Need Debt advise

WayneB73

I have been enrolled on a debt managment repayment scheme now for 4 years. This works well for me with my montlhy income as it is currently..

My concerns are that i have a debt of 90K and i am currently paying back £170 pcm.. i have 2 charges agaisnt or secured on my house which basicly takes away every penny of any equity i had for around 35K..

I know paying back just £170 pcm will never repay back the amount i owe, i thought about bankruptcy but dont want to consider it.. I dont have enough dissposable income to go for an IVA and beeing self employed i would worry i could keep up with repayments agreed as work is slow currently... I have had all interest stoped on cards which is one good thing..

Can any one advise me on possible soultions, im 38 now and i dont want this 90K debt around my neck in 20 years time when i retire..

mildredalien

Hi Wayne,

is £170 the highest amount that you can afford to pay off or could you afford to pay off more (circumstances can change over 4 years)? Maybe posting an SOA would help people to advise whether there is wiggle room to up your payments and pay off quicker or not.

One option would be to go for bankruptcy and clear the debt completely within a relatively short period of time. I'm not an expert like many here but I believe you pay what you can for about 2 years and then the debt is written off? Of course this will impact on your home (if you have equity in it I believe, if not, they may not be interested) and you'd need to check how this would impact on your business. But 90k is a LOT of money, and unless your income changes substantially, the other option is to live with slow and steady monthly repayments for a very long time.

WayneB73

I didn't want to go bankrupt as it would end up with my house beeing sold, i would be suprised if i ever got another mortage in my life time.. If i keep the house i'm thinking at least when iv payed it off i will have somthing to show when 60 rather than paying rent which would be dead money, even if it ment selling the house to pay off the remainder of the 90K which would be less by then any way..?

Mothermercury30

Hi Wayne

You're having a "Light Bulb Moment", it's what forum users describe as the point that you've decided to get things dealt with- so very well done on doing that. You've taken a step, now you need to take another one.

You should now speak to one of the following companies: The Consumer Credit Counselling Service (the CCCS), The National Debt Helpline, Payplan, or the Citizen's Advice Bureau to name a few, who will provide FREE advice on how to move forward with the debt. You'll be glad you did.

Make sure you work out your budget to the nut and bolt and have everything to hand before you do this-the more open you are about what you've got in debt, the more realistic the advice and solution will be.

Just curious- you mention you're on a DMP; firstly, are you aware these aforementioned people can work out a DMP totally free for you; secondly, have you had a look at one of the other threads on here, entitled the DMP mutual support thread. If you haven't I recommend this- very supportive.

Keep an open mind about it all, and remember Martin's advice- he says that he hasn't, as yet, encountered a single debt problem that couldn't be resolved.

It's only since I went to Payplan a few weeks ago, after being one of the unfortunate victims of a Debt Management company gone into administration, that I had my proper light bulb moment; I am £22000 in debt, and with Payplan's help with my budget, I look to clearing the debt in just over three years as opposed to the ten years it would have taken me with the other company.

GOOD LUCK with it all. Make some calls!:beer:

Mothermercury30

....by the way, I'm the same age as you!

Mothermercury30

prodebtadvisor wrote: »

How on earth did you manage to rack up the 90k in the first place??? You are right, £170pcm is nowhere near enough, you should really think about selling your house

Prodebt adviser- this is a support site. That comment is judgemental, and unhelpful. It must have taken some balls for the guy to come on here and admit he's in debt. I've said this before, but the reason that this site helps is because it offers support- the second anyone begins making judgements is the day it all falls apart because they won't want to be honest and admit what sort of financial health they're in.

CH27

prodebtadvisor wrote: »

How on earth did you manage to rack up the 90k in the first place??? You are right, £170pcm is nowhere near enough, you should really think about selling your house

This site offers help & support to those who need it. Please don't be so judgemental.

Wayne contact CCCS & talk through your options with them. Good luck:)

Culex

Mothermercury30 wrote: »

Prodebt adviser- this is a support site. That comment is judgemental, and unhelpful. It must have taken some balls for the guy to come on here and admit he's in debt. I've said this before, but the reason that this site helps is because it offers support- the second anyone begins making judgements is the day it all falls apart because they won't want to be honest and admit what sort of financial health they're in.

He's a troll.

Elsewhere, that puerile pestilence has told people to ignore the DVLA regarding SORN, given wonky tax credit advice, told people to pay parking "fines" issued by a private parking company and suggested that someone should get involved with what seems to be either a 419 fraud or a money laundering scam.

Mothermercury30

Culex wrote: »

He's a troll.

Elsewhere, that puerile pestilence has told people to ignore the DVLA regarding SORN, given wonky tax credit advice, told people to pay parking "fines" issued by a private parking company and suggested that someone should get involved with what seems to be either a 419 fraud or a money laundering scam.

Thanks for the heads up- a troll was something I was previously unfamiliar with; I've had a browse through the relevant threads, and now know what to do should one pop up again.:A

WayneB73

I work on A price at work so earn as i go, working in new housing as a dryliner i dont have an unlimited amount of work, in all honest apart from guessing i am unable to judge what i will earn from 1 week to the next..

What i have done is switch my mortgage to interest only in an attempt to save a lump some which i will then be able to pay towards my debt..

I have looked into IVa'S but they want so much money i dont have that amount spare to consider 1 unless the creditors accept somthing stupid like 20p in the pound..

I see football clubs going into debt and getting away with paying less than 10p in the pound so why is it not good enough for joe blogs on the street.