£130K in debt: advice needed

Weybridge78

Post removed

Spoonhead88

Normally the first thing people here ask for is SOA.

As 130k in debt would seem like a lot but if this family member has a high income then maybe it not.

Can this person cut out more spending so they have money available to pay the debts faster?

Do they have any assists that could be sold?

Is going bankrupt an option?

Just did some quick maths and if they keep up the current amount each month they would be debt free in under 18 years.

Weybridge78

Unfortunately the mortgage is quite high. Until recently it was almost £1,900. Following a deal switch it is now £1,700.

No assets can be sold. Bankruptcy not an option. All spending has been cut to the bare minimum. Income is inconsistent.

Spoonhead88

Then I'm afraid that if they all can provide CCA paperwork then you are just going to be in it for the long haul.

You have a quite a large mortgage. Could you sell the house and downsize for a few years. Maybe look into renting a place?

[Deleted User]

None of this makes sense. If you're only paying £1 a month for each cc then what's the problem? £1700 a month mortgage? What sort of advice do you want other than sell the house and declare bankruptcy?

midnight_express

How much equity in the house ?

cms-help

Spoonhead88 wrote: »

Just did some quick maths and if they keep up the current amount each month they would be debt free in under 18 years.

How did you get to 18 years? They're paying £12 a year off each debt. £12 per year x 18 years is £216 which doesn't come close. It looks more like hundreds of years to me.

OP, what sort of help are you/family member looking for? If you want to me able to pay more each month and repay faster then you need to post up the Statement of Affairs. If you're looking for a way to get some/all of this written off then it sounds like you've already made the first move.

Sanctioned_Parts_List

cms-help wrote: »

How did you get to 18 years? They're paying £12 a year off each debt. £12 per year x 18 years is £216 which doesn't come close. It looks more like hundreds of years to me.

You missed the bit about the DD paying off HMRC within 12 months, which means there's £584/month going to HMRC, plus the pound a month to other debts. Once HMRC's cleared then that £584 gets used for a different debt.

@OP: sorry for not contributing a lot - didn't want to read and run though. From here it looks like you're already doing everything that can be expected, within the constraints of not selling assets or going bankrupt.

sourcrates

As others have said, what advice are you looking for here ?

There are only the debt solutions laid down by parliament, of which only Bankrupcy or an IVA would be suitable, but without an SOA we are just clutching at straws here.

cms-help

Sanctioned_Parts_List wrote: »

You missed the bit about the DD paying off HMRC within 12 months, which means there's £584/month going to HMRC, plus the pound a month to other debts. Once HMRC's cleared then that £584 gets used for a different debt.

@OP: sorry for not contributing a lot - didn't want to read and run though. From here it looks like you're already doing everything that can be expected, within the constraints of not selling assets or going bankrupt.

You're right, I did miss that part. Thank you.

enthusiasticsaver

As others have said it is almost impossible to comment on without an soa. You already have arrangements in place with creditors. If income inconsistent all your family member can do is pay whatever they can to the debt and hope for full and final offers or rejig it all once the HMRC is paid off. If this is all done through stepchange though presumably they are doing reviews in case circumstances change.

Is the mortgage up to date and is there an option to sell the house? I note you say bankruptcy is not an option. Why is that? It looks like there is a plan in place and once the HMRC is paid off presumably the £584 paid to them will then go to the unsecured loans instead. Obviously this is a long process but short of selling assets or going bankrupt I don't see what else your relation can do.