Stuck in a big hole HELP!!!

VJE_2

Where do I start?

I am really concerned and upset and don’t know which way to turn I feel like I am stuck in a big hole and can’t get out!

I was wondering if anyone could possibly offer any advice – I would be very grateful.

I currently owe approx. £35,000 between loans and credit cards.

I am up to date with all payments apart from one loan with Lloyds, as I just could not meet November’s payment.

I believe the reason I am in this mess (which I know is entirely my own fault) is that I took on a mortgage, which I is just too expensive; the house I purchased was my parents and had sentimental value as well as being home which I love and would never wish to sell.

My partner and I did not earn enough to go to a high street lender therefore we went to financial Company (not sure if I should mention their name) my mortgage is £825 a month interest only on a £150,000 mortgage.

I hardly had enough money left at the end of every month and recent set backs i.e. having to have new central heating system / car breaking down etc. have left me relying on credit cards. I have pushed the amount I own to the back of my mind until now when I have finally had to face up to things.

I cannot sell my house at the moment as I would hardly have any capital left and my mortgage Company will charge me £10,000 for finishing my mortgage early (mortgage agreement finishes in August 2008).

Lloyds will not allow me to pay them a lesser rate or spread the missed payment over the rest of the duration of my loan, as “my arrears are not bad enough”. I am managing at the moment to keep up with all my other debts but worry how long I will be able to keep paying.

I have considered an IVA then at least I could keep my home but I have a joint account with an overdraft of £3500 which I can not afford to pay off and my partner does not want to be included in the IVA or neither does he want to change banks which he will have to do if I am to enter into an IVA.

I can’t sell up, I can’t do an IVA or DMP what can I do?

I am in an awful mess; I have never had bad credit before and can’t believe how I have got so bad. Is there anything I can do?

Ashamed & upset.

bank_of_slate

Hi VJE and welcome to the forum, have you contacted CCCS for some professional advice?

It's usually help ful to do a full statement of accounts on http://www.makesenseofcards.com/soacalc.html and post it on here for advice.
Stick around, you'll get loads of support on here
...Linda xx

RAS

You also need to speak to one of the debt charities. http://www.moneysavingexpert.com/loans/debt-help-plan#help

In the short-term, you have to pay the mortgage, secured loans, council tax and utility bills and eat. If that means that you do not pay the CCs, so be it. It may mean nasty phone calls but until you get to speak to teh debt charity, that may be what has to happen.