Debt Crisis Please HELP!!

Tixy

I think either post 54 or 56 for temporary token payments - posted by Numpty. The one that says you are seeking advice from a professional. Or there may possibly be a similar letter in the pack from CCCS when it arrives.

EDIT - Actually its 52 and 54, serves me right for guessing

BoxMan_2

Thanks! hopefully there is a way out of this mess. We both curse the day we bought this house we are in as it enabled us to 'consolidate' our debts and carry on spending!!

One question to the folks on here is it possible to reduce the payments of our secured loan we took it out for £30,000 and after paying more than £11,500 in the last 2 years @£480 per month we still owe £33,000 and have another 13yrs to go so we will have paid a whopping 86k

There's got to be something we can do surely

miss_spooky

Hi Boxman,

Hope you and your wife are well. Try not to get to stressed as it will all sort itself out, what ever the solution is.

I was just having a flick thru on the DFW board as I'm often on the BR & living with it board. Bt I just wanted to ask a few question if you don't mind?

You say you curse your house - I know you didn't mean litraily(?) in the worse case senerio would you be prepared to give it up & rent?

I was in your posotion two years ago, earning £40k Partner £20K on Mat leave with my second child then just before I was due to return we found out that he was deaf & a few other complication. I had to give up work to care for him at home as there were no childcare options available foe special needs in our area (long story). So our income almost reduced by 70%. Other things happened all at this time and we ended up going bankrupt (advised by Natinal Debtline & CAB).

Because this could be an option looking at you level of debt and the fact that your income will decrease & expenses will go up when baby comes along in the next few months, things aren't going to get better quick.

I'm in no way suggesting that this is what you should do, wait & see what CCCS advise but it is something worth reading up on.

I really hpe you get the answers & direction you need.

Good luck & congrats on the baby.

RAS

Hi

Unfortunately, BR will not pay off the secured debts unless you also went for repossession.

You really do need proper advice from a debt charity.

I would suggest you also have a look at www.entitledto.com so you both understand what income you will have once OH goes on mat leave, after the baby is born and after OH returns to work.

BoxMan_2

miss_spooky wrote: »

Hi Boxman,

Hope you and your wife are well. Try not to get to stressed as it will all sort itself out, what ever the solution is.

I was just having a flick thru on the DFW board as I'm often on the BR & living with it board. Bt I just wanted to ask a few question if you don't mind?

You say you curse your house - I know you didn't mean litraily(?) in the worse case senerio would you be prepared to give it up & rent?

I was in your posotion two years ago, earning £40k Partner £20K on Mat leave with my second child then just before I was due to return we found out that he was deaf & a few other complication. I had to give up work to care for him at home as there were no childcare options available foe special needs in our area (long story). So our income almost reduced by 70%. Other things happened all at this time and we ended up going bankrupt (advised by Natinal Debtline & CAB).

Because this could be an option looking at you level of debt and the fact that your income will decrease & expenses will go up when baby comes along in the next few months, things aren't going to get better quick.

I'm in no way suggesting that this is what you should do, wait & see what CCCS advise but it is something worth reading up on.

I really hpe you get the answers & direction you need.

Good luck & congrats on the baby.

If we could hand back the keys tomorrow we would, we are on a 30yr interest only mortgage this was our first house we have always rented before 2007, I have no idea what the house is worth probably around the 200k mark we bought for 215k then we add on the secured loan of circa 30k and we are in serious negative equaty.

With no current repayment plan with it being interest only are we not just renting in a way?? can we move out rent somewhere else and start again?

Not sure how bankruptcy works and it really does sound like a last resort, but maybe thats what we will have to do....would this clear our complete debt?? is it really a fresh start??

inspiremetosave

Hi,
Why not go to your local Citizens Advice Bureau for advice? I volunteer at my local one (training so cant offer any advice) and we see this all day long. Your not alone and there is always something you can do.

Best of luck

gfplux

Hello Boxman,
You are certainly in a difficult position but by acting now maybe there is a chance.

Start a spending diary TODAY to find out exactly where your money goes. That knowledge will shock you but also give you power. You only need a pen and a paper. you have to immediately stop spending more than your income.



I am afraid if you go bankrupt the loan your Father has taken out will not be taken into account. he would be left to find the £500 per month out of his income.


You need to take all the possible money saving actions as soon as possible


Good Luck

kissjenn

Hi,

Congratulations on the baby.

What impact would the loss of £500 pm have on your father's finances? Reason for the question is that I doubt this debt will be taken into account if you go down any formal route be it DMP, IVA or BR. Whereas you will be able to deal with potential BR and as you have no equity that may mean you keep the house, next biggest issue would appear to be this loan your father took out on your behalf.

Is there any paperwork detailing repayments etc between you?

miss_spooky

kissjenn wrote: »

Hi,

Congratulations on the baby.

What impact would the loss of £500 pm have on your father's finances? Reason for the question is that I doubt this debt will be taken into account if you go down any formal route be it DMP, IVA or BR. Whereas you will be able to deal with potential BR and as you have no equity that may mean you keep the house, next biggest issue would appear to be this loan your father took out on your behalf.

Is there any paperwork detailing repayments etc between you?

As above, would your father be able to pay the money & you cover what you could afford at a reduced rate until your finances are better. IF you went down the BR route then you could leave your fathers debt out of it, I presume that the loan is in his name anyway? (Though there will be a question over the £500.00pm payments unless these were cash). Pay what you can for the first 12mths then increase payments after. There is a bit more to it than that but as this is only a suggestion I've given a brief overview.

"Not sure how bankruptcy works and it really does sound like a last resort, but maybe thats what we will have to do....would this clear our complete debt?? is it really a fresh start??" In a nutshell if your house was repo'd, when it is sold the secured loan becomes unsecured & any shortfall & loan will go into your BR. The Debt charities will go through this with you which is why we stress to seek advise from trained advisors. We can only advise based on experience.

Please see what debt charities say. If you don't want to wait until the CCCS paperwork comes through, the National Debt Line give advise on your first phone call. Be prepared to hold for a while as they are busy but they will go through everything then & there so have pen & paper ready. Here's number free phone 0808 808 4000.

isobelle

I have a friend who has a dmp with cccs. She owes £18000 to her mother aswell as her own personal debts. The £18000 is on her mother's credit cards i.e. in her mother's name. The dmp takes into account the £450 she pays her mother each month i.e. the monthly payments she makes to cccs are calculated taking into account the payment she has to pay to her mother i.e. the payment she makes to cccs are £450 lower than they would be if she did not have to pay her mother. I think maybe if the payments to a family member are for the family member's credit cards or a family member's loans from a financial institution it is different to if the money just for example comes out of the family member's personal savings when maybe it is considered there is less urgency that the money be paid back.

I know my friend's situation to be a fact because she showed me tonight her dmp on the cccs website when i asked her about your post.