We have so much debt, it seems only hope is selling house!

[The Mould]

Due to my husband being made redundant several times over past ten years and now working contracts, we now have so much debt that I don't know what to do.

 

I have looked at CCCS and National Debtline but to be honest it just looks like too much hard work, I can't cope with it.

 

My husband gets paid weekly so I can't pay CCCS a monthly sum for them to pay amounts to the people we owe to as they suggest in a debt management plan, as I can't find the amount they would need a month in one sum.

 

The other suggestion is selling our house and using that to pay our debts but first of all how do we sell our house these days? No houses in the area are selling! Also where do we live then? Can I take my 2 cats plus another we look after for a friend and our tropical fish into rented accommodation? I have no one who could look after them for me (the cats) and won't give them away.

 

 

 

Having said that, we have had the house valued and are waiting for one more valuation before deciding who to go with, as we will try to sell it, but that means finding £85 for an energy proficiency certificate! Impossible at the moment!

 

 

Then, what happens in the future if we sell our house? We have never had any money to put away for a pension so presumed our house would be our investment for when we retire (we are 45 and 39). If we sell the house and use the money to pay the debt (and yes all equity would go on debt) what happens later?

 

I think I am past caring anyway. Everything is going wrong and I can't take anymore. I'm stressing about it more or less on my own. My husband sticks his head in the sand and says it'll be ok, we'll use the credit card until there's money in the account.

 

He can't do anything, no DIY, can't mend cars, so he wants everything new so that it doesn't need repairing or we just end up paying a fortune to take cars etc in for mending.

 

I work part time in the evening but can't work during the day as I home educate my daughter.

 

I've cut down everything I can, food - I spend 50 quid a week on food and cook from scratch. I shop with Tesco online to avoid impulse buys My husband is responsible for a large area at work so spends a lot on fuel but claims travel expenses through work. I rarely buy clothes or stuff and if needed I mostly buy them on Ebay second hand! We don't have flash holidays, we don't go clubbing, we don't drink (apart from 2 drinks each at pub quiz night in the local pub, but have stopped that now). We don't do anything flash - just have a far too big and expensive house and have had bad luck with periods of redundancy, when we used our credit cards to live off - have now spent 10 years transferring debt from one card to another and am fed up - it never gets paid off. I've transferred quite a lot of personal loans in a desperate attempt to make sure it gets paid off eventually but that meant our monthly costs went up.

 

 

I have cut down on music lessons for my dd to fortnightly instead of weekly. I am considering selling my car but then can't get to music or drama with my dd.

 

I have just sold some clothes on Ebay and made £50 but don't have much else worth selling.

 

My husband earns too much for us to claim any benefits.

 

I don't know what else to do.

 

 

Debt is as follows:

 

 

One personal loan fo 7 years of £10,500 plus interest.

One personal loan don't know how much it is but think there are 3 years to go at £109 per month.

One credit card with £10,500 on it, 0% interest for 12 months

One credit card with £4000 (just transferred) with low interest of 5.9% for life of balance transfer

Catalogue - £665.

HP for car, only paid 1.5 years, have at least 4 to go, at £296 per month.

HP for TV not sure how long but will be about £1000 plus interest.

HP for furniture, only owe £150, will be paid off in about 4 or 5 months I think.

 

 

What a nightmare!

 

 

 

Any help or advice appreciated!

 

 

 

Hello there wilchil,

 

 

Alright, you are up to your neck in debt, don't worry about it, because we are all drowning in debt, but you can stay afloat.

 

Well done for educating your child at home, that is the perfect place for your daughter to be, with you, as much as possible.

 

You say you have equity in your property, can you re-mortgage and consolidate, that would make it all more manageable and you keep your home?

 

Do you have a relative that could raise a lump sum of money and then offer Full and Final Settlements to your creditors?

 

As mentioned by another cagger, send off a CCA request to your creditors, how old are these loans/credit cards?

 

Try not to worry, we will see what we can do for you, we will be here and provide you with the help and support and advice that you need, you will not have to face this on your own, alright.

 

Kind Regards

 

The Mould

[The Mould]

Hello The Mould!

 

 

 

On this issue, I regret, I must disagree with you. No offence intended.

 

Never, ever, turn unsecured Debt into Secured Debt. All this will do is move the Debt from someone who cannot take the Home, over to someone who can, and probably will if they get the slightest chance.

 

I would say make the existing Mortgage the top priority, pay that regardless, and fight absolutely everything else.

 

Surviving this bank induced recession is the key. One way is to crash stop all other payments, and let them have £1 a Month for now, or nothing at all unless they appear to have a binding Agreement.

 

Start building cash, and accept the Card, HP and Loan bankers will make a lot of noise, and will go through the usual steps of Harassment via Phone, Letter and Debt Collection Monkey. Just appreciate what that is for what it is, i.e. those with the least power will make the most noise.

 

Make sure Food, Fuel, Services, Mortgage and Council Tax are covered.

 

What is left should be accumulated and protected.

 

Keep saving, and keep looking for ways to reduce outgoings.

 

If any of the Unsecured Creditors get very hostile, then investigate a Full & Final Offer to get rid of them. That may by then be possible if some Cash has been accumulated by then.

 

Indeed, that may be the overall strategy. Pay them off, one by one, as they get more hostile.

 

The overall aim being to dump all Debt until you are left with just the Mortgage, and then see what you can do to get rid of that too.

 

This won't be easy, and it will mean a bumpy ride for the next 6 years or so, but the aim is to get to year 6-10 with almost no Debt except for a dwindling Mortgage.

 

Once you reach that stage, and look back, you will know it was good advice.

 

Cheers,

BRW

 

Hello there banker-rythmes-with,

 

No offence taken at all good fellow.

 

It seemed to me that the poster was extremely stressed (not surprisingly, given the situation).

 

If the poster does have major finance problems, then the creditors may become fed up and issue a claim in the county court (after following the required procedures as per CCA 1974 (amended)), if the poster cannot defend or has no real prospect of defence to the action, then the creditor could obtain CCJ, then charging order (you know the drill) and so these unsecured loans become secured on the property anyway.

 

If the poster has a good financial advisor, then he could arrange a new mortgage deal, based on among other things the equity in the property, all unsecured loans could be paid off either in full or if there are problems with the credit agreements then paid off in settlements, that would leave just the mortgage, utilities and basic living costs to pay out each month.

 

In time the property would increase in value and so equity in the property would increase also.

 

I think the poster is under a tremendous amount of stress, granted the creditors or DCA's are not important, but if their paperwork is good, then they could go down that road and make the poster's life absolute hell, you need only look at 'blackbear101's' story to find that out, yes, the CCA request or SAR first, then see where you are as far the creditors paperwork is concerened, £1 payments to all of them for now absolutely.

 

This story needs to unfold a bit more I think before the definitive course of action can be determined for the poster to take.

 

Kind Regards BRW

 

The Mould

[The Mould]

Thanks all for your help. Hubbie hopefully has a new contract from mid January, although until he actually has paperwork in his hands and starts the contract, I won't relax! We've been in this situation too many times before and you can't rely on a word people say, unfortunately.

 

Thanks for the advice. Santander c.c. did freeze interest and charges without an I&E form before, wondering why they are now insisting. Hubbie is reluctant to provide this info, says it's none of their business. I just want it sorted to be honest. It is dragging on and we are no closer to getting rid of the debt and I don't know how we will ever be able to save enough to make F&Fs for the larger amounts. Still, will battle on for now.

 

DB - we only eat stewed meat these days, I can't believe how much my shopping habits have changed recently! Lots of supermarket's value/basic goods, plus home made bread and biscuits, less meat. We no longer eat out or have coffees out! It all makes a difference. Have managed to shave money off all sorts of bills too (elec/gas, home insurance, contact lenses, broadband).

 

I was thinking we'll pay the usual amount at the end of this month and send off the National Debtline I&Es form to those who have requested (all of them!).

 

Do you think it would make more sense to pay £1 or £0 to each at the end of this month, tell them hubbie is jobless (not redundant! thanks for that tip) and to bear with us and then write again after new contract starts mid Jan (hopefully!) with new I&Es instead?

 

Don't worry, I'll be contacting the mortgage people at the end of the month (correct, btw, no mortgage holiday left) and making sure utilities, council tax etc are paid. I'll cancel any superfluous insurance - hubbie has critical illness and mortgage cover on death which I'm thinking of cancelling, it'll free up another £30 a month, also pet insurance and fingers crossed nothing happens!

 

Thanks again. Back to the sofa for me, chores all done!

 

Hello Wilchil

 

Uncross those fingers and DO NOT CANCELL THE CRITICAL ILLNESS INSURANCE. The money that you are spending on that particular type of insurance is money well spent, do not take a chance on such unfortunate events never happening in your life!

 

Merry Christmas Wilchil and to all who have supported you in these difficult times.

 

Kind Regards

 

The Mould