Alot of money in debt!!!!!

loulouloulou_2

Hi everyone...
...As you've all helped me so so much i need to ask a few questions, i'm worried about my friend.

Shes £30,000 in debt. She owns her own place (with a mortgage) has just taken a 6 month mortgage holiday but is in desperate ytouble.

At the moment she's just surviving, she has a good job but has decided she cant survive like that anymore.

Shes contacted a company (its not one of the free ones on the link, i've told her about those). This company is saying she can pay £400 a month for 5 years with all her debts interest frozen, etc, etc.... but in her fiveth year she must remortgage her house and with any money she gets she must pay off as much if the debt left as possible, if not they write the debt off after the 5 years.

BUT she cant have a proper bank account and they've told her she wont be able to get any credit for about 7 years.

Surely she'd be better to sell her house (she has equity in it that the bank isnt letting her take out) or go down some other route??

Is this like a standard practise? I've told her to come on this site but i think shes just fed up with everything and is just going to them as they've made it sound so easy to her.

I eally feel for her, im in debt myself and i know what it feels like but i think shes feeling really desperate....

Any comments or advise would be really appreciated.

Thanks Guys xx:beer:

CLAPTON

the proposal made about your friends debts sounds like an IVA.

your friend needs to post a Statement of Affairs...without seeing the detail its imposible to say whether an IVA is suitable or best for her


in any event she should seek free independant advice from CCCS or Payplan before committing to anything with this company.

lynzpower

It sounds like shes being offered an IVA there.

I take it she hasnt accepted as yet, as its not a given, a proportion of h4er creditors have to agree this is the best idea all round.

Being on a mortgage holiday is no good, it will end up costing her WAY more in the long run

Can she come here and tell us her situation herself?

loulouloulou_2

I'm trying to get her too.

Shes coming over on Thursday so i'm going to actually show her the site and my threads and how you helped me with my finances (after i popped my big old head out of the sand!)

If i can get her to, we'll post a SOA on here for her on thursday.... it cant hurt to just try it!!!

Thats why i think this site is so fab - i've told you all more about my money problems than almost anyone here!!!

I thought IVA's werent sucha good idea?

Are they like Bankrupcy?

lynzpower

IVAs are different from bankrupcy.

heres some reliable info from national debtline http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=26_individual_voluntary_arrangements

Dolly_Smith

that 6-month repayment holiday on the mortgage is going to be a killer - she still has to pay all that interest per month but is paying no capital off

msmicawber

If she has her own place, could she get a lodger (or lodgers) in to increase her income and help pay the bills? Would a second job be feasible to make more money to throw at the debt? It seems a terrible shame to lose her asset, her home and the equity she's built up in it.