Major Debt Help Needed asap

chriswuk_2

Hi guys,

Didn't think I'd ever need to post in here, but I found out last night that my other half has a LOT more debt than I originally thought, and has been borrowing money to pay off other debts, and has got herself in a right mess, and I really need some help in sorting this out before things spiral even more out of control.

We both currently have a mortgage & a £10k (3 year) joint loan that we got out late last year. As these have been getting paid, I didn't think anything of her debts.....until last night.

Here are the details of what she owe's:

EDIT

Where do I go from here, I want to help her as much as I can, but things such as a secured loan are not an option.

She's been looking into IVA, but I read last night that they will make you release the equity in the house (or her part of it) in year 4? Would this be an option if we took her off the mortgage, and downgraded her car, so on paper, she has no assets ? How would that affect the joint loan we have etc ?

Were both stressed out with this now & need help !

I'm in a comfortable financial position (£10k personal loan & £10k joint loan), I can easily afford & be comfortable each month with the mortgage & bills etc.
I have a good job (£30kPA), and could take on a bit more of the household payments to free up some of her cash, but I can't take on too much, or I'll be in the same position.

Can anyone give me any advice?


Thank you in advance

Chris

Sus1e

Chris,

Firstly, well done for coming here to get advice.

I don't have much to offer in the way of help (i'm sure the experts will be along in a minute) but I would suggest that you need to put a SOA on here (see the sticky at the top of the forum) so that people can advise on where you can make savings.

Good Luck

chriswuk_2

Hi Susie, thanks for the reply.

Were down to the minimum on spending cash - she just needs some light at the end of the tunnel to get out of the mess she has got herself in.

Expert advice appreciated too.

Thanks

chriswuk_2

Anyone?

immoral_angeluk

she needs to call payplan or the CCCS and see what they say. You may be able to do a DMP which wouldn't risk the equity in the house unless she had problems paying as she'd then be back to square one. Is the house in joint names?

saffronflowers

Chris, as has been said before congrats on coming here, are you going to deal with her debts jointly or is she going to budget for her own. Either way you need to do a SOA (statement of affairs) and then you can see what money you/she have spare.

SFx

chriswuk_2

She has contacted Payplan, they are going to speak to her tomorrow - thanks

House is in joint names - hence the question above about removing her from the mortgage ?


She will be dealing with her debts on her own, but of course I will be helping her as much as I can by relieving some sort of her outgoings (i.e. paying more of the bills than normal etc)

I'll sort out a SOA, but not including paying off loans & CC's, she has around £250 "spare" each month. As you can see, this figure will not cover all the payments for the loans/cc's etc

chriswuk_2

PS - what is a DMP ?

CLAPTON

a. just to clarify, we need to see details of her income, her spending and the full debt details, amounts, APRs and minimum monthly payments before assessing the options available see

http://forums.moneysavingexpert.com/showthread.html?t=107280

b. also it would be better if she came and posted for herself

c. could she say where the money went.. no judgements will be made but it is useful to know how the money was spent.

d. disposing of the house asset probably isn't feasible; could you get a mortgage based on your income alone sufficient to remortgage in your name; the secured loan would probably need to be paid off as the beneficial ownership of the house is changing..can you afford to pay this off.

e. can you say what the house is worth and how much the mortgage?

CLAPTON

a DMP is a debt management plan.
basically you look at income, essential spending to see how much is left to pay the debts (i.e. a SOA).
if there is insufficient then there are several options DMP, IVA, bankruptcy or just tighter cash management etc

the DMP option involves defaulting on the debts and then making arrangements with the creditors to pay reduced sums.. CCCS and Payplan can help manage these although you can do it yourself...

but the SOA is the first essential

chriswuk_2

Cheers

We go 50:50 on the following, which covers all bills & the joint loan we got out for our conservatory. Here goes......


EDIT

Overspend £330.66