Help !!! very desperate

zelig

I have written a few posts concerning my financial status before and have had
Excellent advice – so here goes again and this is exactly where I am to date.
Any advice is very welcome: - It’s a long post so please bear with me!!

I have quite a few debts that have mounted up over the last few years and have got
Worse since being made redundant from a very well paid job to having to accept
Employment paying around £6000 per year less!!

The First Problem


My main debts are as follows:

Mortgage - £52700 – HSBC (3 months arrears and paying extra to catch up)
1st Secured Loan - £36500 – Endeavour (3 months arrears and paying extra to catch up)
2nd Secured Loan - £13800 – Welcome * (1 months arrears and paying extra to catch up)


Total = £103000

OK that said – the Welcome Secured Loan was not done at Loan to Value and as I had no equity when I applied for this then I assumed (rather foolishly) that it was un-secured.
Having downloaded the Title Registry , I now find that Welcomes Loan isn’t mentioned as secured – only the first 2. I asked Welcome that if I sold my property and paid off the Mortgage and 1st Secured loan – would they be happy to give me an unsecured loan for the remaining balance , which they readily agreed to?

So to underline the above point – I could sell the house which has been valued at £90000 to £92000 and pay the first 2 off then start paying Welcomes as unsecured.
Sorted? – not quite …..please see The Second Problem - below

The Second Problem

I also have the following unsecured debts:

Barclaycard Visa £2160
Monument Visa £350
Personal Loan – Black Horse – £1600
HSBC – Personal Loan - £7350
HSBC Overdraft - £250
Payday Loans at around £900
1 month council tax arrears £68
Powergen at around £180

Phew !!! that’s about all I think – now the $64,000 question.

I have contacted Payplan and CCCS who say they cant put together a DMP if I don’t have any money left at the end of the month which is fair – But rather to send a letter to all my unsecured creditor offering them £1.00 token payment and also to cancel my bank account and open another so at least all my original wages come to me.

Question 1 - Is this all above board to do then and what are the consequences? (especially as the Payday loan needed names of 2 relations – in case I left the country I suppose – I am worried in case they don’t accept the Payplan proposal and contact my 83 yr old Mum – which would probably kill her !!)
Would the bank be OK with this also?

Question 2 – When my wages come in should I pay the Council Tax and Gas and Electric first to avoid any disconnection or prison!! and plead with my Mortgage/Secured Loan creditors to pay them at least half – (bearing in mind my arrears) – so I have enough to pay for a solicitor to sell me house?
I actually wouldn’t have enough to pay all 3 secured loans the full amount.
The house could be on the market in a few weeks?

Sorry for the long winded plea for help but anyone who wants to give me a bit of advice would be really welcome as I am now beginning to lose sleep and feeling ill !!!

STOP PRESS –

• Got a second interview for a much better paid job tomorrow – here goes – wish me luck!!!
• HSBC said they will accept half a payment although Endeavour and Welcome wont budge
• Appointment made with Citizens Advice Money Specialist

MissKJ

You need to post a proper monthly State of affairs so we can see how the payments per month balance out, before the house selling question can be addressed. See the sticky at the start of the threads from southernscouser to help you.

Well done for starting your own thread and welcome. It is addictive!

Floss

If you sell your house, most solicitors will take their own & any estate agent fees from the sale monies, after paying off any mortgage and before paying any equity to you.....just check that they will be doing that!