Secured and Unsecured Debts - struggling to make payments

donlste

Hi All

I was wondering if you could help me please?

I'm currently struggling to make payments on my debts (mainly credit cards and 2 secured loans).  I'm able to continue to make the payments for the secured debts, however the credit cards are starting to cause me some issues.

From looking at the previous advice on the forum, it's recommended to let the unsecured debts to go into default, which is an option I'm considering, but would this be a good route to go down whilst maintaining the payments on the secured debts?

RAS

Absolutely, as long as you can afford you essential living costs, priority is paying secured debt. Defaulting on unsecured debt does not have the same consequences.

Do get a new basic bank account with a group to which you owe nothing, before you stop paying, and shift any essential DDs. Do not switch as that moves all you DDs and SOs across.

itsthelittlethings

Can you an SOA and posters here may be able to advise further? I think there’s a link somewhere to one you can format for this site.

kimwp

Soa link in my signature 

sourcrates

donlste said:

Hi All

I was wondering if you could help me please?

From looking at the previous advice on the forum, it's recommended to let the unsecured debts to go into default, which is an option I'm considering, but would this be a good route to go down whilst maintaining the payments on the secured debts?

Default on your credit card, the worst that will happen is debt collectors and possible CCJ, which you pay off according to your budget.

Default on a secured debt, you could lose your home, the comparison is like chalk and cheese.

You do whatever it takes to prevent the latter from happening, no if`s, but`s or may be`s, it`s that simple.