£75k unsecured debt and own flat (ex local authority) worth £150k

kelv1984

Hi All,

Just need some advice really, the situation I'm in is the following.

I currently owe,

Lloyds bank £33k unsecured loan/overdraft
NatWest £14k unsecured loan
Other credit cards to the sum of £25k
Tesco bank loan £2k
Family £50k

Total = £120k

Ok so I was employed full time hours were reduced to half about 10 months ago. Used savings too keep up payments now savings are running out. I've contacted stepchange and arranged a debt management plan not set up yet but will be over next few weeks. I have a flat worth £150k current market value no mortgage or loan secured against it. Now I bought it last year under the right to buy option so if sold I'll have too repay the discount if sold within 5 years. So I was just wondering if anybody on here is in similar situation or know of anybody or can advise me what too do.

Many thanks,

Kevin,

National_Debtline

Hi Kevin


The first thing to point out is that you've acted wisely already in taking advice from the likes of Stepchange.


The second is to stress that these are unsecured debts - as the name suggests, that means they are not tied to the property in any way and you should not be looking at anything as drastic as selling up in the immediate short-term.


For now, a debt management plan like the one proposed by Stepchange will allow you to make affordable reduced repayments towards these debts (I am assuming that they are leaving you to handle the family debts separately from the others).


Dennis
@natdebtline

kelv1984

Ok thanks Dennis yes family debt they didn't include so I will deal with that another time.

Regards,

Kevin.

sourcrates

kelv1984 wrote: »

Hi All,

Just need some advice really, the situation I'm in is the following.

I currently owe,

Lloyds bank £33k unsecured loan/overdraft
NatWest £14k unsecured loan
Other credit cards to the sum of £25k
Tesco bank loan £2k
Family £50k

Total = £120k
,

Wow, those are some BIG numbers there Kevin.

I would assume you must of been earning a fair amount before your hours were cut, how secure is your job now ?

Dennis is correct, your debts are not tied to your flat, so the DMP should be ok for starters, however you need to way up how long it will take you to repay this money at the rate you are proposing.

A statement of affairs may be helpful here.

kelv1984

Thanks for reply, Yes I was on double I am now. My salary has halved I would like to think it's fairly secure industry but who knows these days. I was hoping DMP with creditors until I'm out of the right to buy repayment discount terms of 5 years. Then pay everyone in full once I sold my flat. But I'm a bit worried about the 4 or so years interest the creditors could apply.

sourcrates

kelv1984 wrote: »

Thanks for reply, Yes I was on double I am now. My salary has halved I would like to think it's fairly secure industry but who knows these days. I was hoping DMP with creditors until I'm out of the right to buy repayment discount terms of 5 years. Then pay everyone in full once I sold my flat. But I'm a bit worried about the 4 or so years interest the creditors could apply.

You can always negoatiate with creditors you know, no matter where you may fall in the spectrum of life, they are oblighed to treat you fairly, ask them to stop interest, be persistent, they don't have too, but most will when asked.

If at first you don't succeed, try again until they do!!!!!!!

fatbelly

kelv1984 wrote: »

Thanks for reply, Yes I was on double I am now. My salary has halved I would like to think it's fairly secure industry but who knows these days. I was hoping DMP with creditors until I'm out of the right to buy repayment discount terms of 5 years. Then pay everyone in full once I sold my flat. But I'm a bit worried about the 4 or so years interest the creditors could apply.

If you did go down that route you would (1) nag creditors to freeze interest and (2) offer a reduced sum in full & final settlement when you had the cash.

A completely different route that you should investigate is an IVA. I don't have enough info to be definite but you might need to repay something like £400 a month for 60 months

kelv1984

Thanks for replys, some really useful tips and information.

Regards,

Kevin.