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perdusys

Originally posted this in main thread, but it might be more suitable here:

Hi

My son has recently split up with his wife, they are in negative equity with an NRAM mortgage. He is thinking of taking on all the debts from the marriage, being the joint mortgage and a joint personal loan of £6000.
NRAM are not being helpful, the mortgage is for £55,000 with a £17500 unsecured loan, and the property is only worth about £50,000 max if it could be sold which is unlikely.
I think he is being unrealistic about how much he can afford on a single wage, but at only 26 he doesn't see much alternative. If his budget is correct, his outgoings will very roughly equal his income but with no leeway.
Is there anything you can suggest? His wife will be on benefits so I think we are right in thinking that ultimatley he will be responsible for paying the joint debts.



It was suggested to rent a room, but it's a 1 bedroon flat.

maccymum

morning....another unsettled night worrying

question....just about 2 enter in2 dmp, 1 of my debts is with the bank our mortgage is with. it is a loan with 9000 outstanding. our mortgage is due 4 review end of year can they turn us down due 2 dmp? or demand money?

thankyou xx

StepChange_Pavan

perdusys wrote: »

Originally posted this in main thread, but it might be more suitable here:

Hi

My son has recently split up with his wife, they are in negative equity with an NRAM mortgage. He is thinking of taking on all the debts from the marriage, being the joint mortgage and a joint personal loan of £6000.
NRAM are not being helpful, the mortgage is for £55,000 with a £17500 unsecured loan, and the property is only worth about £50,000 max if it could be sold which is unlikely.
I think he is being unrealistic about how much he can afford on a single wage, but at only 26 he doesn't see much alternative. If his budget is correct, his outgoings will very roughly equal his income but with no leeway.
Is there anything you can suggest? His wife will be on benefits so I think we are right in thinking that ultimatley he will be responsible for paying the joint debts.



It was suggested to rent a room, but it's a 1 bedroon flat.

Hi perdusys and thanks for your question.

They’re both joint and severally liable for the debts so if his wife stops paying they can chase your son for the full outstanding amount – and vice versa. This blogpost explains it in a bit more detail: http://moneyaware.co.uk/2011/09/we-got-a-joint-loan-now-weve-split-who-has-to-pay/.

It really depends on whether he wants to keep the house. If he feels he can’t maintain the payments and would like some free and impartial advice on his options, we can help. Just tell him to get in touch and we will talk through the solutions that are available to him.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

maccymum wrote: »

morning....another unsettled night worrying

question....just about 2 enter in2 dmp, 1 of my debts is with the bank our mortgage is with. it is a loan with 9000 outstanding. our mortgage is due 4 review end of year can they turn us down due 2 dmp? or demand money?

thankyou xx

Hi there,

You’ll be able to keep your mortgage as long as you can maintain the payments – which should be the case as it will be included on your budget. They can’t demand the money but they can change the deal that you’re on.

Just give us a call if you want to look at your options in more detail – we’d need to know more about the type of review that’s due etc and hopefully we can help to put your mind at ease.

Kind regards,
Pavan

maccymum

CCCS_Pavan wrote: »

Hi there,

You’ll be able to keep your mortgage as long as you can maintain the payments – which should be the case as it will be included on your budget. They can’t demand the money but they can change the deal that you’re on.

Just give us a call if you want to look at your options in more detail – we’d need to know more about the type of review that’s due etc and hopefully we can help to put your mind at ease.

Kind regards,
Pavan

thanks so much:A.....we have been on a 2 year fixed deal and its that is what will run out so we have a review 2 offer a better deal
thanks again x




hi me agin!!!!
i am about 2 embark on dmp just filling in paperwork and getting statements ready 4....i live in scotland some1 told me theres no such thing as dmp it is a das i need? is this right? how i go about that?


thanks agin and so sorry to bother u
x

mum2one

sorry to be a pain, a quick thought before go through the final post the info to you, I'm trustee on my daughters account (shes 9), theres not much in there £200 and she has a bond of £750 (got 2 yrs to run), but there with a bank that I dont have any direct cards, accounts, loans etc with, would that effect anything, cheers in advance x

StepChange_Pavan

maccymum wrote: »

thanks so much:A.....we have been on a 2 year fixed deal and its that is what will run out so we have a review 2 offer a better deal
thanks again x




hi me agin!!!!
i am about 2 embark on dmp just filling in paperwork and getting statements ready 4....i live in scotland some1 told me theres no such thing as dmp it is a das i need? is this right? how i go about that?


thanks agin and so sorry to bother u
x

Hi again,

We do advise on debt arrangement schemes and would have recommended one if it was the best solution for you (assuming that you’ve told us that you live in Scotland?).

If you’re unsure, it’s best to give us a call so that we can explain which solution is most suitable for you and why.

Kind regards,
Pavan

StepChange_Pavan

mum2one wrote: »

sorry to be a pain, a quick thought before go through the final post the info to you, I'm trustee on my daughters account (shes 9), theres not much in there £200 and she has a bond of £750 (got 2 yrs to run), but there with a bank that I dont have any direct cards, accounts, loans etc with, would that effect anything, cheers in advance x

Hi there,

If you don’t have any debts with them this won’t be a problem. From what I can remember you’re about to start a DMP, so as long as you’re banking with someone that you don’t have any existing debt with your money will be safe.

If you’re unsure, just give us a call.

Kind regards,
Pavan

mum2one

CCCS_Pavan wrote: »

Hi there,

If you don’t have any debts with them this won’t be a problem. From what I can remember you’re about to start a DMP, so as long as you’re banking with someone that you don’t have any existing debt with your money will be safe.

If you’re unsure, just give us a call.

Kind regards,
Pavan

You are a gentleman thank you, yep some poor person will soon need a payrise when they get my file!!

Just last few bits to sort, just got awaiting conformation of change over of payments to new account as still got some incoming fro Aug, - ring Mon then follow up should get them in new account.

Thank you again for all your help, it is really appriciated, x

mumof2nhalf

Hi, I have been silly with money for many years not thinking it would have an impact on my life and have several debts, overdraft, catalogues, credit cards etc. I have now grown up and want to sort my finances off, realising that I cannot get away with not paying debts forever. I would like to start a debt management plan as I work and pay my rent and bills on time. My problem is that over the years I have lost track of exactly who I owe money to and how much. How do i find this information out? And who can I go to to sort my problems out. I do not want to be left with nothing at the end of the month. I have two children and another one on the way. Please help as it is getting me down,