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  • FIRST POST
    • LoveMyG
    • By LoveMyG 29th Nov 17, 7:11 PM
    • 1Posts
    • 0Thanks
    LoveMyG
    In Debt
    • #1
    • 29th Nov 17, 7:11 PM
    In Debt 29th Nov 17 at 7:11 PM
    HI guys.

    1st time posting, Preallyhave enjoyed looking through the threads they have been a great source of comfort.

    Anyway my story (brief as possible) Last Year my wife died at the age of 27 from a long illness, we had a 3 year old daughter. She managed our finances and was very good at it. I received quite a big Death in Benefit from her work and put it all into a mortgage, now i realise i am extremely lucky to get the Death in Benefit and i really am and am grateful.

    The problem is this, moving in to a new house i wanted to furnish it well and took out two separate loans of 5,000 in January and April of this year to get the house the way i wanted, i also booked 2 holidays in May and July with my daughter, i believed we deserved it and put this on the Credit Card. i am not looking any sympathy for overspending i realise i have made mistakes over the past year, but basically i am struggling to pay debts back, my car breaking down twice at a cost of 1300 didn't help, i also needed to take time off from work for a mental breakdown, my work pays statuary sick pay so i have become behind my loan payments to the value of 6 months worth, i phoned them 2 weeks ago and they encouraged me to phone a debt charity for a DMP which i will complete this week.

    My question is this, i have equity in the house but i cannot get it released due to having a bad credit score, if i phoned the mortgage provider and explained the situation, so you think they could release the money directly to the creditors? and if not will having a DMP affect me building up a good credit score over the next 6-12 in order to apply for more borrowing on the mortgage?

    Any help would be appreciated,
Page 1
    • sourcrates
    • By sourcrates 30th Nov 17, 11:55 PM
    • 12,673 Posts
    • 12,011 Thanks
    sourcrates
    • #2
    • 30th Nov 17, 11:55 PM
    • #2
    • 30th Nov 17, 11:55 PM
    Hi,
    we move threads if we think they’ll get more help elsewhere so this post/thread has been moved to Debt-Free Wannabe. If you have any questions about this policy please email forumteam@moneysavingexpert.com.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • -taff
    • By -taff 1st Dec 17, 7:23 AM
    • 7,170 Posts
    • 5,161 Thanks
    -taff
    • #3
    • 1st Dec 17, 7:23 AM
    • #3
    • 1st Dec 17, 7:23 AM
    A DMP will affect your credit rating because you will be defaulting on your debts. It will be six years from the date of default to them falling off your credit file.
    However, better to do that than to lose your home.
    You have the option of selling your house and renting but that is a choice you have to make because of the implications of not having a stable and secure home. Personally, I wouldn't.

    Phone up Stepchange and see what they say [or CAP or the Nationl Debtline]

    I doubt your mortgage company would release extra funds, you would have to remortgage and as you ay, your situation means your not a good bet for them to do that. Stick with the DMP for now, post an SOA for people to help with saving you money if they can.


    And I'm sorry for your loss.
    • fatbelly
    • By fatbelly 1st Dec 17, 8:15 AM
    • 11,643 Posts
    • 8,778 Thanks
    fatbelly
    • #4
    • 1st Dec 17, 8:15 AM
    • #4
    • 1st Dec 17, 8:15 AM
    Your situation is completely understandable. Don't beat yourself up.

    The debts are all unsecured and non-priority. Keep them that way.

    The worst thing you could do is to convert unsecured debt to secured debt.

    A dmp is the best way forward, either a self-managed plan, or with someone who does not charge a fee such as stepchange or payplan.

    post an SOA here using this if you want to

    http://www.stoozing.com/calculator/soa.php

    (format for mse)

    Your credit score isn't that important in the grand scheme of things
    Last edited by fatbelly; 01-12-2017 at 8:17 AM.
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