In debt and home owner?

2

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  • Splitting up as can't read lump of text with no paragraph spacing
    Hi, I've visited these boards many times over the years and had a lot of helpful advice (some of which I have followed). I've been feeling very depressed (yes I've sought help for that - it's a long standing issue for me) since I contacted Stepchange and found out that with their budget advice it would take me 33 years to repay my debts on a DMP. As I'm nearly 55 that does not look like it could work. They also suggested I consider bankruptcy.

    But I do have quite a lot of capital in my house, though it is a house at the cheaper end of the scale (Downsizing would be to a tent). My wife is increasingly disabled as is daughter who is 22 but lives with us.

    I have thought of going on the DMP Stepchange suggest and in a couple of years I would be able to access my pension and maybe use it to make F&F offers. I have a teachers pension that will help me in old age, the one I'd like to cash is one I started in my youth but didn't keep - it's grown into a tidy sum - about half what I owe.

    My concern is that creditors will see that it will take 33 years on a DMP and decide to go after repayment by taking my house somehow or bankrupting me

    Only I do not see any posts on these boards that reflect that. I don't see posts saying they are bankrupting the contributor or taking their home from them.

    I just wondered if the people posting here are homeowners and what is your experience of owning a home and paying creditors on DMP's.

    I'm about to change jobs as I can't take the stress of being a teacher any more - it's killing me. It pays the same as now but it out in the countryside.

    I'm very lonely in this battle with debt. Of late it's been like I'm feeling my life is over, I will just be working to pay debt for the rest of my life. I own nothing of any value - anything I have of value I've sold. I'm now selling anything I can find on ebay to get even a little money.
    All the responsibility for the family and the debt is on my shoulders and I feel completely alone even though I have a family.

    Can anyone suggest a support group or chat room? Somewhere I can just share some of the burden without being judged. I really do want to repay what I owe. Defaulting would be a cause of shame to me but with no light at the end of the tunnel. I just don't want to always feel like I'm on my own, it's just me against the world and if I fail, well, as I said, my wife is increasingly disabled. Does get PIP and without it we would not be able to make even the minimum payments. Is that what the debt free diary pages are for?

    Wasn't sure if I'd post this - wasn't sure if I'd admit I wasn't sure, just feeling so "on my own"
  • fatbelly
    fatbelly Posts: 20,380
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    edited 10 November 2018 at 11:09AM
    Hi, I've visited these boards many times over the years and had a lot of helpful advice (some of which I have followed). I've been feeling very depressed (yes I've sought help for that - it's a long standing issue for me) since I contacted Stepchange and found out that with their budget advice it would take me 33 years to repay my debts on a DMP. As I'm nearly 55 that does not look like it could work. They also suggested I consider bankruptcy.
    But I do have quite a lot of capital in my house...

    Then you must not consider bankruptcy. That is terrible advice.
    mrsjolie wrote: »
    I have a DMP with Stepchange and own a house that is worth a considerable amount of money. Never ever has anyone apart from Stepchange suggested I go bankrupt. As a homeowner it is a riddiculous suggestion.

    Exactly.

    Fortunately you can get excellent advice and support on the dfw forum, and you are doing. I would only add that you ought to check whether your creditors have the paperwork to prove their position.

    For all Consumer Credit Act debts (and that's pretty much everything apart from overdrafts, mobile phones, tax and utilities) you have the statutory right to demand a copy of the original agreement under s77-79 of the act. If they can't provide it the account is unenforceable until they do. For short, this last paragraph is usually abbreviated as 'CCA them'

    https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx
  • Hi We were in the same position as you. We took equity release through our financial advisor. Step change recommended this route for us, but the one they came up with was much more expensive than the one we took out through our financial advisor. As long as you pay off the interest every month it does not compound. Also make sure the exit fees are low, as it looks like you may be able to pay this loan off in the future.
  • Step Change also suggested bankruptcy to us. I said we would not go down that route and that we would do our own DMP. They agreed to help us set that up but still said at the end of the conversation that they thought that one of the banks would possibly try and force us into bankruptcy but that they probably wouldn't as we didn't have enough equity in the house. That parting comment really upset and scared me and I wished I had never rung them. They may be helpful to some people but I found them to be just the opposite and I was more stressed than before I had rung them.

    At that point I decided we would self manage and that is what we are doing.
  • Can't you go part time as a teacher? I'm sure there are teachers (NQTs) who are cheaper than you! Or perhaps supply?
    Savings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS
  • Personally I found stepchange to be awful.

    I'm glad I took this boards advice and started my own DMP.
    The way things are going, soon we are all going to be victims of something or other.

    Who will we blame then?
  • DCFC79
    DCFC79 Posts: 40,598
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    Personally I found stepchange to be awful.

    I'm glad I took this boards advice and started my own DMP.


    Other options available like payplan, National Debtline is another.
  • This is most inspiring - thank you mrsjolie
    sorry to but in to this thread - but I am glad I came across this as it has calmed me down !
    I thought a DMP was only suitable for debts that can be paid in under 10 years, I have spoken to SC and not sure my budget is sustainable, I am worried that I will get it underway and not be able to meet the monthly payments
    Did you have to push for a longer time than 10 years ?
    do you need to go self managed to agree a longer period of time ?
    thank you
  • My thanks for all the information and advice. It's taking me a little while to come to terms with defaulting on my debts as I was raised always to repay and to date I always have.
    It's taking me time to think of these financial institutions as businesses with business models that allow for some defaults and that it's just business
  • January2015
    January2015 Posts: 2,369
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    OCTOBER wrote: »
    This is most inspiring - thank you mrsjolie
    sorry to but in to this thread - but I am glad I came across this as it has calmed me down !
    I thought a DMP was only suitable for debts that can be paid in under 10 years, I have spoken to SC and not sure my budget is sustainable, I am worried that I will get it underway and not be able to meet the monthly payments
    Did you have to push for a longer time than 10 years ?
    do you need to go self managed to agree a longer period of time ?
    thank you

    Sorry to jump in - I am on a DMP and currently my DMP forecast exceeds 50 years :eek::eek::eek::eek: In reality, life changes and that number fluctuates with our circumstances. When we started it was far less, but life happens. Tell SC you want to go for a DMP and will revisit your options in a couple of years - but you can stay on a DMP if you want to. If SC moan (which they shouldn't) you can always self manage.

    Best piece of advice I can give is make your budget manageable. Don't scrimp and save to throw every penny at the debts. You are going to have to live with this for years, and life has to be somewhat enjoyable - so make those budget allocations as much as you are allowed for each option.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k :eek: Now debt free and happy :j
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