Help!!!!!!

Camilla_2

Hi Everyone,

I am hoping you many be able to give me some advice. I have roughly £17,000 worth of debt, spread over a loan, overdraft and two credit cards. I recently started looking into a loan to consolidate all the debts together, but my credit rating was too low. I was then contacted by a debt solutions company who offered to contact my creditors, get them to freeze the interest, and if I pay off £400 per month I can be debt free in about 4 years. Is this an IVA? They said it would effect my credit rating too, does anyone now how and for how long after the debit has gone?
I'm torn over what to do, I can't get a low rate loan to consolidate everything, the current loan I have is for another four years, and once that has been paid off I will still have about another £8000 left to pay off on the credit cards.
I can make the payments at the moment, but the debts aren't really going anywhere. They will take me allot longer than four years to pay off, but I don't want to ruin my credit rating for ages.

Any advice? I have contacted the Consumer Credit Counselling charity, but cannot get an appointment for a few weeks. Help!!

C

rayday2

Don't worry you have time until you can get that CCCS appointment there are template letters you can send out offering a £1 until they are contacted by the CCCS.

tasha999

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 940
Partners monthly income after tax....... 1300
Benefits................................ 125.3
Other income............................ 0
Total monthly income.................... 2365.3

Monthly Expense Details
Mortgage................................ 676
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold flat)...... 0
Council tax............................. 101
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 27
Telephone (land line)................... 12
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 20
Internet Services....................... 25
Groceries etc. ......................... 400
Clothing................................ 50
Petrol/diesel........................... 100
Road tax................................ 15
Car Insurance........................... 26
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 40
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 18
Contents insurance...................... 0
Life assurance ......................... 22
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 30
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1759

Assets
Cash.................................... 0
House value (Gross)..................... 95000
Shares and bonds........................ 0
Car(s).................................. 1880
Other assets............................ 0
Total Assets............................ 96880

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 95526....(676)......NaN
Total secured debts........... 95526.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
aa loan........................12000.....233.......6.9 Joint
m and s loan...................12000.....196.......NaN Joint
black horse loan...............7500......160.......9.9 Joint
topshop storecard..............90........5.........28.9 Mine
studio ........................300.......20........0 Mine
kays catalogue.................220.......30........0 Mine
look again catalogue...........500.......60........0 Mine
tsb loan.......................1000......37........17.9 Mine
tsb credit card................1500......40........15.9 OH
tsb credit card................2000......40........11.9 Joint
northern rock loan.............5500......85........10.9 Joint
northern rock loan.............6000......85........7.9 Joint
Total unsecured debts..........48610.....991.......-

Monthly Budget Summary
Total monthly income.................... 2,365.3
Expenses (including secured debts)....... 1,759
Available for debt repayments........... 606.3
Monthly UNsecured debt repayments....... 991
Surplus(deficit if negative)............ -384.7

Personal Balance Sheet Summary
Total assets (things you own)........... 96,880
Total Secured debt...................... -95,526
Total Unsecured debt.................... -48,610
Personal net worth...................... -47,256

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.


Haven't a clue what the bottom bit means but it don't look good!!:eek:

RAS

Please can you mark against each debt - mine , OH's or joint.

tasha999

Updated!!!!

In_Search_Of_Me

Just popping in to say hi & send a hug! This is the worst bit - the gut wrenching sorting! Looking at your SOA a fair amont goes out on car so think about whether you REALLY have to have this. Sky isnt an essential and you can get freeview channels that have Cbeebies on it for the kids..If you go over to old style boards there are lots of ideas on saving money on groceries etc & I think you could prbably get this down. Great re going to payplan ...let us know how it goes. It may be an idea to start a spending diary to see where every penny goes - its a real eye opener for all those little bit of money that add up to lots! Can either of you get more work - evening job etec to bring in some more money? Jut a thought. Have you any stuff to flog? One of the joys fr me of being DFW is that I've decluttered & it feels so much better!
The main thing to remember is that, with the exception of the odd troll, you are amongst people who totally understand what it is to be in debt and we're all supporting each other on the long (sometime arduous, sometimes fun) road ahead!! Welcome

tasha999

I've been researching IVA's, and I'm a bit confused about how this effects the equity of your home. At present I'm in negative equity.

Most info states that after around four years into an IVA your home may be re-valued and any equity may need to be remortgaged.

I'm interested to know how this works and if anyone has first hand experience. I'm concerned if, after four years in an IVA, we'd be forced to remortgage and owe more money for the remainder of our mortgage.

tasha999

Well... i just got off the phone with payplan and they advise a DMP, it sounds ok but i'm a little worried about the amount to pay back. They suggested a monthly payment of £620 which leaves around £140 a week after paying essential bills. I still need to pay for shopping, petrol, road tax, driving lessons, childcare, clothes, dentist bills etc, dinner money, haircuts, days out! (a luxury I know but I've got two kids that deserve a life), lottery (i need to dream!) and any other emergencies.

I'm just wondering what other people think about this and should I mention this to payplan?

10past6

tasha999 wrote: »

I've been researching IVA's, and I'm a bit confused about how this effects the equity of your home. At present I'm in negative equity

If your in negative equity, I doubt you'd qualify for an IVA.

tasha999 wrote: »

Most info states that after around four years into an IVA your home may be re-valued and any equity may need to be remortgaged.

In year 4, you'd be expected to re-mortgage, any equity one may have around 85% would be expected to go to one's creditors, however, that depends on various issues.

tasha999 wrote: »

I'm interested to know how this works and if anyone has first hand experience. I'm concerned if, after four years in an IVA, we'd be forced to remortgage and owe more money for the remainder of our mortgage.

As I say in paragraph one above, I doubt at this stage if you'd qualify for an IVA.

One thing to make clear, many, many fee paying debt managemnt companies may say you qualify for an IVA, please, don't take their advice, take advice from the debt charities, and the experts on this site.

Good luck.

10past6

tasha999 wrote: »

What do people think about this and should I mention this to payplan?

If you have any doubt about what Payplan are advising you, contact one of the other debt charities for clarifaction, contact details here, it wouldn't do you any harm to obtain a 2nd opinion anyway.

It's difficult to give an opinion, as each persons circumstances are different.

One thing creditors are not keen on is a debtor having a life, some believe we should live on bread & water.