What happens now.???

in2deep_2

So its been a long time since i last visited so here is an update.

My debts are in the region of £80-90k
Good news is i think ive sold the house to pay it all off (i hope)

So the sale should leave me with 170k after fees
80k is for the mortgage repayment the rest is to be used to pay off my debts.

60k is for a secured loan and the rest is on CC's.
I have been paying a reduced CC payments with interest frozen for two years now on 4 cards how should i approach the repayment of these cards with regards to settlements and how much do i offer as a % of the balance.?

The next question is what next? where will i live.? i guess a new mortgage is out of the question even though despite my debts i have never in 15 years missed or been late on a mortgage or household bill.
Would i even be considered for a rental property.???

Im pleased i can pay back my debts now with what i consider to be a major major sacrifice (my house) but its all lost if end up without anywhere to live.

My current pre tax earnings are 30K

Someone please help me before im homeless.:(

Skinnylatte

I guess you better star checking the houses for rent in your area! And cut up all the cards if you haven't already.
If you don't have any CCj's, been made bankrupt and have a job then you should be fine for a rental property. If not, then you may be able to strike a deal with the landlord by paying 6 months up front, or consider a houseshare.

Dunroamin

If you have problems renting somewhere, you may be more successful by paying for 6 months (or more) up front.

Angry_Bear

And of course, once you know how much you'll be paying in rent it's important you work out a budget that won't lead you back into debt or selling the house will be for nothing.

fatbelly

You have 20-30k on 4 credit cards. Eventually these can be settled by full & final settlement deals.

Factsheet | Full & Final Settlement offers

But these may not yet be defaulted and a probable prerequisite of a F&F deal is a default. If you are looking for rented accommodation , agencies may well want to do a credit check on you.

So get a copy of your credit report (I suggest a £2 statutory report from Experian) to find out what's there. Getting somewhere to live is more important that dealing with nonpriority debt at the moment.

in2deep_2

Thanks, when I last asked about settlement figures I was told it could be discounted 15-20% but will be classed as partial settlement, does this matter.??

sourcrates

in2deep wrote: »

Thanks, when I last asked about settlement figures I was told it could be discounted 15-20% but will be classed as partial settlement, does this matter.??

Depends on weather the debts are still with original creditors or have been sold on to DCA`s, DCA`s are much more likely to accept a lower offer as they will have paid less for the debt, my advise would be to find the answer to this question first.

in2deep_2

All debts are still with them although now with there in house debt departments.

fatbelly

in2deep wrote: »

Thanks, when I last asked about settlement figures I was told it could be discounted 15-20% but will be classed as partial settlement, does this matter.??

Partial settlement is the correct mark on your credit file according to the ICO.

I'm sure eventually you can do better than 80-85% if you follow the factsheet.

in2deep_2

The fact sheet is for F&F can i still use this.?
Also if all goes to plan i could pay by the end of january is it too early in the process to write to them now and name a date.?

fatbelly

in2deep wrote: »

I have been paying a reduced CC payments with interest frozen for two years now on 4 cards how should i approach the repayment of these cards with regards to settlements and how much do i offer as a % of the balance.?

in2deep wrote: »

The fact sheet is for F&F can i still use this.?
Also if all goes to plan i could pay by the end of january is it too early in the process to write to them now and name a date.?

You will be trying to get a full & final settlement with the credit card companies. These will be marked 'partial settlement' on your credit file. You could start now and put 'Payment can be made within 14 days' on that letter because it is unlikely that they would accept your first offer anyway.

But I would leave it until mid-Jan and spend the next 6 weeks getting your new accommodation sorted and get Christmas out of the way.