What would you do?

keith_lard

Hi Everyone!:j

Will make this short and to the point!

Made Redundant 2003

5 credit cards, 2 loans went into a DMP, all payments on time!

Oweing currently £15,000

OH expecting our first baby!:j :j :j OH debts are currently £13,000 No defaults no bad credit what so ever!

OH will be out of work for maybe 3 years

Should I remortgage? all debts in one pot?

House is worth £140,000 outstanding £51,000 would need a remortgage of £83,000

Did get 2 ccj's 1 is now fully paid off the other is not but they have said would take 75% of balance to close account.

Should I make a lower offer ?


My head is hurting knowing what to do for best???????????????

I am now is a good job £20,000 pa permanent.:T :T :T


Any Ideas??????


Thankyou all to reply, your wisdom would be welcome:A :A :A

southernscouser

Remortgaging can be a costly thing and then there is the risk of turning £15k of unsecured debt to secured! :think:

Has all interest been stopped on the debts in the DMP?

Can you afford to overpay or save in to an account to pay them off one by one? Basically is there any manouvere (sp) in your budget?

I'd be wary of doing it but then I don't have a mortgage!

was_bankrupt

Hi Keith,

Having been through serious debt problems myself the first thing I would suggest to anyone is to take advice. An organisation such as National Debtline will be able to reccomend the best solution for your circumstances.

Have you taken any advice yet?

Remortgage certainly is an option but with the CCJ's it may cost. Have you enquired about a mortgage yet?

Hope this helps.

was_bankrupt

Southernscouser is certainly right. You will end up turning £15K of unsecured debt into secured debt.

Another example of why it maybe a good idea to seek advice.

keith_lard

Have spkoke to CCCS they just said that my DMP could go down to £40 per month 'if' necessary!

I have not taken a remortgage just yet, what kind of rate would I be looking at?????

k.

Prudent

Congrats on the baby. I think looking at alternative methods of repayment would be better than potentially putting your home at risk.

was_bankrupt

I'm not sure on the rate of the mortgage. I searched round the internet and there was talk of sub prime lenders offering typically 1% to 2% higher interest to discharged bankrupts.

Of course you can repair your credit over a period of time.

keith_lard

Really Question is what to do first?

OH will stop working Dec 06

I will need to take charge of £13,000 debt (dont mind)

Does anyone know what rate I would get (note my mortgage with abbey is in fine condition!)

Just dont know what to do first and what to ask.................nightmare!