Please HELP!!!

dyoungson

Hi everybody,

Well I don't know where to start really - I feel so trapped right now!!

Our debts have slowly built up and I now feel that although all payments are being made (a few missed payments due to changing DD details - my fault) that it is only a matter of time before things get out of control.

It has now got to a point where we are no longer being left with enough disposable income to cover us for the month after all minimum payments have been made.

Currently our CC debt is £34,000 and outstanding unsecured loans are currently sitting at £20,000, our monthly repayments towards debt are around £1600 per month

The real problem lies with the credit card repayments, the loans I can manage because I know they will end in three years and the repayments are fixed.

I have a mortgage on one property and own another property outright - I'm toying with the idea of a secure loan against my mortgage or possibly a release of equity on the property I own outright, but I have no understanding of either to be honest?

Step Change have advised that my best option is a DMP - but I'm really really reluctant to batter my credit file for at least the next six years...

I really do not know what to do - please any advice would be much appreciated.

Cheers,
D

[Deleted User]

It's a bad idea, to convert unsecured debt into secured debt.

Why not sell the property you own, and use some of the proceeds to clear the debts?

In the meantime, I suggest posting an SOA, so the good folk of MSE can help you free up a bit of cash, each month.

dyoungson

Thanks for the quick reply.

My mother lives in my owned property so selling it is not an option I'm afraid...

I'm not quite sure what a SOA is?

[Deleted User]

An SOA is a Statement Of Affairs.

http://www.stoozing.com/calculator/soa.php

chillpill

dyoungson wrote: »

Hi everybody,

Well I don't know where to start really - I feel so trapped right now!!

Our debts have slowly built up and I now feel that although all payments are being made (a few missed payments due to changing DD details - my fault) that it is only a matter of time before things get out of control.

It has now got to a point where we are no longer being left with enough disposable income to cover us for the month after all minimum payments have been made.

Currently our CC debt is £34,000 and outstanding unsecured loans are currently sitting at £20,000, our monthly repayments towards debt are around £1600 per month

The real problem lies with the credit card repayments, the loans I can manage because I know they will end in three years and the repayments are fixed.

I have a mortgage on one property and own another property outright - I'm toying with the idea of a secure loan against my mortgage or possibly a release of equity on the property I own outright, but I have no understanding of either to be honest?

Step Change have advised that my best option is a DMP - but I'm really really reluctant to batter my credit file for at least the next six years...

I really do not know what to do - please any advice would be much appreciated.

Cheers,
D

I wouldn't lose any sleep over defaults on your credit file for the next 6 years, as I'm guessing you don't want any more credit for a while anyway!? The alternative (not recommended) would be to continue paying £1,600/month to service your debts and still have the same amount of debt (or even more!) in six years time!!! Think of how much of your debt you could "batter" over the next 6 years by doing a DMP instead!!

samtoby

If you get a loan you may run it up again. Think about it from that perspective.

£1600 sounds a lot to service debt but it depends what your income is - post your SOA so people can try and help.