Urgent help needed please

nadnad

if her endowment is worth £10k and if she could sell her car and get a runaround (even something at £1k) then she could clear the £13k debt.

Saving her £393 plus the £162 from above = this would mean the shortfall is essentially wiped out. But it leaves her very little to play with if anything were to come up. Although this would be a really good way to start.

If she did that plus get the credit cards onto 0% she would be getting there and without having to do anything with the house - which I guess is the number one priority. Once she has the credit card debt onto the 0% MBNA card then I would cancel all but maybe 1 other credit card (I see that you said she has others). This wipes out the temptation to spend and also reduces the credit available to her which makes it easier to get 0% or low APR rates in the future.

Could she get a lodger? because although the above would wipe out the shortfall she would only be just surviving and having a lodger would make things easier.

Anniek1969

If she's been paying her endowment of £135 per month for 11 years that makes a total pay in of £17820. With it being an endowment it should be worth slightly more than she has paid in (mine was worth around £700 more than I'd paid in and I only pay £26 per month).

If I'm right with this then she should have enough to repay a fair amount of her debt including the secured loan. Like someone else said too if her mortgage is repayment she could change it to interest only for a short time untill she can find other ways of finding the shortfall. Even if she doesn't get back everything she has paid in to the endowment she'll still have a fairly big lump sum and she'd be saving £135 every month.

grace

Is there any chance she could rent a room out for six to 12 months? to help with the mortgage and bills?

G

johntriguy

Hi,

I went on a Debt management plan, with the CCCS (Consumer Credit Councilling Service) back in 2001.

I had approx 28K debts, credit cards and loans, monthly minium payments = £600 to satisfy everybody.......i was barely making these and really stressed out by it all.

CCCS negioated on my behalf, got all interest frozen and managed to reduce my monthly payments to approx £150 what i could accually afford to pay, since then i have increased the monthly payment, once a year, to what was affordable.

I still have approx 6K outstanding on this plan, but i will be debt free at current payment rates by Apr 2008, possibly sooner.......no rush though as its all interest free.

Anyway my point is this........

This DMP sorted me out, removed all my stress, saved me from getting any CCJ's etc, and helped me to learn to budget, and manage.

Dont be afraid to look at this option with your mum. As soon as her creditors are told she is dealing with CCCS, they will back right off and work with her, and accept a stop in payments.......until a DMP is produced, so she could miss one months payments in theory.

Worth a look IMO

Lydia.42

Thanks so much the info and suggestions guys.

I am due to go round hers tonight to be with her when she speaks to her mortgage chap. He thinks she may be on repayment only mortgage already. But is gonna bring all paperwork with him tonight.
Will keep you posted.

Re: endowment - she called them yesterday, and they told her they can't deal over the phone. So she has written them a letter asking for statement, and cash in value. Fingers crossed they don't take too long!!!!

Some good news is that when we looked at her bank statements and paperwork, it appears she is still paying buildings and contents insurance to her last company - as well as her new one. So she is looking into getting the dd refunded. Not millions, but at £30ish since sept/oct last year, it's better than a poke in th eye when at the moment everything counts.

Hopefully her 0% card should arrive by this weekend, so she can shift her cc balances too.
Thanks again guys
L

nadnad

why don't you show her this thread - it'll maybe make her feel a little better that she's not alone, that theres plenty of advice to be had, that loads of people have been through the same thing and best of all to show her that her daughter cares very much about her!! :j