Which way to go

troubled42_2 · 5 April 2008 at 10:30PM

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.

So_Sad_Angel · 5 April 2008 at 10:42PM

Hi T42,

Welcome to the board...bet you will have read loads of posts from the guys here & all I can say is that they are all `brill`& will help with support & and an understanding viewpoint.

Worried, no sleep & no hair...lots here will identify with you. Firstly get as much info as you can & I know you have spoke to CCCS but get 2nd, even 3rd opinion if necessary. In fact (me in similar position 70k debt, neg equity..cccs say 63 yrs to pay off for me!!!) the more you seek advice the better you will feel. I say this often but `you are where you are` & the fact that you are now looking to `sort it out` shows that you are taking responsibility. I have found everyone I have spoken to has not judged & in fact has said `well done ` for taking steps.

I have not heard of 3rd charge so I hope someone will address this for you.

Meanwhile you are in the right place, listen to advice & above all remember you are not alone. Friends are here.

Hugs Angelxxxx

troubled42_2 · 5 April 2008 at 11:13PM

well apparently the 2nd charge people don't allow it , but they just put thr charge with the LAnd Reg......................... Growing old in debt together Angel xxx

dodecanese · 5 April 2008 at 11:22PM

Hello Troubled
A couple of things... 1.Are you in a negative/no equity situation with the house?? If so, the OR generally isnt interested- if neg/no equity you can get a friend/relative to buy your interest in the property for £1 plus conveyancing fees(about £250). Or you can wait it out for 3 years and hope your home does not go into positive equity- think the OR wants at least £1k or its not worth their while

Third charge (used to
be mortgage advisor- bankruptcy has closed that career option off to me)- they come third after your principal mortgage, and a second charge. ie "secured loan" (Im assuming you have a secured loan loan here?)

Think long and hard- 22% is high- if its a charge (ie a mortgage) on your property its secured and its possibly variable- ie- it could go higher. What are you securing?? unsecured debt?
Securing unsecured debt is never a good option- as I know to my cost- and 22% is very high.

Im a relatively new bankrupt- I have my own home- negative equity with a mortgage/secured loan- my OR has (so far) allowed me to keep up the high payments on my home and I hope to get a relative to buy the beneficial interest for £1(plus fees) . Its been a difficult decision to come to and is still very much up in the air.

Im by no means advocating bankruptcy- BUT think about the advice the CCCS has given you- you will be paying a 60 year plan and have negative/no equity.

Dont know how you have approached this- but I got my redemption figures/3 estate agents vals to look at the figures and realise I had negative equity.
All the best- Dodecanese.

So_Sad_Angel · 5 April 2008 at 11:26PM

troubled42 wrote: »

Growing old in debt together Angel xxx

Just keep that sense of humour & you will be fine..when I first posted someone said that `you may be in debt but does`nt mean you need to lose your sense of humour` ...thats what keeps us going sometimes.

Angexx

troubled42_2 · 5 April 2008 at 11:29PM

I am currently around level so I would say that in 3 years I could be back in profit (If thr is such a Thing). The only other thing is that my 2nd charge is reducing with each payment. main part of the mortgage i have had to move onto interest only from repayment for obvious reasons.

troubled42_2 · 5 April 2008 at 11:33PM

The 3rd charge is actually fixed which was to my suprise. I am currently paying around 20% on my cards as a lot of it was cash taken out............. it seemed like a good idea at the time

dodecanese · 6 April 2008 at 12:01AM

I could say in about 3 years I "could" (fingers crossed) be back in profit -my neg equity isnt too big- about £10k TOPS- BUT- second charges are rarely good value mortgages- your first charge- ie the main/principal mort is more likely to reduce in value- check how they load their interest rate.
Also- who on earth knows what will happen to the housing market??
Some say it will steady some say it will stall/fall- im not even going to hazard a guess- Im bankrupt- my financial decisions so far have been pretty p*** poor so Ill leave it to others to speculate/guess.

If you have gone from cap rep to int only you will not be reducing your mortgage- just treading water with payment. Although its an idea to go to int only to give you breathing space- try and find out the terms of each charge/mort you have. IE in my case- the second charge with First Plus is prtetty poor value as a mortgage product- my first charge/principal mortgage with HSBC is a good rate/CAT standard and the int is calculated daily-
so will target the HSBC mort first- it gets rid of it quicker.
Second/third/etc charges are usually not as good ,interest rates tend to be higher/terms are not as good- so if you overpay a mortgage- check it out first.
All the best.

troubled42_2 · 6 April 2008 at 12:08AM

the problem is I haven't got the money to go onto Rep at the moment

troubled42_2 · 6 April 2008 at 9:21AM

so if I got the £22k will the credit companies except a lower payment to clear and close all the accounts???? And if they did what would they put on my credit file!!!!

Bismarck · 6 April 2008 at 10:04AM

Hi,

I really do sympathise. I'm in a rush so need to get to the point:

The way I see it is you should let the unsecured debt people go hang...they'll have to take the £1 or so per month as that's what you can afford. If they want to try and bankrupt you, tell them to get stuffed as they won't get anything out of nothing apart from the costs bill for doing it.

They won't like the £1 a month but if that's all you've get then tough.

You really shouldn't give 2 hoots what they put on your credit file as getting more credit shouldn't be on your "to do" list.

If they put really bad stuff on there it'll be gone in 6 years...if you take on this 3rd charge at 22% forever, it will be like a concrete slab around your neck, to add to the others. A lot term debt at 22% doesn't bear thinking about.

Don't waste your life and health trying to sort this out on their terms....stick to your guns and change phone numbers, demand written correspondence only etc...

It won't be pleasant but the folks on here are great at giving support....

all the best!

Which way to go

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