Help please

chereb
chereb Posts: 24 Forumite
in Debt-free wannabe
Hi I am recently separated and currently now receiving benefits. We have a joint mortgage which my ex is paying half of. Most of the debts are in my name and I cannot meet the payments after this month as just been juggling the debt around on balance transfers. I am so stressed out and terrified myself and children will lose our home.
Been burying my head in the sand for ages. I have completed a step change which is recommending a DPP. Total debt is £45511 and income is £1581 with £1376 outgoing. £205 left to pay debts which are all unsecured credit cards. Taking 18 years 7 months. It also says that as it is over 10 years my application may be objected to. Also if accepted there is a 2% fee and 8% fee to distribute. Feeling absolutely overwhelmed and terrified.

Comments

  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    chereb wrote: »
    Hi I am recently separated and currently now receiving benefits. We have a joint mortgage which my ex is paying half of. Most of the debts are in my name and I cannot meet the payments after this month as just been juggling the debt around on balance transfers. I am so stressed out and terrified myself and children will lose our home.
    Been burying my head in the sand for ages. I have completed a step change which is recommending a DPP. Total debt is £45511 and income is £1581 with £1376 outgoing. £205 left to pay debts which are all unsecured credit cards. Taking 18 years 7 months. It also says that as it is over 10 years my application may be objected to. Also if accepted there is a 2% fee and 8% fee to distribute. Feeling absolutely overwhelmed and terrified.

    If Step Change are recommending a DPP then I guess you are in Scotland....?

    You need to be able to repay your debts under a DPP within a reasonable time, and 18 years 7 months is a helluva long time so I can understand why Step Change have warned you that it may be rejected.

    How much equity do you have in your home? Is selling up and starting afresh something you would consider? There's no point scrimping for 18+ years to keep this particular property. A home can be anywhere you make it.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    Name Dropper First Post Photogenic First Anniversary
    Is your ex an ex-spouse or just an ex-partner? Are the debts, debts which were accrued during the relationship? I'm wondering if you are divorced and if there is a financial order in place.
  • chereb
    chereb Posts: 24 Forumite
    Pixie5740 wrote: »
    If Step Change are recommending a DPP then I guess you are in Scotland....?

    You need to be able to repay your debts under a DPP within a reasonable time, and 18 years 7 months is a helluva long time so I can understand why Step Change have warned you that it may be rejected.

    How much equity do you have in your home? Is selling up and starting afresh something you would consider? There's no point scrimping for 18+ years to keep this particular property. A home can be anywhere you make it.[/QUOTE

    Equity is about 50% and a joint mortgage so not enough even if sold as would be £25000. House is worth about £75000

    Yes Scotland

    I have literally nobody I can go to either to live or get help from
  • chereb
    chereb Posts: 24 Forumite
    Pixie5740 wrote: »
    Is your ex an ex-spouse or just an ex-partner? Are the debts, debts which were accrued during the relationship? I'm wondering if you are divorced and if there is a financial order in place.

    No financial order as just separated recently
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    Name Dropper First Post Photogenic First Anniversary
    edited 11 February 2018 at 5:54PM
    chereb wrote: »

    Equity is about 50% and a joint mortgage so not enough even if sold as would be £25000. House is worth about £75000

    Yes Scotland

    I have literally nobody I can go to either to live or get help from

    Surely if push came to shove you would be able to rent a property. You might even be eligible for some housing benefit if you did.
    chereb wrote: »
    No financial order as just separated recently

    How did the debts accrue? Was it money spent for/on the family? Have you discussed your financial situation with your ex?
  • chereb
    chereb Posts: 24 Forumite
    Been trying to rent for months and there is nothing in my area affordable. Everywhere wants £1000 deposit due to my dogs which I simply do not have.
    If my ex agreed to pay an amount can I write to companies myself making a reduced payment offer?
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    Yes, there is nothing stopping you from writing to your creditors and asking them to accept a token payment e.g. £1 a month to give yourself some breathing space.

    National Debtline has a sample letter you can use.

    I don't mean rent somewhere right now, I mean if/when your current home has to be sold.
  • pennystretcher
    pennystretcher Posts: 458 Forumite
    First Anniversary Combo Breaker First Post Mortgage-free Glee!
    Post SOA http://www.stoozing.com/calculator/soa.php here so that we can tell what is the feasible option for you.

    Also re divorce, you could try to make an arrangement with your husband for him to keep paying half of mortgage until kids are 18 and sell the house at that point and split the proceeds... Not sure how that would work out with your DPP though - maybe debtline can advise?
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