Please help £75k debt!

itsthelittlethings

Try Gamblers Anonymous if you cannot stop gambling.

There is also another debt free diary of someone on here who had debt from gambling, should be pretty easy to find, I think you would get a lot from reading it.

Lighthouse81

Sorry so just for advice shall I default all my debts or carry on paying certain ones like the 0% sofa, and would you advise for my partner to default on hers as it would still be a payment of approx £750 a month on top of the repayments I will be making to my defaults or would be an extra £750 we could put in our emergency fund.

Thanks 

itsthelittlethings

Lighthouse81 said:

Sorry so just for advice shall I default all my debts or carry on paying certain ones like the 0% sofa, and would you advise for my partner to default on hers as it would still be a payment of approx £750 a month on top of the repayments I will be making to my defaults or would be an extra £750 we could put in our emergency fund.

Thanks 

I thought the advice was to default on all so creditors cannot say you are treating them preferentially. If they come and take the sofa away you can use the emergency fund that you will have built up to replace it.

Is the sofa on your SOA?

Im surprised nobody has mentioned bankruptcy with that level of debt. Do you own a house?

itsthelittlethings

Your mortgage is pretty huge - can you get it down?

Lighthouse81

Yes we own a house. We have only had the mortgage for 3 years it’s our first house, how do you mean get it down?  So in my wife’s name are the sofa, the loan 2 & flex 2 do you think it would be ok if we continued to pay them so it doesn’t affect her credit and clear them as normal and default the other debts which are in my name so I am the only one with it on file? Obviously I would have to pay them due to her earnings but would this matter in regards to what I can afford for my repayments? 

The other thing is if I choose to go through Stepchange can I say to them I would like my debts to go to default before arranging repayments so they come off my credit file after 6 years or do I need to wait for this to happen and them contact them to go into a DMP with them? Sorry this is all new to me. 

Lighthouse81

We are financially linked through the mortgage and we have a joint account together

sourcrates

itsthelittlethings said:

Lighthouse81 said:

Sorry so just for advice shall I default all my debts or carry on paying certain ones like the 0% sofa, and would you advise for my partner to default on hers as it would still be a payment of approx £750 a month on top of the repayments I will be making to my defaults or would be an extra £750 we could put in our emergency fund.

Thanks 

I thought the advice was to default on all so creditors cannot say you are treating them preferentially. If they come and take the sofa away you can use the emergency fund that you will have built up to replace it.

Is the sofa on your SOA?

Im surprised nobody has mentioned bankruptcy with that level of debt. Do you own a house?

Err, no one will be coming for the sofa, they chase the debt, not the goods.

Preferential treatment is only a "thing" in insolvency, debt management is an informal arrangement, you can choose how you run it, there are no rules to follow.

Defaulting first gives you the best outcome longer term, but you would need to treat each debt on its own merits as there is no way to determine actual creditor reactions, we can advise from experience, but you can`t predict every outcome.

Lighthouse81

Thanks for reply Sourcrates,

another question one of my credit cards is with NatWest same as mortgage if I default on this would it affect the mortgage at all, I know as someone said they don’t do a credit check but will this be different if I have defaulted a debt with them? 

Would someone also give me advise please on whether it is best to just default my debts and continue to pay my partners or both do it together and arrange DMPs separately? 

Lighthouse81

Also I’m intending to set up a new email address and change my details with creditors, is there a template letter I can send to each of them to only make contact with me by post to try and limit the calls etc 

ManyWays

No lender wants to repossess an old sofa.

Bankruptcy isnt appropriate where there is a house with equity.

Nothing that happens to your unsecured debts will have any affect on your Natwest mortgage