Need to be advised

MountainOfDebt_2

I was discussing debt, BR and other items in another thread and have decided to grab the bull by the horns, as such.

I need to resolve my large debt position (£85k+). If we are lucky, we could potentially be debt free, by finishing off the house we're doing up and selling it, but selling it for, pretty much, top dollar. I don't think that will happen.

We're struggling at the moment to make all the payments on Loans and CC debt.

I have cancelled all our DD's on credit cards and bank loans. I am going to call them all up before they are due and explain the position, that we simply have not got enough money to pay all our liabilities. I am going to request that all interest is put on hold for 3 months whilst we consolidate our position and that in that 3 months, we make a token payment to keep the account out of default.

Then hopefully, we sell the house and pay all the debts off, or at least, be ina position to make a F&F offer on all of our debts and start again. This seems to be the advice I have been given and I thought I'd run it past the debt free wanabees as this is where I want to be this year.

Now, I know this may sound niave, but do you think our creditors would be likely to accept this? The only alternative seems to be to default for 3 months.

Tixy

Rather than phone your creditors you might want to send it by letter - you could use this as a starting point
http://forums.moneysavingexpert.com/showpost.html?p=21937969&postcount=52

They will be more likely to accept your position by letter, however before they agree to hold/freeze interest they are likely to want to see an income & expenditure account to see that you really cannot afford to pay more than token payments. Even if they agree to it they are likely to enter a default notice on your file after around 3months of low payments.

How realistic is doing up the house with out any additional funding? what sort of timescales will you be talking about?

MountainOfDebt_2

Thanks.

We're doing an income and expenditure form this weekend. Starting, also, to read lots of comments on the debt free wanabee threads which is curiously uplifting.

We have a builder in the house now who's agreed to work on the house and to be paid once it is sold for his fee's + £500 which is good of him. It works well for him as he only pops in when he has no other work s does 1/2 days a week. we hope it to be finished in June. We are financing the 'parts' he needs by defaulting on our agreements: it's, unfortunately, a catch 22: we cannot afford to do it up to sell by not defaulting and cannot sell it without defaulting...

I believe we could be finished by June.

thanks for the link.