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catherine
Starting Member
United Kingdom
4 Posts |
 Posted - 30 March 2012 : 01:07:15
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| i own my flat out right with no mortgage , if i was made to sell it ,i would not be able to afford to purchase or even rent some where , so where would i be expected to live, and could they make me home less ?? |
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Viki.W
forum expert
United Kingdom
2211 Posts |
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catherine
Starting Member
United Kingdom
4 Posts |
Posted - 30 March 2012 : 07:40:11
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| i bought my flat for £124.ooo 4 yrs ago, i owe around 10.000 on credit cards which i am struggling to pay off as i am on a low income and paying them leaves me overdrawn every month so can never get on top of my money, i pay out around £200 a month to the cards and only bring home after tax between £650 -£800 a month i have just changed my car for something cheeper to run as i was spending £200 plus a month on petrol, but to do that i had to borrow £1.500 from my son on his credit card so am franticly trying to pay him back as quickly as possible , as well, so can they make me self the flat and the car as it says, but there is no point in that has i need a reliable car becauses i travel around 300 miles a week and if i have to rent i will be paying out more bills, and if i sell house to pay debts ,i wont be able to afford to purchase any thing worth living in after all the fees are taken out, please advise , i need to clear these debts as it will only get worse, at the moment i dont have a social like or buy my self things , all my money goes on bills the car and theses credit cards ,, |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 30 March 2012 : 08:13:48
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Hi Catherine,
You wouldn't be able to declare bankruptcy as you are not insolvent, however, this is not an option for you with your situation.
You could consolidate your debts to a more affordable loan, or perhaps a debt management plan could help decrease your monthly debt payments.
I suggest you speak to an expert for advice and chat everything through.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
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Kelly O
forum expert
United Kingdom
27 Posts |
Posted - 30 March 2012 : 10:00:30
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Hi Catherine and welcome to the forum
It does sound like the best option would be for you to look into a Debt management plan to reduce your payments to an affordable level.
Kelly Osadare CertDR
If you would like any help or advice on any aspect of your debts do not hesitate to contact me. kellyosadare@jonesgiles.co.uk |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 30 March 2012 : 11:34:50
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Hi Catherine
as per other posts to your question, you need to look at alternative options to bankruptcy, to help you through your present difficulties. May i suggest youcontact myself or one of the other experts here on the site, cy clicking on the experts button on the left hand side, scroll down and you will seee our details listed - any of us will be only to happy to assist you
Good luck and I hope you sort something soon, just to give yourself peace of mind! You've done the hard bit in recognising that you have some financial problems, now make a phone call, you will feel more in control, once you have information on the various options available to you ,so that you make the right decision, to your particular situation.
Good luck, Melanie
Melanie Nicholas CertDR
30+years insolvency experience - 23 of which in the Insolvency Service and the past 8 years with a number of IP firms. I can be contacted at www.lifestylemoney.net or via the experts tab |
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RHB
Senior Member
1159 Posts |
Posted - 31 March 2012 : 08:28:59
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| If you are in a secure job what about looking at getting a small mortgage as that may lower your monthly payments considerably. I think the best thing would be some expert advice on how to best tackle the debt but that will only work if you can afford life without the debt payments you are making now, If you are still spending m,ore than you earn then you need to look at where you can save money so you don't slip back into debt. |
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debtinfo
forum expert
2826 Posts |
Posted - 31 March 2012 : 09:11:36
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you have enough assets topay your debts and so trying to enter reduced payments will (if the credit companies are smart enough) likely lead to them trying to make you bankrupt somewhere down the line.that would be disastourous and will cost you a huge amount. Even if they dont you will end up paying lots in interest and chargesby just having the debts for a long time
your problem seems to be that you dont earn enough to pay your normal bills and that you cant claim benefits because you have a significant asset. It may seem easy to keep the asset and build up debts to cover the difference but it will always be cheaper to "spend your assets" on your living rather than using credit.
Have you considered selling the property and paying the debts upfront avoiding interest, you will still have quite a lump sum left which can then be invested so the banks pay you interest rather than you paying them interest, yes that means you will need to rent and at somepoint down the line you will probably have used up all your capital if you continue toearn the same. but that could be several years down the line if you budget carefully and continue to earn a small income as well. The benefit of this is as follows, Your income could increase over that time, not sure how old you are but could you get to retirement age, finally even if you continue to have to spend more than you earn to live, because you have spent the proceeds on living costs over a long time, when the money runs out you would be then eligable for benefits to top your income up |
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catherine
Starting Member
United Kingdom
4 Posts |
Posted - 31 March 2012 : 09:51:23
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mmm in reply to last post, yes i am on a very low wage
just over £800 a month, to sell my property would be madness, to rent would cost nearly as much a month as i earn to proceeds would soon disapeer!!! at least i have a safe roof over my haed and as im nearly 55 i need that securety for the future, |
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debtinfo
forum expert
2826 Posts |
Posted - 31 March 2012 : 10:34:58
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If you are building up debts which you cant pay that will cost you massive amounts down the line, then you are not securing your future, you may be able to struggle on at the moment robbing peter to pay paul, but i have seen this situation many times before, it is a ticking time bomb waiting to go off and at some point you will get to the point where all your other options have dissapeared and you either have to sell in a hurry and lose out or you get made bankrupt which costs you a lot as well,
I often see cases where people wished they had sold and paid of there debts when they were relatively small rather than letting them spiral out of control |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 31 March 2012 : 11:04:30
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Speak to an expert for advice Catherine, if you don't want to sell, with you having £10k of credit card debts, it could be that a well managed debt management plan, making sure interest and charges are frozen, may be your best option.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
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debtinfo
forum expert
2826 Posts |
Posted - 31 March 2012 : 11:26:15
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| some quick questions catherine, is the money for 300 miles of fuel coming out of your £800pm income, is there any way of you earning more income, what would you do if you have an unexpected cost, for example a broken boiler etc, how much do you realistcly think you could afford to pay into a DMP, if you could never use any credit again or borrow from your family |
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catherine
Starting Member
United Kingdom
4 Posts |
Posted - 31 March 2012 : 12:26:13
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| yes it is coming out of my monthly income, i have no idea how much i could pay, am in the prosess of working out my in and out goings, and its looking very bleak,,!!!but im still not selling my home,,,,,,,,,,,,,,,,,,,, |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 31 March 2012 : 12:51:12
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Speak to an expert Catherine - there are a lot of companies out there who could help you sort out a debt management plan.
Either contact any of the experts that post on here or visit www.iva.com and speak to a few firms on there. The advice is free and they may well be able to help you.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
Jan
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Could I be made homeless ?
