Nothing left to pay creditors

PM22

Hi,

I have been in a DMP with PayPlan for 2 years and have paid off 2.5k with 7.5k remaining.

However, I am about to move and my new mortgage is huge. After my priority bills, I have nothing left to pay.

What will happen?

Wonka_2

Given your previous how have you managed to achieve a huge mortgage leaving no room for current commitments ?

Is the mortgage not conditional on these being paid off ?

PM22

I have secured a mortgage with Haysto, they specialise in mortgages for those of us with bad credit. It is £933 a month, with £150 in fees so £1080 for a 2 bed flat for me and my son.

What will happen now that I can't pay?

Wonka_2

PM22 said:

I have secured a mortgage with Haysto, they specialise in mortgages for those of us with bad credit. It is £933 a month, with £150 in fees so £1080 for a 2 bed flat for me and my son.

What will happen now that I can't pay?

Without seeing the conditions of the mortgage people will struggle to answer - but given how close you claim to be to the limit how have you achieved the mortgage ? Was everything declared to them and, if so, how are they expecting you to pay ?

Grumpelstiltskin

The mortgage is more expensive than you thought it would be?

Sub prime mortgages — MoneySavingExpert Forum

swingaloo

Whatever possessed you do that? An extra £150  a month on top of your payment. Doubt your creditors are going to like thhat.

sourcrates

Unsecured debt is all non priority, you can tell whoever writes to you that you have no disposable income, they can`t take what you don`t have now can they.

However, and more importantly, what happens when your mortgage interest rate goes up, which it will, what will you do then?

Extending yourself to the point of no wiggle room is not a good strategy, I would advise caution, as this has red flags raised for me.

PM22

But what will happen? Will they apply for a CCJ?

PM22

I have a fixed deal for 5 years so I should have secured a few pay rises by the time that comes to an end

sourcrates

PM22 said:

But what will happen? Will they apply for a CCJ?

They don`t "apply for a CCJ", there is a court process to follow.

Courts fix monthly payments according to your budget, so if you can`t afford to pay anything, the court would set a zero amount, the legal process is a two way street and is designed to help you as much as your creditor.

That can be staved off if you write and inform them of your circumstances, they won`t spend more money taking you to court if you have no money to give them in the first place.

Wonka_2

sourcrates said:

PM22 said:

But what will happen? Will they apply for a CCJ?

They don`t "apply for a CCJ", there is a court process to follow.

Courts fix monthly payments according to your budget, so if you can`t afford to pay anything, the court would set a zero amount, the legal process is a two way street and is designed to help you as much as your creditor.

That can be staved off if you write and inform them of your circumstances, they won`t spend more money taking you to court if you have no money to give them in the first place.

But am I missing something here ?

OP makes commitment via DMP then (somehow) sources a mortgage meaning the DMP is no longer manageable ? - presumably any creditors and future court proceedings wouldn't look kindly on this ?

On the other hand Katie Price seems to make a living out of this so what should average Joe have to worry about ?