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MiniJOJO

A friend told me today that she still owed £75000 from an old mortgage reposession from 10 years ago. The house was worth £120k and the bank sold it for £40k leaving her liable for the £80k shortfall.

She has been paying £100 a month, but at this rate it will take decades to clear. Surely this is not her only option?

Mummyboo91

Hiya,
Try and keep this simple.
Recently had a Northampton county court letter about a 3 bill from 2010 the case was brought by lowell , I assumed it was a statue barred debt and I have replied with the questionnaire and my status barred letter also asking for proof of original contract. I have agreed to mediation if they can provide proof of debt ownership and contract.
However after rummaging through paperwork I have found a letter from lowell dated March 2015 saying thank u for payment (doesn't say how much of when this payment was made) and please see up a repayment option. I can not find on any of my bank statements where a payment was made and this debt still doesn't appese on any of my credit reports....
So my questions are
1) If the debt isn't on my credit reports is it still classed as statue barred
2) if I had bad a payment maybe from another account sometime in 2014 or 2015 would it still he classed as statue barred because the debt is from august 2010
3) should I continue to wait for a reply to the contract request and proof of debt from lowell hoping or should I retract my defence because of the letter I've found saying somewhere I made a payment??

Thank you

Emmamay90

Hi,

I’m looking for some advice. I have spiralling Debts with catalogues (very and Argos) and a bank loan amongst other smaller debtsc the grand total of which is around £5,000. I am currently only meeting the minimum payment of all of them and this is a struggle. Is there any legitimate debt consolidation loans or credit cards that I could apply for to try to get all the various payments into one manageable monthly payment? I’m reluctant to set up a debt plan/IVA at this stage as I do have the funds to meet all of the payments usually every month but am then left with nothing. It would be so much less stressful to have one monthly payment such as a loan or credit card instead of the various interest rates and payment amounts throughout the month.

Any advice would be helpful. Thank you.

StepChange_Rachael

Hi

Thanks for your message and for explaining your situation.

I think it would depend on the circumstances, there probably wouldn’t be a strong argument for applying for mis-selling if you advised the creditor that your income was from take home pay alone, the creditor is likely to push back and say that this was a fraudulent claim.

If the creditor was aware that part of the income was for your son and they still went ahead with the lending then it might be a stronger argument. However, as you’re now in a legally binding solution I’d advise speaking with your Insolvency Practitioner about this, if you want to proceed down this route it could potentially impact the IVA so you’d need specialist advice.

Thanks
Rachael

Tasha27 wrote: »

Can I ask some advice on loan mid selling. I took out a loan last year to consolidate my credit cards. My circumstances at the time were that I was only working part time earning very little, while careing for my disabled son. The income I was receiving when I applied was made up of my part time wages plus benefits I received such as care a allowance and his disability allowances I was receiving for my gim, I know this was wrong but I was desperate, therefore this bumped up the income I needed to pay off the loan. Now he is 19 and trying to take over his own finances so therefore receiving his own disability benefits it’s left me with hardly nothing to live on just part time wage and a care allowance. I’ve now had to set up an IVA to pay off my debts. Do I have any rights to apply for mis-selling of the loan given my circumstances and my own income at the time?

StepChange_Rachael

Welcome to the forum and thanks for posting.

It certainly sounds as though your friend would have other options available to them to explore.

Paying back £100 a month would take an exceptionally long time to pay back the full £75000 and isn’t really realistic if there is another path.

If your friend hasn’t had advice and isn’t aware there are other options available then I’d suggest pointing them in the direction of free debt advice.

Your friend can use our online Debt Remedy tool to access their options. You can find the Debt Remedy link here.

Thanks
Rachael

MiniJOJO wrote: »

A friend told me today that she still owed £75000 from an old mortgage reposession from 10 years ago. The house was worth £120k and the bank sold it for £40k leaving her liable for the £80k shortfall.

She has been paying £100 a month, but at this rate it will take decades to clear. Surely this is not her only option?

anniemals

Hi - i'm trying to help my brother to get out of debt.

He is £6k in debt on a credit card (Barclays, 0% interest until May this year), and £1.6k in his overdraft with Nationwide (£20 a month for the overdraft).

I'm planning to move his debt to another interest free card in May, but that's likely Aqua, which means only 6 months more (which is not nearly long enough for him to pay it off).

Which is he best paying off first? Should he focus on reducing his credit card debt and just take the hit on the £20 per month overdraft fee? Or try and get out of his overdraft? He never goes beyond his overdraft limit, he just lives in it perpetually.

I'm finding it very stressful to try and help him because I'm younger than him, and I have never had money issues myself, so this is all very new for me.

Thank you for any advice.

StepChange_Allen

Mummyboo91 wrote: »

Hiya,
Try and keep this simple.
Recently had a Northampton county court letter about a 3 bill from 2010 the case was brought by lowell , I assumed it was a statue barred debt and I have replied with the questionnaire and my status barred letter also asking for proof of original contract. I have agreed to mediation if they can provide proof of debt ownership and contract.
However after rummaging through paperwork I have found a letter from lowell dated March 2015 saying thank u for payment (doesn't say how much of when this payment was made) and please see up a repayment option. I can not find on any of my bank statements where a payment was made and this debt still doesn't appese on any of my credit reports....
So my questions are
1) If the debt isn't on my credit reports is it still classed as statue barred
2) if I had bad a payment maybe from another account sometime in 2014 or 2015 would it still he classed as statue barred because the debt is from august 2010
3) should I continue to wait for a reply to the contract request and proof of debt from lowell hoping or should I retract my defence because of the letter I've found saying somewhere I made a payment??

Thank you

Hi there

Welcome to the forum and thanks for posting.

Here are the answers to your questions:

1. The debt not being on your credit file any more doesn't mean it's statute barred - it doesn't prove it either way.

2. If you made a payment in 2014-15 when the debt was taken out in 2010, it won't be statute barred.

3. It's up to you, I suppose you may as well await their response, in case the payment didn't go through, was for a different account or something.

I hope this helps. Please let us know if we can do anything further.

Allen

StepChange_Allen

Emmamay90 wrote: »

Hi,

I’m looking for some advice. I have spiralling Debts with catalogues (very and Argos) and a bank loan amongst other smaller debtsc the grand total of which is around £5,000. I am currently only meeting the minimum payment of all of them and this is a struggle. Is there any legitimate debt consolidation loans or credit cards that I could apply for to try to get all the various payments into one manageable monthly payment? I’m reluctant to set up a debt plan/IVA at this stage as I do have the funds to meet all of the payments usually every month but am then left with nothing. It would be so much less stressful to have one monthly payment such as a loan or credit card instead of the various interest rates and payment amounts throughout the month.

Any advice would be helpful. Thank you.

Hi Emma

Welcome to the forum and thanks for posting.

Debt consolidation isn't our area of expertise and we don't recommend further borrowing, however that doesn't mean it's always a bad idea. The best place I can suggest you look for information on this is the MSE site itself.

There's a page here on cheap loans: www.moneysavingexpert.com/loans/cheap-personal-loans/ and credit cards here: www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards/

Please be aware that applying for credit puts a mark on your credit file, and make sure that you can afford any payments on new credit.

I hope this is helpful.

Allen

KDC80

Please help me as I’m getting myself into a debt hole and don’t know how best to get out of it!
So my mortgage is coming to the end of its 5 year fixed term, and the new variable rate is 0.7% higher than the fixed rate. I’d like to fix it again, but I have a lot of credit card debt left over from my divorce 4 years ago that I’m struggling to shift.
I have 5 credit cards, they are heavily utilised. I have one using 34% of available balance, the other four are between 77% and 98% utilised which is doing no favours for my credit rating. All are now charging interest but I’m scared to apply for a balance transfer to new card for fear of being turned down because of my credit rating and the further impact that would have on my already low score.
So I thought I could put the credit card balance on my mortgage on a new fixed rate that’s lower than the interest on the cards. Removing the large unsecured debt and improving my rating.
However, I’ve been turned down by two lenders in 10 days. The first turned down a joint application with my husband because he has a CCJ from a dispute with a utility company which was unjustified and they said they were at fault but couldn’t back out the CCJ. The second mortgage was turned down in my sole name because they said I had too much unsecured debt (the unsecured debt i’d no longer have if I put it on the mortgage). Subsequently my credit rating has plummeted another 47 points! So now I feel I’m even less likely to get a mortgage deal or transfer credit card debt. What can I do now? I feel trapped.

Pinky110

Hi, I’m not sure if I am posting in the right place here. I need advice on how to move forward. I started at college last September, and due to the hours had to stop working so we are relying on my husbands wage and tax credits to get us through. I am starting university in September and fully intend on using the loans services to help with all living costs and uni costs.
But! But over the last few years due to decreasing wages and decreasing tax credits, and 5 children between us we have got into sizeable debt. I thought we would be able to manage that and obviously intend on getting a better pain job after uni but I am not sure how we can continue for the next 4 years like this. Our credit rating is going to pot because we keep missing payments (they all get paid but often late).
My question is, how will either a bankruptcy or one of those debt solution things affect my uni application and loan applications? I can’t go to uni without the loans but we are kind of stuck right now.

Any help would so appreciated.

Kind regards

Pinky