Need advice re fiances debts

moneysaver12

Valli wrote: »

hun his mortgage is low but some of his other debts are ALSO secured against the house....

How would that work with regards to the goverment scheme, i thought that it was just the actually mortgage they dealt with not the securred loan on the house which seems to be classed as a second mortgage. He says that he really doesn't want to keep the house, that he wants to move forward.

Im trying to read up on as much information i can and show it to my fiance, and to me it looks like he doesn't have many options, there is br, iva and dmp but not sure which of these would be best for him. Im hoping that he can get through to the cccs soon so they can help him.

greenbee

I know it's small, but a TV isn't a necessity... you can save on the TV licence. Could he raise any money by ebaying stuff he doesn't need?

Even if he wants to give up the house, a water meter will help for the remaining time that he is there, and if he can't sell at the moment then he needs to keep his costs right down.

His gas & electricity could be a lot lower - there is a lot of advice on this on the green & ethical board, and oldstyle. Oldstyle is also a good place to start on cutting his grocery spending.

I can see that it'll be hard for him cutting down on entertainment while he's working from home as he needs to get out and see people occaisonaly! Try to be creative about finding things to do that don't cost money - go for a walk & take a picnic etc; visit free museums and art galleries...

Is there no way that you could move in with him until he has resolved the debt and is able to sell the house? That way, at least your rent would be going to pay his debt rather than someone else's....

SouthCoast

From my link in #15

The legal position under the Limitation Act

There has been a lot of confusion about how long the lender has to pursue you for a mortgage shortfall under the Limitation Act 1980. This has now been clarified by the court of appeal in the cases of Bartlett v Bristol & West plc, Paragon v Banks and Halifax v Grant. The court decided that the limitation period for mortgage lenders trying to recover mortgage shortfall debts is 12 years under Section 20 of the Limitation Act 1980.

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=11_mortgage_shortfalls

Valli

I think the programme is called spendaholics - it shows people who have managed to acquire an incredible amount of debt but also deals with the psychological reasons why they spend so much - oh there are proper terms for this and I can't remember them. I THINK it's called sublimation? - basically they spend to compensate for other problems ie sad childhood (just one example) but they also are very proactive -- they don't issue a budget they show the debtor how to change his/her lifestyle, food plan and so forth.
I'm with Greenbee - if he flogs the TV and gets rid of the licence that's a saving - or you take the TV to yours - check when licence expires;
re the working from home - if he got a bar job for say 2 evenings a week that would both get him out of the house which would be a saving and instead of paying for his entertainment he would be being paid.
Effectively he now needs to draw up the shutters; mealplan; and save as much as possible. It's crunch time!

I would refer you to the links in the signature of post 2 on this thread

TotallyBroke

moneysaver12 wrote: »

Statement of Affairs and Personal Balance Sheet[/B
Monthly Income Details
Monthly income after tax................ 1300
Total monthly income.................... 1300

Monthly Expense Details
Mortgage................................ 180
Secured/HP loan repayments.............. 539
Council tax............................. 80
Electricity............................. 40Turn everything off at the plug when not in use, only thing to be left plugged in is the fridge/freezer. Make sure pc, modem etc all unplugged
Gas..................................... 40Adjust the settings, put heating on for half hour before getting up, then have it set to keep the room at a consistent 15degrees, turn off an hour before going to bed, or if out for the evening an hour before going to out.
Water rates............................. 40Already mentioned
Telephone (land line)................... 10
Mobile phone............................ 30Already mentioned
TV Licence.............................. 12
Satellite/Cable TV...................... 21 Cancel
Internet Services....................... 5
Groceries etc. ......................... 200 Already mentioned
Clothing................................ 20Already mentioned
Petrol/diesel........................... 30
Pet insurance/vet bills................. 12
Buildings insurance..................... 12.5
Contents insurance...................... 12.5
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 200
Total monthly expenses.................. 1514

Assets
House value (Gross)..................... 79000
Total Assets............................ 79000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 29000....(180)......0
Secured Debt.................. 73000....(539)......0 This is including intrest, as the loan was 50k
Total secured & HP debts...... 102000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Egg............................5973......298.......0
barclays.......................4064......0.........0
Great universal................500.......90........0
1st credit limited.............2209......0.........0
citi financial.................1709......85........0
barclays card..................2142......107.......0
Total unsecured debts..........16597.....580.......-

Monthly Budget Summary
Total monthly income.................... 1,300
Expenses (including HP & secured debts). 1,514
Available for debt repayments........... -264
Monthly UNsecured debt repayments....... 580
Amount short for making debt repayments. -794
Personal Balance Sheet Summary
Total assets (things you own)........... 79,000
Total HP & Secured debt................. -102,000
Total Unsecured debt.................... -16,597
Net Assets.............................. -39,597
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

I think you need to tell your OH to write to all the unsecured debt people offering them £1 per month on the debt.
He then needs to cut back on everything to the bare minimum. What was the secured loan spent on? By the sounds of it it was not a home improvement loan.
He needs to sell everything, so sofa (keep 1 chair) any spare beds, dining room tables and chairs. Vases, ornaments, tv (get one off freecycle as a replacement).
Get as much money into the home as possible and pay off the debts, I would start with Great Universal just to get rid. You then need to work out if you can overpay on the secured loan or not. If you can not then pay off other debts asap, use the spare money you then have to get the house into a saleable condition and get rid of it.

I do not want to be the bearer of bad news but none of this will be achievable before your wedding. So you may have to delay your wedding until he can help pay for it.

Valli

What is the pet and how old? What about cutting pet insurance or looking for a cheaper deal.
Or getting rid of the pet...

dumpy

Pease be very, very careful.

You've said that he has run up cards, taken out loans, run up cards taken out loans etc etc.

It sounds like someone who hasn't really had a light bulb moment. At the moment it sounds like you are sorting this out so he still isn't really taking responsibility for the debt. Is he really serious about sorting it out?

I know you love him, I loved my ex but he was completely incapable of realsing that money needed to be paid back and cards did not equal free money. Thankfully I didn't do what a lot of people do and take on his debt so when we split up I was not responsible for his spending. And before anyone jumps on me, I paid all the bills, mortgage, council tax etc etc he spent his on coffee, snacks, golf and cars he couldn't afford.


You have exams at the moment, concentrate on them and let him get the ball rolling with CCCS. It will test how committed he is to sorting this all out.

And whatever you do, do NOT take out any joint financial proucts with him or take on any of his loans.

dancingfairy

I agree with Totally broke. He can just about avoid meltdown. He needs to claw back that 215 ish pounds overspend and offer all creditors 1 pound and try and think of everyway he can to get to get some money in.
If he could get his food down to 100 pounds a month and reduce his entertainment to 50 pounds a month thats 250 a month and trim everything else and start tackling those debts.
The other alternatives I can see are - trying to sell the house (negotiating with secured loan people and pointing out he needs to sell).
Bankruptcy possibly?
Would definitely try a debt charity for advice though.
df

moneysaver12

greenbee wrote: »

I know it's small, but a TV isn't a necessity... you can save on the TV licence. Could he raise any money by ebaying stuff he doesn't need?

Even if he wants to give up the house, a water meter will help for the remaining time that he is there, and if he can't sell at the moment then he needs to keep his costs right down.

His gas & electricity could be a lot lower - there is a lot of advice on this on the green & ethical board, and oldstyle. Oldstyle is also a good place to start on cutting his grocery spending.

I can see that it'll be hard for him cutting down on entertainment while he's working from home as he needs to get out and see people occaisonaly! Try to be creative about finding things to do that don't cost money - go for a walk & take a picnic etc; visit free museums and art galleries...

Is there no way that you could move in with him until he has resolved the debt and is able to sell the house? That way, at least your rent would be going to pay his debt rather than someone else's....

Thankyou very much for your help.

He is making some progress now, he got to speak to a debt counsellor this morning at cccs and they have adviced him to hand the keys back to his lender and do voluntary respoession and he is going to move in with me. They also adviced him to get a token payment of 1.00 to all his creditors and write them a letter. When he has handed his keys back he is to ring cccs and they will then start to look at how he can sort out the debts.

He is trying to sell things, he has just sold his bike (pushbike) and we are going to do a car boot sale next month to raise some money. We are going to have a look on the old style board for the shopping as we have decided that together we need to cut down on the budget for food and set an amount each month and when thats gone its gone we will just then live on what we have in the house.

That is a good idea about finding free things to do. Will look in to that.

moneysaver12

Valli wrote: »

I think the programme is called spendaholics - it shows people who have managed to acquire an incredible amount of debt but also deals with the psychological reasons why they spend so much - oh there are proper terms for this and I can't remember them. I THINK it's called sublimation? - basically they spend to compensate for other problems ie sad childhood (just one example) but they also are very proactive -- they don't issue a budget they show the debtor how to change his/her lifestyle, food plan and so forth.
I'm with Greenbee - if he flogs the TV and gets rid of the licence that's a saving - or you take the TV to yours - check when licence expires;
re the working from home - if he got a bar job for say 2 evenings a week that would both get him out of the house which would be a saving and instead of paying for his entertainment he would be being paid.
Effectively he now needs to draw up the shutters; mealplan; and save as much as possible. It's crunch time!

I would refer you to the links in the signature of post 2 on this thread

Thankyou very much for your help, he can't get a second job as with his job, he can get told to work away at any time and sometimes gets very short notice as he has to go to customers as well.

We have now set a date for when he moves in with me and he is handing his keys back for the house to the lender. I have seen that programme it is good, i will tell him about that.