Me and my debts

[Braveheart2009]

I need some quality advise on how I can clear my £3.6K credit card debt which is causing me misrey for the last 7 years.

 

I have been working and living with parents but a wife and car to run as well as other stuff and I struggle to meet minimum payments??

 

Are they any interest free loans out there which can pay off my credit cards and then pay back at a rate which I find suitable and I can adjust on a monthly basis according to my income.

[dx100uk]

got any unlawful charges or missold PPI on it?

 

dx

[loobyloo85]

Hi

 

Have you considered entering into a debt management plan at all to help clear your debts?

You would need to have at least £50 disposable income.

You would then just need to make one monthly payment each month until your debt is cleard in full.

 

 

The creditors can still charge the interest but a lot of debt management companies have good success rates in getting the interest and charges frozen, reducing your repayment period.

 

If you receive any letters or legal action, the debt management company would be able to act on your behalf and deal with this for you, so this definately takes away the stress and pressure.

 

 

I am with a DMP, and owe in the region of £9k, and it is the best thing Ive done.

The payment comes out each month, and I have hardly any worries anymore as I know all creditors are getting paid and if they need to discuss my DMP they will call my company or case worker who acts on my behalf x

[maroondevo52]

Braveheart2009,

 

Who's the Credit Card with, I'll shift this thread for you.

 

Regards.

 

Scott.

[Braveheart2009]

Actually, its the first time I have heard of DMP.

Its good you got it for your debt do you have your interest frozen?

How many years you get to pay it back 1,2 or 3?

 

So what your saying is for example your repayments could be £50 per month and if you want interest frozen you may have to pay like £70 per month?

 

What happens if you don't have any letters or legal action letters to show the dmp?

 

Can you still qualify for it?

 

Can you inquire please?

 

Thanks for your help.

[Braveheart2009]

Is it just me or does everyone get these letters every week?

 

 

It is so anoying I only use my credit card for emergancies where cash is not accepted

how can I stop this

dont like calling them as they pitch you for 10 mins for surveys and sales talk

is there an email address or web request to stop these stupid letters coming out?

[dx100uk]

if you are not a customer of theirs then use the MPS service

http://www.mpsonline.org.uk/mpsr/

dx

[yourbank]

Is it just me or does everyone get these letters every week? It is so anoying I only use my credit card for emergancies where cash is not accepted how can I stop this dont like calling them as they pitch you for 10 mins for surveys and sales talk is there an email address or web request to stop these stupid letters coming out?

Give them a ring and simply ask them to stop sending you credit card cheques because you don't have any other balances and do not need them. One simple word if they use any sales patter is either (a) NO

or (b) Hang up.

If you are not happy to ring then simply write to the address on the back of your statement asking for a no mail marketing marker to be applied to your account.

[loobyloo85]

Hiya, why dont you take a look at the following website which will tell you more:

 

www.payplan.com

 

You can pay a minimum of £50-£70 payment into a dmp, depending on the company.

 

Your repayment period will depend on how much you owe and how much you pay in.

 

All you will need to do is contact the dmp company and explain your circs.

 

They will take and income and expenditure from you and ask you to sign a letter of authority.

 

Once this has been done a standing order can be set up of the payment, and this can then be distributed each month, pro rately between all creditors.

 

If you do not have legal action at the moment, this is good, but if you do, you will not have the worry of having to deal with this yourself.

 

Payplan have a good succsss rate with getting interest and chares frozen too

 

. All the best - let me know how you get on x

[Braveheart2009]

Hi,

 

I understand an IVA in Scotland is classified as a trust deed and its only for 3 years where you pay off a certain amount on a monthly basis for 36 months. Is it correct that if by the end of your 36 months if you have an outstanding amount to pay it gets written off by the company such as payplan and they don't charge you upfront fees I believe?

 

Also, how many points does it knock off your credit score? Does an Trust Deed/IVA severely dent your chances for a future mortgage, loan, credit card. I have a credit score of 750. I heard 450+ is okay and you will be accepted for credit at all major banks below that your going to find it difficult.

 

Any advice will be appreciated.

 

Thanks.

[Braveheart2009]

Hi,

 

I am wondering say if I apply for a credit card and I get a set limit however I require a few hundred more credit limit which I have on another credit card would that increase the livelihood of me getting an increase credit limit? I do have a decent credit rating.

[brokebutnotbeatn]

??? not sure what you are trying to achieve here. Cutting the existing card up and not buying on credit at all is the best advice I can give you...

[Braveheart2009]

What I am saying is that if a credit card limit request is declined and you want to prove that you have a higher limit on another card will that request be approved after evidence?

[brokebutnotbeatn]

As it is completely up to the OC, who can say...my advice still stands though...I'm pleased to hear a credit company is actually declining additional credit - if mine had acted in that way I wouldn't be in the mess I am in today!!!

[BRIGADIER2JCS]

The point is that the card issuers all have

very different methods or deciding what to lend

and to who.

It's important to remember that the credit ''score'' or

rating is NOT seen by potential lenders at all, they

use the ID, account management data, public info.

CIFAS & Gain( not your score) together with their

own unique systems to arrive at decision, they would

take a poor view of being told you have a higher limit

on another card and could well cut the existing limit,

and or increase the interest rate as they will see this

scenario as a greater risk.

[Braveheart2009]

Hi,

 

Does anyone know each time you apply for a credit card if your overall credit rating drops? What if you close an account down I heard its better to close an account down if you have many accounts is this true?

 

Thanks.

[BRIGADIER2JCS]

There is always a short period after taking on a new credit

card which affects the ''credit Score'' until 3-6 months of

payments have been properly made.

Making numerous applications in a short period has the

same effect.

If you close an account/settle it will possibly make a small

difference, too many accounts/too much credit is as bad as

too little.

[Braveheart2009]

So, I guess if you meet minimum payments for 3-6 month period would your credit score change from the start of a new account till the sixth month?

 

I heard that closing a credit card with a big credit limit will increase your chance to have a large credit limit with another provider an agent told me once its to do with your credit filing each person is allocated a certain percentage of credit overall credit or something dont fully understand it however.

[BRIGADIER2JCS]

I think your are talking about the section on a CRA file

which shows the percentage of your available credit

that you have used, which shows potential lenders

if you are clearing your outsatnding balances by paying

more than the minimum payment,.

Just meeting the mp would most likely lower the score.

The other point to remember is that the 3 figure ''score''

forms only a small part of any credit decision all lenders

have their own unique in house rating methods.

[Braveheart2009]

How would meeting the MP lower your score?

How can the credit agency or bank know you met the MP do they have any power but themselves?

 

I used to work for a Lloyds TSB and I remember the rules where if you had over 600-999 you had a good rating and approved immediately if you had lower than that it would be classified as average or low.

 

 

Don't know if that’s still the case.

I have noticed that a lot of applications are now online and get approved by a automated computer rather than a human meaning it must match up to an algorithm stored somewhere about your credit history/file.

[BRIGADIER2JCS]

MINIMUM PAYMENT AS REQUIRED BY THE CREDIT CARD AGREEMENT making on the minimum payment

and not clearing the balance will affect score as it not good management.

 

No wonder the banks are useless:lol:

[Braveheart2009]

Is that true? by how many points any idea?

[BRIGADIER2JCS]

Depends opn the method the CRAs use

it's not information made public, the same

as all the lenders who all have their unoque

in house rarting systems.

[Braveheart2009]

Hi,

 

My bank has threatened me to set off my funds I hold with the bank current account and savings against any debt owed?

 

Can they do this legally without my say so or do they require approval from the court.

 

I don't hold bank accounts with any other creditors which I have credit cards, which is a good thing, however could those creditors access my bank account without my authority is that not a crime?

 

Letter attached.

 

Thanks.

[renegadeimp]

If you owe a debt with them, then yes they can. However they can only do it within their own group of companies. So halifax cant do it to coop etc.