Hello and please Help !

kattin

Im new to this and feel quite ashamed and extremely ill with worry.

I am considering applying for a secured loan or at least my OH sees it as a way out of what is essentially my mess.

We have a mortgage and approx £56000 unsecured debt:eek: and i do not know what to do for the best!!!

I have spoken to National Debtline but my OH is reluctant to go down that route as he feels it would be harmful:(

Any advice would be greatly appreciated as at the moment this mess is consuming my every waking hour and i want to cry all the time:mad:

debt_doctor

hI kattin, we are all here to help you !

If you post up all your income and expenditure on here we will look at it. Also how much equity is there in your property ?

Lots of people on here are 'in the same boat' This is agreat place for dealing with your debt problems

Best wishes

DD.

kattin

Thanks feel a little better although my partner does not agree....

SOA

monthly income:-

My salary £1440
Partners salary £1200

Total Income £2640

monthly outgoings

Mortgage £520
Council Tax £99
Gas £65
Electric £35
Tv Licence £11.32
Water Rates £23.29
Phone £25
Mobile Phones £70
SpecSavers £13
NSPCC £5
Axa Life insurance £9.62
Home Insurance £34.93
PC world cover £8.99
3G phone cover £6.99
My Car Insurance £48.29
Partners
Car
Insurance £89.84
HP £159.26
Broadband £24.99
Food £300
Cigs etc... £350

Total £1650.99

Personal Loans:-

RBS balance £130000 APR 11.5% 45 months remaining
Co-Op balance £3400 APR 6.1% 35 months remaining
Amberloan Balance £11500 APR 6.5 38 months remaining
Yorkshire Bank Balance £12500 APR 4.12% 56 months remaining

Credit Cards

Unison balance £10938.42 Cash APR 26.75% Purchases 15.94%
Capital One Balance £4000 Cash APR2.59% Purchases £2.59%
RBS balance £850 APR 0%

Store Cards

Harvey Nichols Balance 282.55 APR 21.9%
House of Fraser balance £487.59 APR 29.3R%

What a mess!!!!:eek:

We have approximately £30,000 equity in the house but are tied into a fixed rate mortgage until Aug 08

Thanks again

[EMAIL="abuse@moneysavingexpert.com?subject=Reporting post http://forums.moneysavingexpert.com/showpost.html?p=6290796"][/EMAIL]

Richard_S

Hi kattin,

What did the National Debt Line suggest?

I can't think it was bankruptcy with £30k of equity and almost £1k per month surplus after essential expenditure.

Regards

Richard

kattin

THey advised 3 options

Self Help offer letter
DMP via one of the charities
IVA

All new too me think ive had my head in the clouds for way too long..if only:mad:

fermi

Hi kattin

Well personally the first thing I would do is to get some free advice.

[SIZE=-1] You look at the websites of:[/SIZE]

• [SIZE=-1]The Consumer Credit Counselling Service (CCCS) - Tel: 0800 138 1111 [/SIZE]
• [SIZE=-1]National Debtline - Tel: 0808 808 4000 [/SIZE]
• [SIZE=-1]Payplan - Tel: 0800 917 7823.[/SIZE]
• [SIZE=-1] Your local CAB Office and ask to speak to a 'money advisor'.[/SIZE]

The Payplan website has some excellent info explaining DMP's and IVA's, while the National Debtline website has some great info on letters that you can write to your creditors to come to an arrangement yourself.

Explore these websites so that you can learn about all the options that might be suitable for you. Should you want to call any of them, this won't be recorded on any official financial records, so your other half shouldn't be worried about the consequences of simply seeking advice from these places.

I see you have also posted on the DFW forum, so you will get lots of help there as well.

Richard_S

Hi kattin,

You're obviously facing some farly serious financial problems, but you have to get these things in perspective. It's not the end of the world; you will ultimately find a way to confront them and your health, family and relationship is far more important than a debt problem.

Almost all of the people who post on this board have had to face the nightmare of dealing with their debt problems and almost without exception the hardest part has been the period of time before actually deciding on what course of action to take.

I can understand your O.H not wanting to go the bankruptcy route. We were dragged kicking and screaming into court by a creditor who ultimately petitioned for our bankruptcy; "bless their little cotton socks".

With the benefit of hindsight it was the best thing that could have happened to us, but we were determined to carry on and try and keep the inevitable at bay. Your position doesn't look as hopeless as ours did at the time but then it's easy for me to be objective, and nearly impossible for you, I'd imagine, to even think rationally about what you should do.

If your O.H thinks that you can solve the problem by borrowing more money then he really needs to be committed to living on a tight budget, otherwise you'll find yourselves in exactly the same position in another year; the only difference being with bigger debts.

I would suggest speaking to the CCCS and get a second opinion from another debt charity.

Regards

Richard

Richard_S

kattin wrote: »

THey advised 3 options

Self Help offer letter
DMP via one of the charities
IVA

All new too me think ive had my head in the clouds for way too long..if only:mad:

Good old fermi,

I'd just gone looking for those links.

I have severe reservations about IVAs because of the fees charged by the companies that administer them and the number that ultimately fail.

I don't want to second guess one of the debt charities but I think either a DMP or dealing with your creditors directly is the way to go. That way you should be able to keep the house and you'll have the satisfaction of knowing you're doing something about the problem.

If you do go for either of those options you'll need to be prepared for a long hard slog. Bankruptcy would certainly be the quickest solution but unless you have a friend or relative who could purchase the Beneficial Interest in your house, you'd almost certainly lose it.

Richard

kattin

I am trying to overcome the guilt as most of the problem started with me trying to manage the whole household expenditure without asking my partner for help.

He helped me out? last year when we remortgaged the house jointly i purchased the propertyt when i was single.

I dont want to be burden by debt anymore and will approach CCS on Monday.

I dont want a secured loan and will have to stick to my guns and get through a bumpy ride.

I am learning that i am not alone and i am not a bad person may be a little foolhardy.

You have given me hope and put some sense of reason behind my irrational fears.

I will keep you posted on my progress

Thanks again!!:beer:

Richard_S

Hi kattin,

How is the debt shared? How much is in your name only; your O.H's name only and how much is shared?

We're playing twenty questions here.:D

Make sure you click on fermi's link because if you google it you might come up with the wrong organisation.

You're certainly not alone and if you're a bad person then I'm positively evil.:p

Richard

kattin

Hi Richard

We share the mortgage.

I 3 loans and all the credit cards and store cards are in my name .

My partner has 1 loan and a HP loan for his van and has a one credit card with me as the main holder...if that makes sense???

Feeling less sad and no where near as bad:beer: