Author Topic: £13,000 in debt but need to keep a good credit rating!!  (Read 23595 times)

mikkilaw

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Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #15 on: May 30, 2010, 09:09:44 AM »
Alas, I think it's the FSA who have the last word on this. The client is required to conduct the credit checks, but it is the FSA who set the criteria.

Also, regarding IVAs, I believe that the debt has to be over £15,000 for this to be recommended, any idea why that is the case?

Steven Jackson

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Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #16 on: May 31, 2010, 12:47:03 PM »
Hi Mikkilaw
 
I am no expert in the workings of the FSA but I do know that I have worked with a number of people who have been in serious debt and then done IVAs who are employed by FSA regulated companies. They have successfully achieved IVAs because they do not have to to be personally licensed by the FSA (which would of course not be available to them if they decared insolvency). However,  they can still work for their employer and operate under the umbrella of the company's license. Perhaps this will be the same for you?
 
In terms of your question about IVAs, there is no legal minimum amount of debt which you must have before you qualify. However, most IVA providers will say between £15,000 and £18,000 is the minimum. At Beat my debt we will generally not work with anyone with debts less than £18,000 for an IVA unless there are special circumstances.
 
The reason for this is that the creditors will not accept an IVA if your total debt could have been paid off in full within 5 years based on your current level of disposable income. For example, if you owe £18,000 and your disposable is £300/mth or above you can in theory pay off your debt in 5 years. Generally speaking, the smaller your debt, the more likely it will be that this is the case.
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mikkilaw

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Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #17 on: Jun 01, 2010, 02:06:34 PM »
Well, what can I say, the appointment was a bit of a non-event really!
The lady saw me for a brief informal chat, advised that there was no loan available at this time (as previously advised by phone), I got her to put it in writing that no loan could be offered and that was that really.
Is it even worth looking for loans elsewhere?

Steven Jackson

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Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #18 on: Jun 01, 2010, 03:06:22 PM »
I honestly do not think so Mikkilaw. As I mentioned before, I think your best strategy is to have the meeting with your manager at work to discuss how a reduction in your credit status will effect your job.
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mikkilaw

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Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #19 on: Jun 02, 2010, 11:44:05 PM »
Steven, I have talked this through both with the client (my indirect employer) and my employment agency and I think there may be hope.
They showed me a document they called their "risk matrix". Unfortunately due to Data Protection laws I cannot share this publicly, but essentially it gives categories Green, Amber and Red. CCJs and IVAs appear in the Amber zone, and even that is only an issue if either a) they have reason to make it so (poor performance at work) or b) there are other circumstances (criminal record etc.). The bottom line is that I think I may be able to get away with at least a DMP and not have to worry too much! Other good news today is that I have discovered I may be eligible for Single Person's Tax Credits - apparently the majority of people earning less that £13,300 are and my salary is well below this threshold. So a good day all round - potentially!!  ;D

mikkilaw

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Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #20 on: Jun 03, 2010, 07:49:29 PM »
So, having arrived at the conclusion that a DMP may be a possible way to go, do I:

1) Go via the CCCS, who administrate the DMP on my behalf

or

2) Administrate myself, approaching each of my creditors in turn with my proposal.

Anyone had any experience of either?

Cheers!

mikkilaw

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Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #21 on: Jun 05, 2010, 10:24:40 AM »
Also, regarding th IVA issue, it would take me over five years to clear my debt, even at 200 per month (this is my maximum disposable).

Sovereign

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Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #22 on: Jun 07, 2010, 10:03:17 AM »
Hi Mikkilaw,

Having read your posts, I would contact CCCS and obtain their advice. A DMP may be the right solution for you since it is not a court order and will not appear on any searches etc.

Regards,

Steven
Sovereign Consulting

Steven Jackson

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Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #23 on: Jun 07, 2010, 05:59:26 PM »
Hi Mikkilaw
 
Sorry for not responding to you sooner. I have been out and about for the last few days. Great news that your employer will enable you to go into a debt management plan or IVA.
 
Regarding an IVA, unfortunately it is very unlikely that you will be able to get an IVA because you owe £13,000. As I mentioned previously, your creditors will look at your £200 a month disposable income and say you can pay the debt off in just over 5 years anyway and so more than likely force you down the DMP route.
 
The only downside of the DMP is that their is no guarantee that the creditors will stop all of their interest and late payment charges. Unfortunately they do seem to convieniently forget about this.....
 
Rather than trying to negotiate the DMP yourself, I would certainly have a chat with the CCCS. Why not let them do the work for you.
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Sovereign

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Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #24 on: Jun 07, 2010, 06:38:26 PM »
Remember also, that CCCS are a charity and all of their work is completely free!!!

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Steven Jackson

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Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #25 on: Jun 08, 2010, 02:17:07 PM »
Sovereign is absolutely right, the CCCS are a registered charity supported by the creditors and as such will not charge you for their services which is great. The only downside with working with them is that they do seem to to struggle to get creditors to freeze interest. I am not sure why this is. However, the bottom line is if you are doing a debt management plan, there is never any obligation on creditors to do this.
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mikkilaw

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Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #26 on: Jun 08, 2010, 07:02:45 PM »
..will not charge you for their services which is great. The only downside with working with them is that they do seem to to struggle to get creditors to freeze interest.

I guess you get what you pay for  ;D But at the end of the day, any company that charges you is surely just going to extend how long it takes you to repay the debt in full?

 
I am not sure why this is. However, the bottom line is if you are doing a debt management plan, there is never any obligation on creditors to do this.

But I'm guessing in most cases they would sooner have an offer of payment that have to take you to court or force bankruptcy upon you?

I'm so grateful to you guys for the help, especially impressed by the fact that no one here has tried to push any of their products on services on me. Very much appreciated  :)   

Sovereign

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Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #27 on: Jun 09, 2010, 02:16:40 PM »
Good stuff Mikkilaw,


Let us all know how you get on. Best wishes. Steve
Sovereign Consulting

Tinks

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Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #28 on: Jun 09, 2010, 02:34:03 PM »
Hi there guys...

I have a question....I am £5500 in debt on credit cards. I am not a home owner but I am full time employed. The interest on these cards is killing me so I called my bank to see if they could help me and they said no! :0 I applied for another unsecured loan and got knocked back. I have applied for one more and will receive the answer in 48hours but I think we all know that once you have been knocked back once it takes a while before u can really apply again.
The thing I dont get is, is that I have never missed a payment of my cards even if it was just to cover the interest. So I cant have a bad credit can 1?
I am really depressed. I have been crying and I just dont know what else to do :( I would really appreciate any solid advice or just a hug ;)

Sovereign

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Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #29 on: Jun 09, 2010, 03:36:39 PM »
Hi Tinks,


You need to start your on thread on here and then you will get more helpful replies. Do a credit search on yourself online and you will see your credit rating. This will start you off.


Failing that, there are other options available but start your own thread and we'll take it from there.


Cant help with the hug much online though  ;)


Steve
Sovereign Consulting