Client reference number
3603042
Claire Threlfall
47 Claremont Road
Stockport
SK2 7AR
1 September 2020
Dear Claire,
You've taken a huge step forward
Thank you for sharing your situation with us. We know it’s not easy, but you’ve made great progress.
Over the years we’ve helped millions of people. Now we understand your circumstances, we’re able to
help you take the next step as well.
Please make sure you read this information carefully.
Your preferred option: Payment suspension
A temporary payment suspension is an informal arrangement you make with your creditors. They may
be willing to put your payments on hold for a short period, to allow some time for your situation to
improve.
What to do next?
To help you choose a solution, we’ve included more information in this document. Make sure you read
all the information before you go ahead. It’s important you fully understand your options.
Thank you for telling us about a serious health condition
If you haven’t discussed this with an advisor already…
We recommend you contact us to discuss your circumstances, as we may be able to offer
additional advice or further support to deal with your debts.
You can contact us on live chat from your online account, or call us for free on 0800 048 1004
Monday-Friday 8am-8pm, Saturday 8am-4pm.
Go to 'Your financial situation' to check your budget
Go to 'Your options' to find out what options are available to you
Go to 'Your next steps' and use the checklists provided to make sure you've done everything you
need to do. This means we can get going without delay
We’ll help you get things set up and give you the support to deal with your debts, however long it’s
needed.
Best wishes,
StepChange
Foundation for Credit Counselling, Wade House, Merrion Centre, Leeds, LS2 8NG trading as StepChange Debt Charity and StepChange Debt Charity Scotland.
A registered charity no.1016630 and SC046263. It is a limited company registered in England and Wales (company no.2757055).
Authorised and regulated by the Financial Conduct Authority.
Contents of your personal action plan
Your financial situation
You've told us about your financial situation. When you read through this section, please
check all your details are correct and up to date.
Your monthly budget
Your debts
Your priorities
How we help
Your health and wellbeing
Further support for you
Your preferred option
We've advised you on the most suitable way to deal with your debts. Read about your
preferred option here.
Key information
Your next steps
Resources
Your other options
You might want to consider other options. We've included details about them here.
Available but not recommended
Available elsewhere but not recommended
Not available to you
Full details
Full details about your preferred option
Helpful information
Find out more about dealing with your creditors and how we support you.
How to contact us
The collection process and your rights
How we handle complaints
Your financial situation Your monthly budget
Your monthly budget
Your monthly income
Wage
Furloughed Wage £1,400.00
Your fixed monthly spending
Home and contents Utilities
Rent £0.00 Electricity £0.00
Someone else pays for this Someone else pays for this
Council tax £0.00 Water supply £35.00
Someone else pays for this
Transport and travel
TV licence £10.00
Car insurance £30.00
Board £550.00
Road tax £30.00
Pensions and insurances
Fuel, parking and toll road charges £65.00
Other pensions and insurance £18.00
Breakdown cover £18.00
Care and health costs
MOT and ongoing vehicle £33.33
maintenance
Prescriptions and medicine £5.00
Dentistry £5.00
Opticians £20.00
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Your financial situation Your monthly budget
Your flexible monthly spending
Food and housekeeping Communications and leisure
Groceries £400.00 Mobile phone £35.00
Includes amount for people not Awaiting contract to end
in budget
Hobbies, leisure or sport £40.00
Alcohol £86.67
Wish to keep cost Gifts £33.33
I have a large extended family
Vet bills and pet insurance £45.00
Pet insurance and food Newspapers, magazines, £12.00
stationery and postage
Due to age/health condition of pet
magazine costs £3 per week
Personal costs
Clothing and footwear £35.00
Hairdressing £21.67
Wish to keep cost
If you keep to your new budget, you'll have:
Income Spending Payments to priority debts Available for non-priority debts
£1,400.00 £1,528.00 £0.00 -£128.00
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Your financial situation Your debts
Non-priority debts
Who you owe Owner Actual / estimated Amount
contractual payment
Tesco Bank - Claire £256.00 £6,907.00
overdrafts and
loans
Personal loan
Barclaycard Claire £9,054.00 £9,054.00
Credit card
MBNA Claire £4,006.00 £4,006.00
Credit card
Royal Bank Of Claire £25.00 £500.00
Scotland
Overdraft
Simply Be Claire £758.50 £1,517.00
Catalogue
Very Claire £2,688.00 £2,688.00
Catalogue
Total actual / estimated contractual payment Total amount
£16,787.50 £24,672.00
To find out more about how we calculate estimated contractual payments, please visit
www.stepchange.org/clients/creditor-payments
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Your financial situation Your priorities
The importance of keeping up to date with priority payments
Some payments are a priority because being in arrears (when you haven't paid what you're supposed
to) could mean you face penalties.
Types of priority payments and what can happen if you fall behind with them
Mortgages, rent and loans secured against property
You could be at risk of losing your home. However, eviction and repossession are last resorts.
The lender or landlord will explore other ways to recover the money you owe first.
All court fines, judgments or decrees
Action can be taken by the courts to recover any money owed, including unpaid fines.
Sometimes the court will instruct enforcement officers (also known as bailiffs, sheriff officers or
Enforcement of Judgment officers) to take valuables to pay off debts and money may be taken
directly from wages or benefits. If left unpaid, a criminal fine can be enforced, which can lead to
imprisonment.
TV licence, council tax and rates, tax, VAT, National Insurance and child
maintenance payments
There are a number of ways these debts can be collected if you don't pay them. Money could be
taken from your wages or bank account, or enforcement officers (bailiffs or sheriff officers) can
be sent to your home. The court can also raise a charging order or inhibition order and take
proceeds from the money you get when you sell your property.
Gas and electricity, telephone or mobile phone and hire purchase
agreements
You could be at risk of your supply being cut off, or losing the items financed, through non-
payment of these agreements.
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Your financial situation How we help
Our approach to giving you advice and support
We’ll tell you about all the debt solutions which are available to you. We’ll support you with any of
these debt solutions where they have a reasonable chance of resolving your debt problem. Where you
can afford to repay your debt within 10 years, we’ll recommend a repayment solution. If not, we’ll
recommend an insolvency option. You can choose the solution that best meets your needs.
Details that can change the advice we give
We base our advice on what you’ve told us. Please check the details in this section are correct and up
to date. If the details we have for you need changing it’s important you let us know, as this may affect
the advice we give you.
You can update your details at any time online by logging in at https://www.stepchange.org/single-sign-
on.aspx . Or you can call us on 0800 138 1111 . We're open Mon-Fri 8am-8pm, Sat 8am-4pm.
Using your assets
One way to improve your finances is to cash in or sell some or all of your assets. By doing this, you
could help balance your income and spending for a period of time and could help you cover your priority
payments.
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Your financial situation Your health and wellbeing
Your health and wellbeing
You told us about a health condition or sensitive circumstance that may have an impact on your ability
to deal with your debts.
Circumstances
Depression
Stress or anxiety
A serious health condition
You can always contact us if you require support or want to discuss how your circumstances impact
your options.
You can update or remove your health and wellbeing information at any time in your account settings
online, or by calling us.
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Your financial situation Further support for you
Additional support is available
We recommend you consider getting in touch with organisations who provide support for the
circumstances you've told us about.
Breathing Space
Advice and support for people coping with depression, anxiety or low mood.
0800 83 85 87
Monday to Thursday 6pm-2am; 24 hours at weekends Friday 6pm-Monday 6am
Free service
GP
In almost all cases, the best way for someone with addiction, mental health or depression issues to
access services in their area is through their GP
See website
Free service
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Your preferred option Key information
Asking for a payment suspension
This is where your creditors put your payments on hold for a period of time. It’s usually for 6-12
months, while you get your finances back on track.
Your budget shows you need all your money for living costs such as food, housing and utility bills. You
should pay these first, before any debt repayments. Your creditors can’t make you pay them what you
owe if you’re unable to meet your basic needs.
A payment suspension is not a long-term way to deal with debts. The debts will still need to be dealt
with at some point. If you don’t think you can repay your debts in the future, you should consider
contacting us again to understand your options.
What are the benefits of suspending payments?
Most creditors will agree to stop interest and charges as a gesture of goodwill. However, some may
not, and they’re not required to stop charging fees
What are the risks of a payment suspension?
You may still be asked by your creditors to make payments. You’re not obliged to pay any more than
you can afford
Your creditors can still add interest and charges to your debts and take further action against you
Your debts will need to be repaid at some point, so suspending payments isn’t a long-term debt
solution
Suspending payments will cause you to miss payments to your debts. This will affect your credit file
and may affect your ability to obtain credit in the future
Taking a payment suspension may affect your job
Important information about payment suspensions
If you’re able to pay more, let us know and we’ll update your budget. We’ll work out what you can
afford based on your new circumstances, and discuss other ways to repay your debts.
What types of debt can be included in a payment suspension?
You can ask to suspend payments to all unsecured debts. You could also ask to suspend payments
towards any priority arrears you have.
You shouldn’t ask to suspend payments to your 'priority payments'. These are things like:
Secured debts, such as mortgages, secured loans and hire purchase on vehicles
Utilities, such as council tax or rates, water, gas and electricity bills
It's important you continue to make regular payments to these bills. You can only ask to suspend
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Your preferred option Key information
payments to the arrears on your utility bills.
Can I go ahead with another option?
Yes. If you want to choose another option, let us know. You can update your preferred option in your
online account. To access your account, log in at https://www.stepchange.org/single-sign-on.aspx .
Or, you can call 0800 138 1111 and discuss your options with us.
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Your preferred option Your next steps
Use this checklist to get started. Just tick off each step as you go. This way you can make
sure you've done everything you need to.
Send a letter to ask for a payment suspension
Use our template letter to contact your creditors and ask them if you can stop making
payments temporarily while you deal with your debts. You can also ask them to stop interest
and charges
Send a copy of your budget
Along with your letter, enclose the record of your income and spending budget we’ve provided
to you. It helps your creditors understand what you can afford to pay
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Creditor name and address My name and address
My account/agreement No:
Date:
Dear Sir/Madam
Request for a payment suspension
I am currently experiencing financial difficulties, and have no available income therefore I am not in a
position to make any payment towards my existing debts. I would like you to consider agreeing to a
payment suspension for a temporary period, to allow me the time to improve my finances.
I’ve enclosed a copy of my monthly budget, including a list of all my creditors.
I have recently received advice from StepChange Debt Charity to help improve my circumstances and
to find a more permanent solution to repay my debt.
In the meantime, please consider reducing or stopping interest or any other charges on my account
during the payment suspension.
Please confirm your decision on my request for a payment suspension.
Yours faithfully
________________________________
Your name
This page has been left intentionally blank
Your other options Available but not recommended
Available but not recommended
We don’t recommend the following solutions. However, if you really want to go ahead with one, we can
still support you. Contact us if you’d like to know more.
Bankruptcy
Bankruptcy is a legal process that writes off your debts. Once you’re declared bankrupt, you won’t
have to deal with your creditors directly. If you’re struggling to repay your debts, bankruptcy is an
option. Before you think about this, you should be aware of the potential consequences.
You don't have enough money left over in your budget
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Your other options Available elsewhere but not recommended
Available but not recommended
We don’t recommend the following solutions, and can’t support you with them. You may be able to go
ahead with them independently.
Individual voluntary arrangement (lump sum)
An IVA is a formal agreement where you repay what your creditors agree you can afford to pay in the
form of a lump sum. The rest of your debt is then written off.
The value of your assets is too low for this solution
Settlements
A settlement offer is where you offer each of your creditors a one-off payment to clear your debts with
them, even if you’re unable to pay the full amount you owe. Some creditors will accept an amount
lower than what you owe and write off the rest of the debt. They’re more likely to agree to this if it would
take you a long time to repay them.
The value of your assets is too low for this solution
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Your other options Not available to you
Not available
There are other options which aren't available to you based on what you told us.
Administration order
Why this is unavailable:
The amount of money you owe is too high to qualify for this option
You haven't received a County Court judgment or order for any of your debts
You don't have enough money left over in your budget
Debt management plan
Why this is unavailable:
You don't have enough money left over in your budget
Debt relief order
Why this is unavailable:
The amount of money you owe is too high to qualify for this option
The value of your vehicle is worth more than is allowed for this solution
Individual voluntary arrangement
Why this is unavailable:
You don't have enough money left over in your budget
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Full details Full details about your preferred option
Ask for a payment suspension
This is where your creditors put your payments on hold for a period of time. It’s usually for 6-12
months, while you get your finances back on track.
Your budget shows you need all your money for living costs such as food, housing and utility bills, so
you should pay these first, before any debt repayments. Your creditors can’t make you pay them what
you owe if you’re unable to meet your basic needs.
A request for a payment suspension is not a long-term way to deal with debts
You’ll still need to deal with your debts at some point. If you think you’ll not be able to repay your debts
in the future, you should consider another debt solution.
How does a payment suspension work?
We recommend asking your creditors for a payment suspension while you find ways to deal with your
debts. If you follow the steps below, there’s a good chance your creditors will accept this request. If
they don’t, we’ll tell you what to do next.
You can ask your creditors for a payment suspension using the template letter in the section ‘Your Next
Steps’.
If your situation improves, we can look at other, longer-term options to deal with your debts.
Which debts can you ask to suspend payments
to?
You should ask to suspend payments to your:
Tesco Bank - overdrafts and loans Personal loan £6,907.00
Barclaycard Credit card £9,054.00
MBNA Credit card £4,006.00
Royal Bank Of Scotland Overdraft £500.00
Simply Be Catalogue £1,517.00
Very Catalogue £2,688.00
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Full details Full details about your preferred option
It's important you keep up with your payments on your priority bills.
You shouldn’t ask to suspend payments to:
Secured debts, such as mortgages, secured loans and hire purchase on vehicles
Utility bills, such as council tax and rates, water, gas and electricity – you can only ask to suspend
payments to any arrears on your utility bills
Things you need to know about suspending payments
Interest may be frozen
Most creditors will agree to stop interest and charges as a gesture of goodwill. However,
some may not, and they’re not required to stop charging fees.
Please be aware:
You may still be asked by your creditors to make payments. You’re not obliged to pay any
more than you can afford
Your creditors can still add interest and charges to your debts
Your debts will need to be repaid at some point, so suspending payments isn’t a long-term
debt solution
How do I go ahead with this solution?
You’ve made a great start by contacting us about your situation. Make sure you read all the information
before you go ahead. It’s important you fully understand your options.
Use our checklist in the section 'Your next steps'
Tick it off as you complete each step, to make sure you’ve done everything you need to.
Write to your creditors to ask to suspend payments
We’ve enclosed a template letter you can send to your creditors, to ask if you can stop your payments.
Send this to each of the people you owe money to. We're the UK's leading debt advice charity, so
creditors know us and how we work.
You should also include a copy of your budget along with the letter. This will show that you need all your
income for living costs. Your creditors will be able to see that you genuinely need to suspend your
payments.
Your creditors may agree to a payment suspension of 6-12 months. After this, they’ll contact you to see
if anything has changed with your finances.
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Full details Full details about your preferred option
Important information about payment suspensions
Stopping payments to your debts will give you much-needed breathing space. However, there are some
things you need to be aware of.
What happens if your creditors don't accept your offer?
You could offer each of them a ‘token payment’ of £1 per month, if you can afford it. They’ll probably
ask you to pay more, but don’t feel pressured. Your creditors are not entitled to take more from you
than you can afford. They won’t return any payments you send, so continue to send them £1 a month.
Tell your creditors you’re getting help from us. Explain you’ll get in touch with them when your
situation improves.
Your debt could be passed to a debt collection agency. If it is, don’t panic. Ask the debt collection
agency for a payment suspension or offer them £1 a month.
Collection agencies are often helpful, especially if they can see you’re trying to deal with your debts.
To find out what your creditors can and can't do, go to the section 'Helpful information'.
How will my credit file be affected?
You’ve told us you’ve fallen behind with making payments. Each time you miss a payment it’s
reported on your credit file. When you continue to miss payments, you’re at risk of your accounts
‘defaulting’. This will be shown on your credit file for six years. This may affect your ability to obtain
credit in the future.
You can rebuild your credit file later, once you’ve got your finances back on track. It’s best to focus on
dealing with your debts first.
Paying back your overdraft debt
You have an overdraft, and this means you owe money to your bank. We recommend you ask them to
suspend payments towards any fees and charges on this debt.
Use the template letter to contact your bank
Tell your bank you’ve taken our advice by using the template letter included in the ‘Your next steps'
section.
Your bank will let you know:
if you can continue to use your current account. In this case you'd need to ask them if they can split
the overdraft debt from your balance. Or;
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Full details Full details about your preferred option
if you'll have to close your account and open a new 'basic' bank account . This could be with them or
another bank.
What happens if my circumstances change?
If things change, you’ll need to let us know. We’ll review your income and spending again and tell you
what options you have to deal with your debts.
You shouldn’t borrow any more money while you’re not making payments to your debts.
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Helpful information How to contact us
Keeping in touch with us
Log in to check and update your details at https://www.stepchange.org/single-sign-on.aspx
Need to speak to someone? Call us on 0800 138 1111
Visit our website and MoneyAware blog for helpful guides, more information, advice and money-
saving tips
Follow us on Facebook Follow us on Twitter
StepChange Debt Charity @StepChange
Ongoing support from us
There are lots of ways we can help you deal with your debts and we’ve got plenty of online information
to support you.
Our website: Debt guides and more
Find out more about what happens after you’ve gone ahead with your chosen option. We’ve also got a
range of guides and resources to support you, including:
Debt guides
Your rights
A benefits checker
How to open a basic bank account
How to get help writing to creditors
Step-by-step guides to dealing with court action
Visit www.stepchange.org/clients
Our MoneyAware blog: Helpful hints and practical advice
Our MoneyAware team can tell you how make the most of your money with budget-boosting tips.
Visit the blog and subscribe to the newsletter at www.moneyaware.co.uk
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Helpful information The collection process and your rights
The collection process and your rights
There are a lot of myths about what creditors can and can’t do to recover the money you owe.
This guide covers ‘unsecured debts’, like credit cards and loans. To find out about priority
debts go to the section 'Your priorities'.
Unsecured debts: What your creditors can and can’t do
They can call and write to …but they can’t harass you. You can request they only contact you
you to ask for payments… by letter if you’re being bothered by phone calls.
They can continue to add …but often stop if you tell them you’ve taken advice from us.
interest and charges to your They’re not allowed to add more in interest and charges than you
account… originally agreed to.
They can take money from …but they have to warn you in advance before doing so. If you talk to
connected bank accounts to your bank they’ll usually be able to help, so your debts and day-to-
pay a debt… day banking are separated.
They can add information to
…but this doesn’t stay on there forever. Most information drops off
your credit file if you miss
your credit file after six years.
payments…
They can pass on your
…but these agencies don’t have more power than your original
debts to a collection
creditors.
agency…
…but they have no right to enter. If they gain entry to your home, only
They can send debt
court-appointed enforcement agents (bailiffs), or sheriff officers in
collectors to your home…
Scotland, have the right to remove and sell your goods.
They can ask the courts to
decide what you should pay …but the courts will consider your financial situation.
them…
They can apply to make you …but this is rare. It would usually be after they tried other ways to get
bankrupt… you to pay what you owe them.
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Helpful information How we handle complaints
How we handle complaints
We’re committed to providing you with an excellent standard of service.
Your confidence and trust are important to us, so if you’re unhappy with the service you’ve received
from us we want to work with you to resolve it as quickly and effectively as possible.
Help us to help you
If you’re unhappy with any aspect of our service please tell us so we can investigate. To do this call us,
email us or write to us using the contact details below.
Please give as much information about your complaint as possible and tell us how you’d like us to
resolve it.
What happens after I’ve sent my complaint?
When we receive your complaint, we’ll aim to resolve it as quickly as possible and, where this has been
agreed with you, we’ll confirm this in writing.
In the unlikely event we’re unable to resolve your complaint within four working days, we’ll:
Let you know in writing that we need more time to investigate
Investigate your complaint and aim to respond within four weeks. If we’re unable to do this, we’ll
send you an update
We aim to send a final response within eight weeks of a complaint. If this isn’t possible, we’ll write to
explain why and tell you when we will be able to respond.
In the unlikely event we take more than eight weeks to send a final response, or you don’t think we’ve
resolved your complaint, you can contact the Financial Ombudsman Service free of charge.
You must refer your complaint to the Financial Ombudsman Service within six months of the date of our
final response.
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Helpful information How we handle complaints
Complaints contact information
StepChange Debt Charity Financial Ombudsman Service
Complaints Manager Exchange Tower
StepChange Debt Charity London
Wade House E14 9SR
Merrion Centre
Leeds
LS2 8NG complaint.info@financial-
ombudsman.org.uk
0800 023 4567 or 0300 123 9123
customerrelations@stepchange.org www.financial-ombudsman.org.uk
0800 980 2287
www.stepchange.org/complaints
General enquiries
For general enquiries please call us on 0800 138 1111 .
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