Help with my debt

roller1007

Hello all, I was looking for some advive on my debt problem, I currently have my own home which is worth about £47,000 my morgage balance is about the same price, but i have 2 secured loans on the property aswell for 25years one is for £31,000 and one for £13,500 those are settlement figures if i was to pay them back now. I also have a car loan from log book loans where the apr is 428% scandously i know!! i now owe £8,000 on that loan, i need a car to visist my son and for work. All my other unsecured debts to over 20 other companies totals about £12,000.

As you can see i am in lot of debt, i only get paid £1250 a month and my outgoings are far higher than my incomings, i struggle every month to pay for just general items like food and petol. My credit file is shot to pieces what with my arears and defaults and i feel the only opion is going bankrupt, do you think this is wise?

fiveyearplan

Hi roller and welcome! Have you spoken to any of the debt charities like CCCS, National Debtline or CAB? That would be your first port of call.

Do you want to keep your house? If so you will also keep the secured loans.

roller1007

Thankyou for your reply any help or advice is gratfully recieved. I have got a meeting with the cab on monday so hopefully they can give me some more advice. Ive heard that in some cases of bankruptcy that a friend or family member can offer to buy the property is this the case and if they did would my secured loans count in my bankruptcy then

sniggings

I think only if you sell the house then the loans go into your BR but not 100% on that.

fiveyearplan

If your family member or friend buys the beneficial interest then you still have the secured loans but if you sell the property then the secure loans will go into your BR.

roller1007

is that the case if the property is in negative equity aswell

fiveyearplan

Yes, even in negative equity.

sniggings

the NE thing only lets you keep the house,if you keep the house the loans on the house are still there,as they are part of the house and until that gos the loans don't,but is selling the house not something you want to do?

roller1007

Im sorry to be a pain but this is all new to me, so basically if i want to include my loans in my br then i will have to sell my home? is there no way of keeping my home while getting rid of my loans. If i did sell my home where would i live? If i have to sell then i will but my girlfriend lives with me and my son comes to stay with me once a week

sniggings

you could rent,it really is not that bad sorry to sound uncaring but getting a new start is the thing you need to be thinking about,after BR everything looks loads better not so dark any more,thats why secured loans are so bad as they get the house (thats why carol wants to be ashamed of her self,she didn't like it when she got kicked/left countdown,think how she would have felt losing her home:mad:)