Strange situation

crystal_pixie_2

Before I ask my questions I will give you a bit of background.

2010 - found that we were £110k (gulp!!) in unsecured debt and finally managed to persuade my ex to go into a DMP. He wasn't happy with the situation and to cut a long story short the financial situation was the last straw to our relationship.

I left the marital home in 2011 and have been paying half the mortgage since then. My ex refused to sell the house and I struggled to pay the mortgage, rent (I am in a shared house in a very expensive area) and my debts. However, with some fierce saving and selling of most of my assets I now owe £42k. (I am a high earner - £50k +).

About 2 months ago out of the blue my ex decides that he doesn't want the house any more and I find out that he has agreed to sell - it was a price too good to refuse. So we now have £50k equity after mortgages, secured loans etc are paid off.

He has finally agreed to let me have half the equity, so from the end of October I will have £25k + an extra £800 a month.

Good news you all say!! I have been on a DMP with Stepchange since 2011 which has been going well.

My question is this - what on earth do I do from here? I don't have enough to pay all the debts off - but is 60% a good enough starting point? Do I tell Stepchange or do I save it up until my next review? I have spent the last 2 years in digs with practically nothing.

There are 7 creditors - 3 are joint (he has refused to pay them since the breakup). Mainly credit card debt apart from a large unsecured loan from NRAM.

I am keen to do the right thing here - however, the idea of maybe renting my own house is very alluring. So any advice would be welcome on the best course of action.

Tixy

I would talk to stepchange about it - and about the chance of your creditors accepting reduced full & final settlements at about that rate. Are your debts mostly with DCAs now, or still with original creditors?

If you could clear the debts in full (with partial settlements) then I assume that is what you would prefer to do?

If you are not totally certain what you want to do then talk to them now and ask about it in theory and that it may be happening (as you don't actually have the money right now).

crystal_pixie_2

Thanks for such a quick reply.

I will have a word with Step change and see what they say. I would prefer to pay everything off but I will ask to see if it is worth approaching my creditors.

I have been in this situation for so long that this new situation threw me!