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  • FIRST POST
    • MSE Andrea
    • By MSE Andrea 18th Nov 16, 1:05 PM
    • 9,306Posts
    • 22,164Thanks
    MSE Andrea
    Struggling with debt? Ask a debt adviser a question
    • #1
    • 18th Nov 16, 1:05 PM
    Struggling with debt? Ask a debt adviser a question 18th Nov 16 at 1:05 PM
    If you need help with your debts, this is the thread for you.

    Trained advisers from StepChange Debt Charity (formerly CCCS) 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 four, see parts one, two and three.


    If you haven't already, join the forum to reply!
    This Forum tip was included in MoneySavingExpert.com's weekly email!
    Last edited by MSE Luke; 24-07-2018 at 2:41 PM.
    Could you do with a Money Makeover?


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Page 43
  • StepChange_Rachael
    Hi

    Thanks for your message.

    Itís likely that the amount of unsecured debt is having a significant impact on you being able to re-mortgage. Iím not sure how much this is but depending on different factors as well as the outstanding unsecured debt this is likely to have a big impact on being able to re-mortgage.

    If you were able to pay your credit cards off then itís likely that your credit file will improve. The debt will show that itís been settled in full on your credit file, most notices on credit files stay for six years from the date it was updated. However, with it showing the debt has been repaid itíll unlikely have a negative impact on re-mortgaging.

    Less unsecured debt will likely benefit a re-mortgage application, however without knowing more about the situation itís impossible to say exactly.

    Iíd suggest speaking with an impartial mortgage advisor whoíll be able to give you a better understanding of whatís affecting your application and the options available to you.

    You can find the details to StepChanges Financial Solutions team here.
    .
    Thanks
    Rachael








    Hi All




    I want to remortgage but have considerable cc debts at moment, and some investment properties, so my current bank, nationwide have said they will not take on the remortage request. If I can remove the cc debts, how long do they stay on credit history, so I can try to remortgage agin once they have gone? Or is it the investment proproties that I have that will be impacting my remortgage request? Nothing is secured on the house, and I have £190k equity in the house with only £110k to pay. Mortgage is currently with Halfix.
    Originally posted by gizmo66
    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.
    • Akelly
    • By Akelly 30th Jul 18, 8:56 PM
    • 33 Posts
    • 6 Thanks
    Akelly
    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?
  • StepChange_Allen
    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?
    Originally posted by Akelly

    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
    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.
    • desperate housewife
    • By desperate housewife 2nd Aug 18, 2:32 PM
    • 25 Posts
    • 3 Thanks
    desperate housewife
    Moving to pay off mortgage but not debts
    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
    JRP
    • desperate housewife
    • By desperate housewife 3rd Aug 18, 9:12 AM
    • 25 Posts
    • 3 Thanks
    desperate housewife
    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
    Originally posted by desperate housewife
    Any advice from the agencies would be fantastic
    JRP
    • sourcrates
    • By sourcrates 3rd Aug 18, 11:15 AM
    • 15,873 Posts
    • 14,924 Thanks
    sourcrates
    Any advice from the agencies would be fantastic
    Originally posted by desperate housewife

    Hi,


    You would be best advised to ring them, for more detailed advice.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    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 are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
  • StepChange_Kirsty
    Hi there,

    Thanks for your post.

    If youíre 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 youíve had to your budget. If it means you will free up more money to pay your debts thatís great; youíll then be able to clear your debts a lot more quickly.

    You donít 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 youíre going to become mortgage free then Iím sure your creditors will be happy to see their payments increase as a result.

    I hope this helps.

    Kirsty




    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
    Originally posted by desperate housewife
    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.
    • natlie
    • By natlie 7th Aug 18, 6:28 AM
    • 1,218 Posts
    • 5,315 Thanks
    natlie
    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
    £27328 £26,728 £26,668 £26475.20 £26,696.77 DOH
  • StepChange_Allen
    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
    Originally posted by natlie

    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
    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.
    • natlie
    • By natlie 7th Aug 18, 11:12 AM
    • 1,218 Posts
    • 5,315 Thanks
    natlie
    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
    Originally posted by StepChange_Allen
    Thanks Allen

    In September my water bill is going down to £45 from £98 and my gas and electric is up for renewal so hoping to make some small changes there, alsoI have been repaying an overpayment for tax credits and thats an extra £30 a month. I am scared of the options available most suggestions have been bankruptcy or an IVA which I am not sure i want to take out.

    Thank you its good to talk to people online without feeling awkward on the phone
    £27328 £26,728 £26,668 £26475.20 £26,696.77 DOH
    • desperate housewife
    • By desperate housewife 7th Aug 18, 11:12 AM
    • 25 Posts
    • 3 Thanks
    desperate housewife
    Hi there,

    Thanks for your post.

    If youíre 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 youíve had to your budget. If it means you will free up more money to pay your debts thatís great; youíll then be able to clear your debts a lot more quickly.

    You donít 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 youíre going to become mortgage free then Iím sure your creditors will be happy to see their payments increase as a result.

    I hope this helps.

    Kirsty
    Originally posted by StepChange_Kirsty

    Thank you so much, thatís really helpful. I really struggle on the dmp. I feel constant anxiety about it ....I have read on another thread that SC told others that they had to clear the debts before the mortgage....I am concerned about doing things right. I wouldnít cope with things going wrong. We do tend to get different advice from SC....That worries me....
    JRP
  • StepChange_Allen
    Thanks Allen

    In September my water bill is going down to £45 from £98 and my gas and electric is up for renewal so hoping to make some small changes there, alsoI have been repaying an overpayment for tax credits and thats an extra £30 a month. I am scared of the options available most suggestions have been bankruptcy or an IVA which I am not sure i want to take out.

    Thank you its good to talk to people online without feeling awkward on the phone
    Originally posted by natlie

    Hi Nat

    Thanks for your reply.

    You don't have to go ahead with any particular solutions, we'll simply present all the available options to you and you'll be free to choose whatever you'd like to do out of those options.

    We can also address any concerns you may have with any solutions presented.

    I hope this makes sense, and hopefully we'll speak with you soon.

    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
    Thank you so much, thatís really helpful. I really struggle on the dmp. I feel constant anxiety about it ....I have read on another thread that SC told others that they had to clear the debts before the mortgage....I am concerned about doing things right. I wouldnít cope with things going wrong. We do tend to get different advice from SC....That worries me....
    Originally posted by desperate housewife

    Hi there

    Thanks for posting.

    I can't imagine any scenario where we'd advise to prioritise unsecured debts over a mortgage, and I'd be really surprised if anyone from StepChange has posted that anywhere on here. If you find such a post, please highlight it on here so we can look into it.

    If you've heard any other conflicting advice, please let us know and we can look into it for you. Feel free to send us a private message if you'd like to.

    Best wishes

    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.
    • desperate housewife
    • By desperate housewife 7th Aug 18, 1:17 PM
    • 25 Posts
    • 3 Thanks
    desperate housewife
    Many thanks. It was on another thread that someone said they were told to pay creditors before using house equity to move.
    It concerned me as it has to be the right thing for us to do.

    Basically if we sell our house for a smaller one making us mortgage free is this ok? We would then be able to save like crazy to make offers. Sounds like a plan???? Or is it too easy????
    JRP
  • StepChange_Allen
    Many thanks. It was on another thread that someone said they were told to pay creditors before using house equity to move.
    It concerned me as it has to be the right thing for us to do.

    Basically if we sell our house for a smaller one making us mortgage free is this ok? We would then be able to save like crazy to make offers. Sounds like a plan???? Or is it too easy????
    Originally posted by desperate housewife

    Hi again

    That situation is a little different to paying debts over mortgage. Speaking generally, if you're up to date with debts then it's absolutely no issue for you to sell, buy somewhere without a mortgage and then be better off each month, allowing you to clear your debts more easily. Even when you're in arrears with debts, like here with the DMP, reducing your outgoings in this way is only going to help your creditors.

    There's nothing to say that you have to use house equity to pay off debts when moving, either way. I can't advise you whether saving and making offers is a viable option without seeing a budget and having a full understanding of your financial situation. However, it sounds likely that such a move would make you better off monthly, hopefully freeing money up to increase your DMP payments, meaning you'd become debt free quicker.

    I hope this all makes sense.

    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.
    • downer01
    • By downer01 11th Aug 18, 5:28 PM
    • 6 Posts
    • 0 Thanks
    downer01
    interest added on once payment plan put in place
    Hi i was wondering if you could offer some advice please? I have had several loans after falling into a payday trap and it got to the point i could not afford to pay. Rather then stick my head in the sand i contacted the five creditors and 3 accepted a reduced monthly payment plan. Myjar stopped all interest and asked for less then i offered, Satsuma would only take a token payment of 2.00 per month after seeing my income and expenditure form and this was passed on to the complaint department as i was told yesterday that it will be investigated for irresponsible lending as given my income they would not have lent me. The third company that accepted is fernovo. I borrowed 200.00 off them which was with 66.00 interest to be paid 88.00 pm. I managed the first payment by borrowing but i was unable to afford the following payments. i contacted them within enough time stating i was not able to afford this and can they help in regards to a payment plan. They failed to respond, including my request to cancel the cpa. i had to contact my bank to do so. They finally contacted me on the day payment was due, to inform me i will be recieving a late charge, yet i had given them enough warning that i didnt have the funds. eventually i was able to speak to someone and they agreed a repayment plan without looking at my income and expenditure and failing to see if this was affordable. I have since found out that they have added an extra 175.05 on top of the loan SINCE i took out a repayment plan. Are they allowed to do this, i have no idea what it is for. I have seen the repayment plan they have put in place and as it stands the majority of the monthly payments will be going to this new charges and interest they have put on. I have gone from owing 176 with the original interest to owing 264 since asking for help with my finances. Can you please advise?
    kind regards
    • 61mum
    • By 61mum 12th Aug 18, 1:25 PM
    • 2 Posts
    • 0 Thanks
    61mum
    Hi we are struggling with our debts at the moment and in last 10 years feel like we are in a debt spiral which we cannot get out of. 5 redundancies between myself and my husband resulted in wiping out all savings. Unexpectedly fell pregnant, nursery fees and child costs and home improvements resulted in spiralling debt. At present return to full time employment is not a possibility as we are going through a special needs referral for our child.
    My age 41 husband 48
    O/S mortgage 62k
    Overdraft 1750
    O/S LOAN 5850

    Credit score in the amber.

    We ensure our bills are paid and have never defaulted on any payments but I am noticing that we are eating more into overdraft.

    I have done budget and myself and my husband we do not go out or eat takeaways and do not have and extravagant lifestyle.

    I was thinking of remortgaging but tied into until Dec next year 1,237.06 penalty fee for early repayment. I was thinking of moving loan on to 0% credit card but o/s loan to high to do that. Current loan repayments are 160.00 per month and was considering shopping around for better rate but worried amber credit score will go against us.

    I really want to get debt from.around our neck but somehow lower repayments and make them affordable.
  • StepChange_Allen
    Hi i was wondering if you could offer some advice please? I have had several loans after falling into a payday trap and it got to the point i could not afford to pay. Rather then stick my head in the sand i contacted the five creditors and 3 accepted a reduced monthly payment plan. Myjar stopped all interest and asked for less then i offered, Satsuma would only take a token payment of 2.00 per month after seeing my income and expenditure form and this was passed on to the complaint department as i was told yesterday that it will be investigated for irresponsible lending as given my income they would not have lent me. The third company that accepted is fernovo. I borrowed 200.00 off them which was with 66.00 interest to be paid 88.00 pm. I managed the first payment by borrowing but i was unable to afford the following payments. i contacted them within enough time stating i was not able to afford this and can they help in regards to a payment plan. They failed to respond, including my request to cancel the cpa. i had to contact my bank to do so. They finally contacted me on the day payment was due, to inform me i will be recieving a late charge, yet i had given them enough warning that i didnt have the funds. eventually i was able to speak to someone and they agreed a repayment plan without looking at my income and expenditure and failing to see if this was affordable. I have since found out that they have added an extra 175.05 on top of the loan SINCE i took out a repayment plan. Are they allowed to do this, i have no idea what it is for. I have seen the repayment plan they have put in place and as it stands the majority of the monthly payments will be going to this new charges and interest they have put on. I have gone from owing 176 with the original interest to owing 264 since asking for help with my finances. Can you please advise?
    kind regards
    Originally posted by downer01

    Hi there

    Thanks for posting.

    The payday loan company can still add interest and charges onto the loan if you're not paying the original contractual payments, up to a cap of 100% of the amount originally borrowed. So if you borrowed £200, the maximum you can have to pay in total is £400. I can't be completely sure from your post whether the amount charged now has exceeded this?

    If the amount has exceeded £400, or you're unhappy with anything they have done you can make a complaint to them in writing. Please bear in mind that if the charges added are within the 100% and were what you signed up to when taking out the loan, grounds for a complaint could be questionable; but as I say I don't know the full facts to say either way.

    If you need any further help and advice, we can provide this for you free of charge. Please have a look on our website to see how to get started: www.stepchange.org/Contactus

    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
    Hi we are struggling with our debts at the moment and in last 10 years feel like we are in a debt spiral which we cannot get out of. 5 redundancies between myself and my husband resulted in wiping out all savings. Unexpectedly fell pregnant, nursery fees and child costs and home improvements resulted in spiralling debt. At present return to full time employment is not a possibility as we are going through a special needs referral for our child.
    My age 41 husband 48
    O/S mortgage 62k
    Overdraft 1750
    O/S LOAN 5850

    Credit score in the amber.

    We ensure our bills are paid and have never defaulted on any payments but I am noticing that we are eating more into overdraft.

    I have done budget and myself and my husband we do not go out or eat takeaways and do not have and extravagant lifestyle.

    I was thinking of remortgaging but tied into until Dec next year 1,237.06 penalty fee for early repayment. I was thinking of moving loan on to 0% credit card but o/s loan to high to do that. Current loan repayments are 160.00 per month and was considering shopping around for better rate but worried amber credit score will go against us.

    I really want to get debt from.around our neck but somehow lower repayments and make them affordable.
    Originally posted by 61mum

    Hi there

    Welcome to the forum and thanks for posting.

    I'm sorry to hear that you're currently going through a difficult time. We can certainly help you to look at and assess possible options to get your debts under control. We'd do a budget with you and then work out suitable solutions from there.

    You can either complete our Debt Remedy tool here: www.stepchange.org/DebtRemedy or find our contact details to call us here: www.stepchange.org/Contactus

    I hope this is okay, and we look forward to helping you.

    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.
    • 61mum
    • By 61mum 13th Aug 18, 8:10 PM
    • 2 Posts
    • 0 Thanks
    61mum
    Thank you. I will do complete.
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