up to her neck

paul2louise

My friend needs some help. She is a single parent with 3 children. She has a mortgage for £180k but her house is only worth £150k. She has aloan for £15k secured on the house. She works part time and is blacklisted. She is struggling to make the mortgage payments and loan payments. The mortgae is with the RBS and the loan is with Welcome finance at 30%.

She wants to escape from the house but she then is stuck with a loan secured by the house. How can she get out of this. If she gets benefits and housing benefit from renting from benefits agency will the loan comapny still fleece her for the repayments.

Can anyone suggest a loan company that might consider her even though she has bad credit so she can reduce these payments.

Any help please

Thank you

Louise

file_wizzard

I Would suggest the last thing she needs right now is another loan

(even if she could get one which is doubtful with that level of negative equity)

the best way to help her at present is to get her to produce a list of her income and expenditure, and identify any savings that can be made.

Once she has this done you can then look at any “spare” money and how it can be best used to address her current debts.

paul2louise

she hasnt got any spare money, she gets a £1000, but pays £1200 out, she has 3 jobs. should she go bankrupt. She doesnt know what to do.

Louise

file_wizzard

paul2louise wrote:

she hasnt got any spare money, she gets a £1000, but pays £1200 out, she has 3 jobs. should she go bankrupt. She doesnt know what to do.

Louise

Yes but what is the £1200 made up of ? is there any potential to trim this down?

is she claming all the benefits she can ?


bankruptcy would not be a good option with 3 children to support, but im sure other people who have been down this route will advise shortly

skintchick

If she gives you/us a breakdown of exactly where that money goes, not just saying household expenses but breaking it down into food, clothes, leccy, gas etc then we can see if there's any way she can save money, and therefore find some extra money.

Without that information we cannot advise. For all we know she spends £500 a month on going out (yes, I know she doesn;t, it's an example).

black-saturn

I agree. She should tell us the cost of her bills, food, clothes, travel etc etc (basically everything) and we will advise as to where she could cut down. She should prepare to have her belt tightened quite a lot though and have to make sacrifices she might not want to.