Credit cards can they put against your property??

*Vikki*

Hello there wonder if anyone knows this... question here from my parents.. Can credit card companies put a charging order against your property for the amount of loan when it is supposidley unsecured, with the land registry against your house?

I thought a credit card was an unsecured loan?? As they have done this to my parents!:mad:

Broken_hearted

Short answer now is yes.

Deep_In_Debt

As BH says, this is becoming more common now. Creditors can turn unsecured loans into secured loans by way of a charging order.

*Vikki*

Thanks for your reply, I think thats bad, they should let people know this.

*Vikki*

My mum and dad have an IVA of 130k credit card debt, plus 230k mortgage and dads lost his job as a decorator. They were paying back just for the debt on cards 2k per month, they have an IVA now paying back £130 back per month plus the mortgage. Happy new year! My mum and dad said 'there is light at the end of the tunnel'


hmmmm

Broken_hearted

There is always hope honey, its just sometimes hard to see.

Deep_In_Debt

There is a light at the end of the tunnel but it takes time for that light to shine brightly. We've all been there to some degree - my debts are not as bad as your parents' debt, but I thought about ending it all but then the light flickered for a while until it shone brightly about a year ago.

I agree it is bad, and I for one, would never have taken out credit cards and unsecured loans years ago, if I knew my house was at risk. That was the reason why I went for unsecured rather than secured debt. However, I'm sure there is something in the small (very tiny print that we never read!) that may refer to this.

Good luck with it all and Happy New Year. Hope your dad finds work soon.

*Vikki*

My dad said 'thank god there is still people out there that care, its made his new year' because his been told he will be 300yrs old before they will pay it off.

Deep_In_Debt

If it's any consolation I'm not exactly in the "prime of my life" and was told it would take me 11 years to clear my debts but have managed to reduce that to 6 years in a year.

How about directing your dad to this site so we can advise/help personally?

*Vikki*

My dads not very good on the computer so I have to put it on here for him. It was a joint thing between my dad and mum, they had 18 cards between them and it just escalated, out of work and paying the mortgage etc with them. They have gone on to an IVA now, and they said which he can't even believe that its going to take 300 years to pay off. As he only pays £130 a month and they are putting all the money against our house. His on JSA. His still stunned as it was an unsecured loan and they are putting it against the house, so he is ether going to loose our home or go bankrupt then loose everything.

10past6

*Vikki* wrote: »

he is ether going to loose our home or go bankrupt then loose everything.

He cannot lose the home unless the creditor obtains "FORCED SALE" which has to be granted by a court.

In today's climate, I doubt very much that would be granted.