Debt management plan maybe?

Kenboon123

I'm really hoping you can help guys!


I'm in the process of folding my Ink Cartridge business after 12 years. In total my business and myself owe £32500. I was looking to release equity from our house as we're very lucky we only owe just under 2k on it now. I work part time as a Caretaker (16 hours a week), Football coach (Zero Hours Contract) and do Window Cleaning. But I've only been doing the coaching and Window cleaning for about a year. We went to the bank to remortgage the house to consolidate the debts - but they had to decline it because the only valid income at the moment is the Caretaker role as I've been doing that 2 years. The house is approximately worth 185k. Really not sure what to do or how to proceed My other half will be a joint applicant btw. She earns about £1200 after tax.


Any help would be great!


Thanks in advance.


Kind Regards,
Ken

Sncjw

Post a statement of affairs and we can advise you better.

MovingForwards

http://www.stoozing.com/calculator/soa.php

Link to SoA, format it for MSE, once that's up we can have a look and advise as appropriate.

enthusiasticsaver

Doing the soa is a good start but I advise strongly against consolidating the debt and certainly remortgaging your house is not advisable. How old are you? It does not matter what the house is worth the issue is affordability and it looks like your low income may be a problem. Was the company a limited company or were you a sole trader? Is the debt all related to the business or is some personal debt in your name? You may have to consider some sort of DMP. I would not advise bankruptcy as you have a house to protect.

Kenboon123

Thanks so much guys.



I'm a limited company luckily! So I can write those debts off after taking advise.



I've gone through the process with Debt Compare. They have offfered to sort all my personal debts out including their fees for £136 a month (including their £40 a month fee). I'm currently paying £660 a month for my personal debts! I'm 39.


Thanks again guys.

Mrs_F_2017

I’m no expert, but please don’t use a fee paying service - there are lots of FREE services that can help with a DMP - try Stepchange.

This was all the money goes towards to debt & not £40 towards their fee!

Others more knowledgeable than me will be along to advise as well I’m sure!

Kenboon123

Thanks for the input! That's really the only way around it would seem and we can keep the house!

Mrs_F_2017

Hi ken, the point I was trying to make is that there are Free charities & organisations that will do exactly the same thing but without charging you the £40 fee.

At least take a look at the Stepchange website before you sign anything with the fee paying company?

All the best.