£53,000 in unsecured debt, feeling very scared.

exponential

sourcrates said:

Its a mixed bag where defaults are concerned, some default sooner than others.

Are you certain you have received "default notices", and not "notice of default sums in arrears"?

They are very different things, the former will demand full payment of the arrears within 14 days or your account will be closed and a default registered on your credit file.

The latter is just a notice that you are behind with your payments and have been charged a £12 default fee.

Read what it says very carefully, as I suspect its the latter you have been sent.

This is a very powerful message. Words have meaning so read those words very carefully. The words they choose to use when in communication with you are quite deliberate and designed to cause confusion. 

They want to scare you into taking action you don't need to take. Action that will put you in a weak position which gives them the upper hand. 

Smoke and mirrors.....

Floss

Why don't you do an SOA for your future situation without the rental property, then you can see how things could be when that's gone.

But first, think about the following:
* Internet / tv - do you really watch all those channels? Can you utilise family logons? (I pay for Netflix but share my sons' Disney & Prime TV)
*Contents insurance is a MUST
*Clothing - Do you really need to spend that amount every month? I bet you could sort & clear out your clothing and not notice or need to buy anything new except underwear.
*Entertainment - what does that cover?

summerb64

Working_Mum said:

Hoenir said:

MissCarmen said:

Does it matter that my mortgage is with NatWest, who I also have a credit card with? 

Certainly does you no favours in terms of future mortgage product offers. Relationships are ultimately two way. Shaft somebody in business and they are equally as likely to play hardball. Actions have consequnces. 

This comment ^^^^ doesn't feel supportive or helpful.

My understanding is that the mortgage arm and the credit card arm are separate entities and they don't really talk to each other. To switch to an existing lenders new mortgage rate etc shouldn't need a credit check or any searches to be done so they tend to just transfer over to the new deal at the time.

Don't worry about it yet MissCarmen - focus on today and covering your essential bills and the way forward will become clear.

I think it’s a very fair bit of advice, and realistic. No point in pulling wool over people’s eyes. 

Your mortgage will be fine, but the road you’re going down don’t even think what good offers are gonna be available to you, NatWest will offer basic terms as a product switch, and you will have to accept them, and all is good 😊