Financial Advisors - any that specialise in getting clients back on track?

Harper_Marie

Hi all,

I have been reading and digesting these forums for quite a few weeks now. They are so informative, reassuring and comforting in a time when I'm quite panicked about our financial future.

Are there financial advisors out there who help clients get on track or are they mainly focused to selling products?

We are in a huge amount of debt, a mix of secured lending (mortgage, equity release loan), personal loan, a DMP and a few low balances on store and credit card.

All debt is managed (at the moment) and all being repaid. We are not in negative equity when looking at our total debt against equity in property based on current market valuation.

However, things are very tight each month and our salaries are above market rate and I'm concerned that we have little security in meeting current repayments in event our employment changes.

I'm conscious that selling the property would solve the issue in short term but with DMP (partners which could be paid off from sale) mortgages could be impossible or unaffordable and may not be the best longer term solution.

If anyone has any recommendations I'd be forever grateful!
Thanks xoxo

longtermplanner

IFAs make their money from charging you (which you cant afford) or selling you products.

Your DMP - how long will it last? What about the personal loan, I assume that isn't included in the DMP - when does that end? If those are long term commitments, then it might well be better to sell the house, clear everything and start again with a clear sheet, even if that means renting whilst you build up a new deposit.

Harper_Marie

Thanks longtermplanner, that's what I thought but had hoped for someone who could advise!

DMP is the husbands, I'm waiting to reset his log in so I can get a better picture of that side of finances. It's a lot though and long term.

The personal loan is mine and will be finished in 2 years, the cards and store card are also mine have combined total of less than £1,000 and should be repaid v quickly as chucking money at them from overtime. We have consolidated time and time again which is why we have the mix of debts. I have learnt the lesson, extra part time job is helping me make dents in outstanding amounts and shorten repayment terms and I cannot remember the last time I brought something on credit.

I have started collating a list of possibles for us regarding getting slme security going forward, it would have been good to sound them out with someone with experience and knowledge!

Thanks again xoxo

longtermplanner

Here is a good place to explore ideas! Seriously!

As soon as you can clear your unsecured debt, you can divert the money, so the question is, to where?

One key thing is what interest you are paying on your secured debt. If the mortgage is at a good rate, then the worry is when it will go up, but other things are top priority. If you have other secured debt, is that at a reasonable rate though? If you have got suckered into expensive variable rate secured loan from sub-prime lenders, it can be horrendous to try to clear and selling the house may be much the best solution.

One option for trying to clear partner's DMP debt faster is for you to save up your 'spare' money once your unsecured debt is gone and use it to make full & final settlements offers to partner's debts.

Partner's DMP - who is it with? If it's with anyone that is charging a fee, it needs to be moved either to Stepchange or you might look at a new CAB service here: http://nedcab.cabmoney.org.uk/documents/dmp/2b)%20Self%20Help%20DMP%20(Transferring).pdf (If you are planning on trying to make f&f offers, then there is a lot to be said for a self administered plan.)

Harper_Marie

Thank you so much for the time taken to reply.

I'm in the process of compiling a SOA across the accounts (we both have a personal account and I run the bills account from a separate current account).

I've listed most of the debt balances, repayment terms, rates etc and will post them for opinions and thoughts.

The equity is through the mortgage lender and my bank (HSBC) all are on variable rates currently. I'm hoping to get an appointment next week for a discussion on mortgage options (extending current term length and if we are an automatic no for new lower value borrowing application due to DMP) and review our mortgage protection policy as I think we can get it cheaper elsewhere.

Trying to get some information before making an informed decision - it's hard work but trying to take comfort that debt is going down each month and we aren't in negative equity!

Thanks again xoxo