Need Help and advice

mabedin

Hello Everybody

I need help and advice


Where do I start?

Over the years I have accumulated Credit Card & Overdraft debts of over £40,000. (6 Cards + Bank Overdraft + Loan) I have always paid at least the minimum amount (I know silly me ) so I have never been in arrears (£800).

However I am now struggling to balance everything.


For the last three to four months I am using my cards to offset the last few days of the month. (I know, I know)


I take in about £2300 per month yet paying all my debts and remaining bills I have little to no money at the end of the month.


Additional Information:

I own two homes (???)

Family home - (based on present climate/market/situation there is probably £10K- £15K equity in it)

Second Home is presently in negative equity (Rent received is not paying the mortgage, I have to pay £120 extra to pay the mortgage – it better than having a vacant property and no rent at all)

---

I have budgeted my expenditures and incomes and realistically I have only £300 - £350 to spare each month rather then the £800 I am paying know.

I don’t want to lose my house.

I was thinking about an IVA as the only route to deal with my debts. But is there any thing different I should do?

I ask everybody out there for you help and advice?

debtfree2016

Hello..

Firstly where do you start????

You have by adrressing your financial situation you have started..

www.iva.com is a great webiste for looking into taking out an IVA realistic answers will be given by those in the know regarding the situation of two homes. Trust me someone will be along soon.;)

When speaking to IVA companies regarding your situation doesnt mean you will be signing up for IVA or being pressured into doing so, and nobody has to know until you decide if it's right for you, you do have options.

Good luck;)

Doggies

Hi, your situation is very similar to my own, with 2 houses, one with equity, one with negative equity. My rent is more than covering mortgage. I have in my head to ring payplan/cccs to get advice re: iva, but havn't got round to it. Think I will actually have to book time off work to ring about it! Always my daughter around at home or I'm up to my eyes. I have got reduced payments on a couple of my loans and trying to negotiate with the credit card people to freeze interest and reduce monthly payment. Have to ring with income and expenditure, guy said they will help.

But my bank overdraft is the problem. I also have the debt with one company, Halifax! Loan, credit card and overdraft. Plus have mortgage with them.

I think the best thing is to take the first step and actually call one of these free companies. YOu have to give list of income and expenditure and they will advise from there. Look at me telling you and I havn't done it yet! Its just the fear and intrepidition of the unknown.

bernard828

Hmmm.

Problem 1 is you're losing money on that second property. That £120 x 60 months (standard IVA duration) is £7,200. However if you go into the IVA they might be able to propose a sale of the property and sweep any shortfall debt from the property sale into the IVA.

Your residential home would normally be treated as a possible remortgage / extra year in the IVA depending on whether you can remortgage it in the final year of the IVA. So you won't lose it, but within reason you might need to remortgage it.

mabedin

First I would like to thank everybody who has posted to my help cry.

I planning to open a new bank account today and transfer all my direct debits to it.

Should I stop by Credit card payments?

Regarding my second property it is in negative equity? if I sell it now I may have to pay the bank more money.
I am not worried about remortgage my main home.

Reading some of the forums - should I try CCCS or somebody else initially.
I have started putting my details on their website but have not finished and have not submitted.

judojub

morning mabedin

I am not sure where you would stand with your second property and I would suggest you get some advice from a few different companies before you start. They will help you to make a decision that is in your best interest.
Firstly give one of these guys a call

• Consumer Credit Counselling Service: Full debt help service. Link: CCCS Tel: 0800 138 1111 Opening times: M-F 8am-8pm
• National Debtline: Full debt help service. Link: National Debtline Tel: 0808 808 4000 Opening times: M-F 9am-9pm, Sa 9.30am-1pm
• Citizens Advice Bureau: Full debt and consumer advice service. Link: Citizens Advice or visit your local CAB centre (find nearest) Opening times: different for each bureau

Also, if you are considering an IVA then pop over to https://www.iva.com. There are a list of recommended companies on there (along with reviews). Give two or three of them a ring for some free, impartial advice. They will gladly help to try and steer you in the right direction.
Sorry I could not be of more help.
Best of luck!

FavDaughter1

Hi, echo Judo's post. get some advice ASAP. be careful where you go to for help. any ?'s post here and someone should be able to help you.

the new BASIC bank account away from creditors is important, Foggy is good with info about banks that might be linked. we went with The Co Op- no problems at all.

don't pay anyone up front fees,fees are taken from the money pot each month when a IVA is agreed with creditors.

make some calls & get some advice. we went with Melanie Giles.
good luck .