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  • Hi Neil

    Thanks for getting in touch and welcome to the forum.

    I understand how much of a difficult decision this must be, knowing that there may not be enough equity in the property to cover the charges on the house.

    When a property sells that is in ‘negative equity’ (the amount owed is more than the value), there may be a shortfall after the sale. Once the mortgage has been repaid, anything left would then go to the second charge (one of the charging orders).

    This might mean that after the sale of the house, the creditors who have the charges would look to collect the debt by using other means as it’s no longer secured against an 'asset'.

    You can find further information here about what to consider when selling your house when the equity might not cover the debt: https://www.citizensadvice.org.uk/debt-and-money/mortgage-problems/how-to-sort-out-your-mortgage-problems/selling-your-property-to-clear-mortgage-debts/

    If you would like help looking at your solutions to deal with any potential shortfall, Step Change will happily have a look at your situation and provide you with support. You can call them on: 0800 138 1111.

    I hope this helps.

    Patience

    neil369 wrote: »
    Hi Everyone,
    Pl help.
    Outstanding mortgage on my property @£140 K . Also,
    I have 2 charging orders totalling @ £90000 since 2005.
    2 more c.o.s totalling @£5000 since 2012.
    House would fetch a max @£150000

    I need to sell the house and move into a rented accommodation.

    What is the solution for this situation ?

    Pl guide.
  • Hi,
    I have always been bad with budgeting money and have never been able to save or ensure that I have enough to last until the end of the month.
    This then resulted in me getting pay day loans to tide me over.
    Over a certain amount of time and with a Mortgage to consider I got a loan with a credible bank to pay them all off and start again.
    Fast forward 2 years, I have a loan which costs a hefty sum a month and also more pay day loans as I have returned back into the vicious circle.
    I need help and advice on how to stop being so bad at budgeting money and also to be able to put money aside in order to try and pay my loans off quicker without crippling myself.
    Any help or advice you can provide would be so appreciated. Thank you.
  • StepChange_Kirsty
    StepChange_Kirsty Posts: 180 Organisation Representative
    Hi there,

    Thanks for your post and welcome to the forum.

    I’m sorry to hear that you’re still having difficulties with debts after trying to consolidate. Consolidation very rarely works but we can definitely look into other solutions that would help you to become debt free.

    In order to give you the best advice we’ll need to know more about your circumstances by completing a budget where we’ll ask you questions about your income, expenditure and debts. The quickest and easiest way to get this process started is by using our online Debt Remedy tool which takes you through to process of putting a budget together at your own pace and you’ll be able to access a personal action plan at the end that explains the best advice for your individual situation. You can access our Debt Remedy tool here.

    Alternatively if you’d prefer to speak to us over the telephone you can find our contact details here.

    We hope to hear from you soon.

    Kirsty


    Tunnel2019 wrote: »
    Hi,
    I have always been bad with budgeting money and have never been able to save or ensure that I have enough to last until the end of the month.
    This then resulted in me getting pay day loans to tide me over.
    Over a certain amount of time and with a Mortgage to consider I got a loan with a credible bank to pay them all off and start again.
    Fast forward 2 years, I have a loan which costs a hefty sum a month and also more pay day loans as I have returned back into the vicious circle.
    I need help and advice on how to stop being so bad at budgeting money and also to be able to put money aside in order to try and pay my loans off quicker without crippling myself.
    Any help or advice you can provide would be so appreciated. Thank you.
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • Hi,

    A few quick questions

    My credit reports
    (Experian/Equifax/clears-core

    Don’t show my student loan or a NatWest bank overdraft(being managed by wescot)

    Both are included in a DMP that I have had for the last 3 years and both are receiveing a payment that is more than token, but way off the ‘official’ repayment figure

    Can anybody explain why these don’t show on the credit reports and if that means they arnt in default, to my knowledge I have never received a letter saying they are

    Many thanks
  • StepChange_Allen
    StepChange_Allen Posts: 352
    First Anniversary First Post
    Organisation Representative
    Simonjp wrote: »
    Hi,

    A few quick questions

    My credit reports
    (Experian/Equifax/clears-core

    Don’t show my student loan or a NatWest bank overdraft(being managed by wescot)

    Both are included in a DMP that I have had for the last 3 years and both are receiveing a payment that is more than token, but way off the ‘official’ repayment figure

    Can anybody explain why these don’t show on the credit reports and if that means they arnt in default, to my knowledge I have never received a letter saying they are

    Many thanks


    Hi Simon

    Thanks for posting.

    A student loan wouldn't show on your credit file as it's not a form of credit; therefore there's no credit agreement so it's not possible to default.

    The overdraft agreement must have been ended if the debt has been passed to Wescot; debts are only passed to debt collection agencies like them once the original agreement has ended (defaulted). If this was over 6 years ago, the debt would have dropped off your credit file by now because most types of credit related entries onto a credit file are removed after 6 years. If it was less than 6 years ago, I don't know why it's not on your credit file, but it doesn't mean that the debt isn't valid or that it didn't default.

    I hope this makes sense.

    Please let us know if we can help any further.

    Allen
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • Thanks for the response Allen

    Didn’t know that about the student loan, good news I guess, credit score wise.

    The overdraft was for a NatWest account that was included in a DMP 3 or so years ago, so no way it could have dropped off yet.

    I understand that from reading on here I can’t do a CCA request for it because it was an overdraft, is there any other way I can find out what’s going on with it?

    Better if it did default 3yrs ago, than popping up now, but still not showing in any of the credit reports. Odd
  • Hello, I've got about 5 debts around £5k each with various debt collection agencies, however due to scare mongering and 'those' letters ended up paying a nominal amount to them.
    All the accounts have been and gone on my credit file it's been going on for that long but as I've been paying them that means acknowledging them doesn't it?
    I've since stopped paying them as I don't see myself ever earning enough to pay them off in full before I die and am thinking of going down the statue barred route, but I've started getting those letters and phone calls again.
    My dilrmma isthat I do have a property albeit part rent, part buy bought after the defaults went off my file and my credit rating improved, however the mortgage is up soon and I don't fancy ccjs etc, what can I do as I'm worried for my finances if my file gets amended and subsequently my home.
    Should I continental to pay the nominal amount or consider challenging them to prove the debt as it really has been that long...I'm talking over 10yrs???
    Please help!!
  • StepChange_Kirsty
    StepChange_Kirsty Posts: 180 Organisation Representative
    Hi Simon,

    Thanks for your reply.

    Yes it does seem odd that the overdraft is not showing on any of your credit reports but as my colleague Allen mentioned, before a debt can be passed on to a debt collection agency like Wescot the creditor must have already formally terminated the your agreement by way of a default notice. As a default can only be issued once, even if a mark does get added to your credit file now it should be backdated to when the default notice was originally issued and will automatically drop off six years from that date.

    You can still request information about your overdraft such as statements and terms and conditions. The creditor doesn’t have a duty to supply a copy of the original agreement under s77/78 of the Consumer Credit Act 1974 but may still be willing to give you some more information.

    I hope this helps.

    Kirsty


    Simonjp wrote: »
    Thanks for the response Allen

    Didn’t know that about the student loan, good news I guess, credit score wise.

    The overdraft was for a NatWest account that was included in a DMP 3 or so years ago, so no way it could have dropped off yet.

    I understand that from reading on here I can’t do a CCA request for it because it was an overdraft, is there any other way I can find out what’s going on with it?

    Better if it did default 3yrs ago, than popping up now, but still not showing in any of the credit reports. Odd
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • StepChange_Kirsty
    StepChange_Kirsty Posts: 180 Organisation Representative
    Hi Sarah,

    Thanks for your post.

    Your debts are not statute barred; a payment is viewed as an acknowledgement of the debt. Debts only become statute barred six years from the last date of acknowledgement and we certainly wouldn’t recommend waiting until a debt becomes statute barred before dealing with it as your creditors can look to take legal action in the meantime. There is some useful information about what legal action your creditors can take on our website here.

    It’s important to note that statute barred debt does not mean the debt is written off, it means that the creditor has lost their chance to enforce the debt through the court. Given the letters you’re already receiving it doesn’t sound as though your creditors would risk waiting until the debt becomes statute barred.

    I would recommend you seek debt advice in order to deal with these debts once and for all. We can offer you free, impartial and confidential advice. The easiest and quickest way to get advice is by using our Debt Remedy tool which takes you through the process of putting a budget together and at the end there will be a personal action plan which tells you about the best solutions for your individual circumstances. Alternatively you could give us a call, our telephone number can be found here.

    I hope this helps.

    Kirsty


    Hello, I've got about 5 debts around £5k each with various debt collection agencies, however due to scare mongering and 'those' letters ended up paying a nominal amount to them.
    All the accounts have been and gone on my credit file it's been going on for that long but as I've been paying them that means acknowledging them doesn't it?
    I've since stopped paying them as I don't see myself ever earning enough to pay them off in full before I die and am thinking of going down the statue barred route, but I've started getting those letters and phone calls again.
    My dilrmma isthat I do have a property albeit part rent, part buy bought after the defaults went off my file and my credit rating improved, however the mortgage is up soon and I don't fancy ccjs etc, what can I do as I'm worried for my finances if my file gets amended and subsequently my home.
    Should I continental to pay the nominal amount or consider challenging them to prove the debt as it really has been that long...I'm talking over 10yrs???
    Please help!!
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • fatbelly
    fatbelly Posts: 20,380
    Name Dropper First Anniversary First Post Cashback Cashier
    Forumite
    Hello, I've got about 5 debts around £5k each with various debt collection agencies, however due to scare mongering and 'those' letters ended up paying a nominal amount to them.
    All the accounts have been and gone on my credit file it's been going on for that long but as I've been paying them that means acknowledging them doesn't it?
    I've since stopped paying them as I don't see myself ever earning enough to pay them off in full before I die and am thinking of going down the statue barred route, but I've started getting those letters and phone calls again.
    My dilrmma isthat I do have a property albeit part rent, part buy bought after the defaults went off my file and my credit rating improved, however the mortgage is up soon and I don't fancy ccjs etc, what can I do as I'm worried for my finances if my file gets amended and subsequently my home.
    Should I continental to pay the nominal amount or consider challenging them to prove the debt as it really has been that long...I'm talking over 10yrs???
    Please help!!
    Sarah - post on the main dfw board - start your own thread - for a more detailed response.
This discussion has been closed.
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