Update and advice needed please

kel123_2

OK i've read it all again

It don't matter two hoots who or what the loan was for, joint means joint. surely your in this together. Joint loans take two signatures. so this is prioity and not taken into consideration. Post your SOA and wait for suggestions some on here will be hard some will be reasonable it's part of your leaning curve. Moving your current account is adviseable to prevent the right of offset (i.e. raiding one account to furnish another and it's totally legal). You need to write to Natwest encloseing your SOA and making an offer on the overdraft and the loan, at the same time start making the payments (this will look better latter) if they do not acept then they will put it out to a Debt collection agency and it starts again (you will start to post more regularly at this point)

Good luck

poppyg_2

Kel, thanks so much I feel a little better this morning it's just all such a worry, I know it's the same for a lot of people on here. Right updated soa to follow in a sec

poppyg_2

Rigth here is my up to date SOA:

My salary - £1,200
Partners contribution to mortgage/bills - £475 (I have put this figure in rather than wages as we keep finances separate other than having bills account)
Total - £1700


Monthly Outgoings from joint account (we put £1,075 in this each month - I put in more due to the loan so £600)

Mortgage - £570
Council Tax - £95 - over 10 months so guess could extend to 12?
Gas - £60 ) We can't get these figures down as were before
Electric - £30.00 ) not paying enough so in arrears with them
TV License - £11.00
Water - £12
Home/Contents Insurance - £20
Gas plumbing etc insurance - £45
Landline/Internet - £20 - tied into contract
Life Insurance £20 (for both of us)

Total: £883
(What also comes out of this is the £30k loan in joint names at £190 per month as partner is helping me pay this back)

Total - £1073

Ok so I put £600 into joint account which leaves me with £600

My outgoings:

Mobile phone - £40 (changed to £30 tariff as from yesterday)
Fee for advantage gold account - £12 (can I change to a normal account??)
Dentist plan - £10
Charity Donations - £10
Pets - £15
Birthdays etc - £10
Travel - £100 (however £60 of this will stop after this week)
Food - £125 (this is my contribution, OH pays less as he has car to pay for and run, we prob use £200 in total which I know is way too HIGH)
Entertainment - £30
Emergencies - £10

Total - £362 (but will go down to £302 as from next week)

So from next week I'll have £300 for debt repayments. Debts are as follows:

Debts

£30k loan (paperwork says it is unsecured) over same term of mortgage so 27 years left at £190 per month - this is paid for out of joint account and is not causing any issues plus Payplan say need to pay full amounts to this because although unsecured because it was taken out at same time as mortgage they could make it into a secured debt

Additional debts (to be taken from the £300)

£5k loan from family member 0% interest - £150 (original loan was £8k so have managed to pay £3k off this so far)
£4.7K loan from Natwest 14.9% interest (ouch but all I could get at the time) - £100
£3.7k O/D - I can't pay anything off this at the moment as they're charging me £50 interest which would be what I'd be paying off per month
£350 Dorothy Perkins storecard not sure of interest but very high £10 per month so making no headway with this at all

I know there are savings I can make on the SOA, doing this properly has made me have a good think about what I spend, when I did my original SOA a few weeks back I only thought about what I was paying and don't think I considered everything

It'd be difficult for me to pay the family member less per month as obviously they're out of pocket because of me but then again how could I show this debt if I were to write to Natwest asking them to freeze interest? Or am I best making savings on the food etc and using every penny I save to throw at the O/D and let them charge me interest still?

I have opened an account with Lloyds but not yet done anything about getting d/ds switched to there

Oh yes when I come out of pension scheme (from June salary I hope) this should give an additional £70 that i could use for the o/d or I could use this to pay the storecard off with the aim of getting the balane to £0 and closing account by say Christmas????? Because I only pay £10 a month I guess I keep forgetting about this but it's a debt and obviously I'm paying god knows how many times more for the clothes than what I would if I'd paid cash, ridiculous. I have cut it up and haven't used for 2 months.

I will await suggestions/advice. Entertainment and food are the obvious things I can cut down on I guess and I have visited the old style threads as suggested by the very helpful dancingfairy and I have started to put meal plans together which I WILL start using

The £60 per month I'll save on transport is because I was at Uni doing a BA (Hons) part time as well as working but I finished the course this week so no more transport to pay for this. I should be feeling very pleased with myself this week instead of having sleepless nights but I'm in this mess and I'll get out of it somehow!!

Sorry this post is so long, just felt I should explain some of the things

P.S. OH does not know about the debts that are in my name only. He also has a couple of debts but he's excellent with money (doesn't go out, does without stuff) to pay these, I should learn from his example I guess

pania

Hi Poppyg.

I just wanted to clarify to others for you the situation with your mortgage/unsecured element if i may?

Until very recently. 3 seperate mortgage companies offered the facility to borrow up to 125% of the value of your property. 95% of which was "secured" and the rest classed as an unsecured loan, 5% of which was used as the "deposit" for the house and the rest to spend as you like. not secured or a second charge just a normal "unsecured loan" taken over the same term as the mortgage. However due to the connection between mortgage provider and this loan it is more likely that they will go immediately for a charge rather than agree to freezing interest etc as they hold pretty much all the cards.

Hope that helps a bit.
Kind wishes
P
xx

peb

Just to add to what Pania is saying; assuming you have one of those type of mortgages your Lender can annex the loan element to the mortgage - they don't even need to get a charging order. The terms and conditions of the mortgage and the loan basically mean that for recovery purposes the two become one and the same. As you and your partner are jointly responsible for the loan it can't be part of any DMP as your partner will simply be persued for teh shortfall.

HTH and clarifies the position for some of the folk trying to help!

pania

thanks peb

poppyg_2

Pania and Peb, thanks very much for clarifying that explains it very clearly. I didn't realise that when I signed up to the loan, if I had I certainly would not have gone for it and would have instead of gone onto a DMP, I suppose I thought I was doing the right thing at the time, hindsight is wonderful

That is exactly what Payplan said, that it couldn't fall under any DMP I have because they would pursue my partner and that as you both say they'd apply for immediate charging order against our house and so this does need to be classed as a priority payment the same as my mortgage, council tax etc.

The debts I am having problems with are the ones in joint names but Payplan say they can't set up a DMP for me as I'd have to have 3 creditors and I only have 1. I don't know if CCCS are the same, does anyone know? Could I get a DMP for the debts in my name do people think?

floss2

poppyg wrote: »

Rigth here is my up to date SOA:

My salary - £1,200
Partners contribution to mortgage/bills - £475 (I have put this figure in rather than wages as we keep finances separate other than having bills account)
Total - £1700


Monthly Outgoings from joint account (we put £1,075 in this each month - I put in more due to the loan so £600)

Mortgage - £570
Council Tax - £95 - over 10 months so guess could extend to 12?
Gas - £60 ) We can't get these figures down as were before
Electric - £30.00 ) not paying enough so in arrears with them
TV License - £11.00
Water - £12
Home/Contents Insurance - £20
Gas plumbing etc insurance - £45
Landline/Internet - £20 - tied into contract
Life Insurance £20 (for both of us)

Total: £883
(What also comes out of this is the £30k loan in joint names at £190 per month as partner is helping me pay this back)

Total - £1073

Ok so I put £600 into joint account which leaves me with £600

My outgoings:

Mobile phone - £40 (changed to £30 tariff as from yesterday)
Fee for advantage gold account - £12 (can I change to a normal account??) yes, just ring them & ask to revert to a regular current account - I've done it
Dentist plan - £10
Charity Donations - £10 You should really stop this until you are ina position to really afford it
Pets - £15 food or insurance?
Birthdays etc - £10
Travel - £100 (however £60 of this will stop after this week)
Food - £125 (this is my contribution, OH pays less as he has car to pay for and run, we prob use £200 in total which I know is way too HIGH)
Entertainment - £30 can you cut this down a bit?
Emergencies - £10

Total - £362 (but will go down to £302 as from next week)

So from next week I'll have £300 for debt repayments. Debts are as follows:

Debts

£30k loan (paperwork says it is unsecured) over same term of mortgage so 27 years left at £190 per month - this is paid for out of joint account and is not causing any issues plus Payplan say need to pay full amounts to this because although unsecured because it was taken out at same time as mortgage they could make it into a secured debt

Additional debts (to be taken from the £300)

£5k loan from family member 0% interest - £150 (original loan was £8k so have managed to pay £3k off this so far)
£4.7K loan from Natwest 14.9% interest (ouch but all I could get at the time) - £100
£3.7k O/D - I can't pay anything off this at the moment as they're charging me £50 interest which would be what I'd be paying off per month
£350 Dorothy Perkins storecard not sure of interest but very high £10 per month so making no headway with this at all

Why not pay the extra £60 this month, then £100 for the next 3 months off the Dorothy Perkins card & get rid of that. The other extra £30 can start to reduce your overdraft. Then you can start to pay £130 off that a month to make a hole in that of £600ish (before any interest) by the end of the year.
If you direct that extra £130 to the o/d for the next 2 years, it will be gone.

Can you overpay on your NatWest loan at all, if you have any spare cash?

poppyg_2

Floss, thanks for your reply

The £15 pets is on food, have 3 dogs (they're not insured)

re: £30 on entertainment - I had a couple of nights out planned this month but I have admitted to my best friend that I really can't afford to go out anymore and she has been really understanding and we have swapped the nights out to nights in and she has even offered to provide the wine and that I can go round to hers so that's really good

I hate thinking I'm going to have to stop the charity donations but I think you're right, I'm going to have to cancel and promise myself I'll start again when I'm in a better position

I will speak to Natwest about changing to a normal account then, I don't get any benefit whatsoever for the £12 fee they charge, it seems a total waste of time for £120 per year!!!!!

Yes I will get the DP card paid off with the extra cash because at least once that's paid off it'll be one less debt so maybe it'll make me feel good psychologically and it'll give me less to worry about

I'm not sure if I can overpay on the loan, will see if I can find the agreement but maybe for now I'd be best doing as you say and getting the o/d down? I find it really depressing seeing negative bank balance all the time and maybe each month if I see it going a bit less negative it'll give me a boost, fingers crossed

I am waiting for results from my Degree but I know my predicted classification based on results so far and I am on the look out for another job at the moment, something with slightly higher wages, I have applied for 2 this morning so that's made me feel a bit more positive