Urgent advice needed

ascotdan

Hi,

I am slowly coming to terms with my debt even though, I still have unopened letters which I know are asking for money.

I would now like to give you an overview of my current financial position and would love to hear from those of you who can give me advice.


Ok here goes. I am 28 years old, currently own a 2 bed, dettached house with my now ex-girlfriend. The property was purchased under the First Time Buyers scheme and we have purchased 50% between us, costing us a mortgage of £60,000 each. We have now had this mortgage for just under 2 years.

We had only been living together for 8 months when we split up and I moved back to my parents (which by the way, I hate).

My Debts

£6500 Halifax - I haven't made a payment for over 12 months
£1000 HSBC Credit Card - I make the min payment of £30
£200 Capital One - I make the min payment of £20
£2500 Black Horse - I haven't paid this for over 12 months
£4000 to my ex's Mum which she loaned me to use as a deposit on the house. I currently pay her £125 per month.

I want to move back to my house, to be independent again as I hate it at home. My monthly mortgage payment and bills total £600 and my income after tax is £1300.

I know if I moved back to my home that I couldn't afford to make all my monthly repayments. Now obviously my mortgage and household bills are more important to me then anything else. The only way I can see me coping would be to engage with each of the above companies and if possible, explain my position and negotiate a reduced amount which I could comfortably pay.

Would lenders be willing to listen to me and would they agree to a reduced amount per month?

Alternatively, is there a company who would do this on my behalf? One that I can trust.

I now need to act responsible for my debts but I don't know where to start as I have a number of bayliff letters turning up on my doorstep each week. I struggle to sleep at night as all I think about are these debts.

I hope somebody can offer me some good advice.

Thanks you in advance.

D

glitterlea

Hi,
I would recommed you call a Debt Management agency, they would work out your income and expenditure and then say how much you can afford to pay back to your creditors.
If you decide to go with them, you pay the agency a set amount per month which they then distribute between your creditors.

The 2 companies which don't charge you are:
Payplan - 0800 716 239
CCCS - 0800 138 1111

It will be worth ringing them, just for theor free advice

Good luck x

milliemonster

The only problem you have got here though is the payment you make to your ex's mum, if you go on a debt management plan, I am not sure that they would take into account this payment as it would be seen as favouring a creditor if you pay reduced payments to all your other debts bar this one.

This would mean that you would probably have to either continue paying your ex's mum the £125 a month but this would be out of your surplus, or you would have to pay her much less (would she be happy with that?)

I'm not sure really if you can afford to be moving back into this house based on the figures you have given, I can completely understand that you want your own independence and space, but wouldn't it be better if you take advantage of the fact that at the moment you can look at sorting out your finances to be in a better position with an aim to moving back into the house at some point?

Also, what stake does your ex have still in the house? is she going to want you to buy out her share?