt repayments going to try and protect their credit rating and of course honour the agreements that were made.

It sounds like maybe if you did a budget with us to include even modest amounts for normal and important living costs like dentist, opticians, hairdressing and a little bit of leisure that you may not be able to keep up to your repayments.

In this situation you have a choice of keeping going as you are, if you think things should get a bit easier, or potentially looking at a debt solution where you break your agreements but likely reduce what you pay out now, making life a little easier.

You can register with us by calling our Helpline (for initial contact only) on 0800 138 1111 or completing the online Debt Remedy tool: www.stepchange.org/DebtRemedy

We can then assess your situation, present your options to you, and you can make a choice of what you'd like to do.

I hope this helps.

Allen