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What's the best way to handle debt?

1 reply

verypoorperson · 10/04/2009 22:25

I'm in a huge amount of debt thanks to ex-p who has addiction problems and begged /bullied /lied / stole /manipulated money from me. I accept I'm an absolute idiot for not escaping from him before things got to the state they have now, but what i want to do now is work out the best way to go from here.

I'm currently a sahm with 2 young children under 3.

I have a house I live in, mortgage payments about 1k a month, tied in with big penalty for selling. Needs work doing and probably worth 40k less than paid for it.Maybe worse than that.

Have 1 flat rented out, breaks even at themoment at best with the rent / mortgage. With price drop, unlikely to do better than simply repaying mortgage if sell.

Have applied for benefits for now - no idea how the flat affects my entitlement.

Have loan payments and credit card bills and overdrafts - even if qualify for benefits then won't cover these things.

Ex says will help with debts, and is seeking help with his problems, but can hardly rely on him to come up with the money as he is still asking for money from me.

Obviously can look for job, but would have to be earning very well I think to cover everything,and not sure how likely that is - when I last worked I earned 25k a year, can't see that being enough for mortgage, loan, childcare, let alone to live on.

So - what would be the best solution?
I don't want to be made bankrupt
Don't know anything about IVAs
Thought about credit action, how does it work re assets?

Any info, ideas etc welcome

OP posts:
LIZS · 11/04/2009 10:53

Go to CAB or one of the debt counselling charities and ask them to assess your options . Selling the flat even in this climate would be one but doing so would limit your outgoingsnd liabilities. It will be counted as an asset and mean you won't qualify for many means tested benefits.

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