Advice needed Please!


This is my first posting to this fantastic site. I am hoping someone out there could offer some advice.

My problem is a fairly common one:

Apart from my mortgage (which I have always paid on time) I have the following debts:-

MBNA card £6000 outstanding approx
Natwest card £6000 outstanding approx
Natwest loan £14000 outstanding.

The loan has about 3 1/2 years to go and I have no problem paying it every month. I don't have any store cards and my only other credit card is an corporate AMEX card which is always paid on time.

The two credit cards have become a real problem though. I live with my wife and son in a two bed Flat which currently worth about £180000 - down from £213000 this time last year). My wife is a teacher who is now looking after our son fulltime so has not been working for about 4 years.

Owing to some major unforseen events e.g. getting a major repair/redecoration bill from my apartment management company I have been unable to pay both credit cards for a couple of months now. MBNA have been particularly on my back about it.

I earn a decent wage for London £51000 approx and have about £50000 in positive equity in the property.

I have never been out of work and my current job is stable (thankfully in this terrible climate). I don't have any CCJS, defaults etc in my past but obviously now my credit score has been hit and doesn't look good.

MBNA put me though to their broker and the best they can offer is £12500 unsecured over 5 years at 15.9% (£297 per month). That is out of the question as it would mean I can only pay off the credit cards but still have to pay £320 on my Natwest loan. This would leave little at the end of every month. The maximum they will offer is £15000 unsecured but will not lend me the £26000 secured as they say £50000 equity is not enough.

I know it is mostly my fault I got into this mess and that there are others out there far worse than me but I would really appreciate some advice. I am obviously very annoyed with myself but the rise in food prices and interest rates on credit cards has not helped either.

I don't want to go down the bankruptcy route as I know I wouldn't be eligible anyway. I always believe in paying off what I owe anyway.

Thanks in advance



This discussion has been closed.
Meet your Ambassadors


  • All Categories
  • 343.8K Banking & Borrowing
  • 250.3K Reduce Debt & Boost Income
  • 450K Spending & Discounts
  • 235.9K Work, Benefits & Business
  • 609.1K Mortgages, Homes & Bills
  • 173.4K Life & Family
  • 248.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards