Drowning in debt, please help with next steps.

sourcrates

https://forums.moneysavingexpert.com/discussion/comment/81925283#Comment_81925283

This gets asked a lot, and is a very pertinent question when your a homeowner.

The short answer will be no, there should not be any problems with re-mortgaging, there is a massive difference between secured and unsecured debts, your mortgage and your credit card are separate credit agreements, the former is secured by a charge over your property, the latter is not, they are treated very differently by lenders.

ineedhelp_91

Thank you, I was worried they can stick some kind of charge on my property or ruin my chances of renewing a new deal.

RAS

You go on-line 3-6 months before your fix ends and choose the deal that suits you most. No credit check and about 10 minutes of your time.

sourcrates

https://forums.moneysavingexpert.com/discussion/comment/81925334#Comment_81925334

Well the bank already have first charge on your property to secure the mortgage.

Getting a charging order for unsecured debts can happen, but there is a lengthy legal process to go through to obtain one, with at least two stages where a CO can be avoided.

To obtain a CO, a creditor has to first default your account, they then have to take you to court and obtain a CCJ against you, you can avoid court altogether by agreeing terms at this point.

If you don`t do that, they can obtain a judgement against you, and apply for a charging order also, or a restriction if the property is jointly owned.

But, as long as payments to the CCJ are maintained, no further enforcement action can be taken with regard to the CO, most sit on the land registry until a house is sold or the debt is re-paid.

Orders for sale are so rare these days, official figures stopped being kept in 2019, so you have no real need to worry on that score.

Grumpy_chap

It might be just me, but I find the comment around the OP's salary confusing:

"My salary is currently £42k and I make average around £3k a month with commissions. "

The SoA states £3k per month after tax. £42k is typically £2.8k per month after tax. (May vary if student loan etc.) Is the OP stating base salary £42k plus commission, typically the extra £200 after tax?

The OP also states "At the end of the month I have maximum a few hundred remaining" but the SoA shows zero remaining at the end of the month.