urgent hlp required

CLAPTON

just a few points that may be helpful:

it might be worth your while just reading a little from the websites

https://www.cccs.co.uk
https://www.payplan.co.uk
http://www.nationaldebtline.co.uk

these are not for profit organisations but all organisation have some sort of axe to grind

in my view they give a rather optimistic view of how things work but still good to get the background

although i dont think your £55k loan is a good idea, i dont see that they can insist what you do with the money.....are they going to pay the debts directly or send you a cheque?...but what are you going to do with the spare money if you dont pay off the credit cards...spend it on......? so you end up with yet more debt ..sorry madness. if you want to keep the cc debts ring around and see whether you can get a smaller loan and maybe a lower rate.

MrsTinks

If you get a consolidation loan and it is secured then they can insist that you pay the other loans off that you have been given the loan to pay... You will need to give them settlement figures for the other loans etc as there is only so much money they will be willing to lend you based on your rating and security. If your loan is maxing this out then there is no way they are dumb enough to hand you a blank cheque as they have no security to cover this money... So yes they can insist and they will even ensure this happens by sending you several cheques each one made out for the exact amount to the various creditors...

Realistically... don't do it... I think you should seriously consider if you are willing to go down the bankrupt route and POSSIBLY (someone else will be able to tell you) keep your house (sorry I have no past experience with going bankrupt) or detting up payment plans through cay CCCS or Payplan. BUT these WILL affect your credit rating. Realistically I would think about selling the house if there is enough equity in it to pay the debts back and then rent. If you get a secured loan and things go wrong you could end up loosing your house and still having debt...

japanesegirl

We have just been through exactly the same and also have a house we have spent money on and re-mortgaged and now have just gone into a DMP with CCCS. We felt it was the only thing we could do to save our lives (which revolves around our house) and thereby save our sanity. Under no circumstances did we want to lose our house, we have two children at home and one at Unit so away most of the time or we could have considered going from 3 to two bedrooms. We bought the house 4 years ago and since then it has gone up by approx 100%, we feel this is a much better way of saving for the future and hopefully in a few years time we may be in a position whereby we have cleared enough debts and also the equity will have increased and hopefully then we may be able to re-mortgage and pay of the debts and start afresh. In the meantime it certainly aint easy but hopefully will start to get easier.

It really depends on how old you are, how old any chdilren are and how much you want to keep your house.

We never go out so our house is possibly more important to us than people who have a social life and lots of things to do outside the home.

Good luck whatever you decide

earwig

if you do sell your house and clear your debt be sure to close all credit card dont get any more loans and cancle any overdraft i say this as we sold our house cleared the debts only to build them back up again because the cards where there empty and ready to use it to easy to use them again we live in a have it now pay back later world and unless you close everything it will happen again no matter how much you tell your self you wont

chaos5678

PLEASE don't get a secured loan!!!

lynzpower

Dont get a secured loan!!

If the time comes to sell your home for whatever reason and the house isnt worth more than the mortgage and the loan (plus interest) put together, then you end up owing the bank for the loan. DONT DONT DONT. My parents did this in the 80s, and were thoroughly stuffed.

intherightplace

Thanks again everyone. It certainly has inspired me to call CCCS etc.(thank you for links CLAPTON).

CLAPTON: I just wondered if keeping the 2 loans at 6.7 &7.6% would be better than replacing them with one of 10.2, and keeping the credit cards so that I can move the debt around at 0%. We have no intention of accruing more debt

japanese girl; we also go nowhere else apart from our home. We have 2 girls of 5 and 9, we recognise that we are in debt because of our house and now just want to find a realistic way of paying for it all. Like you we see it as an investment for the future and providing we can continue to throw all our money at it we (in a warpped kind of way) knew exactly what we were foing. It was very much a buy now pay later mentality, but we want to pay our debt back. We could not possibly think of selling our house without it being the very very last straw!

I am pleased to see that your debt has gone down significantly; how did that happen?


Tondella, thanks to you for calrifying the situation reference routes to take. I feel from this that I could be at the first post (dpm) at this stage.

My question is can we get out of this mess and save our house! Do you all think this is managable withour going for a secured loan, is it too much to expect cc companies and loan companies to consider us? Thank you in anticipation

southernscouser

Have a look at this calculator. You type in all your debts (not mortgage) and it caluclates what you should pay first and how much.

However, the interesting bit is it tells you what you would be paying if you consolidated these debt into a mortgage! The interest you would pay is frightening!

My advice would be definately don't do it! They are having you on saying you have to consolidate all your debts! They are scumbags! The people on here are more qualified to give you financial advice than those w***ers! :mad:

And your right, transferring to loans around the 7% to 10% is not good business!

roswell

Just a thought before you choose a dmp / iva and just some thought for you, firstly cancel any PPI you have this could make a huge differance to your outgoings.

secomdly these could be improved on

water £ 35 - Get a water meter
electricity £ 40 - Change supplier
gas £ 50 - Change supplier
BT £ 44 - reduce to minimum
mobiles £ 70 - change to beter deals / pay and go.

The following could be scrapped
Dinner money £ 40 - your getting groceries already

kids a/schs £40 - ???? i gues after school activities these are a luxery.

you are lucky that you could sell the house and downgrade if i was in your position I WOULD SERIOUSELY CONSIDER THIS !!!

japanesegirl

Hi I think one of the most important things is that you are now prepared to talk about your situation and are positive about doing something about. I have always been terrible about discussing fiances but once I spoke to the CCCS they dont judge you in any way and are just so helpful that you realise you are not alone. Also this site has changed my life, I didnt know things like the CCCS existed and I think we would have ended up with a consolidation loan and in a couple of years going bankrupt.

This was we feel safe and also confident that we are not losing our home, which was our biggest fear. We currently owe £40K and at the current rate that we are paying CCCS we will be debt free in . . . . . 20 years!!!!!!!!!!!!!! sounds unreal and a life sentence but hopefully we will be able to up the payments every 6 months and like I said maybe will have enough equity to remortgage and clear everything. Our eldest son is 11 and starts high school and we have to be realistic and asume he will go to Uni in 8 years time so that is OUR personal target.

Meant to say that just talking to CCCS or Payplan doesnt commit you so its worth a chat.