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| The independent answer to your debt problems | login join |
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forestmad
| 26-09-2007 06:13 PM |
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Joined: 26 Sep 2007 Posts: 2 | could some one help me i have a mortgage and a sucured loan witch is making my life a mess and allso about £16k of other debs the mortgage i have not missed a single payment and the sucured loan i have missed 4 payments. i dont have a clue where to start to sort out this mess dont want to lose my house and there is not a lot off equity in my house to pay all off this off so is there some one out there that can help i dont think i have long left and allso can they take youre house of you if you go bankrupt because that is the last thing i want to lose maney thanks forestmad |
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| DW George | 26-09-2007 09:23 PM |
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Joined: 01 May 2007 Posts: 148 My Profile | Hi forestmad Try not to panic, we'll try and sort things out here. The best option for you is to do is fill out the Statement of Affairs (make it available to view in your profile). There may be ways we can help you. I know just now you feel things are overwhelming, but sometimes the best way to find a solution is to take stock of things, which an SOA helps you do. George |
| paladin | 26-09-2007 09:33 PM |
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Joined: 06 Jun 2007 Posts: 55 My Profile | forestmad You have taken the first step, it's not going to be easy but as George said we will help you out. A couple of things we need to know:- What type of mortgage do you have? ie repayment or interest only How much equity do you have to the nearest £1000? Post your SOA and we will get things started. Good luck. Paladin |
| helpmenow | 27-09-2007 09:42 AM |
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Joined: 15 May 2007 Posts: 30 My Profile | forest I have been through a similar situation as yourself and can honestly say that you are doing the right thing. When I was in trouble, (I've now signed up to an IVA) I was worrying non-stop, in my sleep, at work and when I was out socialising. Although I was by no means clear of my debt, I have a plan in place which really takes the worry away, well most of it! I am not a debt specialist in the technical sense of the word but I have been there and done it in terms of getting into debt. Hope all goes well Helpmenow |
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forestmad
| 27-09-2007 05:45 PM |
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Joined: 26 Sep 2007 Posts: 2 | Thanks for replying, I have now made my SOA visable. Hoping for help once again. |
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| DW George | 27-09-2007 08:30 PM |
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Joined: 01 May 2007 Posts: 148 My Profile | Hi forest You've taken the first step in sorting out your debt problem and that is getting organised. Is this the first time you have worked out where all your money is going? I've had a look at your SOA and see there are options available to you. Firstly it may be an option for you to change your mortgage to an interest only mortgage and release some of the equity in your house, ie all of it. From some quick quotes from online mortgage comparison websites, assuming good credit score etc, the cost of an interest mortgage for £105K would be around the £700. You would have to speak to an Independent Financial Adviser (IFA) though , to get a more accurate figure. So you see without even trying too hard there are answers out there. Debt consolidation may not be right for all of your debts, its difficult to say which debts you should consolidate as there are no interest rates. Check out snowballing your debt in this article on Debt Management Strategies. Before you meet with your IFA speak to all of your creditors and get early settlement figures from them. I would definitely speak to your secured loan company and explain to them you are having some trouble with keeping up with the repayments and see what they say. You say you have missed a couple of payments. This may not have impacted on your credit scoring too much, fingers crossed. To sum up your are paying £1286 towards debts, £820 of which is secured on your house. Your income is £2233 which leaves £947 to live on. Your spending £629 more than that. It may be by just re-mortgaging, interest only, would allow you to relieve yourself of the debt worries without any lifestyle changes. Hope this helps George |
| paladin | 27-09-2007 08:46 PM |
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Joined: 06 Jun 2007 Posts: 55 My Profile | I agree with a lot of what George has said. However, I would strongly disagree with his final comments about lifestyle changes. If you are going to use debt consolidation as a tool to relieve the burden of worrying about your debt, you definitely need to make some lifestyle changes. This may mean cutting out luxuries and lazy spending. Lazy spending is not phoning about for the best car and house insurance, electricity and gas suppliers etc. I haven't seen you SOA yet as I can't find it. (George can you sort this out). I will comment on it once a see it. I hope that things will be sorted out. If you need any help just ask! I was once in a similar position and got myself out. It wasn't easy but hey nothing is. Paladin |
| DW George | 27-09-2007 08:52 PM |
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Joined: 01 May 2007 Posts: 148 My Profile | Sorry Paladin I'm working on the link, but for now the SOA can be viewed here. |
| helpmenow | 28-09-2007 12:02 PM |
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Joined: 15 May 2007 Posts: 30 My Profile | Forestmad I have had a look at your SOA. It's important to get it as accurate as possible. I have a couple of questions. Are you really spending £128 on car insurance a month? Same question for the mobile, £105 per month is rather high? Gas and electricity are quite high too. Have you tried shopping about for cheaper suppliers? Internet is also extremely high at £45, is it part of a package Sky? I signed up an IVA not that long ago. It has caused me to re-look at how I spend and what I spend on. I have to confess that I was not motivated enough to shop about and get the best buys etc. I think you need to look at what you spend. You obviously can't keep over spending by £629 a month. Stick in there Helpmenow |
