Desperately need debt help

MissLB

Firstly I am new to forums and think I accidentally posted this in the wrong place! I will try again…

I would really appreciate some advice on how to get out of the massive debt I’ve got myself in. 

I am meeting minimum payments each month and have no missed payments. 

However my minimums are ridiculously high and my monthly debt including credit cards and loans this month totalled £1800.

I have worked out I have around £60000 in unsecured debt. 

I have looked into DMP but I can see from the forums that I should allow for defaults and pay creditors where debt has been sold to whilst saving my payment money each month. 

My worry is I absolutely cannot have this affect my partner. I need to pay it and I need to sort it my self. We have a joint mortgage but no other joint debts of any nature. I honestly don’t even want him to know. I am so ashamed and embarrassed. 

I also have a PCP car that will end next June and would need to refinance. 

What will happen when our remortgage comes up in 18months? 

I don’t want to get into any trouble or put myself in a position I lose my house and my partner. I’m very scared 

MissLB

I would really appreciate some advice on how to get out of the massive debt I’ve got myself in. 

I am meeting minimum payments each month and have no missed payments. 

However my minimums are ridiculously high and my monthly debt including credit cards and loans this month totalled £1800.

I have worked out I have around £60000 in unsecured debt. 

I have looked into DMP but I can see from the forums that I should allow for defaults and pay creditors where debt has been sold to whilst saving my payment money each month. 

My worry is I absolutely cannot have this affect my partner. I need to pay it and I need to sort it my self. We have a joint mortgage but no other joint debts of any nature. I honestly don’t even want him to know. I am so ashamed and embarrassed. 

I also have a PCP car that will end next June and would need to refinance. 

What will happen when our remortgage comes up in 18months? 

I don’t want to get into any trouble or put myself in a position I lose my house and my partner. I’m very scared 

El_Torro

The fact that you have a partner (who I presume you live with) who doesn't know makes this more complicated. Normally you would post a Statement of Affairs and people would suggest ways to reduce your spending. If your partner isn't on board, because they don't know that you need to reduce your spending, it's going to be difficult to cut back and focus on reducing your debt. 

When you apply for a remortgage the lender is going to find out about your debts and this will have an impact on affordability. Bearing this in mind it's probably worth thinking about how to tell your partner before they find out the hard way.

Grumpelstiltskin

OK Your partner will find out so what would you prefer, you to tell him or down the line him to find out you have been lying to him?

As a partnership you must work together.

MissLB

When I say remortgage I do mean change my fixed rate with my bank, this doesn’t look at credit file does it? Sorry I’m in a slight panic and don’t think I wrote that correctly. 

I pay a smaller share of mortgage and bills and have reduced my spending. He knows I have debt. Just not the amount and I am beyond petrified it will ruin everything 

kimwp

Hi there, it is very very very unlikely that you will lose your house - I've been a regular on this board since 2019 and I've not seen anybody say this has happened for unsecured debt. If you default on your debts, it will affect your credit record, which will affect you getting credit for another car and may limit your mortgage options to remortgaging with your current provider, but if you are already just paying minimums and have a high level of debt, then your credit record won't be looking good anyway, so it's likely better to stop the debt spiral and start climbing out of it. First thing is to do your SOA (see my signature). It needs to be an accurate account of your income and outgoings.

El_Torro

You can remortgage with your existing lender. If you don't borrow more they will probably offer you a rate without doing any checks. The rate they offer you may or may not be competitive. What if your partner wants to look at other lenders? You will need to give a reason why you don't want to do that. 

If you want to fill in a Statement of Affairs and post it here for people to suggest further cutbacks here is the link: https://www.lemonfool.co.uk/financecalculators/soa.php

Naomim

Regarding telling your partner. Do you know what caused the debt?

Mine was mainly family life, a couple of family holidays, a new car when it packed up, a couple of consolidations down the line. I wasn't spending it on me, it was on us. I hid the debt from my husband. He knew we were going into the overdraft every month but didn't realise I'd got to the point I was putting the monthly food shop on the credit cards.  But, I worked out a plan with help from these boards to start sorting it out. Then I told him about it. He was hurt and disappointed, but I explained how the debt built up and could show that there was a plan in place on fixing it, and it became much easier.

Do try and get your SOA in place. Everyone here is so helpful. 

Good luck. 

Emmia

@MissLB for the real help available, you should post up a SOA - link in @kimwp 's reply or 

 https://www.lemonfool.co.uk/financecalculators/soa.php

Fill it in as accurately as possible on what you're really spending, format  for MSE and post it up.

ManyWays

I also have a PCP car that will end next June and would need to refinance. 
You are [pretty likely to only be able to do that at a very high interest rate because of the amount of your borrowings. With defaults on your credit record it will be much harder. 

What will happen when our remortgage comes up in 18months? 
You will always be able to get a new fix from your current lender provided you dont have mortgage arrears. You will fail affordability checks for a remortgage with a different lender; but you may fail these anyway because of your very high borrowing even if you havent defaulted.  

Seeing your SOA will help, with the lender names please; if you can just scrape by without a DMP then looking at affordability complaints may be another option.

swingaloo

I would take your name off that quickly.