previous Thread last night

troubled42_2 · 6 April 2008 at 9:34AM

Hi All,

I posted a new thread last night but I am not sure if I posted it in the right part of the site. here it is :

http://forums.moneysavingexpert.com/showthread.html?t=841269

troubled42_2 · 6 April 2008 at 10:47AM

I am still trying to get my head around the realisation of the mess I am in

bank_of_slate · 6 April 2008 at 11:04AM

Here it is in full troubled!

First time here and I have received so much information not totally sure how to take it all.

I am deep in debt....... well over the neck deep................................ I have spoken to the CCCS and they have found me to have £80 over to pay my debts. Unsecured debt totals over £50k. Mortgaged up to 100%. Not very good.

The CCCS have provided me with all the letters to sent to my unsecured creditors offering them from £1 to £38. How will all these Companies take it. And the good news is it will take me 60 years to pay it off. I doubt I will live to 102 though.

I have looked into an IVA and have to find another £300 pound a month to be able to go down this route though.

I have been told that as I have no equity left in my property that they will not make me sell my house as there is no profit in it???????

I have the option of a 3rd charge. Not sure what to make of this as its at 22% ARP (Not good). If I got this and offered it to my unsecured creditors at reduced rates to clear off the £50k (just over) do you think they will accept around £21k between them. Or will they wait the 60 years.

Worried, loosing sleep and hair at the moment.

elantan · 6 April 2008 at 12:00PM

just wanted to bump this up good luck op

pania · 6 April 2008 at 12:40PM

Hiya there troubles, have had a look at your scenario and would be very concerned regarding a third secured charge being added to your property as you are at 100% already. This will already make it hard for you to remortgage in the current market when your current rate comes to an end.
I would go along with the CCCS option to get yourself in a better situation financially. also if you can pop up a full statement of affairs for us we could maybe suggest ways to cut back on the allowances that CCCS give you and leave yourselves with a little more money each month.
Look forward to hearing more from you but please think LONG AND HARD before going for the 3rd charge.
The main issue here is having the finances to service your debts and have a lifestyle that yes, maybe tight but you are atleast able to live. Consolidation to a further secured charge will give you another monthly outgoing that you cannot avoid as it will put your house at risk, and the danger of using credit cards again to support your familys outgoings, leaving a further monthly payment and making things tight once more.
Good luck and speak soon
P
xx

troubled42_2 · 6 April 2008 at 3:13PM

if I could arrange a settlement with all my creditors though at a reduced amount to clear all the other debt off is how I am thinking at the moment. For over £50K of debt will all the creditors take £22K between (saving me over £1,100 a month I aint got) them instaed of the 60 years at really small amounts????

pania · 6 April 2008 at 3:23PM

that would only become apparent with negotiation hon and for that to take place you would need the money in place as many only have a limited time on their settlements. WHta would happen if you went for the loan and couldn't get them to settle within that amount? would you be able to survive each month on the payments for your mortgage, secured loan, 2nd secured loan and bills?
Consolidation is always ALWAYS a last resort as you will be spreading these debts over a much longer period of time and as such could end up paying off much more than you would have originally.
Have a look through the boards, there is generally another way, pop all of your details regarding your debt up and we can suggest maybe if there is an alternative for you than consolidation, i know it is scarey seeing it all in black and white but it can often cast a lot of light on the situation to.

Bismarck · 6 April 2008 at 3:57PM

Please don't consolidate without giving us a chance to have a look at the full picture..

...you pay your interest up front on the loan and often people's circumstances change and they can't get out of their loan commitment!

troubled42_2 · 6 April 2008 at 5:30PM

egg 13000
nat w o/d 700
overdraft 3600
M&S 2500
M&S 1900
Capital1 6300
Capital1 2500
Barclaycard 1900
GM 5000
Mint 350
Nat W Loan 21000

The CCCS worked it out I had 80 per month spare after my essential bills. So that is all I have available to pay all of the other debt that totals around £1100 per month minimum. I have been told that the 3rd charge is 2 months penalty interest if redeemed early over the 15 year term

Don't look to good does it

jay11_2 · 6 April 2008 at 5:53PM

Hi troubled,
can you post a full summary of your incomings/outgoings, so that some of the knowledgeable people can advise where to cut down etc.

PLEASE, PLEASE, don't take the 3rd charge option because:

1. It will make remortgaging very difficult, as you will have over 100% LTV, whilst the 100% LTV you have at the minute isn't ideal, anything over 100% is many times more difficult,

2. Because your CC debts are unsecured, they're not a direct threat to your roof over your head (your home). As long as you can keep up the mortgage and c tax payments, don't worry too much about CC debts, and

3. If you convert the CC debts (even £22,000 worth) into a secured debt, they then become a threat to your home.

Go with CCCS, they're experts who know what they're doing.

Finally, you're not alone, read some of the stories on this thread--others have been where you are and come out the other end.

Good luck, and hugs, Jay

Bismarck · 6 April 2008 at 6:11PM

Hi, troubled...let's turn this on its head.

Securing your debts is the most likely way of losing your house.

Please spend a good while looking through the site and get a feel for what other people's experiences have been.

keep well and spirits up!

previous Thread last night

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