Need Help With Settling Debts Urgently.

chunkymunks

I have reached the stage where I must sell my house to pay off debts. I owe £47,000 plus £58,000 on my mortgage. I am self employed but have not generated any income in at least 8 months, not due to trying-I swear. I am willing to pay off all of my debts with the residue of the house sale (house is worth approx £120,000-£125,000). This won't leave me me with enough to do anything but rent and hope I can find any minimum wage job going. This is proving more difficult than I expected, I have applied for home help, carers, shop assistants, office work, factory work and everything else that I can think of. I have been told I am too qualified for some jobs and ( as my typing is rubbish due to arthritis, not good enough for office work). Is there any way I can negotiate with creditors to freeze interest and payments and/or accept a smaller settlement than the amount owed ,as I need as much as I can get after settling bills, so that I can also take care of my mother. Quite frankly I would live in any rotten, scummy place but she is in her seventies with health problems and I need to rent an average house which is about £425 plus rates (northern ireland rates take the place of council tax) which is going to bring it up to at least £500 a month. I am not sure if my creditors would allow me to pay them less if there is any money in the house sale but please if anyone thinks it may be possible I would appreciate your letting me know. At the moment I have missed payments on all my credit cards this month but no other bills, the money has run out and my amex has already sent me a nasty letter and rang 17 times ( i counted but was too frightened to answer) even though I have only began defaulting on their payments 4 days ago for the first time in my life. If anyone has any good advice please reply. Thank you.

chunkymunks

Sorry, everyone else seems to be posting with expenses also so I just wanted to say I do not have/do:
haircuts,haircolours etc
smoking,
drinking,
any type of socal life,
new clothes, shoes etc
magazines, newspapers or any books not from the local library.
satellite/ freeview tv
gym membership.

All of my food is asda own brand and I am quite used to a third of a can of beans on toast for dinner.

elantan

just gonna bump this for you again i can't answer your question ..but i'm sure someone who can will be along soon ...good luck

rog2

I don't know if I can help you much, as I am in a similar position - self employed, no earnings in last 12 months, etc.. However, I am finding, through these boards, that there is an awful lot of good advice to be had.
Firstly you need to talk with one of the agencies, or counselling services (links at top of page to Citizen's advice Bureau, national debtline) or talk to CCCS. They can best advise what course of action you should take.
At worst, bankruptcy is an option (I am seriously considering it) and you can get advice on how it will affect the housing situation. Your mother's health should be taken into consideration.
But first, contact the professionals (see above). One word of advice - you will be swamped with offers of re-mortgaging, consolidation loans and private Insolvency solutions, mostly telling you to 'borrow' your way out of this situation. - don't be tempted.

Broken_hearted

Have you defaulted on any of your credit?

krisskross

Have you approached your Local Authority? Any chance of social housing as your mother sounds as if she would quaify for sheltered?

frankie1_2

Try your local authority for your mum, they cangive the correct advise
I would try CCCS or Payplan for your situation. I know that CCCS and Payplan can make direct contact with your creditors on your behalf as well as providing invaluable advise for you. Ring one of these on Monday and you will feel better, you really will.
Try not to let your situation get you down. When you feel low send a message to the site and you will receive lots of support

cattie1

have you asked credit cards to set up a repayment plan? i told barclaycard i was in financial difficulties 2 years ago and said i wanted to pay but can't afford full amounts-so they reduced my payments from £115 a month to £35 a month and the apr went to 5.4% instead of 10.8% or woteva it was,saying this my partner also did this they reduced his payments from nearly £200 to £80, but the interest stayed the same.
It affects your credit score and if you default they will attemp to take you to court (but just make next payment asap)
its worth a try as if they think you are willing to pay and have had the deceny to explain your situation they wll try -as they want the money!
it's also worth writing a letter to all companies explaing your situation to see what they could do for you, i'm sory if this is no help but i hope it was, good luck,