A reader asked: "We went to see a mortgage adviser to check if we qualify for a mortgage. We are first time buyers, me and my husband have 4 credit cards each and loans. Because we have a lot of debt, he advised us to go to our respective banks for debt consolidation by taking up a loan each to make one payment on all our debts. He said that was the best option for now. Also in that way we … [Read more...]
Readers have asked a huge variety of questions in the comments below Debt Camel articles. From credit ratings and mortgages to payday loan refunds and IVAs...
Some of them needed such long replies that I have turned them into the articles that are gathered here.
A reader asked: I moved in with my parents into their council house several years ago and we are looking into the right to buy scheme. We received the paperwork and it stated that you are not entitled to the right to buy if you owe money to creditors. Five years ago I lost my job and had a relationship breakup and unfortunately got into debt. Two accounts were defaulted and I went into a payment … [Read more...]
A reader asked: My partner and I have a combined income of £54,000, We have a deposit of £20,000 (inheritance) and are looking to become first time buyers in a new build property at a price of £210,000. We have defaulted debts that are being paid off, and previous history of payday loans from over 2 years ago from a time when our financial situation was much more difficult. The defaults are … [Read more...]
A reader asked what a realistic monthly payment would be in a Debt Management Plan (DMP) covering £10,000 of debts. I think she was hoping for a simple answer... but there are three different aspects to consider and to be truly realistic a DMP has to tick all three boxes. If you would like an intro to debt management, read What is a DMP? Then, for more details, see my guide: DMPs - answering … [Read more...]
A reader asked: My sister has offered me £2,000 as she knows I have money problems. I have been in a Debt Management Plan for three years. It is a good idea to use this gift to offer a Full and Final settlement (F&F) on some of the DMP debts? F&Fs are explained in detail here. The simple answer is that this is almost always a good idea! In a F&F that 2k could potentially be … [Read more...]