How much debt are you actually in?

[crankypants]

late to this so apologies if I have got the wrong end of the stick but if you are on a DMP or thinking of entering a DMP with funds for a deposit on a property ready to go, why are you not paying off your debt with the deposit money? Before taking on more debt? If you are entering a DMP I’d say goodbye to any chances of a mortgage (even if you’d easily afford it) my DMP Killed me for years. Couldn’t get an Argos card let alone anything else

Not a problem Deposit isn’t solely mine, other half is self employed and on paper I am the higher earner and have the better chance of obtaining a mortgage. We are now correcting this situation. The previous debt repayments was never an issue to me but the interest started to creep up, I was debating entering a DMP as I was under the original understanding that I wouldn’t need to apply for a mortgage for at least 18/24 months however our situation has now changed - hence why I’m kicking my teeth, hindsight is a wonderful thing I have spoken to various mortgage advisors who have mentioned that a mortgage is achievable after a 12 month period depend as on LTV / earnings etc. I could ask for help, though for one I’m very stubborn and believe that my debt is my debt it’s not anyone else’s to pay off , 2 my partner has worked hard for what he has saved for, 3 I would get an almighty bolloxkinh and possibility rejection from my dad who is anti debt / borrowing.

 

[summersuzy]

Tbh a car on finance really isn't that bad if you plan to get rid of it within 2/3 years. You would pay less on it in the long run and besides, if you were to buy it outright, you would never see that money again as cars just depreciate the longer you have them. I do think its more a problem of accessibility and the belief you need to be living a certain lifestyle. Its such a big problem for my generation and its one I've struggled with myself.

We lost a fortune on ours and didn’t have it that long. Never ever again. Covid

 

[Hjb92]

I was lucky to receive inheritance a few years back, Which went towards a house. A family member lent me the rest of the money towards my home which I pay back monthly. So by the time I am 40, I will be mortgage free which is amazing. I know I am very lucky! I wasn’t able to get a mortgage as I had history of a pay day loan on my credit history so any lender wouldn’t touch me i then got into around £10k worth of debt on 3 credit cards. Basically living a life I couldn’t afford so I used credit cards instead. I wouldn’t even be able to tell
You what I put on them. I got a bank loan to control the debt as it was getting out of hand with all the interest on the credit cards. January was my last payment and I can’t tell you how good it feels

Would you mind me asking how long ago your payday loan was before you were rejected by lenders? I took about 3 payday loans out about 5 years ago now, they were paid back early and in full. I haven’t used any since but don’t know if this would have an impact if I try for a mortgage in the near future.

 

[JustherefortheLoLz]

I owe on Mortgage, also have a credit card. Handy for emergencies. Also use it for purchasing holiday ect. Also have a next account. Try and pay them all back in full each month.

 

[Cheesycrackers]

505k on a mortgage. That is it though

 

[purpleghost]

You would definitely have to explain it as they would see the repayments on your bank statements. Whether or not they count it as debt I don’t know but you won’t be able to hide it and it will definitely count towards your affordability calculations.

I’ve been out of work since having my son but my husband owns his own business and said maybe he could put me on the payroll for a few months to bump up our borrowing, does anyone know if this can be done?
I am dreading telling him about the hmrc debt he knows I have it but doesn’t know the extent of it and I think he’s assumed it won’t affect the mortgage because everyone has to pay their tax so it’s not like a normal debt. Hate myself for being so stupid and not looking in to what I owed tax wise earlier on

 

[summersuzy]

I’m curious about paying more on a mortgage. Mine is crazy low and I could afford double if not triple. Are there any negatives?

Overpaying might be an option if you’re tied in some lenders allow 10% overpayment a year before there’s a penalty if you log into your bank that your mortgage is with you’ll be able to find out

 

[Firecrotch69]

Inspired by another thread about the consumerism & influence we have nowadays to buy hauls and keep up with the Joneses.....

I am in £150 debt with paypal
I owe £200 to my mum from years ago (she hasn’t asked for it back but I’m always thinking about it - and have offered - but never really have it to give back...)

What about you? Honestly....

 

[EvieBaby]

Don’t panic about the payday loans, try to steer clear of them if you can. Plenty of lenders that will still consider you for a mortgage - try and use a broker when the time comes and be honest and upfront.

Thanks so much for the response and advice, I'll definitely do that when I'm ready to buy x

 

[Ferret]

I am 50
No debt. Don't own a house.
Husband has car loan and we have finance on a few bits of furniture.
I got into huge store card debts in my 20s which took years to pay off and so I am a bit scared of any type of credit now.

 

[CatVonMe]

I owe just under 300 on a silly personal loan that I got in January 2019 for a holiday that I never went on and I’ve kept topping it up since. It started as 1000 but at the start of 2020 it was 2700! I’ve been trying hard and will clear it this month as opposed to November 2021 which I’m proud of. I’ll never get over how easy it was for me to get the loans, literally a 10 minute phone call.
I used to have a credit card that I used to clear in full every month but one month I stupidly changed my monthly repayment amount from 100% to 10% and it all just spiralled out of control. I’ve cleared it since and closed the account but not without some help.
I think my poor money management comes from my parents. They used to get the newest and best cars every year and never thought to save for any of us to go to college and didn’t have an emergency fund. We ended up having to take out our own loans and relied heavily on state supports. They, much like a lot of other people in society these days, had a real ‘keeping up with the Jones’ mentality when in reality they were CRIPPLED in debt.

 

[Rodneytrotter]

About £130k on a mortgage and £50k help to buy. No other debt but the help to buy is a bit of a regret.

 

[Guacamole123]

I’m in my overdraft, I’ve got a separate savings account which I put money in so once I’ve built up £1000 I’ll transfer that back over to my current account so I can be out my overdraft. If I didn’t do this I think I’d end up back in my overdraft almost immediately.

we don’t have a mortgage, sounds morbid but we’re waiting for family members to pass away and leave us money so we can buy in full/put down a hefty deposit . I’m in no rush to buy a house, we’re young and renting suits us fine at the moment, we’re also planning to go travelling for a few years next year so it means we’re not tied down worrying about selling our home/trying to rent it out.

I also usually end the month with about £300 on a credit card but my other half has been very generous and is paying that off for me this month so that I’m credit card free. I got into the awful habit earlier last year of racking up a big credit card bill which was more of less the same amount as my wage. I always pay my card off in full though.

 

[Becki_P]

2 mortgages, 2 cars, 2 cards. I’m too scared to work it out, it’s a lot.

 

[Reverend]

I'm very lucky that my partner is good with the pennies. She makes many meals split for more than one day, plus we make sure that we don't have takeaways etc. She really knows the value of money.

I've just had my mortgage renegotiated and I'm now down to 1.2%. I nearly bit their hand off when they offered me. I think it's because I've been a member since birth (my parents, and grandfather set up an account for me). I'm hoping to pay it all off within 5-6 years, so fingers crossed.

 

[OnlyHereForTheLolz]

Anyone got any tips on paying my overdraft back? It’s only £600 but I’m on a really low income using a seperate bank account at the moment

How much is the overdraft costing you? Depending on the rate you might be better off getting a small personal loan to cover it and then pay the loan off

 

[Greys1324]

Aside from my mortgage (£290k) and my student loan (£11k) I’m debt free. I worked really hard to clear all my credit cards 2 years ago when I knew I wanted to start looking to buy a house.

 

[Instawhut!]

Wow this is a really interesting post!

Ive got a £1600 overdraft that i really want to pay off. Car on finance (i change it every few years) but i do need a decent car for work as if i break down i wont get paid and id have to pay for repairs. I live in a rented property... overall my bills are around £750-800 pm not including food and petrol. I SHOULD have about £400pm spare ish each month. Also got a 0% loan to pay to currys which i got last year. Needed new appliences etc. But that will be paid off next year. Im saving money as im having an op in the next 6 months so will be on sick pay for 8 weeks whilst i heal which isnt very much. HOWEVER after that km going to be looking for a better job.

Ive never really had a credit card or anything but i am incredibley generous even though im not wealthy.

 

[summersuzy]

We are 28 and 29. No debt apart from the mortgage, which has £68000 left (started at £150k 5 years ago). I've never liked the idea of spending money I don't have (other than for buying our home obviously).

That’s a lot to pay off in 5 years did you up the mortgage payments with the aim of this?

 

[Hc68759]

Sorry I know this is an old thread, but I’m not able to create a new thread for some reason.

Has anyone ever had their wages arrested due to council tax arrears? I have a repayment plan set up with a council tax debt agency and my payment didn’t go out last month and I didn’t realise (silly I know I should be checking my account more often)

I received a letter this morning from the agency saying they have written to my employer to set up an earnings arrestment so I phoned the agency to find out what was going on and they said they don’t contact you to advise a payment has been missed and it is up to the customer to check, I understand where they are coming from but just seems a bit extreme they have now contacted my employer.

They said I need to pay the missed payment plus the earnings arrest fee which is fine I can do that when I get paid at the end of the month but I just wondered if anyone had ever been in the same situation?

I’m really embarrassed and anxious that my employer is now going to find out about this debt.

Sorry to hear that. Phone the Stepchange helpline and they will give you advice on what to do next. They are so helpful!