At a crossroads not sure what to do

[dangerous_client]

Hi All,

 

I'm going to go through the facts and I'm looking for advice please.

 

 

End game I obviously want to be debt free and buy a new house as I've got 3 kids

and the Mrs in a 2 bedroom terrace

 

 

. I want my kids to have some room, garden etc.

The things I had growing up.

 

I'm 34, 3 kids, house with mortgage equity of around £10,000

Current Experian credit score of 117.

7 credit cards = £22k

1 loan = £3k

1 Overdraft = £2k

 

18 months back my credit score was 900+ with around 5 years of no missed payments.

 

 

I was had my own company and things went belly up.

Resulting in lots of missed payments recently but no defaults and my low credit score.

 

I have managed to get all my debts up to date now on minimum payments

aside from MBNA who are refusing to do what the others did which

and pay a set amount for 3 months then add the arrears onto the card.

They currently want a minimum payment of £500 when I only owe £1700.

 

I have tried to get a loan

there were some for 3.4% which I would have been happy to pay

but I can not get one.

 

 

My bank said I maybe able to get one but it was 29.9% and I would be paying back £48k+.

 

 

The bank advisor said its not even worth it and to check online.

Of which all are declining me.

 

I'm at a point now where I need to make a choice. I see I have these choices:

 

A) Try and get the loan from the bank and pay back circa £48k.

Which mean I will be 39 before I can start saving properly to get a new house.

Which realistically means my kids would be teenagers by the time I get a new house.

Also the fact paying £46k I would much prefer to set aside for a new house.

 

B) Remove my name off the deed with the land registry so the house is not at risk.

Wait until debts all go to debt collectors / buyers and do full and finals knocking 25%-50% off.

 

 

Stop paying all debts a saving of £970 a month.

Which the £970 I would be saving each month there would be a decent amount of money being saved for F + F.

 

I can add £100 - £200 to this a month as well from my DI.

 

 

At the same time trying to arrange for any default registered during that time to be removed.

I'm thinking that process would take me 18 - 24 months,

which would give me a big head start on saving for a new house.

 

I'm leaning towards plan B, as I would be not only saving money but also time.

As I said at the beginning this is mainly so my kids have a better childhood environment.

 

Opinions please...

 

Regards

[martin2006]

Plan B will no doubt get you defaults but they will stay fir 6 years whether you obtain f+f or not.

So, 7 credit cards, are there any charges on them for late payment, overlimit etc, when were they taken out? There could be olenty to reclaim.

The loan-again, when taken out, with who, terms, charges levied etc

Overdraft- Any charges in here are reclaimable if you can prove financial hardship, which if your company went belly up, shouldnt be an issue.

 

Did any Of the above have ppi which may have been mis sold? Also reclaimable

 

And finally, once you have some answers\ info, start a new rhread for each card, loan etc and lets see what we can help with.

 

Almost certain there will be something

 

Martin

[dangerous_client]

Hi,

 

Thats why I would try to do F+F to include removal of default. CC's had 3-6 missed payments I don't recall any fees as I informed them of my situation from the start but I will check, and prior to that I had never missed a payment to them. No PPI on any debt.

 

Thinking about it I'm guessing if I went down the unenforceable agreement route, that would give me stronger grounds when doing F&F. Looks like it going to be section 77's time...

[renegadeimp]

Make a list of ALL your debts, how much, dates etc, who they are with and who is currently chasing them. Dont think too far ahead yet. Deal with the here and now.

[martin2006]

S77 for the loan

S78 for the cards

You cant CCA the bank account but you can SAR

 

CCA = £1 PO each card

SAR = £10 PO

 

Templates for all are in the library but please dont reproduce/post them on the forum

 

They will never simply agree to remove a default if you pay them a f+f, they will always say that its a true reflection of the account blah blah blah.

 

If there is errors in the way they have reported data then that may be grounds via the ICO or court but its very few and far between that they are removed

 

I would probably be tempted to try just one account to start with see how things go, you wouldnt want to overload with dealing with upto 9/10 separate issues at once, plus it will give you a good feel for how things work and better prepare you.

Edited March 14, 2016 by martin2006

[dangerous_client]

I have a list of current outstanding and who Nobody is chasing me, All CC's are on minimum payments. I live in my overdraft at present and the loan is on normal repayment. Dates of when I took them out?

[martin2006]

Dates will be in your credit file.

 

Sign up to both Noddle and Clearscore which are free and see the info thats there already

[dangerous_client]

I see some people have had success with removing default at same time as F&F. But if thats not the case then I would be better off not paying a penny and waiting the 6 years and having a decent amount for a deposit on a new house. The only issue would be barcalycard where the CC is over £5k so would be at risk of state demand.

[dangerous_client]

I have noodle and experian, you want me to paste here?

[martin2006]

No need to paste it will have sensitive info

 

Start with the details for the MBNA seeing as they arent playing ball

 

Never post personal info or account numbers etc, nothing identifying