DMP Mutual Support Thread (Part 4)

rayday2

Sometimes it takes longer for people to get the message also if you think you have all your adult lives of companies, advertising, financial advice that borrowing is the way to go. Thats why I like DMPs it stops you being able to borrow for a while and gives you time to take stock - borrowing from family could take a tad longer for him to work out!

Good luck with his education lol

symesd

I'd like to see my creditors trying to get my home, I think its worth less now than when we bought it as we cannot afford to fix it up, so the value will probably keep going down and will fall down around us, by the time we have paid off our DMP we would be better off letting the bank have the keys it will be worthless and we will have another huge debt - the mortgage of £120k, house was recently valued at £95k, so it will take us about 6 yrs 8mths to pay off our DMP, who knows what it will be worth in 2015.....

What can we do...

MummyOnAMission_2

Hi debtmuncher yes these hubbys can be a bit of hardwork!:) As long as we r there to steer them along and make them realise the right decisions to make we shud be ok. Sometimes makes u wanna scream WHY DO I BOTHER though!!!

rayday2

I think all you can do is take one worry at a time. Values won't stay down for ever after every recession comes a boom (thats part of the problem). Just for now treat it as a roof over your heads.

I have no idea what ours is worth it was 100k with a 72500 mortgage. It will need a new roof in a couple of years time and it needs a new drive now we have duck ponds but all that stuff can wait who knows what the future holds? As my children get older my earning opportunties go up and this time my borrowing will not so hopefully longterm its better prospects.

symesd

Quick House Sale - Good or Bad Idea
I am looking for some advice?

We have just spent £700 getting planning permission to extend & renovate our now 2 bed bungalow into a large 4/5 bed dorma bungalow, the builder has estimated the build costs at about £40-£45 which I think are a little high...

My dilema is we are in debt to the sum of about £35k (Personal Debt) and Mortgage/Secured Debt of £140k, So we cannot afford to get the work done. And I'm not attached to the house especially if we can use it to get out of debt.

• Would it be worth selling to clear our debts? Would anyone want ot buy a run down house in current financial climate
• Would Anyone pay more than the current valuation - it is in a state because of the planning permission
• Would the planning permission give a better valuation and get us a better selling price?
• Anyone have experience with these builder who buy your house at silly price for a quick sale?
• Or am I just in cloud cookoo land thinking I could sell my house and clear all our debts and start a fresh in a new house

Help please I am desperate to get out of debt would sell my soul if I could LOL.

Any suggestions

Thanks

Kudox

HI symesd
I really symapthise with your dilemma re house. We are in this postion with debt because of the house price crash etc, we sold our last house in the good times and bought this one (run down) to do up and sell on, we now stand to probably get less for it than we bought it for even though we've spent a fortune doing it up. Even so if we could be sure of finding a buyer we would sell like a shot, pay off the debt and start a fresh but now back to the real world.
If you sell at what its valued for would you have enough to pay off all your debts and start afresh? I think selling to a builder or those who offer to buy your house quick for cash is a generally bad idea especially in this market, my neice looked into that and they were offering silly money, plus now especially they'd be looking to take advantage.
I think selling with planning permission in place is a good idea because potential buyers would not then have to bother going through that process themselves.
Also you are in such a vulnerable postion,loads of debt despaerate to sell etc, you may end up accepting a really low offer just to make the situation improve.
Its really hard to know what to do for the best, probably i'm not helping much, I hope you work out what to do for the best.
By the way even though the market is really difficult a house round the corner from us has just sold so there are still buyers out there.

candygirl

At the moment I have no supply work at all, and am finding it hard to get any other job due to being "over qualified", and they think, correctly, I wont hang about in a low paying job forever:o .
I rang Halifax credit card services today to try and arrange a new reduced payment, but they refused saying I have to go in arrears first, and offered to transfer to me to Think Money.Not sure if it's a DMP or not, any advice as I really need help right now.I have sorted an arrangement with the Halifax for my mortgage, so i'm ok there, but am stuck with the cards:rolleyes: I am reducing all my other outgoings right down to the knuckle:(

symesd

Hi Kudox

I think you are probably right, we are in a safe place at the moment, we can pay our mortgage & its fixed at 4.74% (fantastic deal with Britannia) until Jan 2011, and we are now on DMP. I think after reading a few of the forums we should sit tight until about 6mths before our fixed rate runs out, we will still be able to use the planning permission & hopefully things will have settled down & we will have paid off £9394 of our £35,346 Debts - Balance by then would be £26379 so we will have less to pay off and maybe have some equity back, here's hopng.

And like they say there is always someone worse off than you - at least we have a roof over our heads, and 2 income's coming in, things will be better from next Sep too as our youngest starts school so saving £500 on childcare.

When you think about it and air things on this forum things just get clearer. This is a fabulous support group. I would have lost the plot if I had not found this site.

Big Hurray for The Main Man:money:

Kudox

you are so right Symesd about being lucky to have a roof over our heads, we have said that so many times in the recent weeks.
It sounds to me like you have worked out the best course of action re house, good on you sometimes its just about holding your nerve I think, debts are scary and creditors more so!
I agree 100% about this site, I think I kind of had lost the plot for a while, definately burying my head in the sand, but now with the DMP and the support on here I feel in control again.
Same here about Martin:money:

MurrayMint

Hi All,

Had an interesting conversation with a woman from MBNA yesterday. She called to advise me that my 2 MBNA accounts, on which I owe approx £5,000 and £7,500, have been accepted on their "Serious Financial Crisis Plan". This means that they will stop any interest and charges, and I must continue to make payments via CCCS (around £35-40 a month between the both), but my accounts will continue to fall into arrears and this plan will only last for another 5 months.

After 5 months, if I can't up my payments, then the account will be defaulted and sold to a DCA.

She explained that their "Debt Repayment Plan" required that the minimum monthly payment would clear the debt in under 10 years (i.e. Total Debt / 120 = Min Monthly Payment). So, if my situation did change in the next 5 months and I was able to increase my payments to this level, then they can restructure the debt to show it was on a payment plan, no interest or charges would be added and the account would not be defaulted.

Now, as it is early days in my DMP, and as I don't see my situation changing in the next 5 months, I expect the account to be defaulted and sold. It would mean me more than doubling my payments. But I still found it interesting to know what their current policy was.

Although I have just been reading the MBNA thread on this board this morning, so am wondering whether they might make us a F&F offer before selling the debt on? Don't know where the cash would come from though...

MM