newbie on here starting to tackle massive debt

pittel

Thanks Savingholmes for your helpful reply..I am looking at the figures again and will post again soon

savingholmes

It is not easy but all the small steps you take now will benefit you long term and they will add up to a positive figure over time -good luck

pittel

2 of my loans are not registered on the credit bureau..one is the mortgage of 173k on the 2 rental properties and a credit loan balance about 11.7k..

they are not registered as they were taken out before the icb started..it occurred to me if i slowed up a bit on repayments to these
then i could make some into the credit cards which have higher interest rates..the cc's have balances 12.5k,11.6k and 2.5k..

by slowing up i mean paying in less..just enough to keep them happy..

savingholmes

Would you still meet your minimum repayments or would you be in default?

pittel

with the mortgage you would be in arrears but they wont take any action until you are at least 3 full payments in arrears..similiarly with the credit union..up to 1k arrears is fine...once you keep paying in close to the figure..

e.g payment 400/month ..pay 300/month and 100 off credit card..

since credit card rates can be 2.5 times cu rates you are still gaining and the feelgood factor of clearing off the smallest balnce credit card would be a bonus

savingholmes

I think I would be tempted to look at what else you could shave off your non-fixed costs before taking this kind of action.... as it will affect your credit rating and more importantly the interest rates you are offered in future....

I really would ring a debt charity for advice....

pittel

you are right savingholmes

I retire in 7 years with a lump sum of 100k and pension(50% of wages)

i would like to have all my loans cleared by then,plus mortgage on my own house,plus selling the 2 rental properties by then and clearing that mortgage...

there are positive aspects..its just it has never happened before the 2 houses were unoccupied at the same time and my other additinal income is mostly november to may..

ill post a new soa in a few days..

thanks for your help

savingholmes

hi pittel - good luck. Kissjenn is a landlady may be worth asking her for some advice....

savingholmes

hi pittel just checking you are okay

pittel

Thanking Savingholmes..I'm fine..busy at work so only getting down to the spreadsheets tonight again..will post soon..