What is best thing I can do?
MarkyMark16
Posts: 12 Forumite
I have a big debt problem
Unsecured Loan of c 18000
Credit Card Debt of c 15000
Bank overdraft c£1450
Mortgage of £77,000 plus Government Right to buy equty loan of £23,000
Is any IVA the best solution
Would I lose my house at end of the IVA?
If moved in with my girlfriend does affect her credit rating?
Any dvice much appreciated
Unsecured Loan of c 18000
Credit Card Debt of c 15000
Bank overdraft c£1450
Mortgage of £77,000 plus Government Right to buy equty loan of £23,000
Is any IVA the best solution
Would I lose my house at end of the IVA?
If moved in with my girlfriend does affect her credit rating?
Any dvice much appreciated
0
Comments
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best to speak to Stepchange or Payplan to see best options for you. to be honest, unsure how the government loan on mortgage would be affected, if anyMarkyMark16 wrote: »I have a big debt problem
Is any IVA the best solution
qith assests like a property, yes, possibly only solution to ensure you keep the property
Would I lose my house at end of the IVA?
no, not necessarily, you my need to release equity 6 months from completion of the IVA, if not possible, IVA could just be extended slightly
If moved in with my girlfriend does affect her credit rating?
no, not unless you have any joint debt with her
Any dvice much appreciated0 -
OK, one step back. If you didn't pay the other debts and opened a new bank account so that the overdraft just became another non-priority debt, could you afford the mortgage and any payments due under the Government Right to buy equity loan*?
The options if you say 'yes' are a lot different from if you say 'no'
Whatever direction you go from here, unsecured loans, credit cards and overdrafts that you no longer use, are all non-priority debts and you can write to tell them that you will be paying £1 per month (or nothing) until you compete the advice process.
In the meantime DO NOT jump into an IVA and don't start any joint financial product with your girlfriend - she needs to protect her credit file (no such thing as a rating)
We can give better advice if you post a statement of affairs
*Think that's £1 per month for the first 5 years.0 -
Hi I opened up a new bank account last week and have arranged my salary into my bank account. Yes I could afford the payments of mortgage etc.
How do I upload a statement of affairs?0 -
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1570
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1570
Monthly Expense Details
Mortgage................................ 513.5
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 83
Electricity............................. 31
Gas..................................... 34
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 20
Mobile phone............................ 45
TV Licence.............................. 12.37
Satellite/Cable TV...................... 25
Internet Services....................... 15
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 240
Road tax................................ 14
Car Insurance........................... 57.86
Car maintenance (including MOT)......... 25
Car parking............................. 5
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 22
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 10
Entertainment........................... 50
Holiday................................. 50
Emergency fund.......................... 25
Total monthly expenses.................. 1562.73
Assets
Cash.................................... 0
House value (Gross)..................... 118000
Shares and bonds........................ 0
Car(s).................................. 9500
Other assets............................ 0
Total Assets............................ 127500
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 77000....(513.5)....0
Total secured & HP debts...... 77000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Bank Account Balance...........1450......0.........0
Credit Card 1..................8320......0.........0
Crredit Card 2.................3500......0.........0
AO.............................761.......0.........0
Unsecured Loan.................18000.....0.........0
Credit Card 4..................1900......0.........0
Credit Card 3..................3000......0.........0
Total unsecured debts..........36931.....0.........-
Monthly Budget Summary
Total monthly income.................... 1,570
Expenses (including HP & secured debts). 1,562.73
Available for debt repayments........... 7.27
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 7.27
Personal Balance Sheet Summary
Total assets (things you own)........... 127,500
Total HP & Secured debt................. -77,000
Total Unsecured debt.................... -36,931
Net Assets.............................. 13,569
Created using the SOA calculator at .
Reproduced on Moneysavingexpert with permission, using other browser.0 -
PS The Help to Buy Loan is £23,000 forgot to include that0
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You could cut back on the holiday and entertainment categories. Also, your mobile phone cost is too high. If you are struggling, then £50/month is a lot for presents.
Edit: How come you use so much petrol? Your car is costing you more than £10/day to run!I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job
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Hi,
How much is the help to buy loan per month, or is that inc in the mortgage payment ?
You simply do not have any disposable income, you could cut back on a few things in your budget, but not to any great extent, so an IVA is out of the question, looks like £1 per month each to the non priority debts for the foreseeable future.
See if your situation improves in 6-9 months, if not, possibly start asking for the debts to be written off as you cannot afford to service them.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
£200 a month on groceries for 1 person is obscene. you can halve that easily0
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MarkyMark16 wrote: »Hi I opened up a new bank account last week and have arranged my salary into my bank account. Yes I could afford the payments of mortgage etc.
Yes, that all looks good. You can afford to service the mortgage, you have equity in the property that is worth protecting and your income is now going into a new account unconnected to your debts.
The nuisance is the 36k of non-priority debts. But literally they are not a priority. In the first place you can write to them to tell them you are in difficulty, maybe a letter like this
https://www.nationaldebtline.org/EW/sampleletters/Pages/Hold-action-on-your-account-%28sole-name%29.aspx
followed by this
https://www.nationaldebtline.org/EW/sampleletters/Pages/Token-payments-or-no-offer-of-payment-%28sole-name%29.aspx
Then you do need to pay some attention to your budgeting. In addition to others' suggestions I would like to see you have some basic contents insurance, unless that's already in the buildings insurance. Then all the other items need careful scrutiny to see if they can be cut and your emergency fund can become an emergency/fighting fund, and any lump sum you get can also go into this.
You may, in a year or two, be able to offer full & final settlement on the smaller debts.
None of the insolvency options are suitable for you as things stand0 -
I have been talking to Payplan they seem to be saying that an IVA is the best solution. Also, the creditors will want me to downsize my car as it is valued according to their checks as £9.1K0
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