Which way forward?

chrisd1001

Hi hope someone can help. Have nearly 30k of credit card bills, already remortgaged so no equity. My outoings are £300 higher than my income every month. I pay £850 a month in credit card bills, but would like to consolidate them into a load. Would anyone touch me, if so who? I dont want to lose my house but need to find away to pay off creditcards and cut my out goings.
Thanks

arthursleep

Hi i doubt you would get a consolidation loan given the high amount of credit you already have and the level of income. They have no way of knowing you would use it to pay off your cards.
You would need to post up and SOA so people could look at ways you maybe able to cut your outgoings.

chrisd1001

Hi would I not even be considered for a secured loan do you think?

arthursleep

Do you really want to try and turn unsecured debt into secured debt ?
I really would advise you try and look at ways of finding that shortfall in your budget and then try and pay off your cards.
Consolidation rarely works and the process of slowly chipping away at your debt is long and hard but a good lesson in managing your money.
Are you still using your cards to make up the 300 you are short ? Have you missed any payments ?

chrisd1001

No as my cards are all maxed. I just feel if I could get a loan to pay off £900 worth of credit card bills and cut up the credit cards I would be able to survive.

arthursleep

I know what you are saying but a bank would be looking at your overall debt v income and it doesn't look like you can manage now. To give you another 30k loan is unlikely , sorry i know it isn't what you want to hear.
However don't despair please fill in a statement of affairs firstly and then you can see if you have any leeway in your budget.

chrisd1001

thanks for info, unfortunatelt I have done a budget sheet and there is no leeway, I can hardly afford to eat at the moment.

arthursleep

Maybe time to contact one of the free debt charities then and come to some arrangements with your creditors. You need to eat and they will help you get to grips with your finances preferably without borrowing anymore.

chrisd1001

yes it would just be nice if i could keep my house in the process

arthursleep

I am not so clued up on a debt management plan but i am almost sure your house will be fine. I think they prioritise your house , food etc and all your unsecured debt gets whatever you have left over.
There are lots of people on here on dmp's so you should be able to find all the info you need.
Good luck it might seem desperate now but you will get there. Acknowledging the problem is the first step.

dancingfairy

Hi - I'm not sure where this I'm going to loose the house thing has come from - you need to pay your mortgage and secured creditors and feed and clothes yourself - all the others can have a share of what you've got left -even if they get 1 pound each a month. No they can't take your house as long as you pay the mortgage and any secured loans - companies can huff and puff and say they will take your house but the reality is different -worst they can do is get a charging order which is their security blanket and they get their money back when you sell (no they can't force you to sell-o.k it's technically possible but it's so rare I've never heard of it - you've more chance of winning the lottery jackpot or getting hit by lightening than your house being taken in the above situation).
Even in bankruptcy people don't automatically loose their house.
My advice would be to do a thorough budget and get in touch with one of the debt charities such as National Debtline , CCCS or your local CAB.
Good Luck
df