Debt trouble, loans, help?

markwatson99

Hi, I've just overcome a gambling addition and an I'm bad debt. I've taken out a debt consolidation plan which I think has controlled that (costing me £60 a month) and I also owe a lot of money to the taxman (£1000) and to a few friends (£2000), and my current account (no overdraft) is hovering towards the dreaded zero and this debt is hanging over me to the extent I'm struggling to make it to work anymore and lie in bed at night thinking of ways to escape. It really is that bad. I also owe finance payments on my car, and have 2 phone contracts (one of them was a mate stitching me up, see my other recent posts) and pay child maintenance.

Luckily, I own a flat worth £100,000, without a mortgage. Is there any lenders that would help me with a secured or unsecured loan against my property, to allow me to clear the debts and have some leftover for home improvements etc? Every website I've checked says 0% chance as I've defaulted on my credit cards (part and parcel of the debt consolidation plan) - but there must be someone that can help?!

Any advice would be greatly appreciated, I can't carry on like this...

gingeralan

Unfortunately I suspect not, if anyone offers a solution be aware it may involve losing your knee caps if you missed a payment along with v. high interest rate.

If you are in this situation I would advise selling the flat for what you can get for it as there is no mortgage, use the proceeds to clear your outstanding debt and SAVE the remainder, don't just pee it up the wall, move into rented accommodation for a few years, then you may have a chance of getting another mortgage, providing you show you have changed your ways and have made steps to rebuild your credit worthiness.

gingeralan

BTW I mean sell the flat for the MARKET VALUE, take advise on this and do not assume that because you think it is a 100k flat that it is, it all depends on what someone is prepared to pay for it, as you don't have a mortgage so you do not need to hold out for an unrealistic price, I am not saying that your place is not worth 100k, but I know numerous people who think their house is 'worth' a certain amount, are told by many agents etc. it is worth less than that, decide to price it higher against advise, then wonder why they haven't sold it 2 or 3 years later

runforlife

Whoa…Don't just sell your flat. This is your home! It is paid for and therefore no one can ever take it from you. That alone is worth so much. You have a roof over your head and a safe place to live in.

Now, the debt? £3000 to the tax man and friends. Firstly negotiate with the HMRC as this money can usually be clawed back by them from tax deductions. Depends what it is. Or you can arrange a payment plan.Go to the HMRC website and search for debt management in the relevant area of tax you owe and there's a wealth of information available, plus some internal policy documents on what the tax advisors need to do before the debt goes to collections. Even then negotiate a repayment plan with a debt collection agency.

What is the debt consolidation plan? Is that a Debt Management Plan?
If so there are free charities out there that wont cost you £60 a month. Approach them and put £60 towards your debt.

As always a Statement of Affairs provides a way to receive more accurate help.

CKhalvashi

runforlife wrote: »

Whoa…Don't just sell your flat. This is your home! It is paid for and therefore no one can ever take it from you. That alone is worth so much. You have a roof over your head and a safe place to live in.

Now, the debt? £3000 to the tax man and friends. Firstly negotiate with the HMRC as this money can usually be clawed back by them from tax deductions. Depends what it is. Or you can arrange a payment plan.Go to the HMRC website and search for debt management in the relevant area of tax you owe and there's a wealth of information available, plus some internal policy documents on what the tax advisors need to do before the debt goes to collections. Even then negotiate a repayment plan with a debt collection agency.

What is the debt consolidation plan? Is that a Debt Management Plan?
If so there are free charities out there that wont cost you £60 a month. Approach them and put £60 towards your debt.

As always a Statement of Affairs provides a way to receive more accurate help.

This would be my advice too.

if you negotiate with HMRC early on, and don't take the mick, then they're generally quite reasonable. Leave it, and they won't be.

CK

Clive_Woody

As mentioned debt charities such as Stepchange will help you with debt management for free saving you £60 per month. Contact them ASAP for free helpful advice.

I would not consider selling your flat for such a relatively small amount of debt.

Apples2

£2,000 to your friends is not relevant, whilst I don't agree you should have borrowed from them, and disagree even more that they should go without, there isn't much they can do to recover the money they kindly lent you.

Gamblers tend to get tons of sympathy as a lot of people consider gambling an "illness" although not so many consider a smoking addiction an "illness".

The taxman can by ruthless but they can simply adjust your next years tax code to recover any underpayment. I have always found them very approachable and easy to talk to (even if I do get stiffed by them!!)

longtermplanner

Do you have a spare room? Let that out and use the rent to clear your debts.

markwatson99

Apples2 wrote: »

£2,000 to your friends is not relevant, whilst I don't agree you should have borrowed from them, and disagree even more that they should go without, there isn't much they can do to recover the money they kindly lent you.

Gamblers tend to get tons of sympathy as a lot of people consider gambling an "illness" although not so many consider a smoking addiction an "illness".

The taxman can by ruthless but they can simply adjust your next years tax code to recover any underpayment. I have always found them very approachable and easy to talk to (even if I do get stiffed by them!!)

I don't consider myself ill, just stupid and embarrassed that i've blown so much money and left myself with very little. I'm not seeking sympathy either, just a bit of advice. Thanks for the suggestions guys, selling my flat would be a last resort, moving out and getting rental income off it is a good option too (i'm joining the Navy so can live cheaply there)...

I was mainly wondering if you guys knew of any lenders that specialise (?) in people like me, with large fixed assets but a bad credit score, as a loan would sort me out short term and leave a bit leftover for a holiday or something before I join up.

Appreciate the help

Mark

[Deleted User]

markwatson99 wrote: »

a loan would sort me out short term and leave a bit leftover for a holiday or something

This is sounding dangerously like the people who used to appear in the Ocean Finance ads.

If you're serious about clearing your debts and it appears you are, don't go adding on more for luxuries.

~Beanie~

markwatson99 wrote: »

I was mainly wondering if you guys knew of any lenders that specialise (?) in people like me, with large fixed assets but a bad credit score, as a loan would sort me out short term and leave a bit leftover for a holiday or something before I join up.

Nobody is going to lend you any money. Apart from anything else, it would be against the terms and conditions of your DMP to take out further credit.

And borrowing money to take a holiday when you have debts all over the place is just plain stupid.