Sell up and have a clean slate?

enthusiasticsaver

Just to be clear Rosie my comment was not a judgement on you but more on the irresponsible lending practices of your lender. Giving someone a 20% secured loan is tantamount to sending people down the route you are now on where you are considering giving up the security of your home due to an extremely high interest secured loan.

I hope you manage to sort something out. If you do end up selling up check out with the council that they will help you as when I was a mortgage arrears counsellor selling up meant in their eyes you are making yourself intentionally homeless and they were not obliged to make housing provision for you.

RosieGlow74

Enthusiasticsaver I'm afraid it was a consolidation loan!

I have spoken to the council and we are eligible to go on the list due to our circumstances, however I am worried that it won't lead to an actual offer of housing.

Our mortgage company is the old northern rock so they're not offering any further advances or deals.

I'm thinking now it may be better to try and make larger overpayments to the secured loan by reducing our DMP??

quintwins

RosieGlow74 wrote: »

Enthusiasticsaver I'm afraid it was a consolidation loan!

I have spoken to the council and we are eligible to go on the list due to our circumstances, however I am worried that it won't lead to an actual offer of housing.

Our mortgage company is the old northern rock so they're not offering any further advances or deals.

I'm thinking now it may be better to try and make larger overpayments to the secured loan by reducing our DMP??

Your dmp won't reduce your payments so you can pay a different debt, they will only reduce it if it's causing you financial hardship.

Debtslayer

There's no way I'd sell my house. I think you'd seriously regret it soon after you did it.

fatbelly

RosieGlow74 wrote: »

I'm thinking now it may be better to try and make larger overpayments to the secured loan by reducing our DMP??

Yes, that's what I'd suggest. You need to get rid of that secured loan. It might even be worth running it past a specialist solicitor.

Go self-managed on the dmp if you need to.

cca everyone (consumer credit act debts obviously), reclaim any ppi, challenge any payday loans.

It's going to be hard work but I wouldn't sell up because of non-priority debts.

We all seem to be singing from the same hymn sheet here.

Geoff1963

Being in a home that isn't rented, is a very enviable situation ; I'd do everything possible to keep it.
A vagrant living on the street also has little worry over debt, but few of us would choose to trade places.

2044 assumes no wage rises, and hence no inflation.

determined_new_ms

I would caution selling your house and renting privately. The market is so volatile. Landlords can ask for their property back and then you are left threatened with homelessness and having to find another large deposit and rent in advance, moving fees etc

you should check how many people are on the waiting list and how many people were housed in your LA area in the last year, and the allocation policy for your la. Depending on area you could be waiting for years for a property to become available.

I work in housing, supporting people with some form of housing need. Things have deteriorated so much over recent years that I really do worry if we ever were in the position to lose our home what we would do.

For these reasons I think selling up your property should be the very last resort

tallyhoh

RosieGlow74 wrote: »

Enthusiasticsaver I'm afraid it was a consolidation loan!

I have spoken to the council and we are eligible to go on the list due to our circumstances, however I am worried that it won't lead to an actual offer of housing.

Our mortgage company is the old northern rock so they're not offering any further advances or deals.

I'm thinking now it may be better to try and make larger overpayments to the secured loan by reducing our DMP??

I worked in council housing for years & far from obtaining a council house you would probably wait for years for a flat in a grotty area. Where would you live in the meantime?

System

RosieGlow74 wrote: »

Hi all,
I've been lurking here for a bit and unsure whether to post but what's the worst that could happen?!

Doing this you don't really experience that much pain and you don't learn the lessons that you seriously need to and are therefore doomed to repeat the same scenario again. My parents have been bankrupt several times and never ever learn because the bankruptcy has little to no impact on their lives and they just get to walk away every time. Platitudes spew forth from their mouths at a rate that a car salesperson would be in awe at but crack on 3/4 years and they're off again.

You're in a DMP so technically things shouldn't get worse and if you want shut of it before 2044 then that is easily done by cutting your outgoings and increasing your income and paying more off. If you post a full and truthful statement of affairs including everything like how much you spend at McDonalds or Starbucks etc there is most likely many ways you're literally setting fire to money that the board could help with. For example a £3 Subway sandwich for lunch at work 5 days a week which most people would think "its just a couple of quid" is £780 a year you could save to pay your debt.

Sarastro

Selling your house is a really bad idea; I think you would massively regret it in a few years time.

I'd suggest focus on getting rid of that debt - prioritised by interest rate so that 20% consolidation loan needs to go first. If you have to self-manage the DMP to prioritise payments towards that you should.

You should also really have a determined effort to slash expenditure to get on top of the expensive debt as soon as possible. It's a big amount to pay so break it down - 6 months living like monks and throw everything you've saved at the expensive loan. There's tons' of advice on here for boosting income. Sorry, I just think you should stick with it.