Mortgage nearly paid, But.

sportage1kia

Hi any advice would be appreciated, my mortgage is going to be hopefully paid off this year, which would give me £100 per month extra.
I also have other un-secured debt which 4 to be exact, which I have been making token payments with help of National Debt-line and have no ccjs and have constantly been sending payments and budget sheets to all creditors.
I have presently got £29 to divide amongst my creditors according to National Debtline on pro-rata basis, and obviously have further when mortgage is paid, would this be correct ?
Thanks again for any replys because I have heard stories regarding selling of house or charging orders to repay the debts

Tixy

If you have no CCJs then there is no current risk of charging orders or being forced to sell your home.

Even if one of your creditors did take court action and obtain a CCJ then a charging order is still fairly rare and being forced to sell your home is near zero.

Once the mortgage is repaid then as you say they you'll be able to redo your budget and hopefully offer your creditors more a month.

How much are your unsecured debts in total?

sportage1kia

Tixy wrote: »

If you have no CCJs then there is no current risk of charging orders or being forced to sell your home.

Even if one of your creditors did take court action and obtain a CCJ then a charging order is still fairly rare and being forced to sell your home is near zero.

Once the mortgage is repaid then as you say they you'll be able to redo your budget and hopefully offer your creditors more a month.

How much are your unsecured debts in total?

Thanks for your reply, I owe approx 25k credit cards and unsecured loan, but one card and the loan debt has been purchased by 2 separate companies hence Cabot and Arrow Global, so I have been paying them by s/o without fault continuously, but obviously trying to increase payments when I can.

National_Debtline

Hi Sportage

Based on the information in your post you are correct that if you currently have £29 surplus you can make pro rata offers, and when you finish paying off your mortgage you can use the additional £100 surplus to make increased pro rata offers.

Once you have paid off your mortgage you may be able to start a free debt management plan with StepChange or Payplan, where they can help you with negotiating with your creditors on your behalf.

Your unsecured creditors would have the right to apply for a county court judgement and secure the debt against your equity with a charging order if they particularly wanted to, but this is true whether your mortgage is paid off or not.

James
@natdebtline

sportage1kia

National_Debtline wrote: »

Hi Sportage

Based on the information in your post you are correct that if you currently have £29 surplus you can make pro rata offers, and when you finish paying off your mortgage you can use the additional £100 surplus to make increased pro rata offers.

Once you have paid off your mortgage you may be able to start a free debt management plan with StepChange or Payplan, where they can help you with negotiating with your creditors on your behalf.

Your unsecured creditors would have the right to apply for a county court judgement and secure the debt against your equity with a charging order if they particularly wanted to, but this is true whether your mortgage is paid off or not.

James
@natdebtline

Thank you James for your reply, hopefully when mortgage is paid off, I will contact either of the companies mentioned for advice.