Debt advice.

lotty41

Hi, this is my first time on this site and hoping that someone can give me some advice.
I have 30,000 of debt on credit cards and unsecured loans. Currently on a payment plan with all of them and interest has stopped. Single with 3 children and receiving benefits. My financial situation is so bad that it looks like I may have to sell my house and rent a place. Equity in my house is around 45,000. Renting would cost me minimum of 1000pm. I take full responsibility for my debts and would like to be debt free, however, if I paid all my debts off after selling my house I would soon be back to square one again. If it was just me I had to take care of then I would go ahead and do it but having 3 children is a different matter.
Can anyone tell me if I would be forced to pay off the debts once the creditors know I have sold my house.

Thanking you
Lotty

peb

Morning - I don't often offer advice as I am very new too. Other, more experienced folk will come along. However unless the debts are secured against the house then the lender cannot force you to pay back the debt; you may however be in a good position to offer a full and final settlement, say 60/80% which may leave you a little over.

HTH

david_hellier

Hi and welcome.

We will all be able to help you better if you put up your Statement of Affairs along with the balances of your CCs, loans and their APRs. Also state your bank balance if od. See Southern Scouser's sticky to help you through.

Cheers.

lotty41

So sorry, when I typed my accounts out I set it out so you could see clearly what my repayments were and balances but I see that my message doesn't view that way

lotty41

The smaller amount is the what I am paying each month, the larger is my balance.

Shineyhappy

Hiya and welcome!

Any chance you could also let us know your income and other outgoings so we can see a complete picture?

Shineyhappy

Also who is your debt management plan with?

RAS

Hi


You need to look here to find out how to do a full SOA

http://forums.moneysavingexpert.com/showthread.html?t=107280

as well as the debts, you need to list the APRs.

If you are on a payment plan, they should not be taking court action and most companies freeze the interest, but you need to check this with the people running your DMP.

Shineyhappy

Ok, well if you are getting pressurised to up your payments, I would sort out your SOA and speak to either CCS or Payplan as these are charities that sort out DMPs for free. Do not use any company that mentions the words fees!! Otherwise you will pay them fifty quid and only five goes to paying off your debts!

Hopefully we will be able to offer some consructive advice about increasing your income and decreasing your outgoings and then hopefully you can increase your payments to shift the debt quicker.

Also make sure you visit www.entitledto.co.uk to make sure you are getting all available benefits.

thecornflake

With a proper DMP, you will be making payments that they have agreed to, therefore they can't just take money from your house sale. However, you would be advised to spend as much as possible from the sale on paying a lump sum off the total debt.

Also bear in mind if you rent through an agent it can cost a lot, plus the cost of selling your house as well.

You need to get your SOA sorted anyway because you will be asked for these details in court I would imagine.

Shineyhappy

I would really work out whether you would be better to sell the house and rent or try and keep on a DMP but increase your payment slightly.

If you sell you will have to pay solicitors costs and estate agent fees, removal fees etc.