Sorting out a financial mess

Posted on 1 October 2008

I have a £48k mortgage with GMAC and a £10k loan with Norton finance. I used to have a Halifax mortgage but got into arrears and had a default notice three and a half years ago, since then I’ve been with GMAC and had 3 late payments in 2 and a half years, so I’m stuck in the sub-prime market with poor credit history and low income, My flat is worth around £175-£180k. I'm trying for a loan to pay off some debts, the loans i can get are subprime, have been quoted for a 20k loan over 25 years £276 per month 16.9 %,(Blemein Finance) via a broker. I need the £20k to pay of the £10,000 Norton loan which I took 15 months ago at £117 a month, i now owe £10,700 to settle early. I cant get a high street remortgage and although its a bad time to sell rather than spiral into more debt, should I sell or take the loan as I really the money
Sara.

 

Dear Sara
 
Thank you for your question and honesty about your circumstances.  The best thing i can advise is to speak to the CCCS, they are trained debt management councillors.  They will be able to give you the best free confidential advice on how to move forward and help you get debt free without taking on more debt and higher monthly repayments.
 
www.cccs.co.uk or free phone 0800 9759558
 
Good luck and please do not hesitate to give us a call or email me if you have any further questions.
 
Best Wishes
 
Bea

 

Answers provided in response to Ask Bea are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Bea will accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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