Debt advice help

WendyCharlie

I have approx 220k of CC and unsecured loans + a large mortgage. Most cards are no longer on 0%.

My house has equity of c. £600k+

I earn just enough to pay the debt interest, but not to cover monthly expenses. I would like to avoid DMP or Bankruptcy as this will impact my ability to get Credit and presumably could result in the loss of the house?

What are my options?

Woodstok2000

What's the split between CC, loans and mortgage?

Grumpelstiltskin

OK No problem with your house, even if you need to remortgage as long as you stay with the same lender there is no credit check. You will not lose your house.

Having said that you need to forget wanting to get more credit. You will need a complete new mindset where you don't use credit at all.

It can be done but it will mean stopping paying all unsecured debts and letting them default whilst you save an emergency fund.

RAS

Bankruptcy isn't likely to be an option given you have lots of equity.

Can you afford your mortgage and basic living costs on your income?

It's hard to advise well on so little information but the basic rule is that if you are deep in a hole, stop digging.

Yoh and your family need to learn to live within your income and to stop using credit altogether.

FlorayG

Seriously the only way you are ever going to get out of this is to stop using credit completely. There are very few essentials that you can't save up for with the money you are saving by defaulting on your unsecured debts.

I know someone in the same situation as you and the same mindset. She is in the process of selling the flat she lives in to pay off her debts; then she will have to find rent money and lost her security of a home but she "needs to be able to still get credit". I give her two years and she'll be back in debt and in a worse scenario than she is now.

Credit is only sensible and useful for people who can afford to either pay off the total at the end of the month or at least a very large chunk of it every month. It's no way to live your life if you only pay the monthly minimum

MEM62

I would like to avoid DMP or Bankruptcy as this will impact my ability to get Credit and presumably could result in the loss of the house?

For perspective, you are underwater by £220K and you do not want to enter a DMP in case it impacts you ability to borrow even more. i.e. Dig the hole even deeper. You seriously need to rethink this.

I earn just enough to pay the debt interest, but not to cover monthly expenses.

Then some kind debt management solution is needed and this will impact your credit rating but restricting your ability to borrow will probably serve you well in the long term.

Boabyfromcraiglang

Without a budget or statement of affairs it's hard to advise...

But why do you want / need to maintain your ability to get credit?