A reader asked what she should do as her reasonable Full & Final settlement offer had been rejected. It's going to seem obvious, but the creditor rejected the offer because it didn't seem reasonable to them. You may think "I paid off the amount I borrowed ages ago, their interest is too high" or "They probably bought this debt for pennies, so they should be happy to accept 20%" but … [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.
You can't have a Debt Relief Order (DRO) if you own a car that is worth more than £2,000. But what happens if the car is on HP? A reader, Mrs T, asked: I am drowning in debts and only just under the £30k limit. I have been advised that a DRO would be my best option. However I didn't tell the debt adviser that I have a car on HP which I still owe £7k as this would take me over the £30k. I … [Read more...]
A reader asked in mid August 2022: My StepChange DMP will start in October. Do I have to make the payments to my creditors in September? Because it's going to be a real struggle. Could I offer them less? I asked what her StepChange monthly payment will be, and whether that has taken into account rising energy prices in October 2022? It's going to be about £250. She said: I need to admit that … [Read more...]
A reader asked: I had an old credit card debt from Vanquis, the last payment was made in 2018. It dropped off my credit file last week. I have just received a letter from Lowell saying they have bought the debt and have to contact them. Will I have to pay, just as I thought I was getting out of the woods with old debt? If I do, will it reappear on my credit file? At the time I was in a … [Read more...]
In the last week, three readers have queried what they have been told about defaults and their credit record: Ms A: I have debts that have been defaulted for about 4 years. I have set up a debt management plan and Payplan say that if my debts are sold then the new debt company can place a brand new default on the loan and the default date would be when the new debt company (not the originator) … [Read more...]
A reader, Ms J asked about a CCJ that suddenly appeared on her credit report. "I check my credit record a couple of times a year and there is now a CCJ on there. It looks like it was added 2 months ago at an address I left ages ago, possibly 8 years. I don't even know if this is real or some sort of error. It's only a few hundred but I don't want to pay it if I don't have to and I don't know … [Read more...]
UPDATE - August 2023 - Zable hikes interest rates for some borrowers Some people have been told that Zable is increasing their interest rate from 38.9% to 48.9%. The customers were told the rate was being increased to reflect changes in Zable's assessment of their credit record. 48.9% is now the "representative rate" that Zable quotes - this makes it one of the most expensive credit … [Read more...]
A puzzled ClearScore user asked: My credit score has gone up but my affordability has gone down... not sure why sometimes I think these credit score companies just do what they want lol. Her credit score had increased by 57 to 573, but at the same time, her affordability score had fallen by 15 to 64. These weren't tiny changes... ClearScore affordability scores are out of 100, so a 15 point … [Read more...]
A reader asked: For 10 years now I've been racking up debt and then burying my head in the sand. I have had letters upon letters from debt collectors, I just bin them all. I'm sure I've had a few CCJs as well. I haven't had any new credit or anything for three years. I now have a new job and more disposable income - not a lot, but better than benefits! Is there anywhere I can look to see … [Read more...]
A reader, Mr D, asked: My partner and I have a combined income of £56,000, We have a deposit of £28,000 (inheritance) and are looking to become first time buyers at a price of £230,000. We have defaulted debts that are being paid off, and previous history of payday loans from over 2 years ago from a time when our financial situation was much more difficult. The defaults are about 18 months … [Read more...]