I know there are a few threads on this already, but I don't think all of the advice would apply to myself.
Basically, I have £30k worth of debt, 90% of which is on 0% credit cards, the remaining 10% being on low interest credit cards. I earn £38k per year, my wife about £25k. We are 5 years into a mortgage, with £105k left to pay. She's on board with helping me etc, some of the mentioned credit card debt, she has even transferred into her name, as she has a better credit rating and could get longer 0% interest.
What options are available in terms of clearing this debt? IVA etc, anything involving losing the house is not an option. What could stepchange do for us?
I hate talking about wages, finances etc but I've never met any of you guys, so it's ok.
Thanks in advance.
It sounds like you're in a very good position to pay the debt off. You might be best off calling step change & asking them how they can help your situation.
Hello Brandon,
We're not debt experts here and we would definitely suggest you contact any of the organisations listed on our website for more specialist advice on your options. We'd also suggest your wife does this too so she's fully aware of the implications of transferring your debt to her name.
http://www.gamcare.org.uk/get-advice/what-can-you-do/finance-and-debt-management
Best wishes
Forum Admin.
Basically an iva would take what ever is left after income and expenses. Until either payed off or 5 year's has amassed. If you reach the latter. They then ask you to remortgage your house for your share of the equity.
If your partner is financially linked ie joint mortgage entering an iva will destroy both your credit scores. So an iva probably isn't the best move forward.
Not knowing your outgoings but seeing your joint wage. I would say you could afford to pay it back in 4 and a bit year's?
I personally cannot see why you would consider another route when you are paying barely any interest as it is? What are you hoping to get from it? Most insolvency routes take 5 years & from your figures with your wife helping you out there is no reason why you couldn't clear your debts yourself in that time.
I don't want to burst your bubble because you are doing brilliantly with your day count but the fact that you are already thinking about 'controlled gambling' down the line should be setting off all sorts of alarm bells in your mind! You've obviously been around the site for a long time but I can't see anything obvious in your current diary about continued support through GA or counselling. My advice, keep ploughing on the way you are. Having 'spare' money @ this stage is not a safety blanket for recovery, it is a green light for addiction & there's no point making this harder. Focus on you & your family, not on your debt.
ODAAT - the 0% credit card interest period won't last forever. It's spread over 6 cards with different companies. When this expires I will need to apply for more credit cards with 0% for a balance transfer. I wondered if there might be a low interest long term solution. I wouldn't say I'm thinking about controlled gambling. It was a brief period where I thought I could maybe bet £10 per week on football, but it's not worth the hassle. Such a slippery slope. I'm fully focused on my next milestone of 200 days. I'm confident I'll never gamble again.
Happy to keep paying it off as we are, just thought it was a question worth asking.
Thanks for your - and everyone else's - reply
Hi Brandon
I think the main thing is you go and get proper financial advice. You have an income so its about keeping your head straight, not letting any stress build up and holding that job. Find people that take your best interests into consideration.
Be very aware that certain debt management firms wont do much for you so you need your eyes open and the best advice from reputable people and perhaps the banks you are already dealing with
Please believe me that playing the balance transfer on credit cards isnt the way to go for safety. The credit card companies know what they are doing and you really shouldnt have more than one. Its a stressful thing to do and that is a substantial debt. Your combined level of income is very hopeful though
A financial advisor is what you need and you may have to approach the bank. There are obviously ways of consolidating it but thats very personal to you and we are not financial advisors here as gamcare have said
Im not trying to worry you and the fact you are both working is a major factor here.
Youve seen the deadly dangers of gambling and that must have stopped with full blocks and monitoring. I dont need to spell out the new lows gambling can take you to
Best wishes from everyone on the forum.
Brandon you need to discover the value of your house compared to the 105k mortgage. How much did you buy the house for and how long ago. If a long time ago the value of the house could have gone up. The market value of your house minus the amount owing 105k will tell you how much you may be able to borrow against the house as collateral for a mortgage that would offer Low interest and long term loan
We are available 24 hours a day, every day of the year. You can also contact us for free on 0808 80 20 133. If you would like to find out more about the service before you start, including information on confidentiality, please click below. Call recordings and chat transcripts are saved for 28 days for quality assurance.
