Debt

Treesandbird2020

Thank you. He is already in contact with step change but unfortunately due to health issues it may be a longer term disability. They have told him that it will be reviewed after a year. If we sold the house we would have enough to pay rent upfront so no checks would be needed. Should I take a loan out if I don't sell to offer creditors to pay it off? 

Treesandbird2020

I'm worried that if they no longer accept the plan after 1 Yr or 2. They will then add Intrest and force the sale of the house due to the equity. Then I'm going to be in a worse situation than I am in now. At least if we sell I will end up with a debt free husband and money in bank. But we could be living God knows where and chasing houses 

monetxchange

Another one here to say think very carefully before selling your house. Realistically, you’re not a potential good tenant at all for any landlord - no reflection of you, but not many good landlords with nice places will rent to people on a low joint income/benefits, a trashed credit file due to the DMP plus pets. Is it the reality that selling up would clear the debts instantly and that seems the most straightforward? Just think about how you’d ever get back on an even keel after that - could you save up again for another mortgage and deposit? Would you be stuck in expensive rentals forever? 

That’s why it would be great to see a full and honest SOA, so we can see where you can save and get the debt sorted without any drastic measures.

monetxchange

Treesandbird2020 said:

Thank you. He is already in contact with step change but unfortunately due to health issues it may be a longer term disability. They have told him that it will be reviewed after a year. If we sold the house we would have enough to pay rent upfront so no checks would be needed. Should I take a loan out if I don't sell to offer creditors to pay it off? 

Not an expert on this, but I believed credit checks were standard when renting, no matter how much money you had available to give them. They have to cover their backs. Many will expect six weeks rent plus six weeks as a deposit upfront as a basic too.

clairebeth

I think selling the roof over your head is the worst thing you could do.  If you are keeping up with the mortgage payments and it's jointly owned, I can't think that it would be allowed to be repossessed. 

Just because they say it would be reviewed in a year, doesn't mean they suddenly want you to have the money available to pay all the debt off. They just mean that they will review it,  and things may stay the same or they may say 'oh, you can afford to pay £30 a month more now' or something. (Although someone wiser than me can confirm this.)

The important thing is,  do a Statement of Affairs so that you have your finances in order and you can get things straight before they do review it.  

Please don't sell your house over this. You are effectively making yourself homeless and jobless over an issue that is resolvable by other means, and is,  in fact,  already in the process of being resolved. Don't let fear bully you into irrational life changing decisions. 

Treesandbird2020

clairebeth said:

I think selling the roof over your head is the worst thing you could do.  If you are keeping up with the mortgage payments and it's jointly owned, I can't think that it would be allowed to be repossessed. 

Just because they say it would be reviewed in a year, doesn't mean they suddenly want you to have the money available to pay all the debt off. They just mean that they will review it,  and things may stay the same or they may say 'oh, you can afford to pay £30 a month more now' or something. (Although someone wiser than me can confirm this.)

The important thing is,  do a Statement of Affairs so that you have your finances in order and you can get things straight before they do review it.  

Please don't sell your house over this. You are effectively making yourself homeless and jobless over an issue that is resolvable by other means, and is,  in fact,  already in the process of being resolved. Don't let fear bully you into irrational life changing decisions. 

Thank you so much everyone for your help. It has helped me massively. I will do a statement of affairs and will ask for support thank youb

EssexHebridean

OK if I've missed something here then I apologise  but from what I've seen.
- This is a credit card debt your SO has accumulated?
- Your mortgage and all priority bills are paid up to date and you are not having any issues keeping up those payments? 

Firstly - credit card debt is not secured on your home. it's not even considered to be a priority debt. Nobody is going to force you from your home over an unpaid CC account. 

Do NOT accept the offer on the house, instead take it off the market until you have thought the options through thoroughly on this - making yourself homeless is NOT something to do as a knee jerk reaction fuelled by fear over a credit card debt - I promise you that.  You *might* decide down the line to see up, but you absolutely must have all the information in place and be acting from an informed position before you decide to do this. 

As already said - SOA first - make it open and honest and make sure it reflects your current position. Post it into here and we'll see what we can suggest. 

Treesandbird2020

 Thank you and yes your understanding is correct it is credit cards and loans unsecured x
EssexHebridean said:

OK if I've missed something here then I apologise  but from what I've seen.
- This is a credit card debt your SO has accumulated?
- Your mortgage and all priority bills are paid up to date and you are not having any issues keeping up those payments? 

Firstly - credit card debt is not secured on your home. it's not even considered to be a priority debt. Nobody is going to force you from your home over an unpaid CC account. 

Do NOT accept the offer on the house, instead take it off the market until you have thought the options through thoroughly on this - making yourself homeless is NOT something to do as a knee jerk reaction fuelled by fear over a credit card debt - I promise you that.  You *might* decide down the line to see up, but you absolutely must have all the information in place and be acting from an informed position before you decide to do this. 

As already said - SOA first - make it open and honest and make sure it reflects your current position. Post it into here and we'll see what we can suggest. 

leninspot

I can't give you practical advice (except for saying don't sell your house if you can possibly avoid it), but having read your post I can hear the distress. Having been in a mess myself I know just how dreadful it can be. I got a DMP over 6 years ago & the relief of it was beyond belief. I'm now much more in control, my mental health is good & I sleep at night. It all seems too much for you at the moment I know, but honestly, trust it will come right. You're in the right place here (don't know what I would have done with it!) so keep posting/asking for advice etc. Good luck to you.

Stateofart

Post an SOA, christ alive.

Oh, don't sell house, it'll cost more to rent.