A reader asked: Are there debt consolidation options for really bad credit? I have over £20,000 in debt and I'm not sure how to start getting out of it with a suitable loan or a credit card. A credit card won't work There are some "bad credit rating"0% balance transfer offers at the moment, but they are only for 6 months. And it's likely you will only get a very small credit limit. After … [Read more...]
A reader asks ...
Readers have asked a huge variety of questions in the comments below Debt Camel articles or on Instagram. From credit ratings and mortgages to payday loan refunds and IVAs...
Some of them needed such long replies that I have turned them into the articles that are gathered here.
“My DMP payment is too high”
A reader asked if it is OK to reduce your debt management payments when you need to? This is a common problem in Debt Management Plans (DMPs). Sometimes your income falls. Often your essential expenses go up faster than your pay does. In debt management, you pay a set amount to the DMP company and they divide it between your creditors. So what happens if you can no longer afford that monthly … [Read more...]
Worried about starting a DMP? Answers to common questions.
A reader said she was scared about starting a Debt Management Plan (DMP). She was worried her creditors may not freeze interest and might take her to court. Another reader asked if he can get a new mortgage fix if he is in a DMP I thought it would be useful to look at the most common concerns people have about DMPs. Setting up a DMP Will I get lots of phone calls from creditors? You … [Read more...]
Does a Cifas “Victim” marker harm your credit score?
I was asked: Someone pretending to be me has tried to set up some finance. It all got stopped, no money lost and no real harm done. My concern is that the finance company is proposing to record this impersonation on Cifas, but won't if I ask them not to. The letter makes it sound like informing Cifas is a good thing, but I've googled it and have found nothing but horror stories about never … [Read more...]
“When can I offer £1 to a debt?” – FAQs about token payments
A reader asked if he should offer a £1 a month token payment to his debts, wondering if his creditors would ever accept it. The simple answer is that you should make token payment offers: TO non priority debts WHEN it is all you can afford. BUT if you don't expect your situation will improve soon, you may have better debt options. In 2024 millions of people can't afford the normal debt … [Read more...]
My son has been asked to pay a water bill that’s in my name
A reader asked: My son has just opened a letter from a debt collector in his name with my debt and information on it asking him to pay. It's for a water bill which I owe but the bill is in my name! Surely they can't do this? I asked for some background on this - how old is her son, is he still living at home, if not when did he leave? And what date does the water bill relate to? He is 24 and … [Read more...]
Increasing the interest on a credit card – your rights
There are two situations a credit card can increase your interest rate: if the Bank of England base rate goes up and your credit card tracks that rate; or when your credit card decides to increase your interest rate. It is important you know which is happening when your interest rate rises, as in the second case you have the right to reject this change. This also applies to store … [Read more...]
“Persistent debt – Halifax want me to make higher credit card payments”
Mrs X was happy when Halifax told her in November 2022 that they were cutting the interest rate on her credit card - down from 32% to 15%. But just two months later Halifax sent another letter saying she must make higher "Recommended Payments" or she can't use the card any more. She says: Halifax want me to pay at least £102 a month, about £20 a month more than the minimum. They say this … [Read more...]
4 steps to take if you lose your job
A reader asks: Help! I have just been made redundant and I don't know how I am going manage, especially as we have debts. I'm only getting a few weeks redundancy pay. What should I do? A lot of firms are closing or going under in 2023. Your employment rights If your firm has just closed suddenly, you may be worried about: getting paid for the weeks you have already worked; paid for … [Read more...]
Will an affordability claim hurt my credit record, and other questions
People often ask what happens to their credit score if they make a complaint. And what happens if they still owe a balance on the account. Here are some typical questions: " Lloyds increased my overdraft limit several times a few years ago when I had a gambling problem. But I have recovered and am hoping to get a mortgage soon. I don't want to complain if it will it harm my credit score, which is … [Read more...]
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