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Debt advice please
JTaylor82
Posts: 12 Forumite
Hi just after a bit of advice regarding my debts. In quite a bit of debt been like this for over 5 years or so.
My debts are quite large 39500 total.
I have had a plan in my head regarding these debts for some time now but i just want to make sure we are doing the right thing.
My debts are quite large 39500 total.
I have had a plan in my head regarding these debts for some time now but i just want to make sure we are doing the right thing.
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In the last 5 years we have completely changed are ways in terms of budgeting as i and my partner was really out of control with spending.For the past 5 year we have paid our 5 creditors £10 each only 2 got sold on all defaulted over 5 years ago. I have managed to save 25k over this time some of it I inherited.We want to buy a house in the next year when my credit file is clean.
Would continuing as i am for a couple years with the small payments and go in a iva in a few years time be an option
any advice would be great.Cheers0 -
If you were very lucky, and very canny, you could possibly partially settle that 40k of debt with the 25k you have saved.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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Hi i did think about it but it means it would almost certain mean i cant buy a house. If was younger 100%. But if i do this it would set me back another 5 years and houses are so expensive especially with a small deposit. After years n years off high private rent im desperate to have a stable own home for family.Maybe im looking at it all wrong
unsure.0 -
I am uncertain as to how it is possible for your credit file to be ‘clean’ next year when you haven’t paid your debts off. These defaults stay on your credit file for 6 years and if you have just made token gestures then the debt will still be showing.If entering an IVA or going bankrupt you will have to put that £25k in to the agreement.
i think you’ll need to clear your debt first and wait 6 years til your credit file is clear before you can even consider a mortgage?If you believe you can, you will. If you believe you can't, you won't.
Secured/Unsecured loans x 1
Credit Cards x 8 (total limit £55,050)
Creation FS Retail Account x 1
Creation Credit Sale 0% x 1 = £112.50pm x 20 mths
0% Overdraft x 1 (£0 / £250)
Mortgage Outstanding - £137,707.00 (Payment 13/360)
Total Debt = £7,400 (0%APR) @ £100pm - Stoozing1 -
My defaults are over 5 years old so 8months they will be off my file0
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They will if you hadn't paid for the 5 years. Because you have been paying 10.quid a month your acknowledging the debt so it doesn't become statues barred.JTaylor82 said:My defaults are over 5 years old so 8months they will be off my file
Also if you are looking at a house they will take your debt into consideration and possibly take off the full debt amount off what they would loan you for a house so you may need to look for houses under what you were going to get.
Although I didn't have debt I bought a house with my partner way under the max of what they would offer me.Mortgage free wannabe
Actual mortgage stating amount £75,150
Overpayment paused to pay off cc
Starting balance £66,565.45
Current balance £55,819
Cc debt free.0 -
Yea but the mortgage lender wont know will they as it will be off my credit file0
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I maybe wrong thou not sure tbh0
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They won't be off your file as your still paying for them. You still acknowledging the debt so it will stay on your file.Mortgage free wannabe
Actual mortgage stating amount £75,150
Overpayment paused to pay off cc
Starting balance £66,565.45
Current balance £55,819
Cc debt free.0 -
Ahhhh didnt no that
god knows now0
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