Help needed

KEHxxx

Hi I am new to the board and I am considering going BR due to having approx 25k on credit cards. This has built up over many years but got worse after having children with being on maternity leave and then only being able to return part time due to my husbands shifts. I have a number of questions that I am looking for answers on so any help would be much appreciated.

1) I have very recently separated but not devorced from my husband but we are still living together for the children but also due to costs. (We are renting atm) how would I show my living costs as we pay 50/50 but some of the bills still go out of my husbands account as this used to be a joint account but no longer is so I normally transfer so to him to cover my share. Is this ok?

2) we sold our house approx 3 years ago due to having a 125% mortgage that we wanted to finish to start again , the sale paid off the 125% and the remainder paid off some other debts. We wanted to pay things off before purchasing another house but things havent been right betweeb us for a while now. We have between us never missed any payments on loans/credit cards. Will this be ok?

3) my ex husband is still helping me meet all monthly payments on my debts at the moment but he can't carry on doing this for much longer which is why I am considering BR as on my own I can't cover everything.

4) it's hard to give a full account of how these have accumulated over the years and between us we carried out lots of balance transfers over the years to ensure we stayed on the best deals with the hope of paying everything off but now I am on my.own this would take many many years. How do I explain all of this to the OR and how much detail will they need?

5) I will be putting together my SOA but know I will be left with very little each month. I do purchase an extra weeks holiday from my wages and this helps cover some childcare during school holidays. Would this be allowed as if I didn't I would have to pay out for holiday clubs anyway? Also can you advise what is a good amount to show for food for 2 adults and 2 children so I can show my half?

Sorry for all the questions but there is so much to think about and it's hard to know where to start.

Geht_fit

Hiya, I can see you haven't had any replies yet and you sound really worried. I'm sure there are some voices of wisdom on these forums, but it seems to me that you really need some professional advice.

From reading the forums, there are a few organisations that can give you advice. If you go to the website moneyadviceservice.org.uk and look for the page "Where to get free debt advice", there are a number of FREE organisations listed.

One that is mentioned time and again by MSE members is:
StepChange Debt Charity
https://www.stepchange.org
0800 138 1111
StepChange helps change the lives of thousands of people every week. Their expert advice is impartial and personalised to each individual situation.

I really do wish you all the best.x

TheGardener

Hi
OK so - its fine to put your expenses as 50% of the total bills and its ok that you give your husband the money for some bills.

The OR will want to see that the proceeds from the house went most on debts - that's fine, and its ok that you never missed any payments - when I went BR I had a great credit history and zero missed payments but it simply wasn't sustainable in the long term. BR was my only realistic option.

You don't need to give a full account of the debts, just the amounts - as long as there is no evidence of rash or extravagant spending (flash cars, luxury holidays etc) The OR will ask you some questions if they need anything clarifying but they are looking for an overview at this stage, not details of how every penny was spent.

The SOA should be an accurate snapshot of what you actually pay out each month rather than trying to guess what the OR will accept. Just be honest and post your SOA and we can offer suggestions.

KEHxxx

Thank you The Gardener your help is much appreciated, I will be doing my SOA over the next few days and will post for advice.

Def no rash spending it's just debts dragged on from when I was young and not knowing how to deal with money and then having children and part time wages etc then one balance transfer to another to make ends meet.

I just can't see any other way out and have been able to pay some off but going to take many many years which I haven't got as need to build a future for my children and deal with this now as it's starting to get me down and depressed now.

Just so worried about the process and questions as I can't give a full account as it's gone on so long now and all mixes into one!

With the left over money from the house sale 3 years ago does it matter if it went off debts in my name or my husbands? I can track back and try and find out but as we were together at the time we didn't think anything off it as we always used to share our money and bills etc.

Also the other worrying factor is renting a house. We are renting a house at the moment that we have been told by the owners is long term but it always worries me in case we need to find somewhere else after I have gone BR. Is it difficult to rent after BR. I think myself and the ex will plan on living together but separated for the next few years if it works out living like this as it will also give him chance to pay debts and me chance to try and save a little if possible for my own rental.

Many thanks

TheGardener

If the proceeds of the house went on family debts - I doubt the OR will be upset about it.
Renting can be challenging for anyone with a poor credit history. The best thing you could take from your current place if you have to leave is an excellent reference from your LL. That rent was paid on time, you didn't bother the neighbours, you looked after the property etc etc. Although the high street letting agencies are difficult - look around for private landlords who want no bother, longer term renters who pay the rent and look after the place.

But don't go stressing now about something that hasn't happened - concentrate on taking control of your financial future first

KEHxxx

I know the BR will stay on file for 6 years but how hard after the first year is it to start building a better credit history?

TheGardener

Its fairly simple to rebuild your credit file. Perfect management of bank accounts - no missed DDs or 'insufficient funds' events. Pay any utility bills in your name on time and after a year or two - get a poor credit rebuilder card like Vanquis. Then use it regularly for everyday stuff and pay off in full every month. You wont have access to any credit line before then so its actually easier to manage your financial affairs.

KEHxxx

Yes I am determined to be 100% perfect after BR as I want a fresh start and not to make same mistakes. I know the online process is easier now but it's just worrying me the more I think about it. I think I just need to do it.

What do you suggest about my payments to credit cards between now and BR, do I carry on paying them or ask them to put them on hold or much lower payments for max of 3 months while I save the £680 for the BR? Obvs i will still pay all normal essential household bills.

Also need to try and have my name taken off a joint loan as do not want my BR to effect my ex husband and this is the only joint debt left, is this possible as he has always made the payments?

luvchocolate

We would normally suggest stopping the debt and save that towards your B.R fees.
Your ex would become liable for the whole of the loan if its in joint names.

KEHxxx

Yes but don't want him to be linked financally so is it easy for me to be removed as he is happy to carry on paying bit we just want it in his name