Debt-free Wannabe Virgin

ddraper_2

Hi Everyone

I did the worst thing I could possibly do to my husband, conceal my debt. He found out on Friday night when I told him, and we when through the rollercoaster ride on emotions but have come out the other side still alive and married.

He has agreed to support me in getting the debt resolved.

I have taken today off to sort out the debt.

I would like some advice from those who have been there. From talking to CCCS I could have my debts paid off with 6 years, but would have very little to live on, I know the budgets there but it leaves you feeling like you have nothing. My other option is to remortgage, I currently have a property worth £95,000 with an outstanding mortgage of £43,000 and debts of £45,000. This would instantly clear my debts, and I would have a mortgage of £700 (wish is less that most people these days) with money available each month after the expenditures have been paid. However, this would mean paying interest on the current debt, and with the mortgage being paid back over a longer period I would be paying more in the long run.

Another question is what I do about Debt Defaults. I rang one of my creditors up today to advise that I was trying to rectify the situation and sort it out and was told that ring up today was too little too late, they just wanted the money.

Any help and advce would really be appreciated.

Cheers
Donna

**Amy**

Hi Donna

I just really wanted to welcome you here, and well done you on telling your husband.

Re: the mortgage etc. I am not very savvy with mortgages so really wouldnt want to advise, but someone will be along shortly with a bit more knowledge.

Re: The debt defaults - They tend to just want money, so i would probably wait to see what you decide to do. If you decide to go with the CCCS i am sure they contact everyone for you and get them to stop interest etc. but again im not really savvy on that side of things.

xxx

Needcash_3

Maybe post the bit about the mortgage on to the Mortgage Free Wannabee forum .... You'll probably get a good response there .... has worked for me in the past

monkey22_2

Hi Donna,
I would think long and hard before adding your debt onto your mortgage.
It may be affordable now but what happens if, in a couple of years time, interest rates go through the roof?

If you do a DMP with CCCS or Payplan they will make sure you have a budget that you can stick to.

I'm sure you'll get lots more advice soon.

monkey22

tesuhoha

What happens if you take out this mortgage, and then run into the same problems again? You will have no backup. Think you should go with the CCCS plan then at least in 6 years time you will have some kind of a life. Also if you find you cant do it you would have some equity in the house and you could sell it to pay your debts off or think about remortgaging again when the debts are lower than now.

dfitps

Wouldn't turning your debts into a mortgage be turning an unsecured loan into a secured one? I don't know much about this but I thought that the general idea was to avoid increasing the risk to the family home, and wouldn't this do that? I hope you don't mind me saying so, but that doesn't seem terribly fair on your other half. Presumably if the debts stay mostly as unsecured debts in your name, if you don't manage to stick to spending less and paying them off, it will affect him less than if you turn it into a mortgage on your house?

I can see the attraction though as it would seem like a sort of clean slate - having 'just' the mortgage and no other debts! But I would personally be a bit worried about the risk/temptation of having, say, 'just one' cc afterwards and next thing you know if it was me I'd build up a few K on that and be back where I'd started...

Good luck with it all in any case!