Struggling with debt? Ask a stepchange debt adviser a question

middaz

Long story short. Active mortgage £66k remaining, around £45k estimated equity - fixed 1.5% till dec 26. But... have £10k loan at 5.9% and £4k on maxed credit card at 0% for next year. Do i remortgage and pay £3339 early exit and fix at higher rate to take equity out? 

fatbelly

Short answer quick. Don't move unsecured debt to secured. Start a new thread.

StepChange_Patience

middaz said:

Long story short. Active mortgage £66k remaining, around £45k estimated equity - fixed 1.5% till dec 26. But... have £10k loan at 5.9% and £4k on maxed credit card at 0% for next year. Do i remortgage and pay £3339 early exit and fix at higher rate to take equity out? 

Hi there

Thank you for getting in touch. 

As Fatbelly mentions, moving unsecured debt to secured debt may have it's risks. There is a risk to your home if the secured debt becomes unaffordable for you. 

If you feel you're struggling with your debts at the moment, I would recommend seeking free and impartial debt advice. StepChange would gladly have a look at your situation. 

You can find out more information on how to contact them here. 

I hope this helps. 

Patience

DD1A

Hello,

I have now entered default with one of two CC’s that I hold the other being Barclaycard which has not yet defaulted. I have had a scout through this thread and seeking some advice on how to take my next step.

I read about people going self managed which is what I’d prefer to do and to take the route of paying the £1 token to get me through a relieving period before I start progressing with it. Is this method applicable once defaulted?

Is now the time I send the letter to MBNA requesting info about CCA or do I wait till a DCA to contact me by mail? I understand to do no comms via phone only via email/mail.

Any advice will be greatly appreciated as I am up in the air with how to proceed, also my other CC will follow along behind the MBNA also go default.

To add I am a homeowner with a current mortgage.

 TIA 

sourcrates

DD1A said:

Hello,

I have now entered default with one of two CC’s that I hold the other being Barclaycard which has not yet defaulted. I have had a scout through this thread and seeking some advice on how to take my next step.

I read about people going self managed which is what I’d prefer to do and to take the route of paying the £1 token to get me through a relieving period before I start progressing with it. Is this method applicable once defaulted?

Is now the time I send the letter to MBNA requesting info about CCA or do I wait till a DCA to contact me by mail? I understand to do no comms via phone only via email/mail.

Any advice will be greatly appreciated as I am up in the air with how to proceed, also my other CC will follow along behind the MBNA also go default.

To add I am a homeowner with a current mortgage.

 TIA 

You need to post this in the general DFW forum, not the stepchange debt advisors thread.

StepChange_Patience

DD1A said:

Hello,

I have now entered default with one of two CC’s that I hold the other being Barclaycard which has not yet defaulted. I have had a scout through this thread and seeking some advice on how to take my next step.

I read about people going self managed which is what I’d prefer to do and to take the route of paying the £1 token to get me through a relieving period before I start progressing with it. Is this method applicable once defaulted?

Is now the time I send the letter to MBNA requesting info about CCA or do I wait till a DCA to contact me by mail? I understand to do no comms via phone only via email/mail.

Any advice will be greatly appreciated as I am up in the air with how to proceed, also my other CC will follow along behind the MBNA also go default.

To add I am a homeowner with a current mortgage.

 TIA 

Hi there

Thank you for getting in touch and sharing your situation. 

I would recommend, even if you're planning on going self managed to complete a copy of your budget so you have this to hand if your creditors ask you for it. 

It can be helpful in trying to arrange token payments if you're creditors can see that you need what income you receive to cover your living costs.

A default notice is a normal part of the collections process and you can find out more about this here. It's worth getting in touch with your creditors as soon as you can to make them aware of your circumstances. Receiving communication by email or letter is also helpful, this way you will have a paper trail of correspondence. 

If you feel you need help putting a budget together or looking at the many different solutions to deal with debt, you're welcome to get in touch with StepChange who would have a free and impartial look at your situation. 

There's also no pressure to go ahead with any recommendations either. 

I hope this helps. 

Patience

tailamai

Hi all,

Finally came clean to my mum about my debt (£35k) last night, so feeling a bit emotional. I cleared it down myself from £50k over the lasr couple of years, but I'm now not able to shift more than the interest is adding.

My mum has very kindly agreed to lend me the rest interest free, but I would like to know if there is a strategic way to pay it off. Should I do it all in one lump sum or is it better to pay it off bit by bit?

The debt is split pretty evenly between two 0% cards (with the interest free rate expiring March) and an Amex (where I'm getting annihilated by the interest charges). I won't be eligible for any further 0% cards when these two expire, as my credit rating is in the toilet.

Would really appreciate any guidance 💛 now off for another cry! xx

StepChange_Aidan

tailamai said:

Hi all,

Finally came clean to my mum about my debt (£35k) last night, so feeling a bit emotional. I cleared it down myself from £50k over the lasr couple of years, but I'm now not able to shift more than the interest is adding.

My mum has very kindly agreed to lend me the rest interest free, but I would like to know if there is a strategic way to pay it off. Should I do it all in one lump sum or is it better to pay it off bit by bit?

The debt is split pretty evenly between two 0% cards (with the interest free rate expiring March) and an Amex (where I'm getting annihilated by the interest charges). I won't be eligible for any further 0% cards when these two expire, as my credit rating is in the toilet.

Would really appreciate any guidance 💛 now off for another cry! xx

Hi,

Thanks for your post.

Well done for sharing your situation with your mum, I appreciate that it isn’t easy to do this.

If she’s able to offer you the full £35k straight away, then you could just pay all the credit cards off in one fell swoop. However, I wouldn’t recommend borrowing money from family unless you have no other choice as it can cause issues later on if you have any problem repaying it.

Have you considered other solutions, like repaying the debts yourself in affordable instalments through a debt management plan (DMP)? Debts tend to default after three to six months of missed or reduced payments, at which point interest and charges are usually stopped.

There's likely to be other debt solutions available to you depending on your situation but we would need more information to be able to give a recommendation. If you’d like to review your options with StepChange you could use our online tool or give us a call to speak with an advisor.

I hope this helps,

Aidan

Williamboo

Hi
ive just found out I have solicitors chasing me at an previous address I haven’t lived there for nearly 2 years and didn’t use my old email address until my ex forwarded me a letter saying I have 7 days before they take me to court I can’t afford to pay this what options do I have and what should I do

StepChange_Aidan

Williamboo said:

Hi
ive just found out I have solicitors chasing me at an previous address I haven’t lived there for nearly 2 years and didn’t use my old email address until my ex forwarded me a letter saying I have 7 days before they take me to court I can’t afford to pay this what options do I have and what should I do

Hi William,

Welcome to the forum.

I’d need to know what type of debt this is to be able to give specific advice, but in most cases, you’ll be able to come to an agreement to repay it in affordable instalments, or it could be included in a debt solution.

Court action is usually taken only as a last resort, but in any case, don’t feel pressured into paying anything that you can’t afford. Your ongoing priority bills and living costs are more important.

We’d need more information about this debt and your situation to see what kind of solutions are available to you. If you’d like to get help from StepChange, you can create a budget and get advice using the online tool on our website or give us a call to speak with an advisor.

Regards,

Aidan