Major Debt Problem

severussnape

Hi we have been reading this forum for quite a while and finally decided to register and tell you our story.

We have our own home which is probably where it all starts. I call this house our money pit (as in the film) too much to do and we wanted to do it all right away.Overspent (lovely house though) on credit cards, then on to loans, then we decided to remortgage the house to pay everything off( we had doubled the value of the house). Hubby got a new better paid job but we had to go 6 weeks without any pay. Meanwhile the credit cards had piled up again and the odd loan.

We now find ourselves in 82k debt. But thanks to all you out there we are seeking help with a debt management plan(hooray) :A . It looks like we will have it all paid off in about nine years(max). As for the house it still looks lovely and we were advised against an IVA as we still have equity in the property.

Thefunkygibbons

If you want further help, post a statement of income and expenses and we may be able to spot some savings that will help you clear that debt even quicker

black-saturn

82k :eek: Is the house worth that much?

southernscouser

Feel free to post a SOA. Have a look at this thread for a guide. We maybe able to help you cut back somewhere!

Can I ask who you are doing your DMP with?

severussnape

the house is now worth between £160000 and £170000 we bought just as the prices were going stupid for £75000. got a really bad solicitor who didn't point out problems.

We have already cut back as far as we can from reading other threads and getting advice on what to do from here.

We are doing our DMP with payplan who were recommended by people on these pages.

southernscouser

severussnape wrote:

We are doing our DMP with payplan who were recommended by people on these pages.

Excellent. Just wanted to check that you weren't paying one of the b&%$^!"d companies that charge!

severussnape

when we talked to payplan they worked out we had £594 a month left to pay creditors. the main problem we have is that we don't want his parents latching on to the fact we are having problems i know that sounds silly but you don't know what these people are like. yes we are paying hp for the car but if that goes it will send alarm bells ringing in their heads as it is our dream car(a mondeo).we have just moved our gas and electricity to london electricity as it is cheaper than powergen online(even though they have phoned us and try to offer us more discounts).

Conor_3

If you'd rather be up to the eyeballs in debt and struggle than have them find out then you're mad.

Your altering spending habits will stick out like a sore thumb anyway. For example, if you used to go out for a meal or to the cinema a couple of times a week but now don't.

You are solely responsible for getting yourselves in the mess you're now in and there's no magical way out of it that doesn't involve a bit of pain.

So the worst is that they find out. So what? You're adults aren't you? They can't do anything about it - it's too late. You may even find that they may surprise you and help out.

By trying to hide it and look as if things are going on as normal, they may find out anyway when the debt collectors come to the door or, at worst, your home gets repossessed.

southernscouser

Conor wrote:

If you'd rather be up to the eyeballs in debt and struggle than have them find out then you're mad.

Your altering spending habits will stick out like a sore thumb anyway. For example, if you used to go out for a meal or to the cinema a couple of times a week but now don't.

You are solely responsible for getting yourselves in the mess you're now in and there's no magical way out of it that doesn't involve a bit of pain.

So the worst is that they find out. So what? You're adults aren't you? They can't do anything about it - it's too late. You may even find that they may surprise you and help out.

By trying to hide it and look as if things are going on as normal, they may find out anyway when the debt collectors come to the door or, at worst, your home gets repossessed.

Sorry Conor but I totally disagree. I notice by your signature you are debt free! Have you ever been in alot of debt? If not then although I respect your opinion you don't really know what you are talking about.

Many people have many different reasons for getting into debt and they are entitled to privacy and secrecy if they want.

I haven't told my parents about my debt nor do I intend to. My mum isn't well enough to cope with something like that and they have always struggled with money. I don't want to lumber them with all my s**t aswell. Yes I'm ashamed about the amount I've got myself into, but I also know it's my problem and my problem only!

I've got myself into debt and I'm getting myself out of debt. On my own!

severussnape

Fair enough Conor understand your opinion but seeing as we don't go out even once a week and the money has been spent on the house they are not really going to notice anything. the house hasn't got a chance of being repossessed as we are fully up to date with all our debts. it is our debt and our problem and I wouldn't tell my parents, they haven't noticed anything so why should his.

Conor_3

southernscouser wrote:

Sorry Conor but I totally disagree. I notice by your signature you are debt free! Have you ever been in alot of debt? If not then although I respect your opinion you don't really know what you are talking about.

Yes I have - enough to end up going through bankruptcy. Having spent my entire childhood being brought up in conditions where the bread line was something we hoped we'd reach, I know all about being skint and eating egg and chips because you can't afford anything else, trying to live on £22 a fortnight and everyone sleeping in the same room in winter because we couldn't afford to heat the house.

I've done real poverty, living hand to mouth or worse and not just the 2005/6 version of poverty which is when you can't afford a mobile or Sky TV.