Massive debt what to do next ??

helpneededprettyquick

Hiya,

Am new to all this so i will apologise in advance for any mistakes or things i miss out.
Would like any advice i can get on what the best course of action is now
I roughly owe about 52500.00 in unsecured loans , mortgage of 71000.00 secured loan of 23000.00 and cc debt of 38000.00 i know its really bad ..... i dont earn enough to pay even the minimum payments and have only been managing for the fact that my partner is very kindly paying my credit card debt while i pay my loans mortgage living expenses etc.... i currently have my house on the market valued at 134950.00 at present but have had no interest at all not even a viewing since it went on in nov.... i am hoping that when i sell as i am relocating to be with my partner that i will be able to clear some of the cc debt and he has then said he will help me pay the loans... however as we are both apart at present i or should i say we are struggling i have phoned the cc companies and they dont really want to listen ... i am reluctant to take an iva as it could affect my job ..... but i could just do with some breathing space whilst i sell the house although i dont know when that will be in the current market .... the only company that has been able to help is m&s i had a cc with them and loan and they rescheduled at 2.5 % for the life of the loan saving me 270.00 a month .... they were so helpful and i just cant understand why other companies wont even look at helping people ... i dont not want to pay it back i have spent it and i want to do everything i can to pay it back but i could just do with some advice as to how to get the cc companies to ease off just for a while till i get some cash out of the house .... at the moment it is starting to affect my relationship as i eat sleep breathe my debts and seem to revolve around crying and not sleeping .... any advice good or bad is gratefully recieved and i dont even mind if people want to say how stupid i have been getting in such a mess !!
thanks in advance for any help
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1690
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1690
Monthly Expense Details
Mortgage................................ 409
Secured loan repayments................. 272.42
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 79
Electricity............................. 20
Gas..................................... 40
Oil..................................... 0
Water rates............................. 22
Telephone (land line)................... 40
Mobile phone............................ 20
TV Licence.............................. 12
Satellite/Cable TV...................... 18
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 35
Road tax................................ 10
Car Insurance........................... 19.38
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 13.89
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1145.69

Assets
Cash.................................... 0
House value (Gross)..................... 134950
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 138950

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 71000....(409)......0
Secured Debt.................. 23000....(272.42)...14
Total secured & HP debts...... 94000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
if.............................3413......100.......12.9
rbs............................7306......260.......7.9
nr.............................17902.....298.......9.9
overdraft .....................4000......60........0
crdit union ...................2000......70........0
lloyds.........................988.......20........16.9
littlewoods ...................2035......110.......29.9
barclaycard ...................5592......130.......21.7
tesco..........................2755......80........16.9
asda ..........................2462......75........16.9
egg ...........................7338......199.......26.9
mint ..........................4602......103.......16.9
citi...........................4934......180.......16.9
if cc..........................6990......110.......16.9
m&s............................13692.....177.......2.5
asda...........................10268.....146.......5.9
Total unsecured debts..........96277.....2118......-

Monthly Budget Summary
Total monthly income.................... 1,690
Expenses (including HP & secured debts). 1,145.69
Available for debt repayments........... 544.31
Monthly UNsecured debt repayments....... 2,118
Amount short for making debt repayments. -1,573.69
Personal Balance Sheet Summary
Total assets (things you own)........... 138,950
Total HP & Secured debt................. -94,000
Total Unsecured debt.................... -96,277
Net Assets.............................. -51,327
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

MaximumImpact

Take a deep breath and post your SOA.......then someone will be along to help!!

(your post is very hard to read)....

http://forums.moneysavingexpert.com/showthread.html?t=107280

MrsTinks

Hi there
The SOA that Maximum is on about is this: http://www.makesenseofcards.com/soacalc.html
Fill it in and post it here so we can have a look at the size of the problem.
An IVA might not be a possibility for you but there is every chance that a DMP will be Debt Management Plans will affect your credit rating for the next 6 years as you will default on your debts but it's not as "serious" as an IVA or brankruptcy.
Once you have done your SOA we'll know more about how best to advise you although I suspect it might be through one of the charities in my signature or if you feel up to it then a self administered DMP.

Whatever you do... DO NOT fail to pay the secured loan, mortgage, council tax or utilities bills - unsecured loans and credit cards are unimportant by comparison.

Welshlassie

Could you rent out your house, if you aren't getting any interest in selling it.

Post up a SOA this will help identify any areas savings can be made. Speak to one of the debt charities they would also be able to point you in the right direction for the best for your circumstances.

Welld one on starting to face up to them and good luck getting them sorted.

iB1

What about knocking about 10K off the asking price of your house? That would probably kick-start some viewings, and if it sold for around 120K, you'd have a good amount of equity there to pay some of the cards and loans off.

helpneededprettyquick

have had a think about renting and the only problem being i am relocating to the south from the north so it wouldnt be that great to keep an eye on things and would probably need to keep it on the market as well as ideally i need any equity i could get ....... the dropping in price is an idea i have dropped it a few thousand already .. and the estate agent did say a possible would be offering 5% deposit paid may attract someone who couldnt quite meet the deposit for the mortgage.... thanks for the advice

MaximumImpact

Bump...SOA added...Can anyone help???

MyLastFiver

You can afford to pay roughly 25% of your contracted minimum payments. An IVA might not be your best solution here - you should start by negotiating reduced payments with your creditors. You can do this yourself or contact Payplan or CCCS, who will contact your creditors on your behalf.

1. Cut up all your credit cards. Your creditworthy days are over.

2. Open a Basic Bank Account with an organization you do not owe money to. Get your salary paid into this new account. Stop using your old bank account and add any overdraft you have to your list of creditors.

3. In the meantime, stop paying your unsecured creditors. Or rather, send them a letter saying you're in financial difficulties and you can offer them a goodwill token payment of £5. Do this for 2 or 3 months.

3. Then, offer them the pro-rata payment you have worked out as affordable. Payplan/CCCS can help you work this out.

4. Brace yourself for moronic phone calls and threatening-sounding letters.

5. Keep making the payments

6. Watch as, after a few months, the phone calls and letters dry up, interest gets stopped on your accounts, and your balance appears to be going down every month.

7. Accept the fact that your credit file will be badly damaged for years to come. There's no way to avoid this - but it doesn't matter. You won't need credit again anyway.

8. Good luck.

cagneuk

MyLastFiver wrote: »

You can afford to pay roughly 25% of your contracted minimum payments. An IVA might not be your best solution here - you should start by negotiating reduced payments with your creditors. You can do this yourself or contact Payplan or CCCS, who will contact your creditors on your behalf.

1. Cut up all your credit cards. Your creditworthy days are over.

2. Open a Basic Bank Account with an organization you do not owe money to. Get your salary paid into this new account. Stop using your old bank account and add any overdraft you have to your list of creditors.

3. In the meantime, stop paying your unsecured creditors. Or rather, send them a letter saying you're in financial difficulties and you can offer them a goodwill token payment of £5. Do this for 2 or 3 months.

3. Then, offer them the pro-rata payment you have worked out as affordable. Payplan/CCCS can help you work this out.

4. Brace yourself for moronic phone calls and threatening-sounding letters.

5. Keep making the payments

6. Watch as, after a few months, the phone calls and letters dry up, interest gets stopped on your accounts, and your balance appears to be going down every month.

7. Accept the fact that your credit file will be badly damaged for years to come. There's no way to avoid this - but it doesn't matter. You won't need credit again anyway.

8. Good luck.

but what about their secured loan, they must surely continue to pay this during this time?

MyLastFiver

cagneuk wrote: »

but what about their secured loan, they must surely continue to pay this during this time?

Correctamundo.