it doesn't make good reading

Crown

bernie_inn wrote: »

Hi crown is that amount what you pay on the debts nearing £50,000 has it affected your home in any way? that is my main concern having a family home for me and my family

Hi, Yes the £70 payments are of the £50k debt what now stands at around £38k. The am officially meant to be paying just £1 a month as thats all I can afford according to the CCCS but I am working a second job and earning an extra £400 what is being used to snowball the debt.

It hasnt effected my home as I havent missed a mortgage payment and am just remortaging myself (I owe another £107k on the mortage) to an interest only deal what will free up another £400 a month that can be thrown at the debt. I then plan to switch back to repayment mortgage asap.

If you have a chance look at the snowball calculator at http://www.whatsthecost.com to see how making overpayments on an account can rapidly redeuce your debt free date

bernie_inn

Seriously thanks to all of you for your advice and support it is good to know i'm not alone. I have to go to work now but i'll be back on later

jamesd

bernie inn, none of the debts except the mortgage is secured on your home, right? If so it appears that bankruptcy is likely to be the least bad option unless you work in financial services or a similar area.

The reason I suggest considering bankruptcy is that your debt servicing costs well exceed your ability to pay but you're secure in your home and have a child on the way. Bankruptcy is likely to leave your debts gone a year from now and you free to enjoy your child without excessive financial stress.

One caveat is that you should check the SVR of your mortgage or have a mortgage that is a lifetime tracker so it can't increase to a very high SVR rate while you have difficulty remortgaging. If bankruptcy is least bad you might want to remorgage first to get into this position.