Huge Debt Problem

[albertz]

New member here with a bit of a debt problem...

 

.£35k to be exact

 

all credit cards and a £45k mortgage.

 

problem i have is the bank won`t lend me any more and i need to find a solution fast,the payments are crippling.....

 

between my wife and myself we have a combined income of £2600 pm after tax.

 

the bank says i don`t earn enough to warrant loaning anymore in the way of a consolation loan to reduce these payments.

 

...i know i was stupid,very stupid in running these cards up but i came to my senses four months ago and do not use them any more.

 

question i am asking is would a smart thing for me to do is off sell my house and pay off this debt...

 

... and start afresh i can`t see any other way out???

 

any help appreciated.

[albertz]

sorry meant to add the house is worth £80k at last valuation.

[richard_se11]

It is difficult without all the facts to advise properly, but generally:

 

 

The first and most important thing, don’t panic or worry.

 

 

You’ll need to do an income and expenditure form for you and your wife – so you know what’s you have coming in and going out each month. The most important items are the secured loans (mortgage) and priority debt: council tax, television licence, these need to be paid ahead of anything else.

 

 

Is your mortgage up-to-date, if not you need to speak to your mortgage company to see what the options might be.

 

 

After you have accounted for your secured and priority debts in your income and expenditure form you’ll be able to see what you have left to pay other debts. Your creditors will want a copy of this. Have you informed them you're having difficulties?

 

 

 

If you have an overdraft, there’s the possibility/likelihood of the bank paying themselves ahead of you being able to pay other bills. Depending on the specific circumstances it may be advisable to open a separate bank account to avoid the banks setting off that finance.

[dx100uk]

how old are these debts?

 

are they all on your credit file?

 

who is the listed owner the OC or a DCA now?

 

more info please

 

dx

[albertz]

It is difficult without all the facts to advise properly, but generally:

 

 

The first and most important thing, don’t panic or worry.

 

 

You’ll need to do an income and expenditure form for you and your wife – so you know what’s you have coming in and going out each month. The most important items are the secured loans (mortgage) and priority debt: council tax, television licence, these need to be paid ahead of anything else.

 

 

Is your mortgage up-to-date, if not you need to speak to your mortgage company to see what the options might be.

 

 

After you have accounted for your secured and priority debts in your income and expenditure form you’ll be able to see what you have left to pay other debts. Your creditors will want a copy of this. Have you informed them you're having difficulties?

 

 

 

If you have an overdraft, there’s the possibility/likelihood of the bank paying themselves ahead of you being able to pay other bills. Depending on the specific circumstances it may be advisable to open a separate bank account to avoid the banks setting off that finance.

 

thanks for replying everything is up to date so far...

 

just so fed up with paying all these cards and not being able to do normal things like go for meals or holidays....just wondering if there are any other solutions without going down the DMP route.

was just thinking of selling and then being in a position as the bank calls it of affordabilty for another mortgage....just cant figure out if its a smart move or not?

 

thanks again

[albertz]

how old are these debts?

 

are they all on your credit file?

 

who is the listed owner the OC or a DCA now?

 

more info please

 

dx

 

 

sorry lost me ?

 

dca oc

 

they are quite old ,well some of them..... all up to date,just!

[maroondevo52]

dca..... Debt Collection Agency

oc.......Original Creditor.

 

If they are all up to date they will still be with the oc, dx has asked if they are on your Credit File.

[albertz]

mortgage is £370 and council tax £125 pm.......... dose`nt look a lot when i type it

 

elec and gas roughly £100 pm.

 

no loans,mobiles £22 for two and the rest paying those cc......... arrggh.

[albertz]

my credit file yes i think so......

[dx100uk]

go look links are below

 

 

dx

[albertz]

Still stuck in a rut with this......anybody any ideas.

 

Money coming in has went down to £2300 anybody think a DAS is my best route ,don`t think i can afford christmas at this rate......

Edited October 28, 2014 by albertz

[dx100uk]

did you get your credit file

 

 

dx

[albertz]

Still stuck in a rut with this......anybody any ideas.

 

Money coming in has went down to £2300 anybody think a DAS is my best route ,don`t think i can afford christmas at this rate......

 

 

 

Think this is it....

 

LENDER

BALANCE UPDATED STATUS

Newday LTD (Opus)

£ 447

30/09/2014 Up to date

Sainsbury Bank LTD

£ 596

30/09/2014 Up to date

Nationwide Building Society

£ 3,146

30/09/2014 Up to date

American Express Services Europe LTD

£ 990

30/09/2014 Up to date

Marks and Spencer

£ 1,324

30/09/2014 Up to date

Mbna LTD

£ 6,853

30/09/2014 Up to date

RBS Credit Cards

£ 3,741

01/09/2014 Up to date

Halifax Credit Card

£ 14,063

31/08/2014 Up to date

Barclaycard

£ 3,000

29/08/2014 Up to date

Barclaycard

£ 1,908

29/08/2014 Up to date

 

£45000 mortgage rbos one account Up to date

 

 

LOL just notice noddle has said my credit score has just gone up to 572 from 542.....

[theoldrouge]

could you give the start date of each account please

 

are you concerned about your credit rating for the next 6 years?

[dx100uk]

and the defaulted dates please

and if you don't pay the OC, who do you pay

[albertz]

hi i think the oldest is the halifax one card at about 10 to 12 years ,the mortgage is has about 13 years left i think as for the other debts dont have clue,sorry.....

 

dx i have,nt defaulted yet .... they are all oc as far as i know.

[albertz]

i feel i could just about manage the debt and have some chance to pay it if i the £14000 was on the mortgage but the bank said no chance with the amount of unsecured debt i have...... i mean a £59000 mortgage is only half of what one of my friends has and dose`nt seem a lot in this day and age?

[theoldrouge]

with the amount of unsecured debts, if always at or near your limits

your credit file is going to prevent any further borrowing anyway

 

Never think about swapping unsecured for secured debt

 

best imo to draw a line under the unsecured debt,

send cca requests to all creditors

 

and setup and negotiate your own vastly reduced repayment plan

 

Always keep your mortgage and priority debts (utilities council tax etc )up to date

[albertz]

thanks for your reply,

 

 

i was going to go to the citizens advice and try and set up a dmp or "DAS" as they call it up here,

 

 

was just trying to figure out all my options before i commit myself as i nearly did it before and backed down.

 

 

i have a lot of stress going on in my life at the moment (kids and marital)

 

 

just the thought of dealing with all the letters and phone calls once it all starts ii what has put me off before ,

 

 

but if i have no other option so be it.

thanks again for replying

[albertz]

citizens advice first thing in the morning as i have been working and finally get a day off....

 

 

. just one thing bugging me ,

 

 

my main and biggest problem is halifax who refuse to drop the rate,

 

 

they said that if i sent them a staement of my affairs i.e out, ingoings that they may be able to do something,

 

 

i suppose what i really want to know is

 

 

if i managed to get a reduced payment plan with just that one card would my credit rating still be shot.

 

 

i know i should,nt care about these things but iam trying to think of the future

like if i need a car for my son who is disabled,

 

 

he currently has a motobility car but they keep tring to take it off him every three years when we re apply ..

 

 

. he really needs a car for his quality of life but they dont give a flying .

 

 

. i worry that if i do this then he will never get out in acouple of years when this application finally runs out,

 

 

sorry to ramble.

[maroondevo52]

Hi,

 

I'd have a look at a DAS, Upon entering the DAS all interest and charges will be frozen and creditors will no longer be able to add these fees on top of what is currently owed meaning, what you owe right now is what you will pay and no more.

 

The Scheme will allow you to pay back an affordable monthly amount, you won't have to worry about how your home or car will be affected with the DAS as one of the main reasons for this programme being introduced, was to ensure that you are able to keep your home and have your car available for travel without your creditors being able to bring these into a court order action.

 

Let us know how you get on tomorrow.

[northernbloke]

Have you spoken to the credit card companies to tell them you are struggling?

 

 

With loss of job / illness we have been in a mess

 

 

I have found them to be fairly reasonable if they know the circumstances.

 

 

We are paying £20 per month to several companies and

 

 

they ring up every six months to see if we can pay more.

 

 

When I say "no", (which is true)

 

 

they let the arrangement run for a further six months.

 

 

It's better for them to get something rather than have you default.

[BazzaS]

Hi,

 

I'd have a look at a DAS, Upon entering the DAS all interest and charges will be frozen and creditors will no longer be able to add these fees on top of what is currently owed meaning, what you owe right now is what you will pay and no more.

 

The Scheme will allow you to pay back an affordable monthly amount, you won't have to worry about how your home or car will be affected with the DAS as one of the main reasons for this programme being introduced, was to ensure that you are able to keep your home and have your car available for travel without your creditors being able to bring these into a court order action.

 

Let us know how you get on tomorrow.

 

Maroondevo has already said it, but look at the DAS.

 

Downside : a long term commitment to pay, which if you default on you loose the protection it offers.

 

Upside : protection from court action, and freezing of interest.

 

Look at what you pay for your unsecured debt, and how much of that is interest. If you didn't have to pay the interest would that (and your priority / secured debts payments) be manageable?

 

If not the DAS isn't likely the answer, as you would likely default and loose its protection.

 

If so, it is worth considering.

[albertz]

thanks for all the replies people ...

 

 

.. will have a talk with the ca folks tomorrow,

 

 

BazzaS halifax alone take at least £230 a month off me

 

 

and my bill has,nt went down in a long while it only just pays the interest so i take your point.

 

Just worried about how long it would take to set up ,

 

 

with christmas coming up and the like and whether my wife has to join it as well

 

 

,the debt is all in my name as is the mortgage.

[dx100uk]

I'd be getting your income paid into a parachute account.

 

 

stop people dipping without your control.

 

 

dx