could we ?

spankymonkey_2 · 5 February 2005 at 8:47PM

six years ago we had our house reposessed. we was left with a debt of around £14,000, which we are now paying off at £30 a month, we are a low income family. this amount does go up every 6 months. i was told by the collection agency that i could make 1 payment to clear the debt of around £2000 maximum.i would love to get sorted and buy a property again but dont know if i would be black listed for that. also does anyone know where i could possibly get £2000 from with a low repayment that would have the debt payed off quicker?

Debt_Free_Chick · 6 February 2005 at 10:00AM

Unfortunately, a low repayment usually means a longer payment period. And the longer the repayment period, the higher the total interest, so the more you borrow.

Also, you are likely to have a blot on your credit record to reflect the house repossession and the subsequent repayment plan. If so, you will find it just about impossible to get a loan at a good rate of interest. You may have to go to a specialist (sub-prime) lender who will charge a very high rate of interest - and you really don't want to do that.

Is the lender adding interest to the amount you owe on the house? If not, then you have an interest free loan - something not available elsewhere. Can you afford to pay them more than £30 a month? Do a robust budget and see how much you can afford to pay and consider upping your payments to clear this off more quickly. But do be sure you can afford what you offer.

You could pay £2 to each of the credit reference agencies and get your credit records by post. This will show what is recorded regarding your current situation.

You can get your credit records here

https://www.experian.co.uk

https://www.equifax.co.uk

When you have them, post a new thread with any questions.

HTH

halloweenqueen_2 · 12 February 2005 at 1:04PM

If you are a low income family you may be able to get an interest free loan from the DSS I think its about £1000 max but that would be half of it - I think you would qualify if you were on income support maybe on other benefits but its worth a try.
Go to the citizens advice bureau - they are brilliant - they will be able to out you in touch with debt agencies that will help you free of charge - there might be another way around your problem that you can't see because you are so close to it but an 'outsider' could?
Good luck:)

rushnowt · 13 February 2005 at 6:05PM

Hiya Spanky

I agree with halloweenqueen about the CAB, they are great and can give you all the info you need,

or another alternative is the consumer credit councelling service, this is the link http://www.cccs.co.uk/

I've known many people contact these as well and they've helped them out of debt, the service is free and so is the phone no,

Good luck

could we ?

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