How much should you owe?

Statistician_2

Broken_hearted wrote: »

We get £11,000 a year and last year I paid £5,000 off my debts without struggling. This year I paid over £3,000 off however most of that was capital overpayment on the mortgage to shorten it's length.

Ah My Dear, I could have saved you money there, as I suspect could many people on this site. Mortgage debt is far cheaper than unsecured debt; your actions were to the advantage of your creditors and the disadvantage of your good selves.

Yours,

Julian

ClaireLR

Broken_hearted wrote: »

Yes but I'm not a single parent with one child so I don't get £100 a week.

So therefore a single parent with a child and debt would not be able to pay their debts off :rotfl:

Broken_hearted

ClaireLR wrote: »

So therefore a single parent with a child and debt would not be able to pay their debts off :rotfl:

Yes they could it would just take them slightly longer:rolleyes:

Broken_hearted

Statistician wrote: »

Ah My Dear, I could have saved you money there, as I suspect could many people on this site. Mortgage debt is far cheaper than unsecured debt; your actions were to the advantage of your creditors and the disadvantage of your good selves.

Yours,

Julian

Wrong the debts are on 0% and the mortgage is around 4.9% so reducing the length of the mortgage is saving a lot more than paying the debts would.

Statistician_2

Broken_hearted wrote: »

Wrong the debts are on 0% and the mortgage is around 4.9% so reducing the length of the mortgage is saving a lot more than paying the debts would.

Ah yes Madam, but the 0% debts will no doubt revert to their usual astronomical levels in due course, and I fear with your credit rating compromised you won't be able to renew the 0% on your unsecured debt.

Please correct me if I'm wrong,

Yours,

Julian.

Bagpuss1973

To get back to the OP...

I think your friend should only go bankrupt if she feels she genuinely cannot pay back her debts. I would have thought she could go for something less drastic. Yes it might take her longer to pay but once paid it wouldn't follow her for life like a bankruptcy could.

I know people get discharged and all that but when I've gone for insurance and things it is a question they ask and I can honestly say "no" to it but I don't know if it puts your premiums up or what as why they ask...just another angle to think about.

Does she realise the full implacations of going bankrupt? I always thought it was for people with really no other option.

squirrel_pigeon

Broken_hearted wrote: »

We get £11,000 a year and last year I paid £5,000 off my debts without struggling. This year I paid over £3,000 off however most of that was capital overpayment on the mortgage to shorten it's length.

I don't get how you can do that. You must have a tiny mortgage payment - my rent alone is over £5k a year and I'm in a 2 up 2 down back 2 back.

All I can say BH is that you're very fortunate. My priority bills add up to £700 a month and that's without food, car expenses, childcare etc. No way I could live on £11k, never mind pay off my debts.

squirrel_pigeon

Back to the OP - it is difficult to say what your friend should do. You have described her situation as being one where she shouldn't have a problem paying off her debts. But if she's considering BR then there may be issues that you haven't spoken about.And as some other posters have said, it's not the size of the debt, it's the abilty to repay that counts.