Credit Card Debt and Mortgage up for renewal... please help

JimboTB

Hi Everyone,

I am asking this question on behalf of 2 friends (married to each other) who unfortunately cannot access the net at present and have gotten into a problem with there money.

Basically they have currently £72,000 outstanding in credit card debts which have mounted up over time through being given high credit limits and only paying back the minimum and also some unfortunate family problems. There mortgage is also now due for renewal and they currently have £165,000 outstanding with the house worth roughly £285,000.

They are currently unsure how to resolve this problem due to there age and currently sturggling with the payments and having to withdraw cash on the credit cards some months to make sure all the bills are paid. This obviously can't go on and they are desperate for any help they can get.

I was wondering if it was feasable to try and get a new mortgage for just the current outstanding amount of £165,000 and seeing if the CCCS could find a way to help with the credit card debts but I don't know what impact this will have on there credit rating etc, they obviously don't wish to apply for anymore credit but would need a mortgage. I don't think trying to get a mortgage to cover everything would be very good at £237,000. There credit scores by the way appear to be good at present, with experian giving them both over 980 out of 1000. They have also never missed a single payment on there mortgage or other important bills.

The one of them who is in full time employment is 54 years old and earning £57800 a year however it is very possible this may be dropping to £42690 soon this is all before tax.

The other is 53 and registered disabled and recieves around £6000 a year in benefits.

I am really hoping somebody may have some advice for them as they more than anything want to keep there home and become debt free, it has been a real struggle for them lately. The main thing is the cost of the credit cards each month.

I look forward to getting some feedback on this question and thanks a lot in advance.

J.

JimboTB

Anybody?

misspoppy

Are you saying that the deal they had on their mortgage is due to end eg a fixed or discounted rate? If so they may be able to simply ask for another deal from their lender and nothing to problematic should come out of it.

Obviously at their ages that much debt is a big issue. especially if they are struggling to repay it. Without more information about their finances it would be difficult for anyone to make other suggestions. If they are happy for you to post a SOA (statement of affairs) then ask them for a detailed list of all their income and out goings see the sticky for first time posters for further advice.

If they can't repay and need debt advice then contact a debt charity eg CCCS however it doesn't seem that things are that desperate as they haven't made any late or missing payments todate.

It may be that they should concider downsizing and clearing their debts with the proceeds from selling their home and buying somewhere smaller.

CCCS_Matthew

Hi Jimbo,

I've PM'd you

Regards
CCCS