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£92k debt, time to face up to it!

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  • gonnawin
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    donkeyman18 - I'd say it's the other way round with pointless comments like that.
  • Bf109
    Bf109 Posts: 634 Forumite
    First Post First Anniversary Combo Breaker
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    Err.. guize...

    Isnt everyone ignoring the elephant in the room?

    OP has a mortgage for £147,000. Doing a calculation, this equates to an interest only mortgage at 4%.

    OP, this is a screaming danger signal! When is your mortgage deal going to expire?

    If you have missed payments, you will really struggle to get a half decent mortgage deal, even with your 17ish% equity (assuming your valuation is accurate).

    If you cant get a deal, you will be forced onto your lenders SVR. How will you be able to cope if your mortgage goes up to £850 a month?
    [FONT=Arial, Helvetica, sans-serif]Rise like Lions after slumber
    In unvanquishable number -
    Shake your chains to earth like dew
    Which in sleep had fallen on you -
    Ye are many - they are few.
    [/FONT]
  • pandapaws
    pandapaws Posts: 2,119 Forumite
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    Have reported the donkey post as it really doesn't help anyone. If you get any more like that, completely ignore and report (the red triangle at the bottom left of each posting box). They do tend to come out at night! Good for you for not letting it get to you.

    Quite right to stand up to any pointless remarks about bankruptcy as well. I've had that too - I think some people just see big numbers and can't cope but it's all relative. If your debt belonged to someone on £10k a year then it would be pretty awful and BR probably would be the only option, but it doesn't so it's not.

    Of course, the people who try to put you down must be absolutely perfect themselves (that's why they're hanging around a debt forum).;)
  • pandapaws
    pandapaws Posts: 2,119 Forumite
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    Bf109 wrote: »
    Err.. guize...

    Isnt everyone ignoring the elephant in the room?

    OP has a mortgage for £147,000. Doing a calculation, this equates to an interest only mortgage at 4%.

    OP, this is a screaming danger signal! When is your mortgage deal going to expire?

    If you have missed payments, you will really struggle to get a half decent mortgage deal, even with your 17ish% equity (assuming your valuation is accurate).

    If you cant get a deal, you will be forced onto your lenders SVR. How will you be able to cope if your mortgage goes up to £850 a month?

    I'm useless with the calculations, but is it because it's only half the payment? OP's OH pays the rest.
  • pandapaws
    pandapaws Posts: 2,119 Forumite
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    peka2k wrote: »
    Hmm, I tend to see the arguement of the critical poster. I know debt can accumilate with consolidation and the like, where you would have very little extra out of it by the time previous debt is repaid, but I think you have a practically impossible journey ahead, even trying to be positive, over 4 year, no money, esppecially if you like spending as you do, can you really change?

    I did. I still love spending but now only spend what I can afford - huge difference.

    How about some positivity and encouragement for Gonnawin? She's made a massive step by acknowledging that there's a problem, contacting CCCS and getting advice here. So, if it fails (it won't, right!) then IVA/BR is the next option, but surely rather than encouraging her to go down that route before she's even tried we should all be giving the best advice we can about the better options? It's far better to pay the debts back than to try and wipe the slate clean with nothing learned.
  • ValuableYouth
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    My advice is to get a mirror.
    Stand in front of it.
    Shout "Silly tit!" over and over.
    Declare bankruptcy.
    Don't be such a tit again.

    Alternatively, I've got a lovely pair of racing donkeys for sale.
  • Rick62
    Rick62 Posts: 989 Forumite
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    I've got to say, you're still spending a lot of unnecessary money. I don't know about IVA or other options, but some areas on costs you could look at:

    Mortgage: Your either paying 8% interest only or are on a repayment mortgage. If you are on repayment basis then consider asking the lender to switch to interest only for a while.

    Gas/Electric, £40 each for half? These should be half that. Change your light bulbs for energy saving ones, lag the loft (yourselves) turn the heating down. Go collect some logs if you have a real fire.

    Contact lenses, £30, why you need these, do you have glasses you could wear?

    Mobile - already discussed, Cable, only £5 but totally unecessary.

    Car - you are spending about £700/mth on this. Do you need it for work? Can you do without a car? Or at least sell it, pay off the car loan buy a really small cheap car that is cheap to insure and cheap on fuel.

    Get a lodger, assuming your house has more than one bedroom, and the first £4-5,000 is tax free.

    All the above could save you over £700/month, then add a lodger for £3-400 and you have over a £1000 more each month.

    Good Luck!
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • delboypass
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    gonnawin wrote: »
    donkeyman18 - I'd say it's the other way round with pointless comments like that.

    Like it Gonnawin :)

    Seriously though, i know someone on Payplan and it has been a lifesaver (as long as your creditors agree)

    Will reduce your payments to your creditors to a level your comfortable with as long as it is realistic.

    They will also help you stop the interest payments on your debts which will GREATLY help you out...(killing that interest will save you in the long term)

    Also payplan is free (like the CCCS) and will deal with all your creditors for you..just be open and honest with your partner too...

    Dont hide anything as people are out trying to help and the more you hide when they are trying to help only serves to infuriate...

    Once you put everything on the table, they can only get angry once, but then allows you a baseline to work from to put actions into place.

    Payplan also give you a website where your debts are listed so you can see how much you have paid off so saves you tracking...

    Also paying off 16 creditors becomes difficult for one person to manage so paying payplan just once a month is far more comfortable..

    Contact them and see what they can do for you

    (i am not affiliated to payplan only know someone using them and highly approve)
  • GirlyGirl_2
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    With respect bankrupsty would solve most of your problems and probably save your relationship, your partner could buy your share of the house for very little and you'd have a clean slate. Seriously look into it because you are in for a very nasty shock discovering what life is like on a DMP, not fun at all.
  • gonnawin
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    Guys, I understand where you’re all coming from, you’ve all got a point. And I have stood in front of many mirrors and screamed abuse at myself among other things to make myself realize how f*cking stupid I’ve been. I know that but my friend said to me last week it’s like being an alcoholic who finally admits she’s got a problem and is suddenly determined never to drink again. And it feels exactly like that. So don’t worry, I know what an idiot and failure I’ve been. Let’s just accept that, I’m actually only on here looking for advice and support about what to do now. I can beat myself up, thanks.

    I’m confused why some people are expressing a DMP like it’s the end of the world, it’s a credit rating not my mum being run over by a bus. It will be difficult but it has to happen, I won’t get into more debt ever again. And a lot of debt IS because of consolidation of previous debts (prior to six years ago when I met my partner so actually the debt has been run up over the past 12 years not 6) and other reasons which I won’t go into as well as manic over-spending at times. It’s now going to stop.

    As for bankruptcy it’s not an option and I don’t feel it is necessary, and certainly not better than a DMP. It’s a quick fix that will teach me nothing, as said, and I earn enough to be able to live OK on a DMP and pay off debt as quickly as possible. Those people who are saying BR is an option can you please explain why it’s preferable to a DMP? That would really help me as I’m feeling pretty overwhelmed by both the support and serious lack of support I’m getting on here (thanks to those who are being very helpful – you know who you are but thanks esp. pandapaws).

    Actually, on my current breakdown of what I could offer to creditors I won’t be offering a massive amount less than I’m paying now to any of them so it’s not like I’m going in with £10 offers.

    To answer the question about the car, I work 65 miles away so it’s a 130 mile trip every day as well as needing it for work purposes, travelling to meetings etc, which is why the fuel is so much. I’ve got under two years left on that loan.

    Thanks all!
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