Newbie looking for best solution to debt problem...

sazzaz

....Hi everyone,

My other half has run up debt of around 20k, all of which are unsecured loans/credit card bills.

He had contacted them around a year ago, (whilst he was unemployed) to explain the situation. Each company made an agreement with him (around £10-£20 per month).

However, he has not been keeping to the re-payments. I have urged him to get this sorted out. He is looking at doing a trust deed. He is a home owner - has never missed a mortgage payment.

I am worried, as we plan to get a joint mortgage in around 3 years time for a larger property. Is this going to be realistic?

Thanks so much guys.

Horace

Hi, I think he needs to contact one of the debt charities and perhaps post his SOA on here so we can see what his incomings and outgoings are.

https://www.makesenseofcards.com/soacalc.html

sazzaz

Thanks for the link - I shall get him to do this later. I have been talking with a colleague who is in a debt management plan with the consumer credit counselling services. Would this be a better option than a trust deed? Thanks

Dinah93

I would be very wary of securing the debts onto the house, at the moment they are unsecured, but attaching them to the house will take longer to pay off and could jepordise the property due to the higher repayments etc.

Jesthar

Hi saz, and welcome

The advice generally given around here is NEVER turn unsecured debts into secured debts unless you are absolutely forced to. If you can't pay unsecured debts, then your creditors may kick and scream and demand money, but there is only so much they can do. If they are secured on the house, howewer, then they have a legal right to take your home if you fail to pay.

Regarding a DMP, once the SoA is up we'll have a better idea of if that is the best idea for you.

~Jes

sazzaz

Thanks for the advice guys! I didn't realise a trust deed would mean securing debts against the house. Like you said Jes, they can send as many letters as they want - but at the mo' they can't touch the house!

sazzaz

Statement of Affairs and Personal Balance Sheet
Household Information

I shall update this a bit later - made a mistake with it!

doodledo_2

Hi Sazz and welcome to the forum you have definately come to the right place.

Like the others have said avoid securing the debts on to any property if you can.

Complete your SOA as it looks like you have started and you will soon have lots of advice winging your way.

Is your OH on board with this? If he hasn't had his Lightbulb moment you may well be fighting a lost cause.

Good luck

Dinah93

Hi Shazz, how are you doing with the SoA and facing the debts?