Been On A Downer

Hi Everyone - I've been on a downer since we had welfare rights out to visit us on Monday, but come what may we need to face the music.

Don't get me wrong the guy was really nice and has suggested we deal with our problems by setting up a Debt Arrangement Scheme (DAS) - mind I'm in Scotland, so that's what we're going to do.

The horrible reality is - that one of my OH biggest debts is with Northern Rock. He took out a £25, 000 loan over 10yrs but they appear to have front loaded the interest on this and are telling us he owes £47,000, that aside including 4 maxed out CC the grand total comes to £82,000 (that is using the NR fig of £47,000). :eek: :eek:

My MIL lives in a house my OH owns 50% of, plus there is about £40,000 equity in our own home.

We really don't want to have to sell up if we can avoid it, but is it feasible to pay back all that money do you think?

OH earns a decent wage, £33,000 and I work part-time, so we bring home about £2300 per month, which once all the bills are paid leaves us roughly £500 desposable money.

The thought of having to live on a shoe string is really scaring me, but OH says it's do-able, than again he thought he could borrow £82,000 behind my back and pay it all every month so what does he know?

Are we living in cloud cuckoo land or do you think it's achieveable.
Don't try to keep up with the Joneses - Drag them down to your level - it's cheaper . :p:D

Comments

  • Miss_Poohs
    Miss_Poohs Posts: 630
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    Ohh I wanted to ask about the NR thing too.

    The idea of a DAS, it that all interest is frozen, and that your creditors can no longer hassle you - which makes me wonder about NR practice of front loading the interest.

    Is that allowed?
    Don't try to keep up with the Joneses - Drag them down to your level - it's cheaper . :p:D
  • I 'think' that if the loan was repaid (in full) the amount payable would be greatly reduced, but yes they can add all the interest up to arrive at an outstanding amount.

    If you post you SoA here the good folks on the DFW board will, I am sure, find areas where you could reduce your expenditure, often without damaging your lifestyle
    [strike]Debt @ LBM 04/07 £14,804[/strike]01/08 [strike]£10,472[/strike]now debt free:j

    Target: Stay debt free
  • Miss_Poohs
    Miss_Poohs Posts: 630
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    I'll do it once I drop my son at school.
    Don't try to keep up with the Joneses - Drag them down to your level - it's cheaper . :p:D
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