Free advice line 0800 520 0923
Q. Do I have to pay off my daughter´s debts?
Answer.
My daughter ran up a lot of credit card debt last year and then left home. We think she has moved to Spain to live with her brother, but after an argument, we are not sure where she is. The credit card provider she owes the money to is now harassing us for payment. Are we responsible for her debts?
Our credit expert says: No one person is responsible for the debts of another, whether they are family or not. As long as you were not jointly named on any credit agreement, your daughter is solely responsible for the debts. Write a strong letter of complaint to the credit card provider or bank responsible for harassing you and explain the situation. Keep a copy of all correspondence between you and them, and if you are still not satisfied with their answers, refer the case to the Consumer Credit Association (CCA) or the Financial Services Ombudsman (FSO). Alternatively you could seek the help of the Citizen´s Advice Bureau in your area.
Q. My wife has been conned out of £5,000
Answer.
As my wife is mentally ill, I now have Power of Attorney to deal with her affairs. I have only recently found out that two years ago she issued a cheque for £5,000 from one of our bank accounts to a beneficiary at another bank. I have written to the bank where the cheque was paid in to ask them for the name of the beneficiary but they refuse to give me the information. How can I find out where the money has gone?
Our money expert says: Unfortunately, the cheque was paid before you had Power of Attorney to conduct your wife´s financial affairs, so there is little chance of the receiving bank giving out any confidential information. It is possible your wife was conned out of the £5,000, but it is also possible she didn´t want you to know about the payment. As you have no evidence your wife was forced to pay the money or was tricked into paying it, the bank was well within their rights to refuse to pass on the name of the beneficiary.
Q. Do I have to pay off my daughter´s debts?
Answer.
My daughter ran up a lot of credit card debt last year and then left home. We think she has moved to Spain to live with her brother, but after an argument, we are not sure where she is. The credit card provider she owes the money to is now harassing us for payment. Are we responsible for her debts?
Our credit expert says: No one person is responsible for the debts of another, whether they are family or not. As long as you were not jointly named on any credit agreement, your daughter is solely responsible for the debts. Write a strong letter of complaint to the credit card provider or bank responsible for harassing you and explain the situation. Keep a copy of all correspondence between you and them, and if you are still not satisfied with their answers, refer the case to the Consumer Credit Association (CCA) or the Financial Services Ombudsman (FSO). Alternatively you could seek the help of the Citizen´s Advice Bureau in your area.
20. I am struggling to pay off my credit card debts
I am struggling to pay off credit card debts of £23,000 which are accumulating interest every month. I have tried paying off the minimum but as there are multiple cards, I am now struggling to even meet these repayments. I am now unemployed and desperate for help. What can I do?
Q. Bad credit rating over a mis-sold contract
Answer.
I have recently applied for a store-card and was turned down because of a poor credit rating. I have never been in debt and I don´t owe any money currently. This problem stems from a mis-sold phone contract which I refuse to pay. I was pressured into accepting a mobile contract, and I cancelled it well within the cooling off period. I was promptly sent two bills which I refused to pay. Debt collectors are now demanding full payment of £68.00 and my credit rating has been adversely affected. What can I do?
Our credit expert says: Instead of listening to your explanations, the phone company has obviously decided to pass the debt to the debt collectors. Send a strong letter of complaint to their head office and they should apologise and remove the negative entry from your credit report. If you are still not satisfied, speak to someone at the Citizen´s Advice Bureau for free help and advice.
Q. Mistaken house repossession
Answer.
My house was actually repossessed in error. I arrived back from work one day to find a large notice on the door informing me of the repossession and stating that the locks had been changed. I don´t owe any money on my mortgage and have no other debt problems to speak of. I contacted the estate agent whose name was on the notice, who informed me there had been a mistake, and that the building society had repossessed the wrong house (the one they wanted was 5 doors away). After the embarrassment and stress of finding my house repossessed and the locks changed, I have been paid £200.00 in compensation, but don´t feel this is enough. I feel I should be compensated properly so who can I turn to?
Philip Jacks, Southsea
Our finance expert replies: This is certainly an unusual and unfortunate case of wrongful repossession, and although the building society and estate agent have apologised and paid out a pitiful amount of compensation, you deserve a proper explanation. This was undoubtedly an error on the part of the building society or the estate agent, so you need to contact them directly in writing for an explanation and a claim for more compensation. If you are not happy with the outcome, seek free legal advice from a no win, no fee compensation solicitor who can assess your claim and advise you of the best course of action.
Q. Do I have to pay my son´s debts?
Answer.
My son moved into his own flat recently, after running up a lot of debt during the past two years. He has debts of over £12,000 on two credit cards. As he lived with us for most of his life, will his debts affect our credit report? Could our address be blacklisted?
Billy J. West Bromwich
Our debt advisor replies: Worry not. Your own credit history cannot be affected by your son´s debts unless you applied for credit together with your son (joint debt can include joint credit cards or bank accounts). Credit checks are carried out on people and not on addresses, so your house will not be blacklisted. If your son is still suffering with debt problems, advise him to contact his local Citizen´s Advice Bureau or a regulated debt help company for impartial help and advice.
Q. My parents need to clear their debts
Answer.
My dad´s business went into administration last year when a client refused to pay him for a job. The client owes my father £18,000 and they are at their wits end. My parents own their own home but have no income, so dad is transferring the house into mum´s name and selling his assets. They are moving in with me, rent free, but still need to clear credit card debts which are costing them over £1,500 a month. What can they do?
Bob J. Dorking
Our financial expert replies: Your parents need to seek legal advice to recover the money owed, so make that your first priority. Your father may be entitled to benefits, and he needs to seek information and advice about this from the job centre or the Citizen´s Advice Bureau in your area. If your parents stay in the house, he may be entitled to financial help with the mortgage. Work out a budget with all income and expenditure listed, and if your parents owe money to their current bank, open a new bank account elsewhere. Contact a regulated debt management company in the UK who can help your father clear his debts with the help of a debt management plan or an Independent Voluntary Arrangement (IVA). Also, contact the Business Debtline, whose counsellors may be able to give your father expert advice about recovering his business debts.
Q. Can they make me sell my home?
Answer.
A finance company has applied to put a charging order on my home. Can they make me sell up if they succeed with the order?
Kevin Banks, Bolton
Our money expert explains: The finance company obviously don´t think you are willing to pay what you owe, so they have gone to county court to place a charge on your property. If the property is then sold, the charge will have to be paid before you receive any money from the sale, but this does not mean the finance company can force you to put your house on the market. An interim order will inform you when and where the hearing will take place so make sure you write to the court at least 7 days before the hearing to explain why you missed payments and how you plan to pay back the finance company. Even an offer of reduced payment could swing things in your favour, so keep copies of any correspondence between you and your creditors with an offer of reduced payments. Show willing to make some payment before the court case, in writing, and the judgement could go in your favour.
Q. Can my daughter be responsible for her friend´s debts?
Answer.
My daughter shared a flat with a friend and they shared all the bills. They are no longer friends and when they left the property, we made sure our daughter´s share of the bills was paid. A debt collection company is now sending her threatening letters, although the utility company which was owed money has acknowledged her side of the debt was paid. What can she do to stop this harassment?
Ronald Broadway, Liphook
Our financial expert replies: Your daughter and her friend probably agreed at the time to be both liable for the account with the utility provider, which means if one party fails to pay their part of the debt, the other is responsible for the full payment. Bailiffs cannot enter your daughter´s home without a court order, but to stop the harassment she needs to write a strong letter to the utility provider and the debt collection agency to explain the situation. If she still gets harassed, contact the Office of Fair Trading, who can help her with a complaint against the debt collection company.
Q. Can I still get a mortgage when I have paid off my debts?
Answer.
I have been paying off a debt management plan for two years, and my creditors issued default notices against me which went on my credit report. My finances have since improved and I have paid off all my debts. I am now struggling to get more credit approved. How can I improve my credit rating and apply for a mortgage?
Will Benson, Rotherham
Our money specialist replies: Your credit rating, unfortunately, will take time to recover, even though your finances have improved. Get a copy of your credit report and make sure the default entries are shown as satisfied. This will show on your report for 6 years, but as long as they are seen as being paid, they shouldn´t have any adverse effect on your credit rating. Creditors are much more interested in your recent credit history, and be aware that you can add a note of up to 200 words on your credit report to inform lenders of any extra information you think they should know. Make sure you are registered on the electoral roll, and contact an independent mortgage broker who can explain the best banks or building societies to apply to for a mortgage.
Q. Debt help has not helped me
Answer.
I owe £10,000 on three different credit cards, and have been trying to ask my creditors for a reduced payment plan. I followed the advice on the government services website, but I am no further forward. My credit card providers ignore my letters but continue to harass me for payment over the phone. If they continue to ignore my correspondence, can my debts be written off within 28 days?
James Hilton, Stockport
Our debt expert replies: I have never heard of debts being written off if the creditors do not answer your letters within 28 days, but they should definitely have responded by now. Re-send the letters by recorded delivery, and make an offer of payment. Stick to your original offer and request a reply within 7 days. Ask for interest charges to be reduced and request that all communications are in writing. If you are still being unfairly harassed by your creditors, submit a complaint to the creditors outlining your concerns, and if you still get no help, contact the Financial Ombudsman Service (FOS) for advice. The Office of Fair Trading can also help if you have a complaint against a particular company, and a regulated debt management company can give you free help and advice about getting out of debt, including information about debt management plans and Individual Voluntary Arrangements.
Q. Can a mortgage clear our debts?
Answer.
My wife and I are both retired pensioners. We have credit card debts of over £5,000 and are currently only paying the minimum amount back. Can we get a mortgage on our house for 20% of its value so we can pay off our debts and have some money to spend?
William Wilson, Macclesfield
Our financial expert replies: To find the best solution to your credit card debts, you need to look at the agreement with the credit card provider and perhaps consider switching cards to one with a 0% balance transfer. You can then use the interest free period to pay off as much of your debt as you can afford. If you are adamant you want to release cash from your home, consider an equity release lifetime mortgage. This type of mortgage allows you to release equity from your home, without having to pay it back until the property is sold. A conventional mortgage may be another option, but the amount you can borrow will be based on your age and ability to pay it back. Seek advice from a regulated debt management company about how to clear your debts and from an independent mortgage consultant about equity release.
Q. How can I get rid of debt?
Answer.
I recently left university with a degree and a huge debt. I am currently trying to find a job, and I need to start paying off my debts as soon as possible as the interest is mounting. I have started to ignore letters from the bank. What can I do?
Frankie Saunders, Gloucester
Our debt advisor replies: Firstly you must open all letters and bank statements or you will end up with more serious problems. Legal action could even be taken against you without you knowing it, and missed court appearances could prove very costly. Don´t apply for any more loans or credit to help your current situation, but work out a budget and list all of your debts. Contact each of your lenders in writing and explain your situation. Ask them to reduce the monthly repayments or to freeze the interest on the debts for the time being. If they are unwilling to help, contact a regulated debt management company in the UK or your local Citizen´s Advice Bureau for free help and advice. You may be able to arrange a debt management plan or an Individual Voluntary Arrangement (IVA) to clear your debts at an affordable rate.
Q. Is debt consolidation a good idea?
Answer.
I have a personal loan of £12,000 and I owe £20,000 on three separate credit cards. Would it be better to get a debt consolidation loan and lump all my debts together, or carry on paying them separately?
Andy Harris, Luton
Our money expert advises: You need to look closely at the amount of interest you are paying before coming to a decision, and although a debt consolidation loan may be the answer, you need to check the terms and conditions carefully before agreeing to it. Debt consolidation can help you if you are sure the monthly repayments are not a problem, but if you fail to make the repayments your home could be at risk as this is a secured loan. Try to find a credit card provider who will give you a 0% balance transfer card and consolidate all your debts onto one card. This will give you 6-9 months grace, where you won´t have to pay any interest, and you should be able to reduce your debt in this time. Shop around for the best deals and check out the comparison websites online to see how you can reduce your monthly repayments.
Q. How can I make a person bankrupt?
Answer.
I am owed over £25,000 by a client who I did work for, but who disappeared when payment was due. I now know where he is living, and have contacted him but he says he cannot pay me. How can I make him bankrupt and recover the cash?
Paul Simpson, Oldham
Our financial expert replies: It is possible to make a person bankrupt through the insolvency Service in England and Wales, but you need to seek advice from the Citizen´s Advice Bureau or from a solicitor. The third party would need to be served with a statutory demand, which is an official document which demands action over a debt. If he does not respond within 21 days then you can present a petition of bankruptcy to a county court. Although this will cost around £400.00, plus a court fee, it is well worth it if you recover your money. Once the court receives a bankruptcy order, they will appoint an official receiver to manage the bankrupt´s affairs and his assets will be sold to pay off his debts. Look on the Insolvency Service website for more information.
Q. Debt has put our house at risk
Answer.
We signed up for an Individual Voluntary Arrangement (IVA) 18 months ago, and we were advised to free up the £30,000 of equity in our home to pay off the debt early. We now find ourselves owing £180,000 against a property that is only worth £150,000. Our interest only mortgage is coming to an end in a few months and our repayments will then increase by £500.00 per month. We find ourselves in an impossible situation. Can we hand back the keys to the property?
Martin Buels, Lincoln
Our finance expert replies: It would appear that you agreed on a lump sum IVA or you used the equity in your property to pay off other debts. If you hand back the keys of the property to your mortgage lender, you will still be liable for debts that are due up to this time, and any arrears would be added, along with interest and fees. The property could be sold for less than its value but you would still be chased for any shortfall in the original amount borrowed. Contact your lender and ask for a payment holiday while you put your house on the market and try to sell it privately. At the same time contact a regulated debt management company who can explain the options open to you.
Q. How can my mother get out of debt?
Answer.
My mother is 66 and she is still trying to pay off two store cards which she first took out 8 years ago when she was still working. She owes £4,000 and although she has been paying off the minimum amount for the past few years, she can no longer afford that as her pension is her only source of income. Where can she turn for help?
J.T, Bury
Our debt expert says: I have looked at the figures you sent in, and it looks like your mother has been paying back an extremely high rate of interest. Contact the store immediately to clarify the situation, as your mother would have paid back much less if she had applied for a personal loan to pay off the store cards. Write a letter to the store and explain your mother´s situation. Ask for them to arrange a reduced payment plan or to freeze the interest on the cards. If you are not satisfied with the outcome, contact a debt management company who can contact your mother´s creditors on her behalf and try to arrange a debt management plan with easy, affordable and reduced repayments.
Q. Debt help claims – are they a con?
Answer.
I owe my credit card providers over £25,000 and am desperate for money. A local newspaper recently ran an advert for a debt relief company which is offering to clear all debts with just one phone call. How does this work and is it a scam?
Joshua Weeks, Bolton
Our financial expert replies: Always be wary of companies which claim to clear all your debts without hassle. Many of these companies are unregulated and will charge you a fortune up front. Most of their promises to leave you debt free are unfounded and have no proven legal basis. The main problem with this type of claim is that there is no guarantee of success, and you could end up with more debt than you started with. Most up-front fees are non-returnable so before accepting any offer of help from a fly-by-night company, contact a regulated debt help specialist in the UK for free advice.
Q. Do I have to pay my late mother´s debts?
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My mum died last year and left considerable debts, including store cards and loans. She didn´t leave a will either. Are my sisters and I liable to pay off her debts?
Maureen Wilkins, Scunthorpe
Our financial expert replies: No one person is liable to pay off the debts of another, whether they are family or not, but their debts are recoverable from any assets they leave such as property or money, which is known as the estate. As there is no will, you or your sisters can apply to the probate registry to deal with the estate. Contact a solicitor to help you with this, but if there is no estate, the debts should be written off. If this is the case, contact all the creditors that your mother owed money to and include a photocopy of the death certificate, plus a letter to explain the situation.
Q. Is my mentally-ill son responsible for his debts?
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My son is mentally ill, and he was sectioned indefinitely in 2007 under the Mental Health Act. Two bills for mail order catalogues were unpaid when he was sectioned, and he has not paid anything off these debts since. The mail order firm has sold the debt on to a debt collection company, who are demanding the whole amount owed. What can I do?
George Hammond, Bermondsey
Our debt specialist replies: Your son may or may not have had a mental illness when he bought the goods on credit, but the mail order firm should certainly show some compassion now that he has been sectioned under the Mental Health Act. A lack of communication between the debt collection agency and the mail order firm has resulted in you being harassed from his creditors to pay the full amount, which is not your legal responsibility. Contact the head office of the mail order firm and explain the situation in full. If they still refuse to help, contact the Consumer Credit Association for free advice.
Q. Who is liable for debt on a joint credit account?
Answer.
My wife and I divorced last year. We have a lot of debt on two credit cards, which she claims I am liable for. Who is responsible for paying debts which are in both our names?
Monty Carlton, Suffolk
Our money specialist replies: A husband or wife is not responsible for their spouse´s individual debts, but if you have joint accounts or credit cards then you are both responsible for any debts that are accrued. If you are the main card holder, make sure your wife does not continue to use the card, and contact your card provider to explain the situation.
Q. Can I get a pension plan after I was made bankrupt?
Answer.
I was declared bankrupt in 2008 after my husband was taken ill and was unable to work. I am now divorced from my husband, and have no rights to his private pension fund. How can I now get a pension plan of my own?
Ann Colton, Basingstoke
Our bankruptcy expert replies: If you have been discharged from your bankruptcy, you need to check the conditions which applied to it. Every case of bankruptcy is different, depending on the income of the bankrupt, the amount of debt owed and their personal situation. Check directly with your bankruptcy supervisor o with a regulated debt help company in the UK to see how you can start a pension plan.
Q. How can I stop the bailiffs calling round?
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I have always had a good credit rating, but am now being chased for debts that aren´t mine. Previous tenants at my address ran up huge bills. I have recently been refused credit which was never a problem at my old address. How can I sort this out?
Angie McDonald, Gloucester
Our financial expert replies: Debts are linked to individuals and not addresses, so you shouldn´t be receiving threatening letters or phone calls at your address. Contact a credit reference agency who can put a note on your credit file to say you have nothing to do with the previous occupants of the house and have no knowledge of their whereabouts. Also, contact the Office of Fair Trading in your area, or check out their site online where you can download a debt collection agency complaint form.
Q. I am being chased for my neighbour´s debt
Answer.
We have been receiving mail from a debt collection agency for the house next door. We live at number 18 and the house next door is 18A. The house next door has been rented out to several different tenants over the past 10 years –many of whom have now moved on, and although I have contacted the debt collection firm, the letters haven´t stopped.
Jennifer Smythe, Coventry
Our debt help specialist replies: You need to contact the company who allege you owe them money and explain what is happening. The company who is chasing you through the debt collection agency, must have given out wrong information in the first place, and they should now rectify the mistake. If you don´t receive a satisfactory outcome, contact the Office of Fair Trading for a debt collection complaint form.
Q. Should we pay off our debts or save the cash?
Answer.
My husband has just received a lump sum as part of his redundancy. Should we pay off our credit card debts or save the money in a long term account?
Jean Benson, Derby
Our money expert replies: It almost always makes financial sense to pay off your credit card debts before saving the rest of the money, unless you can switch your credit card debts to a 0% balance transfer card. You are likely to be paying much more interest on a credit card debt than you could earn in a savings account, so clear your debts and try to avoid applying for more credit in future.
Q. How can I clear my debts?
Answer.
I have had massive debt problems since leaving home two years ago. I have now found a good job with a decent salary and want to start paying back the money I owe, but don´t know where to start. Which debts should I pay off first?
Mark Stanton, Devon
Our finance specialist replies: Order a copy of your credit report online, and make sure you provide details of all your addresses over the past 6 years to bring it up to date. From this you will see exactly what your debts are and with which companies. Pay off the oldest debts first, and/or the ones which are charging you the highest rates of interest. They will then disappear from your credit report. Make sure you start paying something off every debt you have, and if you are struggling, contact a regulated debt management company for free help and advice. They may recommend a debt management plan which would mean them contacting your creditors on your behalf to arrange affordable and reduced monthly payments.
Q. How will bankruptcy change my life?
Answer.
I have been struggling with debt for two years, and although I currently have a debt management plan in place, if I declared myself bankrupt, what possessions would the court take?
Mary P, Lancaster
Our bankruptcy expert replies: Bankruptcy is a serious option, and make sure you contact a regulated debt management company for advice before declaring yourself bankrupt. Your future employment could be affected with bankruptcy, and assets to be sold could include your house. Normally, assets which are necessary for your job such as tools or equipment would not be seized, or household goods, but expensive jewellery and electronic goods could be taken. Speak to a professional debt help company before making any decisions as there may be less severe debt solutions available to you than bankruptcy.
Q. How can I get the debt collectors off my back?
Answer.
I have been receiving mail for the past 12 months from debt collection agencies that is not for me. They are obviously chasing the previous owner of the house, who has since emigrated, but I am at a loss how to stop them sending me mail. Also, will this affect my credit rating in any way?
Sammy Steele, Workington
Our debt specialist replies: Your credit rating is safe, as credit reports can only be linked by shared financial activity such as joint bank accounts. Return all letters for the third party, clearly marked ´NOT AT THIS ADDRESS´ and if you continue to receive mail, ask the debt collection agency what their official complaints procedure is, and send them a letter outlining your complaint. If you are still not satisfied, contact the Credit Services Association.
Q. Can my home be on a credit blacklist?
Answer.
Over the past 3 years I have received 10 letters from different debt collection agencies who are chasing debts from a woman I have never heard of. My family have lived in this property since 1970, and the woman they are looking for has never lived here. We are elderly and the worry is affecting our health. How can we get the letters stopped, and will our address be blacklisted?
June Sharp, Norwich
Our debt expert replies: The letters are most likely the result of a systems error or human error by the debt collection agency, but this is no comfort to you. Write a strong letter of complaint to the head office of the debt collection agency, and if you do not receive a satisfactory answer, contact the Credit Services Association, who will investigate the agency to see if they have breached a strict code of practice. There is no financial link between you and the woman they are chasing so rest assured, you credit rating will not be affected and your address cannot be blacklisted.
Q. Are debt free adverts a con?
Answer.
I have just been contacted by a company who advertise widely in the local newspapers, and claim to wipe out debt completely. I have a fair amount of credit card debt and they say they can completely clear it in a matter of weeks. Are they to be trusted?
James Enfield
Our debt specialist replies: You must be very careful before signing on the dotted line with any debt clearing companies. Make sure they are regulated in the UK, and check all the company criteria before agreeing to let them help you. You could end up paying huge amounts of money for their services, which may clear your debts. If you have debt problems, contact a regulated debt management company who can help you reduce debts through negotiation with your creditors, instead of wiping them out at huge expense to you. It is also worth remembering that if you stop making payments during the time you are waiting for a court case to be heard, your creditors can still keep chasing your for payment during that time. Ask for advice about a debt management plan, an individual voluntary arrangement (IVA) or bankruptcy if your debts are severe from a regulated debt specialist company.
Q. How can I clear my debts of over £15,000?
Answer.
I know there are several ways of clearing debt, without borrowing more money, but what are they and which ones would apply to me?
Nikita Sellers, Southampton
Our debt counsellor replies: Depending whether your debts are secured or unsecured, there are three main options available to you. Contact a regulated debt management company who will give you advice about debt management plans, IVAs and bankruptcy. A debt management plan can clear debts of up to £15,000. A debt help company will contact your creditors on your behalf and arrange an affordable payment plan, so you don´t have to speak to them directly. An individual voluntary arrangement (IVA) is a more formal agreement which allows you to pay off debts at a lower monthly amount, and can help clear larger debts. Bankruptcy is the most serious option and could include the sale of your house and car to cover your debts. Before you consider seeking professional help, contact your credit card provider and ask them if they can freeze the interest for a limited time on the amount owed or reduce your monthly payments until you are back on your feet.
Q. Are my husband´s debts linked to mine?
Answer.
Are my husband´s debts automatically linked to mine?
Martha Jordan, Birmingham
Our financial expert replies: Liability for a debt is not affected by the marital status of a person, but if your name is on any joint credit card or bank account with your husband, and money is owed, then you are equally responsible. A wife is not responsible for her husband´s debts and vice versa if both names are not on the credit agreement in question. You can end liability through an individual voluntary arrangement, a debt management plan or bankruptcy but you need to first contact the credit provider to confirm liability, as they will let you know whose names were on the original contract.
Q. What is the best credit card to use in Spain?
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I live in Spain and want a credit card with a balance transfer facility from the UK. Which is the best credit card provider to contact?
Carl Cox, Antequera
Our credit card expert answers: If you live in Spain you should apply for a credit card from a Spanish provider. It is highly unusual to be offered 0% balance transfers in Spain, and although you can still apply for a card through your UK bank, if you still have an address and pay some tax in the UK, all correspondence from the bank could only be sent to your home in the UK.
Q. How much will a credit card cost me?
Answer.
Although I have been offered a 3.94% credit card balance transfer deal which has a 3% transfer charge, I want to transfer mine and my partner´s balances from other cards which are charging around 14%. How can I calculate my minimum payment per month, as the total we want to switch is £7,000?
James Trent, Oldham
Our credit card expert answers: You have based your calculations on minimum repayments of the outstanding balance, and if payments are maintained at this level you could clear the debt in 3 years. But if you continued to pay the minimum, paying less as the debt reduced, it would take 14 years to clear. If you keep repayments to the absolute minimum of 1% it would take a staggering 40 years to clear your debt, and you would pay over £3,000 in interest. A personal loan may be a better option so take your time to compare deals and offers before making a decision. Comparison websites are the easiest way to find the best deal for you or contact the banks directly.
Q. How can I get rid of errors on my credit report?
Answer.
My credit report has several errors listed on it, and the name of a well-known retailer is marked with a ´D´. I have never had credit from them so why are they showing on my report?
Francis Butler, Jedburgh
Our credit expert replies: It looks as though you have checked your report with Experian, as a ´D´ next to the name of a creditor would denote the account is dormant, which means it is no longer active. If you have used a catalogue from this shop during the period mentioned, or had any type of store card from the retailer, it could show as a dormant account. If you don´t plan to use the store card or catalogue again, contact the store and ask them to cancel the account, and your credit report will be updated. Details of the account will stay on your credit history for 6 years, but they will not have a negative effect on your score.
Q. Why am I being refused credit?
Answer.
I have never had any credit or debts in my life. Now that I want a credit card, I keep getting refused. How can I get my foot on the ´credit´ ladder?
Colin Benton, Mansfield
Our credit expert replies: As strange as it is, having no credit history means any prospective lenders can´t check that you are a reliable payer, and this can go against you. Lenders check a credit report to make sure you are a responsible borrower, to check your identity and also to make sure you don´t have outstanding debts with other companies. In order to create a positive credit record, you must make sure your name is on the electoral roll at your current address, as non-inclusion can result in immediate credit refusal. Also it may be worth arranging an overdraft at your bank. Even if you don´t use it, an overdraft will show as positive information on your credit report. Try applying for a credit card with your bank, keep up the repayments and you will soon have a positive credit history showing.
Q. How can I get refund from company that has gone into admistration?
Answer.
I bought an airline ticket from a company which has since gone bust. How can I get my money back as the trip was planned in two months time?
Frank Tamiston, Enfield
Our expert replies: Your flight refund is classed as a liability, and although you are a creditor there will be plenty of other people in the queue before you. Try to contact the company and ask for your money back and if this fails, which it is quite likely to do, if you booked the trip on a credit card you could get a refund from the card provider. Under Section 75 of the Consumer Credit Act, if an item or service is not provided which has been paid for on a card, you can get up to £30,000 back. Call your credit card provider for more information.
Q. How can I improve my credit rating?
Answer.
After checking my credit report for the first time this year, I noticed it lists payments going back to 2006 in the name of a debt collection company. I have never heard of this company. How can I find out who they are and what the payments were for?
Ron Jones, Shropshire
Our credit expert answers: Your credit report includes details of any company or organisation which has registered financial information on it. Make sure you provided the credit reference agency with all the addresses you have lived at during the past 6 years, as your report could be incomplete. If you still have problems, use the free phone number provided on the Credit Expert Website to query the entries or to ask for their removal.
Q. Which credit card company is best for me?
Answer.
Do many credit cards offer money back on spending, and do they charge high fees?
Michael Nolan, Bristol
Our credit expert replies: Two cards stand out from the rest. The American Express Platinum Cash Back Card offers 5% cash back for the first £3,500 spent, and this reduces in stages to 1.5% on expenditure over £10,000, but you need to have a minimum income of £30,000 to apply for this card. One of the best cash back cards with no income restrictions is Barclaycard One Plus, which offers 0.5% on spending of up to £6,000 per month and also 5% on spending on public transport in London.
Q. Will I still have to pay my student loan back when I am over 50?
Answer.
Will my student loan expire when I am 50? I took out a loan when I was 40 and am still paying it off 12 years later, although I am now 52. Should it have expired?
Malcolm Siddall, Newcastle
Our money expert says: Most student loans are cancelled when the borrower reaches 50, but every loan is different, and it depends on the small print as to whether yours should have expired or not. This can depend on the age of the student when they take out the loan, how much it was for and your earnings since you took it out. Speak to the customer services team at the Student Loans Company for more detailed information, as they will tell you whether your loan should have expired or not
Q. How can I stop creditors harassing me?
Answer.
My credit card is £600.00 over its limit, and I am being constantly harassed by my card providers. I am still paying the minimum amount off the card each month, but I am getting nasty phone calls asking me when the overspend will be cleared. I cannot pay any more than I am paying at the moment. What can I do?
George Melton, Leicester
Our debt expert replies: Your credit card provider has a legal right to ask when you will be repaying the debt, but does not have the right to harass you unnecessarily. Even if you are in breach of your agreement with them, you have the right to ask your credit card provider to only call you at certain times of the day and never to call you at work. If you want to stop the phone calls altogether, you are well within your rights to ask the credit card company to only contact you by e-mail. If you continue to get harassed, contact the Financial Ombudsmen Service to complain, speak to the Citizen´s Advice Bureau in your area or contact a regulated debt management company who may speak to your creditors on your behalf.
