Debt,debt,debt and more debt!

porky22

Hi all,
this is my servere short story
credit card debt £75,000 secured loan debt £26,500 but £17,500 if settled in full. credit union loan £10,000 but if settled £5000 in savings mortgage £113800 and £24000 on our Barclays mortgage reserve.House value £440,000.
Earnings Myself which I am self employed £30.0234 net and the wife employed £16,000 gross about £12,500 net. talked to Barclays they will lend upto about £180,000 on our earnings but said because of the outstanding debt left over do they would not help.The loan to value is about 54% have no CCJ's have a 3 late payments on a at catalogue in the last three years,no missed mortgage payments or credit card or loan payments.The thing is we are making all payments,but we are just surviving.What we would like to do is consolidate the whole lot.but the banks just won't lend even with a great loan to vaule figue.
At moment looking at a big secured loan as an opition is there anyone out there who can help.Barclays were very unhelpful.
My Wife got an email and letter from her bank Santander about a personel loan rate and it is waiting for her,we thought we could get the loan and pay off some credit cards because it would be cheaper,so she applied and guess what she gets a knock back.Why do they send out these letters and emails,it makes me so mad.
Looks like the only out maybe is to sell the house,but should we have to do this?
Anyway this is my story,so I open up to MSE faithful

Thanks
Porky22

Malkin157

The numbers as you've written them don't make sense.

Anyway you've got enough equity to sell the house - clear the debt, buy or rent somewhere cheaper, learn from the mistakes and move on.

Trajal

Hey Porky - welcome and don't panic first and foremost.

Right, now that's out of the way, this all looks perfectly doable. By the way, I wouldn't be too stuck on the idea of a consolidation loan, they can often be more trouble than they are worth. You need to list everything carefully broken down in terms of both debt, income and expenditure.

People can then give you helpful hints and tips as to what you can do. Given that you are managing to service everything, my suspicion is that you may have other options available to you beyond purely having to sell your property.

First things first - find the 'SOA' template (someone more helpful and knowledgeable than me may be able to find a link for you here) and fill it in completely. Be honest, and we can then see what you have to work with.

Some of the advice will make you think quite hard about what you are spending money on - at the height of my debt I was still blowing £70 a month on virgin internet/tv/phone - insanity!

You can then undertake a structure series of personal austerity measures which will feel very harsh at first, but get better as life goes on, allowing you to concentrate on overpaying those most expensive debts first (in terms of interest and admin charges) which will start to have a lovely snowball effect with regards to your disposable income, before you are able to get into a structured steady repayment model.

climbingoutoftheabyss

Hi Porky

Welcome to the forum, I think there are a couple of points here:

1. Consolidation - be very careful about this, your debt (not counting settlements) is about £260k and your combined income about £46k, so you're leveraging about 5:1. You really don't want to go above that and the danger is that sometimes consolidation can lead to increased borrowing if you don't address the reasons why you got in to debt originally.

2. Credit score - you've been recently declined by Santander, this suggests warnings on your score. The credit score is not just about making payments on time but factors in a wide range of other indices.

My advice would be to post your SOA here (mentioned above) and really look at what has caused your debt. Have you overspent on life's necessities or have you simply spent more than you have earned (and I don't mean to be harsh, most of us are in both camps so we do understand and have empathy.

I suspect that you are at the end of your credit line, I've been there and its the start of the process that we call our 'lightbulb moment', once you get to the end of being able to access credit you have to reevaluate your whole financial position. But remember, there are other options open to you.

Post that SOA and the experts will help you start the process

crowmans4

can anyone help with debt thats not mine.
i done an experian check and was shocked to see 2 credit cards on it. mint for 8k and some polonius for 7k.
yes i had a mint card account back in 2002. i rarely used it and at its hight i believe had no more than 5k on it. i last used it around 2008/2009. my then wife for the 2nd time got herself into a lot of debt 50k. an IVA was arranged by her and the mint card was to be added to it. i didnt beleive it was 8k. the other polonius ive never even heard off tho google suggests mbna and ive never had a card with them.
so my wife left me in 2010 and took the kids. for 3 years ive fought hard to see the kids and try build back our relationship. hard when they are posined against you. i am trying to rebuild my life and get rid of the family home that now lies empty. i was forced from it legally at the time but paid for it for around a year til they got somewere else. i cant pay the mortgae which intrest only is £700 per month. i rent privately myself and have done last 3 years at 400 per month. i earn 1200 per month and give her 200 for kids so you can see i cant afford house. i owe 148k and its reduced to 155k for to try sell it. i am in 4th month of arrears now so santander will probably start legal action.
as for the 2 cards. i dont believe this is my debt. ive tried to contact mint to say yes id a card long time ago and my last statement i got was around 2008 or 2009 and had like 2k on it. ? its clear while at the then home i wasnt geting statements as she must have been using the card and failing to pay repayments or using card cheques back then.
i dont know what to do as mint couldnt provide times or dates when it was used or what for. i explained last time i paid my card was 2008 as was more or less clear. in 2009 iva was set up she sorted it all so i assumed the balance which i thought was 2k went onto it. when we split in 2010 she stopped the iva payments so i assume this is why westcott are now demanding i pay 8k.
sorry this is long winded. i have tried numerous places for help. they all say try sort a payment plan as hard to prove you didnt spend it.. i dont think i should pay back mint 8k for somthing no nothing about back to 2009/2010 even if in my name......as for polonis i dont no were to start never heard of them. since harring brooks terminated the iva in dec 2012 westcott have been harassing me for this 8k for mint. its not mine. what do i do. please help

Mara_uk7

Crowman, Copy & paste this posting into your own thread please. Dont hijack the OPs thread. Cheers

YoungBusinessman

As above, SOA from the OP then be much easier to advise...crowman, own thread please, hijacking is frowned upon

porky22

Hi all,
thanks for all replys,but feel a bit dumb what is a SOA please?
porky

Learning2Budget

Statement of affairs. It should be on a sticky at the top of the page. L2B.x

Learning2Budget

Its in the newbies sticky which is third thread down. You list ingoing and outgoings and we will help you find ways of spending money in your budget (hopefully). L2B.x

Little_Miss_Uni-Debt

Hi Porky22,

The SOA is a nicely formatted budget sheet. If you fill it in, select the 'Format For MSE' button & post it up here. It gives us an accurate indication of your current situation.

If you don't currently put aside for something then leave it blank. This will show important holes that need to be filled.

Here's the SOA template

Also I would advise you to have a look through your credit card statements to see what kind of purchases are on there. It's important to find the reason at the core of the debt. For some it's unplanned purchases over a long time, others it's the expense of a big project gone over budget or a change in income. It's tough to look at and think about however it will make you more determined to plan for those reasons in future.

Please remember that getting another loan is adding interest on top of interest. It would be a bad idea to take your unsecured debt and turn it into secured debt! You are going one step deeper into debt with a consolidation loan.

You are fortunate enough to have a very good income to make progress with and you also have the luxury of a fall back plan (selling the house)

Post up your SOA - that's the first step in the right direction!