My S.O.A. ~ Have I got any chance?

findingmyownway

welcome spurs501, you sound very commited :beer:

i do not know much about bankrupcy etc, but to me there is another glaringly obvious option (forgive me if i've miss understood something you've said)

you have said your debts currently stand at around £55K, but you have over 70K equity in your house. why not either move to a smaller house and use remaining equity or remortgage your current home to release some of the equity?

in many, many cases remortgage is a glorifed 'consolidation loan' and people may advise against transferring unsecured debt into secured debt - but there are exceptions to every rule. If you are sensible (AND CUT UP THE CARDS SO THE PROBLEM DOESNT REAPPEAR), have a good income (which you do) and could easly afford the increased mortage payments (which you could, especially with no loan payment to make) then it can be a good option.

You end up with a big mortage, but you would still be nowhere near 100% property value and the interest rate much lower than on credit cards. Yes, you have to pay it over 25 years, but choose your mortgage product wisely and you can overpay with extra income and reduce total interest paid.

To my mind its far preferable to bankrupcy.

Good luck

Mindspace

Hi Spurs51! I can't help on advice much in these advanced debt situation, but would support you here on DFW community. You have been brave to sort it out without taking your easy route. I have subscribed to your thread, so would be following your progress.

Good luck.

spurs501_2

findingmyownway wrote: »

welcome spurs501, you sound very commited :beer:

i do not know much about bankrupcy etc, but to me there is another glaringly obvious option (forgive me if i've miss understood something you've said)

you have said your debts currently stand at around £55K, but you have over 70K equity in your house. why not either move to a smaller house and use remaining equity or remortgage your current home to release some of the equity?

in many, many cases remortgage is a glorifed 'consolidation loan' and people may advise against transferring unsecured debt into secured debt - but there are exceptions to every rule. If you are sensible (AND CUT UP THE CARDS SO THE PROBLEM DOESNT REAPPEAR), have a good income (which you do) and could easly afford the increased mortage payments (which you could, especially with no loan payment to make) then it can be a good option.

You end up with a big mortage, but you would still be nowhere near 100% property value and the interest rate much lower than on credit cards. Yes, you have to pay it over 25 years, but choose your mortgage product wisely and you can overpay with extra income and reduce total interest paid.

To my mind its far preferable to bankrupcy.

Good luck

Hi, and thanks for your interest, it's appreciated!

Basically I can't move to a smaller house as mine is only a small 2 bed semi anyway. I have lots of equity because I bought my property 10 years ago when prices were low and basically it's more than trebled in value during that time, that's where the equity has come from.

That aside, I think it's the one positive thing in my finances that I have this equity as a "safety net" if I really cant manage.

As I've previously said I would prefer to struggle through for the next few years than take more drastic steps such as bankruptcy or selling my home.

I HAVE thought about a secured loan BUT have heard so many horror stories that I've put it off for the time being at least.

I've cancelled my PPI on my bank loan saving me £100.00 a month and my credit cards have agreed reduced payments and frozen interest so will be using this breathing space to throw all the spare cash I have at my debts.

spurs501_2

Mindspace wrote: »

Hi Spurs51! I can't help on advice much in these advanced debt situation, but would support you here on DFW community. You have been brave to sort it out without taking your easy route. I have subscribed to your thread, so would be following your progress.

Good luck.

Thanks mindspace, much appreciated!;)

findingmyownway

You certainly seem to have an excellent attitude - exactly what's required for DFW success Maybe if i read this thread long enough it will rub off on me :rotfl:

*goes sheepishly to list on ebay....*

spurs501_2

Just wanted to "bump" this thread up a little!

I'm after anyones experiences of what credit cards companies do after allowing you to make reduced payments for a while?

Will they negotiate another period, close the account, call in the balance of the debt???????