Help

[Flipper]

Please can somebody help me.

I have debts totalling £35000, i have never missed any payments on anything, but its now at the point where I am living off my credit cards after everything is paid and now the credit cards are nearly maxed.

My income including tax credits and my wifes income is around £1800 and my expenditure of around £1500 per month. I have a mortgage on my own home and have about £20000 equity in the house. I have tried to get a secured loan but have been refused and dont know what to do now....

Wuld I qualify for a IVA, even if if I am currently not in arrears with anything?

Would I lose my house?

Please can someone help

[MelanieGiles]

Hi Flipper and welcome to the forum

An IVA may not really be suitable for you, because you could pay all of your debts off in full over a five year period if you release equity from the property. Are the debts all in your name or does your wife have debts, and are any of them joint liabilities. If you could post more detailed information we can assist further.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Flipper]

Thank you for your reply, im really sorry for asking any stupid questions...

Loan £13000 Joint
Loan £7000 Me only
Credit Card £5000 me only
Credit card £7000 wife only
catalogues £3000 wife only

By releasing equity from my house, does that mean having to sell it?

[MelanieGiles]

They are not stupid!!!

Depending upon the value of your property now, I would seek a re-mortgage based upon the highest loan to value you can get - you may be able to get 95%, and use the money raised to pay off a chunk of each debt on a pro-rata basis.

Now this where you then have to be disciplined! Cut up each credit card, and put the catalogues in the dustbin. Work out what you can afford to pay to creditors each month, and then divide that amongst the creditors in the same ratio as the amounts they are owed. Write to the creditors to say that you are having to pay them smaller amounts as a result of your financial difficulties, and if this does not work engage the services of a Debt Management Company to help with this.

With some careful budgeting, you can get yourself out of this hole without reverting to selling your property or entering into formal insolvency proceedings.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Flipper]

If I cant get a secured loan what chances have I got at getting a re-mortgage? Have I messed up my credit rating by doing this? Would it be with my current lender or would I have to look elsewhere?

I really appreciate your help.

Thank you

[Adam Davies]

Hi Flipper
Use a mortgage broker to source you a new mortgage and take Melanies advice.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Flipper]

Thank you, credit cards have been cut and catalogues are in the recycling bin....

Can anyone recommend a mortgage broker, what costs are involved?

[MelanieGiles]

The chap I usually recommend is Tony Parsons who posts on the forum as Welshboy. His email address is

antony.parsons@btopenworld.com and his mobile number is 07970-438874.

Good luck

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[ray_a]

Pleased to hear you cut up your credit cards well done and you won't miss them!

Now you can get a Mastercard which is a front loaded card ie put money on and then spend by going to this link:-

www.mycashplus.co.uk

I wish we had done this years ago!

Good Luck for the future!

Regards

Ray