60K is there any hope.??

in2deep_2

Hi all its my first time and I'm scared to be posting this.

I have around 60k of debt..(there i said it)

18k unsecured loan.
40k(and rising) on credit cards.(18k of this is OH credit cards)
.

I only take home about £1500 a month.+ benefits for two children under 3.

Iam desperately trying to sell my house to pay the debts but what do i do in the mean time and also if it sells what then.???

My mortgage is 90k(early payment charge included)
And I'm hoping to sell for 185k.(been offered 180k)

I have been paying everything i can with whatever i can so as not to alert any of my lenders, i haven't missed any mortgage or loan payments(ever in 12 years) and i have only been a matter of days late on a few credit cards.

I have been trying to 0% my cards but have been (unsurprisingly) refused a new card and so any more chances of 0% deals.
I have one card with a 0%deal still on it until jan09 but i have no where to move money out and back again.

I know if i sell my house i can pay the debts but then I'm off the property ladder as the nearest house at a reasonable price in this area is 160k.

Im sorry its not more detailed but until the next round of statements come in i don't know which way is up.!!

Please can some one shine a light this way........................please.!!

Cleosmum

Hi Welcome to MSE, well done for posting, first big step out the way You can deal with these debts, lots of help, support and ideas here.

racer256

Hi don't worry you are in the best place. Can we have a SOA so we can see your outgoings etc. There is a lot of advice. Big Hugs.

headinthesand_3

Hey

Try not to worry too much, the one thing I have learnt on here is there are lots of people on here that can help you and I won't mean selling your house.

I know that selling your house will get rid of all your debt, and then that will mean you will have all the money you were paying off your debts will now be in your account. BUT and it is a big BUT unless you address your spending you will soon mount up debts again, trust me I have consolidated then continued to spend, it wasn't until I addressed the over spending that I made in roads to my debt.

Its a lifestyle change not a quick fix, that will help

Please post a SOA and the wonderful people on here will show you how to save

Lorne

Well done on posting, you are definitely in the right place, we were in a lot more debt than you when we started (have a look at my signature), it is difficult to come a long way in becoming a debt free wanabee. There is definitely a lot of hope, you can do this!

First thing would be to post a statement of account on here of all of your incomings and outgoings to see where costs can easily be cut, we saved £10k a year on ours. It also helps you prioritise your debts, there is an excellent one available on whatsthecost.com.

Good luck and yes there is definitely hope!

lisabell

Hi

Well done for taking the first step in getting help for your debt there are so many good ideas and helpful threads on this website.
Me and my hubby currently have about £70 k of debt plus and £83k mortgage!!!.
This is the year though where we are going to try and get rid of some of it.
You have taken the first step and i hope you get the help that you are looking for.
Have you looked at getting a debt management plan thats what we are our our repayments have dropped from £1,000 per month to £641 per month.

Lisa x

GeorgeUK

Hi

As the others have suggested, it may be a good idea to post up a statement of affairs so we can see if there are any savings to be made.
http://www.makesenseofcards.com/soacalc.html

Also, slightly confused. You have a 0% deal? Do you mean you have a current card with a balance that has offerred you 0%?
If so, then probably not much you can do with that unless you have a very high interest rate on another card and the "normal" rate on this one is lower too.

Have you checked your credit report (free at experian) to see how many credit checks you've had recently? Usually 3 within 6 months is ok.

robert123_2

hi in2deep -well done for posting -well i,m over £40000 in dept in a debt management company, yesterday i saw an advertisement in the paper, https://www.yourdebtrating .co.uk have a look at this ,i will be giving them a call tomorrow ,too see what they have too say, it seems legit ,too see if I can get out of a debt management company without having too pay all the charges ,it will take about 10years too clear all this debt got too do it sooner .:j

MissKJ

Intoodeep,first of all, well done and hugs to you. We are a resourceful lot on here,and very few questions we can't answer. Open up and tell us your situation and we will help you.

in2deep_2

Hi all, i will post my SOA i am waiting for this months statements to come in so i can give an accurate list of where i am.
Its going to be scary doing my 'ins' and 'outs as i know I'm way over what i should be spending.

About the house.

The thing is with this we do actually want to move but by loosing 60k of my 90K equity its going to be very very very hard to secure a new mortgage...:eek: especially with the recent 'credit crisis'.

If i did have to go down the route of DMP's is this going to seriously effect my future house moving plans, i don't want to rush into anything that's going to alert the banks/credit cards in case i can sell soon.

In the last year I've had one credit check (last week) when i was refused a new card so i don't want to waste another search just to check my score.

In answer to a previous reply, i have a MBNA card with a 10k limit and a balance of about 9K but they have just put onto it a 0% transfer rate until Jan 09.(why did they bother).

Thanks for your kind words.

ANY_CHANCE

Hello In2deep,

you may already know but from my own experience if i could go back and tell myself i would advise :-

Do not take out more money to consolidate

Look at incoming v outgoing

Budget

reclaim-bank charges

cc charges

mis-sold PPI

Unfair rebate PPI

I could kick myself for not taking charge of my finances but better late than never

there are some fantastic people on this site who can help

Step at a time but making that first step is the most important

Good luck

AC x

PS just wanted to say i moved house to pay off some of the secured debt eg first plus that had us with PPI payments - i now wish i had not moved because of the cost of moving etc