Nothing left to pay creditors

PM22

That's not very nice. I had to move as my ex husband threw us out of his flat. I live in the south east so mortgages are expensive and I only take home 2.3k a month

I had to buy a flat for me and my son......what should I have done....paid the debt instead?

swingaloo

PM22 said:

That's not very nice. I had to move as my ex husband threw us out of his flat. I live in the south east so mortgages are expensive and I only take home 2.3k a month

I had to buy a flat for me and my son......what should I have done....paid the debt instead?

Well as you said you had equity in the flat perhaps you could have rented?

PM22

Why should I rent? Renting is a mugs game.....

swingaloo

PM22 said:

Why should I rent? Renting is a mugs game.....

Borrowing money you cannot pay back and leaving creditors without payback is fair then?

PM22

I can afford to pay them something when I get my annual pay rise in April....

Wonka_2

PM22 said:

I can afford to pay them something when I get my annual pay rise in April....

With all the advice given on these forums this should be pinned to the top - it's a mugs game to gamble a (potential) future payrise to satisfy existing debts.

What happens when the payrise is below inflation ? Or taxes increase so disposable income drops etc ?

This is why mortgages are stress tested and I still don't understand how you've achieved one when you're in this situation and banking on a payrise in 8 months time

Renting may be a mugs game but it's one that those that can only afford it have to live with

swingaloo

April is 9 months away, you will probably have far more hikes in your outgoings and bills before then than your next payrise will cover.

PM22

I don't know what the big deal is. I applied to Haysto.....they took my budget and approved a mortgage for 133.5k and I had equity of 155k so I bought a flat for me and my son.....big deal?

fatbelly

PM22 said:

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?

Most will just take a hit and sell the debt on at a huge discount - around 10p in the £

It's possible some might try court action. Post again if that happens.

The main thing to understand is that this is nonpriority debt, so if three is nothing left after paying the priorities, then they get nothing, or a token offer.

But I'm not a fan of token offers unless you know this is a short-term problem

If you get a windfall you could offer 25p in partial settlement but that would be up to you

PM22

What do you mean?