MNHQ here. Sign in for FREE debt advice from Stepchange debt charity

[AnnaCMumsnet]

Hello,

Mumsnet and StepChange Debt Charity are teaming up to provide a free online debt help clinic all week. They’ll be offering information and advice on all aspects of personal debt.

StepChange is the largest debt charity in the UK, and over the last 26 years they’ve helped well over 5 million people with debt. They recently reported that 2018 was their busiest year ever, with over 650,000 new clients contacting them for help, and they’re even busier so far this year.

And as part of their work for the National Numeracy campaign to highlight that a key to overcoming debt is putting together a sustainable budget, StepChange want to help Mumsnetters with anything they’re experiencing because of money worries. So if you’re getting letters from the bank, struggling to afford to pay a debt, or you’ve been threatened with court action, or anything else around debt, post up a question.

The clinic will take place on this thread from Monday 13th May, all week. If you’re dealing with debt, post an outline of your experience here. Please don’t include identifying details: a specialist debt advisor will follow up with you via PM if they need to know more.

Answers from the specialist debt advisor will be posted up on this thread. The clinic will run for a week; we’ll do our best to provide all answers during the week but, at the latest, by the end of the
following week. You can find information on where to go for more help once the clinic has ended here.

Unsure whether or not you need debt advice? Try the 60-second debt test on the StepChange website. By answering a few simple questions, you’ll quickly find out if you’d benefit from free and confidential debt advice.

Important: The advice provided to an individual poster is based only on the information provided by that poster. Advice on this thread is also particular to the individual who has asked for it and is likely to be specific to that person’s situation. A poster may have provided further relevant information by private message which will not appear on this thread.

Important: FCA regulations mean that StepChange is unable to give full debt advice or recommend any debt solutions through the Mumsnet forum. If they feel you’d help from getting a full debt advice session, they’ll mention that in the reply.

Additionally, StepChange can’t give advice on self-employed or business debts. For more help with these, you can talk to fellow charity Business Debtline.

Please feel free to post your questions for the advisor.

Thanks,

MNHQ

Is there a way to manage a hideous amount of debt without ending up with a DRO and or fucking up your credit rating forever.
Have 10k on credit cards and earn 1100 pcm with rent and bills coming in at more than that.

@WhatthehellisplanB

Thanks for this mnhq! I definitely need help with our debt! Do I just email them and ask for help?

Thanks You can contact them directly, or you can post up an outline of your situation here. If you do the latter and they need more details they'll PM you to ask for more info and then post up their advice for you on this thread.

@BusterGonad

I need help but don't want to disclose it on here. How do I get help?

Hi Buster - you can contact them directly via their website or phone helpline: details here www.stepchange.org/

@RowanMumsnet I can't access their website as I'm living a broad, is there an email address or overseas number I can ring on?

@dontlikebeards

Step change are amazing, they helped us and changed our lives. If you are nervous about asking for help, please give them a try, they won't judge and can help so much. I was having sleepless nights before turning to step change but there help changed all of that.

Hi there @dontlikebeards,

We're so glad that we were able to help you, and that you're not having sleepless nights anymore!

Best wishes,
Rachel at StepChange Debt Charity

@Justme1981

Hi Ive recently separated have just under 14000 debit, a 2 year old, receive no maintenance, work full time. Really need some help to reduce/pay off debit so i can afford a divorce!

Hi @Justme1981, thank you for posting.

From what you’ve described, it certainly sounds like you would benefit from some free and confidential debt advice. It’s important that your living expenses and priority household bills are accounted for, and the best way to do this is with a budget. We can help you put one together, and then look at any free and confidential debt solutions that may be available to you.

Our online debt advice tool can help you put together a budget and provide a personal action plan: www.stepchange.org/DebtRemedy.aspx

Alternatively, one of our friendly debt advisors can go through your budget with you over the telephone, and explore your debt solution options with you. Please visit our Contact Us page for more information: www.stepchange.org/Contactus.aspx

Kind regards,
Rachel at StepChange Debt Charity

@BusterGonad We have an overseas number, which you can find on our Contact Us page under the heading 'Can I contact you if I live outside the UK?'

www.stepchange.org/Contactus.aspx

@StepChangeDebtAdviceClinic I cannot access the webpage as my browser/country will not give me access to it! Please can you give me details on here or can someone screen shoot it for me!

Sorry everyone the link above worked!

@ShePersisted

This might be a bit silly to ask, but I wondered if you might provide the average amount of debt per house hold by age profile. I have a bit of managed credit card debt on an interest free card, but I expect that we must be well in the range for a young family with two under 5. Thanks!

Hi @ShePersisted, thanks for posting.

I've attached an image with some data around debt by age from our latest debt statistics for 2018. There's more information on those stats here: www.stepchange.org/policy-and-research/2018-personal-debt-statistics.aspx

We help people no matter what their circumstances or the amount of debt they owe. It's really about giving you the support you need and making life easier when dealing with your debts.

If you feel you would benefit from free and confidential debt advice, please do get in touch. Our online debt advice tool can help you put together a budget and provide a personal action plan: www.stepchange.org/DebtRemedy.aspx

Alternatively, one of our friendly debt advisors can go through your budget with you over the telephone, and explore your debt solution options with you. Please visit our Contact Us page for more information: www.stepchange.org/Contactus.aspx

Kind regards,
Rachel at StepChange Debt Charity

@blamethecat

If anyone is worried or embarrassed about dealing with stepchange please don't be, I have been dealing with them for around 4 years to pay of a stupid amount of debt I had got into, (my own fault, I was naive and buried my head in the sand), with their help I only have a few months left to be debt free. No judgement from them just help. The weight lifted from my shoulders and reduction in stress and anxiety changed our lives.

Thank you for your kind words @blamethecat! We're glad we could help you and all the best for the future.

Best wishes,
Charley at StepChange Debt Charity

@MelanieCheeks

I've got my credit card debt down from 24k to just under 16k, but I'm open to help in speeding up paying it down.

Hi @MelanieCheeks,

Well done for chipping away at the debt! From your post below it sounds like you've done a great job at creating a budget and looking at the terms of your credit cards. If you're looking for more advice on keeping those payments up, there's more information on our site here: www.stepchange.org/debt-info/persistent-credit-card-debt.aspx

And some money-saving and budgeting tips here: www.stepchange.org/debt-info/your-financial-situation/saving-money-and-increasing-income.aspx

All the best,
Charley at StepChange Debt Charity

@BollocksIsTheWord

Hi I was left with £3k of debt from an ex boyfriend as I was stupid enough to take out credit for him in my name🙄 I know I will have to pay it back, but as it has now been passed to a collection agency do you think you could get the debt reduced and I will set up an arrangement?

Hi there, thanks for getting in touch with us.

Some creditors will consider what we call ‘Full and Final settlements’ in order to pay a debt off quicker. This can save you money in the long-term, and creditors may even freeze interest. There's more information about full and final settlements on our website: www.stepchange.org/debt-info/settlement-offers-to-creditors.aspx

Kind regards,
Rachel at StepChange Debt Charity

@Thattwatoverthere

I've built up debt over the last 2 years after being almost debt free thanks due to stepchanges help. This extra debt was due to a maternity leave paying only SMP and issues with my partner's job and bad health. And burying my head in the sand.

My question would be if I can go to Stepchange again to set up a new repayment plan even though my earnings are so low at the moment. I'm scared to make the call even though I know how helpful people have been when I called before.

I'm feeling really anxious and trying to get on top of the total amount I owe but with 2 babies under 2 and an ill partner it's not quick or easy to make all of the calls. I'd estimate about £5k overall...

Hi there, thanks for posting.

Please do get in touch with us. No matter what your situation is, we'll do our very best to help you.

One of our friendly debt advisors can go through your budget with you over the telephone, and explore your debt solution options with you. Please visit our Contact Us page for more information: www.stepchange.org/Contactus.aspx

Kind regards,
Rachel at StepChange Debt Charity

@WhatthehellisplanB

Thanks for this mnhq! I definitely need help with our debt! Do I just email them and ask for help?

Hi there, thanks for posting.

We can certainly help you with the debt problems you're dealing with. In order to fully understand your situation, we'll need to take a look at your budget. Once this is done, we can explore any debt solutions that may be suitable for you.

Our online debt advice tool can help you put together a budget and provide a personal action plan: www.stepchange.org/DebtRemedy.aspx

Alternatively, one of our friendly debt advisors can go through your budget with you over the telephone, and explore your debt solution options with you. Please visit our Contact Us page for more information: www.stepchange.org/Contactus.aspx

Best wishes,
Rachel at StepChange Debt Charity

Hi @bluffinwithmymuffin,

I'm sorry to hear this, it's extremely uncharacteristic of our advisors. We're non-judgmental and passionate about removing the stigma of debt, so we're sorry to hear you were made to feel this way.

Best wishes,
Charley at StepChange Debt Charity

@MynameisMaximus

I've been trying to work up to calling Stepchange for at least 2 months - so anxious about the whole situation but I know I need to get on with it. One of the questions I have is if you enter a debt management plan, does this have a detrimental effect on credit checks for things like renting a home? I know I would no longer be able to get credit, but am worried what happens with renting. Thanks.

Hi @mynameismaximus,

You're not alone - it takes clients around 12 months to pluck the courage to get in touch with us. It's never too late to get help and take control of the situation though. We’re here to help.

When you're on a debt management plan (DMP), you would usually be paying less than the original minimum payment each month. This is likely to affect your credit rating. With that said, you can start to repair your credit file even as your DMP is in effect. More information is available on our website: www.stepchange.org/debt-info/dmp-and-credit-score.aspx

Best wishes,
Charley at StepChange Debt Charity

@goose1964

The only problem we've had is phoning them. Their lines seem to be permanently busy.

Hi @goose1964,

Sorry to hear you've had trouble getting through on the phones. We are experiencing high volumes of calls at the moment as demand is at the highest ever, and our advisors are working hard to advise as many people as they can.

If you need first time advice, we have an online tool which is available 24/7: www.stepchange.org/Debtremedy.aspx

Alternatively, other ways to contact us are on our website: www.stepchange.org/Contactus.aspx

Best wishes,
Charley at StepChange Debt Charity

@ilovesooty

Taking out a DMP with Stepchange was the best thing I ever did. I owed a lot more than the sums mentioned here and my only regret is that I didn't act sooner. I couldn't take out an IVA as it would have affected my job at the time. It took years but I paid it all off.

Stepchange were incredibly helpful and I'd encourage anyone to use their services.

Hi @ilovesooty,

Thank you for your kind words! We're so glad we were able to help you

All the best,
Charley at StepChange Debt Charity

@StepChangeDebtAdviceClinic is there anyway if getting help via email? It's just calls are so expensive from where I am!

@Isbrexitoveryet

Is there a way to manage a hideous amount of debt without ending up with a DRO and or fucking up your credit rating forever. Have 10k on credit cards and earn 1100 pcm with rent and bills coming in at more than that.

Hi @Isbrexitoveryet,

Thank you for posting. If you can't afford to pay your full contractual payments each month, this will have an impact on your credit rating. But, different solutions have different impacts on your credit rating. We can help you look at all the different options you have available for dealing with your debts, and we can tell you about the possible impact on your credit file each could have.

So we can fully understand your situation and advise, we’ll need to take a look at your budget. Our online debt help tool can help you put a budget together and provide a personal action plan: www.stepchange.org/Debtremedy.aspx

Alternatively, one of our friendly advisors can go through your budget and recommended solutions on the phone. Our contact details are on our website: www.stepchange.org/Contactus.aspx

We also have a post on our MoneyAware website which goes into more detail on how a debt management plan (DMP) could affect your credit file: moneyaware.co.uk/2018/07/should-i-be-worried-about-my-credit-file-while-on-a-dmp/

Best wishes,
Charley at StepChange Debt Charity

@galletygalletygael

I've currently got £15K of debt that I've managed to bring down from £20 in 15months.

However, two of my children begin apprenticeships after the summer and so my tax credits, child benefit and housing benefit will be affected. They will be earning a pittance with high commuting costs so will be unable to contribute much (if any). I'm worried my current DMP will no longer be feasible. If an insolvency practitioner becomes involved what kind of information will they need, how far back through my banking will they go etc? I'd like to get my documents in order just in case.

Hi @galletygalletygael,

We understand that during DMPs circumstances change, so if you're a StepChange client we're on hand to take a look at your budget again and see if a DMP is still the best solution for you. Our contact details are on our website: www.stepchange.org/Contactus.aspx

If you live in England or Wales, three types of insolvency may be available to you: Bankruptcy, debt relief order (DRO) or individual voluntary arrangement (IVA).

For bankruptcy, you'd need to provide the 'official receiver' with:

• Full details of all assets, debts, income, insurances and bank accounts at the beginning of the bankruptcy
• Any paperwork or records asked for
• Completed forms they request

You'd also need to consent to a credit check as part of the application, which covers details of debts for the last six years. The official receiver can also investigate any 'preferential payments' you've made in the last two years (if made to a friend, family member, employer or business partner) and any 'Transactions at an Undervalue' in the last five years.

For a DRO, you'd need to provide:

• Payslips or bank statements dated within the last 3 months

A credit check is usually also carried out, as well as checks on undervalue transactions or preferential payments in the last two years.

For an IVA you'd need to speak to our sister company StepChange VA, who'd then ask you to provide:

• Bank statements for the last three months
• Wage slips for the last three months, or last six weeks if paid weekly
• Benefit award letters, covering the last three months
• Additional evidence may be requested (for example expenditure or ownership of assets) depending on your situation

All of the above depends on your situation and we'd need to know more about your change in circumstances to recommend any solutions that may be available. Our contact details are on our website to get in touch with an advisor to discuss options: www.stepchange.org/Contactus.aspx

Best wishes,
Jonathan at StepChange Debt Charity

@BusterGonad You might find our online debt help tool useful. You enter details of your debts, income and household spending and it'll create a clear budget, then recommend a solution that suits your situation. You can download a personal action plan, which will explain everything we've recommended.

You can start the tool here: www.stepchange.org/Debtremedy.aspx

Best wishes,
Charley at StepChange Debt Charity

I have about £8000 in credit card debts after leaving a relationship and I'm struggling day to day as I am making such high payments I am left with very little and have had to take a second job to survive. I am now working 7 days a week and I'm exhausted and suffer with mental health problems already and they are rapidly getting worse.

I have just looked at the link for your budget planner, and it says you take details of the debt etc. Do I need to put any personal info in? I'm making at least minimum payments on my debt, but find it really hard to stick to a budget, so my debt is slowly increasing as I go along. I know I need to change my habits but it's so so hard and I'm scared of putting details in as I don't want anything to impact my credit...