Urgent Advice Needed Please!

kezxx22

My partner and me bought a house about 7 months ago. We were already in debt so the plan was to get a consolidation loan to reduce our payments to one monthly payment. However we have tried everywhere & cant get one initially because our credit score was reduced because of credit checks for getting the mortgage and my partner had recently changed jobs. So we left it a while longer and now we still cant get one as not enough equity in the house (theres £13000 at present). We are paying out in excess of £1000 per month in debt so could afford a consolidation loan. My partner is on a good wage and I work part time. At present I am on maternity leave so I cant get a second job. We are stressed and depressed as we have tried everything. We cant do an IVA because if we do my partner risks losing his job. Our relationship is stressed because we are both so down. We dont know what to do. Why cant the companies look at what we are already paying out to see that we could easily pay loan back and in the process save ourselves 100s a month. Help???

misspoppy

Hi

I'm sorry you are stressed out but it seems the credit crunch is going to be hitting a lot of people in your situation. The other thing is that equity in peoples property is greatly reduced from what it was.

Have you cut back on everything you can? Post a statement of affairs up and people can make suggestions of where to cut back. Also try selling your baby stuff as the baby grows and get clothes from freecycle to save buying new ones.

DFWs never recomend consolidation so there will be lots of advice about cutting back.

HP_Guy

Hi,

I'm pretty new here myself, but the consensus here seems to be consolidation loans are not necessarily the best answer. Switching unsecured debt to secured debt is a bit dodgy. If you look at some of the stickies and post back with your SOA, I'm sure people will be along shortly to help. Include details of your current debts, such as APRs, limits, etc.



PS. Don't panic.

timetotakeaction

Hi

I posted my SOA as a new member earlier this week and have been inundated with advice. First thing I'd do would be ring the CCCS and seek advice from them. After burying my head in the sand for far to long I rang them this morning and will be having a full in depth conversation/analysis with them next week. Although many people do not recommend an IVA the restrictions from a career point of view are much less than if made bankrupt. I'm a director of a well known company and have been assured that if an IVA is recommended to me it will not affect my career or professional standing. I believe you can even still be an accountant or lawyer or a company director if you have an IVA but if made bankrupt you could not do any of those things. How about a DMP?

I completely understand the pressures it can put on a relationship. My partner and I have nearly split up over the recent pressures (partly my fault for not being totally open) but by being honest and talking about it does help.

Post your SOA here and see what others recommend. My total unsecured debt is £104,000 and the advice from others and just speaking to my partner last night and speaking to the CCCS this morning has at least made me smile more today.

You'll get through it.

Debt_Free_Chick

Another vote for you to "post your SOA" please.

kezxx22

I dont even know who the CCCS are! lol.... Seems now the only option is for me to transfer equity to my partner and me go bankrupt which i am dreading. It is in partners contract that he cant do IVA/DMP and is credit checked regularly. We can just afford to pay mortgage & bills in his name therefore I am going to have creditors on my back and dont know what to say! Cant agree a payment plan as havent a penny to my name as what I earn part time (am currently on maternity) pays half mortgage & bills.
I currently owe approx 19k with most expensive being credit card of 11,000 at 250 per month with huge interest. Others are

loan 4,500 (123 pcm)
2 store cards 1,250 (120 pcm)
2 credit cards 2,500 (40 pcm)

Cant do bankruptcy till transfer of equity is actioned but I just want this sorted cos cant sleep or smile for thinking about it.

thanks to past advice and any further advice

kezxx22

P.S. We have cut back on everything we can and have been living off not much for sometime now...

basketcase

kezxx22 wrote: »

P.S. We have cut back on everything we can and have been living off not much for sometime now...

Yes, but I'd still recommend putting a SoA on here. Because:

1) Even people who think they've reduced spending as far as they can will often receive advice on further reductions

2) The SoA isn't just about cutting back, it's about cutting back but still having a life - which has GOT to reduce the stress for you both.

Gemmzie

If you have a joint mortgage then I don't think you can transfer the equity to your partner.
We need to see an SOA to help you any further really.

Clariman

Gemmzie wrote: »

If you have a joint mortgage then I don't think you can transfer the equity to your partner.
We need to see an SOA to help you any further really.

You can use this calculator to help you create your SOA.

Clariman

peb

The transfer of equity you are referring to will simply be set aside by the Official Receiver so don't expend money you do not have on it! Please post your SOA asap. I am also surprised that a DMP cannot be entered into by your partner, it is an agreement between you and your creditors and is not binding in the same way a IVA is. Double check the phraseology - if that is a word!