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Dunspeculatin

The Reality Of Chronic Debt

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I found this when researching a particular lender and actually felt my jaw drop - how many in this situation?

IVA Campaigner

United Kingdom

67 Posts

Posted - 25 February 2008 : 17:52:07

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quote:

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Originally posted by Reviva UK

Hi there vad921

I know that you say that you want to keep the house but you also need to consider that you owe £168k + £75k + £20k on a house that is worth perhaps £185 - £190k

re the mortgage I can't see that you could remortgage and release any funds even without the first plus charge. however with the first plus charge I think your options are :-

1. IVA for unsecured debts - there is unlikely to be any equity in 4 years time for the equiy clause.

2. bankruptcy for unsecured debts - remain in house as it is in serious negative equity.

3. bankruptcy and hand back the house and have a fresh start.

eitherway you need to really understand that there is no posibility of you moving house until th house has equity - i.e. it is worth over £263. So to move you would also need deposit for new house so in reality the house would ned to be woth £300k for you to have any chance of moving. Your guess is as good as anyone elses as to when this would be in current condition.

How much are your unsecured debts and what is your disposable income like to service these unsecured debts?

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It is a struggle. My wife and I both have overdrafts of £3.5k and the only way I can keep my head above water is through my travel expenses and then not really. I have no disposal income at all so I can't buy anything. I can't use my cards as I am above the liimit on both so I can't pay the minimum and the use the extra anymore like I used to. My wife is in a similar boat. Unsecured debt collectively (including car loans) is in excess of £60k and thats on top of the secured loan! More than half of my salary goes on the First Plus loan and more than half of my wifes salary goes on the mortgage. My car a cards are another £800 and my wife is also in a similar position. We can't cope. With expenses we probably bring in, collectively, about £4k p.m. Incidentally, I just tried to reschedule my car loan and the finance company said the underwriter said no!!

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They earn approximately £4,000 per month between the two of them. How can they be in such financial difficulty - lots of people are on far less than that.

It could have been just stupidity, but for the majority of people in that situation it's just that they were too busy being "fabulous".

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What kind of house do they live in? what cars do they drive? Probably both more expensive than needs be.

More numpties face the fire. Its time to burn

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Guest Shedfish

i wonder if Voorderman is reading this

as a puzzle solver Carol, perhaps selling the second boat would help -

My wife is in a similar boat.

you only really need one boat per household, even in gloucestershire

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They earn approximately £4,000 per month between the two of them. How can they be in such financial difficulty - lots of people are on far less than that.

Sickening....We have a young baby and are now on circa £2k net a month - we manage, but it means no holidays and no fancy f*0king cars. Why exactly am I meant to feel sorry for this pr1ck, because he obviously feels sorry for himself.

@r5ehole. Hope he loses it all. The hardest lessons are most keenly learnt.

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Jeeeeees the baby should be the no1 priority everything else is secondary, what a tool!

Sickening....We have a young baby and are now on circa £2k net a month - we manage, but it means no holidays and no fancy f*0king cars. Why exactly am I meant to feel sorry for this pr1ck, because he obviously feels sorry for himself.

@r5ehole. Hope he loses it all. The hardest lessons are most keenly learnt.

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If someone had run up that level of debt trying to run a business that was turning sour, they'd have my commisserations.

You know, they'd stuck their neck out, took a chance, made a few risky moves but it had gone tits-up.

It appears they didn't. What the feck did they do to fritter that much of someone's else money away?

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Guest happy?
If someone had run up that level of debt trying to run a business that was turning sour, they'd have my commisserations.

You know, they'd stuck their neck out, took a chance, made a few risky moves but it had gone tits-up.

It appears they didn't. What the feck did they do to fritter that much of someone's else money away?

My degree of sympathy would be tempered by the soundness of the business plan. I wouldn't give unqualified support to every vain halfwit with a 'business plan' - I've seen "Dragons' Den".

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  • 294 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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