A reader asked hopefully the other day if his debt had been written off: I've just seen that the balance on a credit card I haven't been able to pay for more than a year is now zero. If it's been written off that would be great, but how can I find out if this has happened? The bad news is that this is very unlikely. The debt has probably been sold to a debt purchaser Lenders like to get … [Read more...]
Readers have asked a huge variety of questions in the comments below Debt Camel articles. 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.
A reader asked: I'm thinking about an IVA. I've got 8k of credit card debt and overdrafts but I owe a lot of income tax and VAT. Probably a lot over 20k but I haven't filled out any tax returns for years. Do I have to get the exact tax owed when applying for an IVA? I don't think I can cope with all that. I was self employed but I now have a job, not well paid. I'm now living with my parents … [Read more...]
A reader asked: I have received a letter from my IVA firm with a cheque for over £2000, saying uncashed dividends had been returned by one of the creditors. They have said if I don't cash it in 90 days they will give it to a charity. Now I'm worried - What are these dividends and why would the IVA firm send them to me, surely it would be classed as a windfall? It says the creditor should … [Read more...]
A reader asked: I've been told I have to give my IVA firm my online banking login details so they can see my bank statements. Why do I have to do this? Yet another thing they never tell you before you sign up. An Individual Voluntary Arrangement (IVA) can be a good debt solution for some people but it is a long-term formal legal contract which may not have been clearly explained at the start. Or … [Read more...]
A reader asked: I want to terminate my PCP car finance. The car's fine, good condition, but we now need a bigger car. According to my contract I can hand it back. But I am going to need to get another car, so I am worried this will harm my good credit record. Would part exchange be better? Your right to end a PCP contract early Personal Contract Purchase (PCP) is the most common way to buy … [Read more...]
A reader asked: We are desperate to end our IVA. So difficult. The IVA firm that seemed helpful at the start now after two years doesn't care about our extra costs. We have decided to sell and downsize. My wife is hoping for a discount but I said they were more likely to charge us more to get out early! We need as much equity as possible for the next house. This is a tricky situation. There … [Read more...]
A reader asked: I’ve just received a backdated Severe Disability Premium (ESA top up as on PIP too) and I am aiming to go bankrupt in May or June. I’ve been advised by a money advisor to use this money for essentials as I have just been given permanent accommodation having been homeless. No furniture came with the flat. I’ve been paying £1 a month to my creditors since last year. Should I … [Read more...]
A reader asked: My Noddle report shows some settled debts but one is shown as satisfied. I am sure I paid them all off in full. Does it make a difference and should I ask for this to be changed? … [Read more...]
A reader asked: "I've seen advice to improve my credit rating after a Debt Management Plan by getting a "bad credit card" and repaying it in full every month. Would it be a good idea to get two of these cards? I don't want to borrow any money, just to get a better credit score." This is a good question! Let's start off by looking at why getting a bad credit card such as Vanquis is often … [Read more...]
A reader asked: In August 2011 a CCJ was registered against me by Lowell P1 for £211. I paid off the balance, but not within the month. I have bank statements to prove its been paid. On my credit report it shows the status as “active” even though I have paid it. I’ve contacted Lowell multiple times but they say as it’s an old case it’s no longer on their system and they can’t help me. I don’t … [Read more...]