100k Unsecured Debt

gf45

I have approximately £100,000 of credit debts - made up of 1 loan, 14 credit cards and 2 overdrafts. Although I live with my partner, these debts are solely in my name and I do not want to involve her if at all possible. I take home £1900 a month and my share of equity in our house is approximately £60,000. I feel terrible that I have avoided doing anything about this for so long but now want to resolve this in the best possible way. I do not want to lose my home and I do not want to be made bankrupt if at all possible. What are my options? I am struggling right now to meet event the minimum payments and I need to do something immediately about this - before then working on a long term solution. Do you think it would be possible to get payments frozen until something is put in place? Also, do you think I could take my release my share of equity by remortgaging and then using this as part of a full and final settlement IVA? I desperately need help.

caleo

Hi

You have taken the first step!! Realising that you have a problem and that you have to do something about it!

People on here are great and will give you great advise. First thing tey will need though, is a Statement of affairs, so your spending can be reviewed, as well as APRs etc.

With the amount of debt, a call to Payplan, CCCS or CAB would be in order. They work on an appointment sytem, with a two week wait approx, so worthwhile contacting them anyway. They will be able to advise on your best option.

You have come to the right place for support and non judgmental advise!

Caleo

joolz43

Hi GF,

I think you have made the first step in the right direction by posting on here. Have you made a full list of all your debts along with your other outgoings? That is really the main thing you have to do so that anyone can offer any help. When I first added everything up roughly I thought it came to about £45,000, the real total was about 10k more. I rang the CCCS and found them very helpful, other people might have different suggestions. My overwhelming feeling was not to borrow any more money, but it may be that remortgage is a good idea for you. What ever you do, hang in there.

isgman

Welcome to DFW, you have come to the best place for advice, I would have a word with your local CAB, they were a great help to me (my situation was almost like yours, without the equity).. keep looking here as someone with more Knowledge than me will give you further advice,, like.. Please post your SOA so they can get a better idea of how to help.. Good Luck

Dr.Shoe_2

Just hang in there! There are so many people ready to help you.

loopyloulou_3

chin up - hang in there - there will be lots of people here to offer you good advice.

my partner is in very much the same situation as you - but without the equity and I am pretty much in the situation as your partner (although I do have some unsecured debt myself). As the partner of someone in debt I have found the best thing that my OH can do for me to put my mind at rest is to keep me informed 100% of what is going on and what he is doing and going to do to resolve the problem.

Does your partner know about your debts?

Macduff_3

Hi GF

Give CCCS a call - they will give you a counselling appointment where the issues of remortgaging and IVAs will be explored. They will refer you for an IVA if it is suitable but will be honest with you if they don't think it'll go anywhere at this stage.

Usually the advice is not to remortgage to pay off unsecured credit but if it brings your payments down it may be worth thinking about. However, you can't really remortgage just your side of the equity - it would have to be joint with your partners permission and then the remaining equity would belong to you both.

As someone who has been in your situation (although with a smaller debt and no equity) with a partner who has a habit of hiding things until they get found out or until he confesses, it will be easier in the long run if your partner is aware of the situation. Unfortunately, if the mortgage is joint you are financially linked so your credit has an effect on her credit. She is not liable for your debts but if any sort of repayment plan (DMP or IVA) is going to be possible, she will need to be willing to reduce expenditure too to allow as much of your money as possible to go to your creditors.

You've taken the first step of admitting the situation, so keep things moving. The faster you take advice from somewhere like the CCCS the faster you can start to resolve this.

Mirtos

First things first read this threadhttp://forums.moneysavingexpert.com/showthread.html?t=107280then post an SOA as explained in the thread. That will allow people on here to give you more specific advice in terms of how to save. If you haven't already, I think you should have a completely honest discussion with your partner. Post your SOA, and we'll all try to help as much as we can!

gf45

Thanks. I will post my SOA. Would welcome advice on all possible options.

sanfrancisco

Once we know your outgoings it will be more clear which course of action is the most appropriate.

I know you are going to shoot me down in flames for saying this, but you really should confide in someone about this. If you really feel you cannot tell girlfriend, then maybe a mate, colleague??? This is a really stressful thing to deal with and you should have support.

Remember, it is only money. You will sort this out and YOU WILL come out the other side. Well done for facing it.

james32_uk

Payplan or CCCS are both free organisations who will give you great advice. An IVA is certainly possible with your income and equity as is a debt management plan. Don't go to any companies other than those listed above as they will have hidden agendas. Good luck!