Debt help

Anon_09

RAS said:

Anon_09 said:

fatbelly said:

Well we are planning on moving house anyway, what I meant by this was selling the house to remove ALL debt leaving us with £40-£50k equity as our next deposit for a slightly bigger house. 

That's magical thinking.

You are not removing ALL debt; you are just shifting relatively safe consumer debt to your more serious and dangerous secured debt load.

Even if your mortgage provider allows you, which they may not. You'll be paying for that holiday for the next 20 years, which racks up even on a low APR.

With respect to the DMP, the reason people here encourage others to share is that many SOAs are aspirational, based on what people think they spend.

Unless they actually track their spends, they miss all the occasional but intermittent items. They buy £233 of food, and spend another £150 on clothes and toys for the kids or pets and the "middle" "aisle." They may not go on holiday, but VFR requires chocolates or flowers and a bottle or 6 pack, every weekend.

Really appreciate the in-depth reply, Thankyou. 

I’m going to track spending next month to the penny and put together a plan, I think more than likely it seems to be DMP via StepChange in the clear answer.

I just feel so down about all of this, like such a let down. 

It’s really hard to see light at the end of the tunnel right now and the horrible thoughts seem to be slowly getting stronger. 

RAS

There is a really hard time when we have to adjust our thinking, whether we've just realised someone we thought was a cow is actually OK, or that "having a bank manager who let's you have an overdraft isn't the best thing" (quote from when bank managers had real power).

And of course OUAT when house prices rose dramatically and mortgage rates were low, taking equity out of house was common. And today we get sold this life dream that few can afford.

In 3 years' time, the world will look a lot better. 

The first aim is to stabilise your situation, making your essential payments and saving anything left over.

Then stress test your budget, wait for the defaults and when those come in arrange payments. We'd suggest that you wait for this before going to Stepchange as AP markers damage your credit record for longer than defaults. But in the end it's your decision.

Do talk to people, here, IRL and if needs be talk to Samaritans. If you are male, at a local level do Andy's Men have a group?

Anon_09

Thank you again for the reply.

i plan on letting the debts default and then coming to some sort of arrangement with the companies once I have saved an emergency fund at which point I will likely contact StepChange or DIY.

One question I forgot to ask was - All of the debt is unsecured loans and credit cards, do I need to worry about debt collectors knocking at my door and threatening to take items from the house or worse, can they take legal action against my property? I.e. sell the property to clear the debt?

Thank you

Anon_09

Additional to the above,

Is there a way I can raise a complaint to Zopa & MyCommunityFinance (Castle Bank) for allowing me to have 2 loans with each company as they had 2 different addresses for me across Experian and ClearScore?

I’ve seen a few posts of people having positive news regarding complaint about similar things?

Anon_09

Anon_09 said:

Additional to the above,

Is there a way I can raise a complaint to Zopa & MyCommunityFinance (Castle Bank) for allowing me to have 2 loans with each company as they had 2 different addresses for me across Experian and ClearScore?

I’ve seen a few posts of people having positive news regarding complaint about similar things?

Does anyone have any answer to this please?

thanks

sourcrates

Anon_09 said:

Anon_09 said:

Additional to the above,

Is there a way I can raise a complaint to Zopa & MyCommunityFinance (Castle Bank) for allowing me to have 2 loans with each company as they had 2 different addresses for me across Experian and ClearScore?

I’ve seen a few posts of people having positive news regarding complaint about similar things?

Does anyone have any answer to this please?

thanks

You make an affordability complaint, details here:

Affordability complaints for two credit cards from a lender · Debt Camel

No one can or will come knocking on your door to take your fridge, please do your own research before asking such things, only time a bailiff can be engaged is if a CCJ has been granted against you, and you have failed to maintain payments to that judgement.

For consumer credit debt it can only be the county court bailiff, not high court enforcement, and they cannot force entry they must make peaceful entry, so a locked door keeps them at bay.

Now put all thought of bailiffs out of your mind, as you won`t ever get to that stage.

enthusiasticsaver

As you have a shortfall a DMP looks like your best option.  That will affect your credit file for 6 years after defaults. You can still move to  other fixed rate deals with your current lenders but you will not get a bigger mortgage until the defaults drop  off your file. I strongly recommend you do not shift unsecured loans/cards to secured by effectively using your equity to pay off the unsecured debts. 

You can try complaining to the lenders about misselling on affordability grounds and see what the response is.