how to consolidate?

pestcontrol

Hi,

I am a property owner. I owe the mortgage lender (Nat West) £142,000 (@ 6.59%) & my property is worth £210,000. I have been told by Nat West that I can't re-mortage & I am tied in to their mortgage for about 3 years (if I leave I think I would pay around £5,000).

I have a credit card debt for £4,635 (@ 21.9%).

I have a personal loan of £10,193.07 (@ 5.5% above the bank's base rate). I think this is secured on the property.

I have a secured (property) personal loan for £15,180.16 (@ 11.89%).

I just took out a business overdraft for £3,000 (@ 4.5% & arrangement fee £130).

My credit rating is 428.

I had my own business for 5 years (self employed) & merged my company with another one in Aug 05 (we have become a new Limited company). The 'new' company will be paying ourselves the basic wage & dividends (dividends so that we make the most of tax laws).

Although the 'new' company has made a profit of £8,000 (I will get 50%, mostly in dividends) for the months of August & September I won't get paid until November/December (the company will owe more more money too by that stage).

I am sinking & feeling very sick. Things are really bad. I stupidly thought I had a bad credit rating, so went for bad debt credit givers (loan & credit card). I've read lots of the this website, but can't work out what would be best for me.

I wondered if anyone knows if a mortgage lender would give me a re-mortgage (to get more money) without me having to pay the penalty for leaving my current lender, who could be best for me to consolidate the money I owe with (I understand I could only borrow a max of £25,000) without affecting my credit rating bearing in mind I am not 'employed' & don't have any wage slips from my 'new' company yet?

I have considered selling my property, but don't want to lose the £5,000, my business partner & I are working from my home & I'm worried I won't sell it in time to pay what I owe. I really don't know what to do.

I would be extremely grateful for any advice anyone could give me.

MANY thanks!!

pestcontrol

My actual salary would be £6,000/year

mountainofdebt

Hi

I think this post would be better on the debt free wanabee board, so if any of the guides are out there - could you move it please?

Anyway pestcontrol that aside I think personally you'd be better off sticking to the mortgage for now (hate giving the banks anything for nothing these days!) but contrate on clearing your other debts.

Once the dividend has been paid to you I would pay off the credit card and then cancel it.

Then I would look to clearing the secured loans although you really do need to find out what aprs you are paying. If the secured loans won't let you pay off an extra on an ad hoc basis then put the money in a savings account and build the funds until you have enough to pay them off. There are plenty of good online accounts that offer reasonable rates of interest for instant access although you may want to consider notice giving accounts.

Have you got an accountant? A good one is worth his/her weight in gold.

On a personal basis of you post all your incomings and outgoings then people will be able to suggest ways of cutting your expenditure to free up extra cash to pay those bills.

pestcontrol

Thank you so much for answering & for your advice. I have posted my thread on the Debt Free Board.

We new business partner & I have a brilliant accountant who is also going to be looking at my old company's accounts (my last accountants weren't great). He also knows an unbiased money advisor, but I have no money to pay her to get her advice. I'm in such a Catch 22 as in a few months our business will be making a lot of money, but I need some money to keep my head above water now.

I've been so naive with the debt I took out; from reading this website I'm sure I could have got much lower interest rates...

I've changed my utility bills to the cheaper ones listed on this website. As far as my outgoings are concerned they are very meagre. If I go out (rarely these days) my boyfriend pays, I eat sandwiches & pasta, I don't buy anything unless I absolutely need it...I am still smoking (which I know is ridiculous) as I'm finding it hard to give up. I'm going to get my aprs & post them & my outgoings on the Debt Free Board.

Once again, thank you! I REALLY apprecate your time!!