credit card debt worries

Elloyd

Hi,

I have been advised to stop paying all my credit card debt due to finacial hardship, but I am scared of having countless ccj's against me. I own my own home with NR, we are on the svr as the fixed deal came to the end, and NR wont let us remortgage with them. We cant find any company that loans 90%, which is what we need at the moment to clear a few debts.
If we stop paying the Credit cards, then get ccj's, we will never be able to fix the mortage.. Head is all over the place with worry that at the end of the day, I may loose my house.
Has anyone got a magic wand to magic it all away.

gonzo127

first thing as ever is to stop! put the kettle on and have a cup of tea and a sit down and relax a moment you then need to put up a detailed SOA (statement of affairs) http://www.makesenseofcards.com/soacalc.html , this will allow us to help you spot areas of savings you could make and suggestions on how to make them, it is one hell of a powerful tool as it allows you to see your proper financial situation in black and white therefore allowing you to work on the best way forward

also just so you know a CCJ is the end of a very long process, and does not mean you will lose you house automatically!

Elloyd

Hi Gonzo, right, kettle is on, calculations at the ready...
The reason we are in this situation is my husband lost his job, he is now working after 6 months being unemployed, but on a massive salery drop, (about 15K a year) we also have a baby that's 1 next week, so now have massive nursery costs to contend with, as we both work.
I have been told to write to all our creditors offering them £1, or even nothing, because that is litterally all we have to offer.
its just a really scary thing to go, and very upsetting, feeling like we have failed in life.
What worries me, is now we have a bad credit history, we are going to be unable to fix our mortgage once the interest rates start creaping up, and if they go up too high, we wont be able to wfford the mortgage either, then we are in trouble. Or am I thinking just too far ahead??

gonzo127

i think the panic is setting in ahead of time, hence why i think you need the cup of tea and you also need to realise, you have not failed in life, you have hit a problem and are learning to deal with it - this takes a lot of guts when it comes to finances as a LOT of people just bury there head in the sand and hope it goes away, so instead of failure what you should be feeling is pride, as you are dealing with your debts!

the SOA is the best place to start and will be something you will need if you write to your creditors with the token payments (personally i think token payments are always better than none)

once you have got a SOA together if you post it up here as i said we can try and help you spot any savings that coul dbe made.

also if you do not know there are a few debt charities (CCCS, Payplan and CAB) who will do a managed debt management program (DMP) for you, basically most of the time a DMP with one of these can get interest frozen, charges stopped and a set monthly payment agreed which you pay to the charity and they distobute it to the creditors on your behalf. the downfall of this is it will impact on your credit file by showing as defaulted on these debts (these do dissappear after 6 years)

Elloyd

Hey thanks Gonzo, made me feel better already.
Will get some letters out this weekend to our creditor's and see what comes back..
Thanks for your help, and understanding...

niccatw

Hi Elloyd

I hope you're feeling better now and have your cuppa in hand!

National Debtline is also one of the charities that can help. Their website is full of useful info.

I'm in the same situation with N Rock, so understand your worry and how the panic can set it. I spend hours trying to figure out ways of increasing my equity (bit difficult in a mid-floor flat; the obvious choices; loft conversion, conservatory etc, not an option - though I have often wondered whether I could construct myself a balcony with decking ). Then I snap out of it and try to take a deep breath and remind myself there's no point in worrying about something that I currently have no control over.

It had definitely helped me focus on making, sometime's impossibly hard, cut-backs, taking on a second job and that kind of thing. Now I'm more into the swing of the MSE frame of mind, I'm finding it quite addictive and it's easier to see those savings.

It is a tough and emotional battle - but it helps when we're all in it together! It's great that you OH is now back in employment and you can really nocus on what you want to achieve next. Read some of the DFW diaries for inspiration! They are fab.

Good luck