Discussion
Hi- so i have found myself in some money difficulty- with debt on credit cards- these monthly payments are wiping me out and i can’t get back on my feet. I do have a property however it has lost a lot of money- over 70k.
I’m looking at a secured loan to help take credit cards downs? but a bit worried about putting this against property as you can’t rent it while you have one. Or what about approaching the credit cards for help with the monthly payments? how badly does this effect your credit rating? i read they put a marker against it so technically that could stay on for a very long time! Any mother advice im all ears!
I’m looking at a secured loan to help take credit cards downs? but a bit worried about putting this against property as you can’t rent it while you have one. Or what about approaching the credit cards for help with the monthly payments? how badly does this effect your credit rating? i read they put a marker against it so technically that could stay on for a very long time! Any mother advice im all ears!
Not used them myself but this organisation is often recommended on threads like this - Hope you get things sorted
https://www.stepchange.org/
https://www.stepchange.org/
joeg said:
how badly does this effect your credit rating?
It may well be that your presumably good credit rating is what got you into where you are now. They are really ratings for how much debt you can load up with and then pay interest on.If you are considering letting out your house, where will you live? Can you let it now for some income to pay off the debts?
There are better people than me to advise you on what to do next but the good thing is that you're working on a plan for a way out, and I wish you well getting back in the black.
Reading between the lines this is sizeable debt?
(Not your man in the street with £5k on a credit card struggling to find the £100+ in interest each month & something towards repayment)
You’re asking about secured loans on a property to clear “some” of the credit cards?
Getting proper advice is a really good idea as will probably be a good idea to also focus on how you got here to prevent it re-occurring (amazing how many folk consolidate their card debt on a loan then just start growing the card again …). If you own & rent property do you have an accountant already you use & trust?
(The man in the street above risks signing one of those things to make their debts go away & adverse credit - you appear to have property though so I guess that’s at risk if you don’t figure a plan)
(Not your man in the street with £5k on a credit card struggling to find the £100+ in interest each month & something towards repayment)
You’re asking about secured loans on a property to clear “some” of the credit cards?
Getting proper advice is a really good idea as will probably be a good idea to also focus on how you got here to prevent it re-occurring (amazing how many folk consolidate their card debt on a loan then just start growing the card again …). If you own & rent property do you have an accountant already you use & trust?
(The man in the street above risks signing one of those things to make their debts go away & adverse credit - you appear to have property though so I guess that’s at risk if you don’t figure a plan)
Simpo Two said:
It may well be that your presumably good credit rating is what got you into where you are now. They are really ratings for how much debt you can load up with and then pay interest on.
If you are considering letting out your house, where will you live? Can you let it now for some income to pay off the debts?
There are better people than me to advise you on what to do next but the good thing is that you're working on a plan for a way out, and I wish you well getting back in the black.
Yeah so i’m living with a partner- i do rent my property although the tenants have currently moved out! what hits me on that is my tax i pay 40% tax on the rental income then have to pay rent for another property so i dont make any money out of my property/ lose money on it! Can’t sell it without a huge lossIf you are considering letting out your house, where will you live? Can you let it now for some income to pay off the debts?
There are better people than me to advise you on what to do next but the good thing is that you're working on a plan for a way out, and I wish you well getting back in the black.
joeg said:
Simpo Two said:
It may well be that your presumably good credit rating is what got you into where you are now. They are really ratings for how much debt you can load up with and then pay interest on.
If you are considering letting out your house, where will you live? Can you let it now for some income to pay off the debts?
There are better people than me to advise you on what to do next but the good thing is that you're working on a plan for a way out, and I wish you well getting back in the black.
Yeah so i m living with a partner- i do rent my property although the tenants have currently moved out! what hits me on that is my tax i pay 40% tax on the rental income then have to pay rent for another property so i dont make any money out of my property/ lose money on it! Can t sell it without a huge lossIf you are considering letting out your house, where will you live? Can you let it now for some income to pay off the debts?
There are better people than me to advise you on what to do next but the good thing is that you're working on a plan for a way out, and I wish you well getting back in the black.
Like 50k- brought property for like 200k about 7 years ago! Gambling…i managed to self exclude but found a site that it didn’t count with! have got myself out of gambling but now struggling to clear the debt! i think the breathing space with a card is only a month- then puts the next month payments up
joeg said:
Ah it's in a different city, i m kinda stuck with the property so just rent it too try and get some income from it
Sell it. It doesn't sound any use to you.Either that or get a proper BTL mortgage and continue renting, but why pay to borrow money that you've already got (albeit tied up in the house)?
The £70k "loss" is irrelevant. Depending how long you lived there, how long it's been rented, what it's worth etc you may need to be thinking about Capital Gains Tax. If you crystallise a loss it can be carried forwards against future gains so could be valuable to you one day - insofar as the property's not exempt as main residence.
Just on the numbers if you bought for £200k and it's dropped £70k that leaves value of £130k
Clearing debts of £50k would leave you holding £80k
£80 is only 4 years ISA contributions at £20k p.a.
ISA investment cumulates completely tax free - no tenants, no repairs, no bills, no income tax.
Sell it.
Clearing debts of £50k would leave you holding £80k
£80 is only 4 years ISA contributions at £20k p.a.
ISA investment cumulates completely tax free - no tenants, no repairs, no bills, no income tax.
Sell it.
Panamax said:
Just on the numbers if you bought for £200k and it's dropped £70k that leaves value of £130k
Clearing debts of £50k would leave you holding £80k
£80 is only 4 years ISA contributions at £20k p.a.
ISA investment cumulates completely tax free - no tenants, no repairs, no bills, no income tax.
Sell it.
I missed the bit where he owns the property mortgage free, I could be wrong but presuming there is only a small amount of equity left in the property otherwise this scenario wouldn’t be such an issue Clearing debts of £50k would leave you holding £80k
£80 is only 4 years ISA contributions at £20k p.a.
ISA investment cumulates completely tax free - no tenants, no repairs, no bills, no income tax.
Sell it.
My view - Try & get out of the mindset that selling the property is a £70k loss.
You have what you have at the moment & need to re-jig that a bit.
£50k of credit card debt could be about £1k mth in interest you will never get back - to me I see that as paying £1k mth to keep the house you don’t use, will it go up in value as much?
Get yourself back on an even keel & start building savings instead of paying interest - where you’re at now will make financing any life choices going forwards very difficult.
Good luck & doing right thing trying to get it figured out.
You have what you have at the moment & need to re-jig that a bit.
£50k of credit card debt could be about £1k mth in interest you will never get back - to me I see that as paying £1k mth to keep the house you don’t use, will it go up in value as much?
Get yourself back on an even keel & start building savings instead of paying interest - where you’re at now will make financing any life choices going forwards very difficult.
Good luck & doing right thing trying to get it figured out.
joeg said:
i have a mortgage of about 130- so wont really have any equity in the property if i sell it
When’s your mortgage up for renewal?It’s quite probably going to see a jump in payments if they start re-assessing loan to value, affordability & the fact it’s being rented….
I’d still likely be selling it now it’s empty so one less thing to worry about.
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