Debt help please?

omahacrazy

Hi

This is my first post and i don't know which way to turn.

Basically due to ill health i'm not working at the moment and all the household bills ie mortgage etc are being paid without a problem.

My problem is i have personal debt of around £45k which amounts to around £1k per month of outgoings.

However after this month this can no longer be financially met.

My wife is working but cannot afford to help me out here either.

What are my options?

Is bankruptcy one of them and if so does this mean i'll lose my home even though the mortgage is being paid on time?

Please help.

Kind regards

Dale

Shineyhappy

Hiya,

Well done for posting on here. I think the first thing you should do is make up a statment of affairs (all incomings and outgoings, see Southernscoussers sticky) then check www.entitledto.co.uk to see if you are getting all the benefits you can. Then I would contact payplan or ccs as they will be able to give you free proffesional advice.

If you want to post your SOA on here, we should be able to help you reduce it.

yellowmonkey

omahacrazy

As Shineyhappy says contact CCCS/Payplan. I was in a similiar situation to yours (£28k debt) and i had reached the point where my CCards were to the max and i had no other means of meeting my minimum payments. I am with Payplan (DMP) and they have been great. They put you at ease and give you the best advice regarding your situation. Post your SOA as advised as you will be surprised how much you can cut back on without knowing.

Good luck and let us know how it goes

ym

omahacrazy

Thanks Shinyhappy.

We are getting every benefit we can at the moment.

My debt is:

Credit cards total: £24k monthly: £502

Overdraft: total: £7k monthly around £80.

Bank loans total: £15k monthly: £416.

Car loan: total: £5k monthly: £135.

Orange mobile: £40 a month.

Car insurance: £38 a month.


:eek: :eek: :eek:


Ps what is payplan?

RAS

Hi

There are a lot of imponderables here at the moment and really we do not know enough to help you.

Firstly, look at CCCS_Matthews recent post with the link to the debt remedy.

Secondly, you and your wide could do a joint SOA, so that people here can help you find ways of cutting your coat according to your cloth.

If that does not work, you will have all the information available for a meeting with one of the debt charities that are recommended, CCCS, Payplan or CAB.

A lot depends as well on your future health. Are you likely to go back to work in the near or distant future?

With respect to the house and BK, that is an option, but there are lots of others that could also be appropriate. How that would impact would depend on how much equity you have in the house?

What is vital is that you keep up with the essential outgoings and then use the rest to pat the unsecure debts.

At this precise moment, it may not be wise to speak to them, as OPS have reported elsewhere that advising creditors by phone of short-term problems has lead the creditor to increase the interest rate, which really really is not designed to help and support people with short term problems.

You have a couple of weeks to get a plan sorted and to contact them formally with your proposals.

Amongst your immediate options could be requesting to pay your mortgage on an interest only basis for a few months, checking with www.entitled.com that you are receiving everything you should be getting, following up on an PPI or health insurance that you have.

Your future plan could include reduced payments, payment holidays or even selling the house and downsizing if you have a lot of equity.

RAS

omahacrazy wrote: »

Thanks Shinyhappy.

We are getting every benefit we can at the moment.

My debt is:

Credit cards total: £24k monthly: £502

Overdraft: total: £7k monthly around £80.

Bank loans total: £15k monthly: £416.

Car loan: total: £5k monthly: £135.

Orange mobile: £40 a month.

Car insurance: £38 a month.


:eek: :eek: :eek:


Ps what is payplan?

Look here for debt charities
http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1103204730,72152,#counselling

and here as to how to sort out an SOA http://forums.moneysavingexpert.com/showthread.html?t=107280

Although you have a fair bit of debt, without the context of income and other expenditure, it is not sensible to give advice.

CCCS_Matthew

Hi omahacrazy,

As RAS said, you might want to take a look at the thread I just posted to give you somewhere to start, as it can be quite daunting to start with.

http://forums.moneysavingexpert.com/showthread.html?t=499694

If you have any questions, feel free to ask.

yellowmonkey

oma

Payplan are Similiar to CCCS in that they are are free company that deal with debt problems. See here .http://www.payplan.com

ym