starting to wake up

village_idiot_2

Hi
thank god i found this place,

i owe various CC companies in the region of 45000, i'm also into the bank for £25000 loan that they gave me 2 years ago.

up to the begining of ths year i was able to pay the what i needed every month, but since then my wages have gone down by 6k for the year dueto all overtime being stopped. I have so far managed to keep paying but this month there is just no way out for me.

i've been looking since 7:00am today to find a solution.
my main concern is keeping my house which was last valued at 75k and has 57k outsatanding on it. the house is in 3 names as mother in law owns a third as well as myself and my wife. we also have 3 young children.

spoke to someone today about "protected trust deed" (as i'm in scotland) but seems to good to be true and i'm very suspicous of thing like that.

don't need a list of follow ups telling me i'm stupid because i already know that.

what i need is help on the right way to go, i'm earning in the region of 21k per year.

Willsnarf1983

no one will say ur stupid mate, u made the first step and people will be along to help...what u need to do is list EVERYTHING u spend per months and all the INCOME per month...iotherwise known as an SOA


good luck mate

Will

fatbelly

The stupid course of action would be not to ask for help and advice ... so you're not stupid, by definition, right?

Your house is not in danger if you default on non-priority debts (credit cards, unsecured loans) but of course it is if you get behind with the mortgage. So as long as you can feed yourselves, pay essential bills and cover the mortgage on 21k a year, then the problem 's manageable ... but you need specialist help and I suggest those guys in the box above this thread - CCCS, CAB, National Debtline.

Sorry, never heard of a protected trust deed. What is that supposed to do?

Quackers

Welcome to the boards V_I.

As others have said you are definately not stupid. You have asked for help and I imagine you have come to the right place I can offer no valid advice but I'm sure the very clever people are probably resting their brains and will help you all they can at a more reasonable hour.

Good luck & dont give up.

Thefunkygibbons

Fisrt things first

Can you list the various CCs and the bank loans and the APRs

What payments are you making on these each month

£70k on an income of £21k is going to be tough so you need to get the interest stopped otherwise you will be going backwards forever. The more detail you post here, the better advice you will get

village_idiot_2

rbs mastercard 9000 (200pm) apr 14%
rbs visa 9000 (200pm) apr 14%
mbna 9000 (200pm) apr 14%
egg 6000 (125pm) apr 14%

rbs loan 25000 over 7 years taken 2 years ago (450 pm) apr 17%

above are approximate apr's

Thefunkygibbons

Obviously it would be best to get rid of the loan, but that has 3 years left and the same apr rate is not going to make a difference

You are marking 2% payments a month on the CCs but more than £100 is being added each month in interest

That means it will take decades to clear the balances

Clearly, you must be living outside your means in order to have built up such balances. Obviously we can give advice on monthly incomings and out-goings but I fear that even if you could raise some money to throw at the problem, that it will take many years to clear

I think you should get some help from payplan or CCCS so as to put an arrangment in plan to stop the interest accruing and to agree a sensible payment plan with your creditors

fairylights_2

I don't know if this is good advice or not, but for us it really helped ...

My OH was paying for payment protection on his cards without really being aware how LITTLE help they would be if we needed it. He was paying £150 a month, but the insurance was £50 odd and the interest every month was about £90. He wasn't making ANY headway into the debt. We found out what it would do if we needed it, took a deep breath and agreed to cancel the payment protection.

Worth a look?

margaretclare

Yes, get rid of payment protection insurance - usually a complete waste of money.

Priority spending: mortgage, council tax, electricity, gas, water. Getting behind with these has terrible consequences. All other spending is non-priority - CCs, unsecured loans, storecards, catalogues.

So you need to sit down with pencil and paper and list everything. List priority and non-priority separately, then for the CCs etc list how much you're paying monthly and APRs (that's interest rates).

HTH

Aunty Margaret

nelly_2

£1175 a month is a lot to lay out on credit, as I'm sure you are aware.

When my card was at about 5 grand virtually 50% of the monthy payment was interest payplan or cccs can possibly get your interest frozen, effectively doubling the speed at which you pay the debts off.

There is also, getting a new card on 0% interest for a limited period and swap balances onto that card/s which again stops interest building up.

You need to cut back on spending too, checkout some of the other threads where people have pointed out where they are wasting money.

village_idiot_2

Long time since posting thanks for all the replies and advice

Decided best option was a trust deed, 2 weeks in only another 3 to see if it goes protected

This does mean that my share of the equity in the house has to be put up front so we are waiting on a valuation which is a bit scary because there are 5 houses up for sale where we live and they are all higher prices than what we had anticipated therefore more equity but we are keeping positive :eek: