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Hi, I currently have a mortgage of around £115k; secured loan £28k, charging order £4k; the house value is NOW, around £150k. Been up for sale for a 1.5 yrs with 2 agents & no luck I've knocked £10k off the price ( I think house was overpriced initially at £165k - then the house market slumped). I am desperate to get out, I am paying almost £1k per mth just to the mortgage and loan. I'm really not fussy now about getting profit, and I'm scared to risk losing money in an auction if it doesn;t sell. I have considered going bankrupt, but I'm really nervous. I need some sound, financial advice from someone who is not out for their own gains, ie the secured loan was a bright idea from the last "independant" advisor, as he suggested consolidating an unsecured loan and getting extra to improve the decor of the house. I dont know who to go to for free advice. Obviously the figures speak for themselves, I am losing money L,R&C. I can barely manage the payments, it's been ages since I had any spare cash for essentials like clothes etc., even a decent food shop! I have a 9yr child and all the debt etc is mine and registered so. I've been told I couldnt sell the house with a CO on it? Is that right, thats why I'm thinking of just bailing out. Please, help, any advice will be most appreciated; thanks in advance.

Skint77 Wed 23/07/08 15:32

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factor30
Wed 23/07/08
20:04

You could consider riding it out-. it may be painful for a while but as your income grows things may get a little easier and in the longer term you may find your house will be worth £200K in 5 years time. In teh short term you could see whether you can keep mortgage payments down by switching your mortgage.
Still worth going to CAB though

Jenna1978
Thurs 24/07/08
08:22

Go and see an independant debt counsellor who can look at your finances, what is coming in and out, what you owe etc.. and help you make a plan of action eg speaking to your mortgage lender and other creditors and restructuring payments, possibilities such as IVA's etc...

http://www.iva.co.uk/what_is_an_iva.asp

Make sure you go with an honest portrayal of what you are owned. Many people have no idea especially things like early repayment charges and penalties on arrears or missed payments.

If needs be, get statements from all your creditors calculated to the same date with a tarrif of other set or potential charges so you know what you may have to pay extra and how to avoid accruing anything you don't have to.

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