In a pickle

Steve_R_3

Hi Guy's,
Happy new year.

I do not know how to get around these problems and a friend suggested this site may be able to help. I hope so.

My Story:
I had a very successful company. A good friend of mine had a building company that collapsed. He came and asked me if he could trade under my company name as he had some really good contracts. Foolishly I let him. One of the contracts he had (found this out much later) was half cash half on the books. He had underpriced this contract and walked away when no more money was available. I was left to pickup the peices. He very kindly gave all the PAYE and tax stoppage details to the inland revenue but did not pay the money stopped. I had to remortgage and pay this of ( £ 48,000.00 ) + other material creditors of around £ 12,000.00
These debts are now paid but I am left with a bad credit rating. I have a mortgage based on me being a credit risk so the payments and rate is higher than it should be. I have been paying this high rate for 3 years now without missing a payment. I would like to get a mortgage a a normal high street rate. Surely paying at a high rate for 3 years tells a high street mortgage company I can afford a normal mortgage. Also, I can not get a credit card. I do not want one but my wife has one. She is a housewife so she does not work. We went to the Building society that the card is with (Halifax) to ask if we could have a loan to pay off the card as we are paying £ 244.00 pm in interest only. A loan would see us paying £ 106.00 pm and clearing the debt.
She came back as a credit risk ( because I live at the same address) and were refused the loan. It seems she is able to pay £ 244.00 pm in interest but unable to pay the £ 106.00.
This is an unbeliveable position to be in. How do I get around these 2 main problems (1. Mortgage 2.Credit card)

I appreciate any help you can give me.

Best Regards,

Steve.

iceicebaby

Hiya Steve

I have no advice really just to say well done for asking for help. Sit tight ans someone more knowledgable will be along soon

Verbatim

Hi and welcome.

Are you as a family still using the card or is it all historic debt? The card needs to get cut up.

If you're still using it you're piling up the interest due. If it's being used to buy basics you need to rethink.

Could you give us an idea of your budget? All income and outgoings.

Storm

In terms of getting a better deal on the mortgage, your best bet is probably to go to an Independant Financial Advisor and see what they can find for you - they'll know which companies will lend to those of us with bad credit ratings.

It might be worth checking your credit report to see if there's anything you don't know about on there - defaults & CCJs etc stay for 6 years, plus check you're on the electoral roll etc as this helps a little bit.

jitsuguy

That is a lot of interest on the credit card, is it just interest? Maybe it is worth checking to make sure you are not paying any Payment Protection Insurance (PPI) on it.

Jitsuguy

bobbie78

First step would be to post your SOA to get a clear idea of income and outgoings. Once you post this people can advise more easily how best to proceed and which debts to attack first of all. Do you have anything in writing with this other person so you could take them to court to re-coup some of the money?

chevalier

my thoughts exactly bobbie, can you get any money back from this bug of a friend?

and an SOA will help us to help you....

Steve_R_3

Hi Guys,

Thanks for the advice so far.
I do have my incomings and outgoings but not to hand. I will try to get it posted here asap.
I have contacted an IFA and am arranging a meeting.
I can not get anything from the so called friend as here was very careful not to put anything in writing. Anyway I am very proud of myself for standing up and paying the debts. I could have gone bankrupt but I would not have felt right.

I'll post again soon. My thank's to all of you.

All the best,

Steve.