We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Help!!
dazxx1805
Posts: 2 Newbie
I need some advice and I have included a brief credit history.
I own my own business that I bought / funded using personal credit cards and began transferring to 0% cards about 5 years ago. Before I knew it I'd built up a huge debt that we just weren't making any headway into. So I made a decision to clear my cards and had a second charge against my house to clear the cards - the business was booming and with forecasts we took on extra staff and overheads. Who knew that month October we would hit the recession and the business began loosing money hand over fist - we slowly began putting money back onto the cards. Eventually, I began factoring my invoices which we've been doing for about a year and half. I still have the credit card debt as we only pay the minimums and the second charge and while the company is still trading I need to address my own personal situation as the company has been sailing a bit close to the edge. I've got about 36k second charge on my property and about 40k in credit cards, I owe 82k on my mortgage and have a property valued at 240,000 - Iam going to remortgage the second charge but my wife does not want the cards debt on there - What can I do about the card debt, she wants me to approach them about any promotional rates, its been suggested an IVA (which I'm against) or just coming clean with them. Any help or advice would be very much appreicated. Thanks again.
I own my own business that I bought / funded using personal credit cards and began transferring to 0% cards about 5 years ago. Before I knew it I'd built up a huge debt that we just weren't making any headway into. So I made a decision to clear my cards and had a second charge against my house to clear the cards - the business was booming and with forecasts we took on extra staff and overheads. Who knew that month October we would hit the recession and the business began loosing money hand over fist - we slowly began putting money back onto the cards. Eventually, I began factoring my invoices which we've been doing for about a year and half. I still have the credit card debt as we only pay the minimums and the second charge and while the company is still trading I need to address my own personal situation as the company has been sailing a bit close to the edge. I've got about 36k second charge on my property and about 40k in credit cards, I owe 82k on my mortgage and have a property valued at 240,000 - Iam going to remortgage the second charge but my wife does not want the cards debt on there - What can I do about the card debt, she wants me to approach them about any promotional rates, its been suggested an IVA (which I'm against) or just coming clean with them. Any help or advice would be very much appreicated. Thanks again.
0
Comments
-
Two questions, what does factoring invoices mean and why are you anti-IVA?I refuse to be afraid of the big bad wolf, spiders, or debt collection agencies; one of them's not real and the other two are powerless without my fear.
(Ok, one of them is powerless, spiders can be nasty.)
As of the last count I have cleared [STRIKE]23.16%[/STRIKE] 22.49% of my debt.
0 -
Factoring invoices means you borrow against the value of them, before the buyer has to pay. Like insuring your bills.
Is you're factoring agreement 90 days? are they all 100% invoices?"We want the finest wines available to humanity, we want them here, and we want them now!"0 -
Hi, factoring an invoice is when you sell the debt on and get the money immediately. But only a percentage of the invoice.
So if I sold goods of a £100 a factoring agent might give me £80 now and then chase the debt for £100 thus making £20 profit.
Hope that helpsI'm a qualified accountant but please make sure you get expert advice as any opinion is made in a private capacity.
"A goal without a plan is just a wish" Antoine de Saint-Exupery
Mortgage overpay 2012: £10,815; 2013: £27,562
Mortgage start £264k, now £232k0 -
Factoring is when you sell the debt to the finance company, they'll fund a percentage say 80% less their cut and when the invoice is paid you'll recieve the balance. IVA's will clear a percentage granted and over 5 years but if I've still got equity in my property after that time they can go after that and also its also one step away from being classed as bankrupt - So I'm led to believe, what are the cons from doing an IVA? Thanks0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.1K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247.1K Work, Benefits & Business
- 603.7K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards