Debit Advice

Dude

My friend has debits in the region of £38,000 (£11,000 of which is mortgage). She is in her mid 50’s and unable to work due to ill health and has no income. Recently she is now at the point where she is unable to find money for food never mind bills, loans and credit card payments and is now finding that due to interest debts are getting bigger.

In desperation she had all but signed up to one of these company’s who take your house and pay you a small lump sum (offered £27,000). I had suggested that it may be better to remortgage her property of around £60,000 on an interest only basis (this would at least leave some inheritance) , clear the outstanding debts and live off the remaining £25,000. However, I would not like to give her wrong/misleading advice that will only make things worse. Please can anyone offer suggests on other options or if in fact this is good advice?

Quincifer

For the debts which are not the mortgage I would get her to sort out stopping the interest on them straight away. It may be an idea for her to ring Payplan or someone similar who can advise her on further on what she needs to do. The sooner the interest stops the sooner she can sort out what she needs to pay back to who.
I don't know much about mortgages i'm afraid so I can't help you much further but hopefully lots of other people will!!!
Good luck x

fatbelly

Yep, Payplan or CCCS. If she can't met their minimum payments, try CAB

She should not convert unsecured debt to secured.

What do you mean 'no income'? What benefits is she on? Try https://www.entitledto.com