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| The independent answer to your debt problems | login join |
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jimbo
| 16-05-2009 02:25 PM |
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Joined: 16 May 2009 Posts: 8 | hi, after being registered partially sighted 2 years ago, i have had no luck in securing employment and my eyesight will only deteriorate if anything, meaning i may never work again.I am married (wife in full time employment) with 1 dependant child. We have total debts of £23.000 on unsecured loans/o draft and 1 credit card, We are only in arrears to the credit card and only 1 payment behind at that.The credit card is in my name only and all the loans (3) are joint Out total income is around £1700 pm and after all debts are paid we are left with around £200 to live on. Whilst we have managed to keep up on all the payments, it has come at a price. Each month we are left with virtually nothing after all the debt is paid. We are living in a property that was left to myself by a relative and is in my name only, the property is owned outright and worth around £140k We have tried consolodation/re mortgage etc but are unable to find a lender. We have no savings or investments, only the house. (in my name only) can anyone help us here? 1)What are the best options for us? 2)How safe is our property? 3)I cannot understand why, when we are prepared to remortgage to cover all the debt, that i may be forced to release equity if i go the trust deed route. I hope this all makes sense and look forward to any advice which will be much appreciated. thank you all. |
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jimbo
| 16-05-2009 02:41 PM |
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Joined: 16 May 2009 Posts: 8 | sorry,new to the forum and not sure how to edit; i meant to add we are in Scotland and have been recommended a dmp and told this may take 8 1/2 years to complete! i have also been told as regards a trust deed: quote: "f you have an interest in the property which is greater than the amount you owe to your creditors then the (Trust Deed) is unlikely to be accepted. Can anyone please advise us which is the best way to go, whilst remaining in our home? many thanks. |
| helpmenow | 16-05-2009 07:30 PM |
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Joined: 15 May 2007 Posts: 49 My Profile | Hi jimbo George is away for the weekend, so he'll answer your question on Monday. If Paladin is about though, he'll answer it. HMN |
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jimbo
| 17-05-2009 11:19 AM |
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Joined: 16 May 2009 Posts: 8 | thanks HMN, something else i forgot to mention, was that i have an appointment with a payplan adviser on Monday, for a second opinion. ( i have already had a chat with a company who went over our situation and reckoned a DMP wouls suit us best ) I have been looking myself at our options and came across this: Available in Scotland debt payment programme DPP under the Debt Arrangement Scheme DAS This looks promising, i am not sure of all the facts but it may be an option. Am i correct in thinking a DPP under the Das scheme, will give me a definate freeze on all the charges/interest etc and where do i stand property wise (home owned outright) equity release etc. I know with a DMP you can ask for charges/interest, to be stopped but it's not something companys have to do, also i think your home is safe with a DMP. We really just want to make the right decision here, before entering any plan of action. We do want to repay the debt we owe and as i mentioned above, this has all came about due to my being put on the blind register, as partially sighted and unable to find an employer who will take me on. Thank goodness my wife works and is so understanding, without her income, i shudder to think where we would be, it's bad enough at the moment! thanks to the forum and its members for any advice given. |
| DW George | 18-05-2009 02:38 PM |
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Joined: 01 May 2007 Posts: 492 My Profile | Hi jimbo A Trust Deed is only applicable for those who are insolvent, ie those whose debts are greater than their assets and disposable income over a 3 year period. Owning a house which has no mortgage on it means that you are certainly solvent. This does cut down your debt solutions to a debt management plan or an unsecured/secured loan. Your research has uncovered DAS which would be the best option for you and as you so rightly said freezes the interest on the debt and more importantly stops any form of diligence been taken against you by the creditors. The free DAS scheme is run by the Scottish Parliament and it is nothing short of a national scandal that it is so poorly publicised. Your situation is just exactly what the DAS scheme was designed to help -those who are solvent but can't access the funds required to pay of their debts. A DAS advisor will look at maximising your income, examining any disability benefits you may be entitled to and then will arrange for a debt payment programme with your creditors. You can find DAS money advisers in the local government or in the CAB. see here for more information here I hope this helps, please get back in touch if you need more information. George |
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jimbo
| 18-05-2009 03:28 PM |
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Joined: 16 May 2009 Posts: 8 | thanks George, i had an interview with a payplan adviser today. He also suggested i would be most suited to a DMP. I asked about a DPP under the DAS scheme in scotland and he said that would be an even better option but that payplan are not involved in the scheme. I contacted my local Citizens advice shop and have taken the first available appointment 29th June! I have been told i will have an initial interview and then if i am suitable, a meet with the DAS adviser. I will let you know how i get on. I only discovered the DAS scheme after reading a reply you made to another post. Not one debt adviser i have spoken to over the past few weeks has even mentioned it thanks again for the help George. |
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jimbo
| 18-05-2009 06:11 PM |
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Joined: 16 May 2009 Posts: 8 | hi George, i have just been told there is only one Citizens advice shop DAS adviser in my area. I will first need to meet with a money adviser who will then decide if i am a suitable candidate for the DAS scheme and if so i will meet with the DAS adviser. It was also mentioned that due to excessive workload,my case may never get as far as the DAS advise,r even if i am suitable for the scheme. I have found a company who are willing to interview me and check my suitability for the scheme and if accepted, they would require a £100 set up fee and an admin charge of £25 per month, to be taken from my disposable income. Should i wait and try the Citizens advice shop adviser (free) or go ahead with the other company? I reckon if i go for the latter it will add almost £2000 to the debt! |
| DW George | 18-05-2009 08:06 PM |
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Joined: 01 May 2007 Posts: 492 My Profile | Debt management plans are only a short term solution as there aren't any guarantees that your creditors will not take formal action against you - unless you are in a DAS. In a debt management plan all it takes is for one of your creditors to lose patience with you and since you have a large asset in the form of your house they would seek bankruptcy asap. Therefore what I would suggest is to try and organise your own debt management plan for free.(see here for more information about diy debt management). If you don't think you are up to organising this (there is no shame in not) then £25 a month and £100 doesn't sound too bad. Bear in mind that a DMP should be short term solution and when eventually the credit market picks up then you can consolidate your debts into a cheaper loan. George |
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jimbo
| 18-05-2009 08:49 PM |
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Joined: 16 May 2009 Posts: 8 | thanks George, i too thought that figure was ok for a DPP under the DAS scheme, another company quoted me £350 pm for two months to start a DMP and then £35 per month after that and as you know a DMP cannot promise to halt interest /charges/action etc. I think to get this DPP up and running asap would be a better idea, than to wait six weeks just to get a first appointment with the CAB and then perhaps be told that they cannot put me on the scheme. thanks again George,i will keep you posted. |
| paladin | 19-05-2009 03:21 PM |
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Joined: 06 Jun 2007 Posts: 240 My Profile | Hi jimbo I have been following this thread and didn't realise that there were private companies offering DAS. Out of interest, what is the name of the company offering DAS? P |
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jimbo
| 19-05-2009 05:32 PM |
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Joined: 16 May 2009 Posts: 8 | hi P. it seems qualified DAS advisers in the Ciizens avice shops are few and far between and those that are qualified, cannot cope with the workload. There is talk that advice shop money advisers will be soon be dealing with DAS in the future, at the moment, you must see an money adviser first and then a DAS adviser. All DAS approved money advisers in Scotland can be found on the Register, there are some private companies amongst them. http://www.moneyscotland.gov.uk/das/das_display.jsp?p_service=Content.show&pContentID=247&p_applic=CCC& hope this helps. Jimbo |
| DW George | 19-05-2009 05:37 PM |
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Joined: 01 May 2007 Posts: 492 My Profile | jimbo Just in case there is any confusion - in DAS the interest is frozen. It sounds to me that you meet the DAS criteria so if a debt adviser speaks to you then why should you benefit from the DAS service. Here's a fact which will p**s you off. It would have been cheaper for the Scottish Government to pay off all the debts of those using the DAS scheme than it would be to run the scheme itself!!! So if you are entitled to you should get it. George |
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jimbo
| 19-05-2009 06:02 PM |
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Joined: 16 May 2009 Posts: 8 | hi George, it was mentioned to me that although certain cases may be suitable for the sheme, not all people are made aware of the fact the scheme even exists, thus reducing the heavy workload on the few advisers who are DAS qualified. Had i not read a previous post of yours i would know nothing about the scheme and no debt management organisations mentioned it until i asked, even then some of them had never heard of it. |
