Do I refinance?

Canada1_2

I have done the budget plan. I owe £100k I have been sticking to my reduced payments with frozen interest for 1 year. Now LTSB wants me to refinance. Sainsbury have started the interest again and said I need to pay this way for 6 months before they can do anything. I'm trying to pay off everyone yet they are increasing my debt. What should I do? :mad:

immoral_angeluk

If you've been making reduced payments for a year have you done anything to sort out the problems like a DMP or IVA or just been enjoying having to pay less towards your debts? First point of call would be either the CCCS or payplan. As a DMP or an IVA may be an option.
Refinancing is not a good idea as if you're struggling now it's only going to get worse.
As I said about give the CCCS or payplan a call and see if they can help

*note reading that back the first sentence sounds harsh, sorry it's not meant to!

Canada1_2

I've been to see CAB - I did a budget plan and we can afford to live like we are now. My house is on the market and once we sell we're going to pay off as much as we can. I do earn £49k and my husband earns £30k so we are on good salaries. - Should have said that at the start.

I'm going to contact these companies as you suggest. Thanks

But short term can I refuse to refinance?

RAS

Hiya

It is against OFT Guidelines for a creditor to suggest that a debtor takes out loans or finance to pay of a debt.

Following link will take you to a downloadable pdf version of the Office of Fair Trading Debt Collection guidelines, to which they should all adhere should adhere:

http://www.oft.gov.uk/shared_oft/bus...dit/oft664.pdf (thanks rog2)

also, this is not my area, but you may be able to do full and final offers although that would affect your credit rating, but then the existing situation may be doing that anyway?

Would suggest that you post a Statement of Affairs so that people can direct you to lower cost providers. Even if your debt is only 1.3 times your joint salary, something is obviously not working for you at the moment.

Canada1_2

Thank you, but what about my credit cards, is there anyway I can stop them introducing interest again?

Dr_Hook

Unfortunately creditors aren't obliged to freeze interest. I suggest (as others have) that you speak to CCCS or Payplan - if they decide that a DMP is the way forward they will negotiate freezing interest on your behalf and may have more success.

At any rate they'll be able to offer impartial advice as to how you should deal with your situation.

Canada1_2

Thank you - I called LTSB and they said if I dont clear in three months they will refer me to debt collection - So CCCS next.

I dont know why I didnt do this before you have been very helpful - glad to see its not just me who has no money. :rolleyes:

MissKJ

Canada, you need to get to the route of your problems not just keep your head in the sand. If you are earning good money but still can't manage your money, you really have to address this, not just sell your house to pay it off. Why don't you really embrace the MSE way, look at the SOA sticky at the top of the DFW boards and start your own diary? you may be surprised at how much help you actually get? Plus it may stop oyu getting into worse debt whilst you are waiting to sell your house.

Canada1_2

I've downloded the budget planner and will do a SOA at the weekend and post it. Thanks for all the help so far. If I can pluck up the courage I'll also tell you why I'm in so much debt.

I have stopped spending - which is really hard. I've stuck to the reduced payments and haven't missed any, but with £100k it will take a while to make a dent.

more to come over the weekend...........

Fortheloveofmoney

It is hard but once you've done your SOA you will start to see light at the end of the tunnel.

Good luck.