Huge credit card debt

casiquerbrado

Hi k2730,

2 years ago I was in a very similar position , in terms of income,debt and mortgage . I spoke to CCCS and an IP. I took the more difficult option of an IVA.
The IP allowed me to put down the cost of the fuel I actually use ( I travel 500 miles per week.
It isn't easy and you have to be disciplined , but you know what ?
It's the most sensible financial decision I've made.
If you want me to give you the IP's name so you can chat to her , I'll be more than happy to.
Take care

milliemonster

a word of warning on IVA's, once an IVA is agreed it is very inflexible for if you have a change in circumstances so you have to keep up the repyaments as set month after month for the full five years, then you have to remortgage and release the equity or extend for another year, it really isn't as simple as the above poster has made it sound

casiquerbrado

Apologies to all if I made it sound simple.
I was trying to help

RAS

kinigston

HAve a look at jacks thread's as well, down from a £97.6K debt http://forums.moneysavingexpert.com/showthread.html?t=607475. Can be done.

Re the cars, what are you driving? And you should be recaliming the costs of your work travel, surely? How much is that each month?

casiquerbrado

For the record , an IVA is a legally binding agreement , and is only suitable for some. It normally runs for 60 months, and in month 54 you will need to look at releasing equity in your property of a maximum LTV of 85% , of which your interest would be 50% of the difference between the mortgage at that point and the equity available ( if any ).
You would also not be expected to increase your mortgage payments by more than 50% of your IVA payments , ie IVA payments £400 ,you would not be expected to increase your mortgage payment by more than £200.
As I said it was only a suggestion , and I found some responses a little terse.

hypno06

pelirocco wrote: »

Hypno

Correct me if i am wrong ( because i have only skimmed over your diary ) but weren't you left a sum of money that you used to pay off a lump sum? .....I just dont want to give the op any false hopes

Yes, I received £20k.........but my debts were over £100k at the time, so in reality, although it made a difference, it wasn't as though I was able to throw £50k at it or anything.......and I also bought a car from it too as ours was on its last legs.

So, yes, I got some, but not much in the bigger scheme of things.

And as for "hope" - in addition to debtbusting, I also manage to send my children to do ski seasons, and DD did her trip to China this year - so, with focus and effort, you can do even more than just pay the bills!

It can be done.......

hypno06

kingston_2730 wrote: »

Thanks, Hypno. You are an inspiration. I have been reading your diaries. Wish I had half as much energy as you!! That's great about the info of cc charges. I would say that DH and I have a considerable amount over past 6 years. Do you happen to know if you can claim interest on the charges?

In theory you can claim interest, but in my experience this is what actually happens.....

- you list all your charges over the last 6 years, including interest at 8%, on Martin's calculator that you will find on the reclaim board.

- You submit your request to the CC company asking for the whole lot, including interest back.

- you have a couple of letters going back and forth, before you agree to accept the following:

The level of charges without interest LESS £12 per charge which is deemed to be "acceptable".

You generally agree to drop the interest charges as your bit of leeway, although occasionally the CC companies will surprise you and give you interest on top of your refund.

So, if you have been charged £20 for one charge, you will put a claim in for £20 plus 8% pa since the date of the charge. Reality is that you can expect a refund of £8 for that one charge.

Doesn't sound much cop, but if you have lots of charges, that is a lot of £8s that would be more than useful right now!!

kingston_2730

DVardysShadow wrote: »

Let's face it, people start off their debt free journey hiding under the sink, but they have to be blddy minded to see it through. Yes there are some unhelpful people who tell everyone to go bankrupt but equally there are helpful people who will tell some people the same because sometimes it is genuinely good advice.

So, please don't start this off by demanding that you only get the answers you like, it is a form of denial. Just filter the answers according to the attitude of the poster. If your main and only priority is to keep the house, you are actually more likely to lose it - because you are putting the house above becoming debt free and losing focus. Put becoming debt free as your primary goal, let the house look after itself. That is genuinely the best chance with the house.

Sorry I am not demanding anything, I do not appreciate your tone. I simple asked, after reading some outright nasty threads on here, for people who did not have anything supportive to say, not to post at all. I think I have a right to do this. Also, I really don't see why not wanting to lose my home that I work hard for, will actually make me more likely to actually lose it :rolleyes:

hypno06

You'll get there, kingston......but in the early stages there is a lot to take in, and as said above, not all of it will be what you want to hear.

That doesn't always mean that people are trying to be mean - sometimes "tough love" is deemed necessary (if you need an example, hunt for an old thread by a chap named "tolip" - he really did get some straight talking, but it did what it needed to do!)

And sometimes, that straight talking, even with the best of intentions, can come across as harsh and horrible - that could be because it was not worded in a way that you would have done yourself, or because it got "lost in translation" because of a lack of tone of voice etc, or because you are feeling vulnerable and downright crap, and think that the world is out to get you.........even now, I can get quite defensive about my situation on here, but when I read back, I know that advice and ideas were being given, and I was being over sensitive - I may not like what is said, but I don't have to follow the "advice".

From time to time, you WILL get someone who will be overly blunt, and some set out to be horrid for nothing more than "fun" or because they think everyone has to do things the way they do them. But those people are quite rare on DFW - you will find that it is a very supportive board, so stick around, take all the ideas, then run with the ones that fit in with you and your circumstances - after all, only YOU know what is right for YOU.

As for the SOA - post it, or don't.....it is up to you - I didn't do so until the second or third diary I did, because I didn't feel ready to do so. And I don't think I have posted it since. But what IS important, is that you are honest with your SOA, so that when YOU stare it in the face, you can see what you need to do.

What I can say, is that posting it on here will get you lots of input - again, run with some, and ditch others......but you might get something quite positive out of it.

The early stages of this malarky are terrifying, but they are strangely liberating - you soon get that feeling of control back, and that to me is the main thing......once I felt in control, everything seemed to fit in much better.......when I was without control, that was when I got no sleep.....

Keep going....

kingston_2730

Thanks Hypno, I can just tell that you really do know how I feel right now. I am sorry to DVardysShadow if I jumped the gun. I do know it is easy to misinterpret the tone when in cyberspace so I apologise if I took your comments in a manner that they were not intended. I still don't know why I am more likely to lose my house because I want to keep it though. In my opinion my desire to not lose my home is what is motivating me to deal with this terrible situation I am in.