Author Topic: Debt & lump sum inheritance choices...  (Read 19407 times)


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Debt & lump sum inheritance choices...
« on: Jan 11, 2015, 05:49:55 PM »

Hello all,

I entered into debt several years ago after my parents passed away and things just got unmanagable. I have approx 10 debtors starting from £300-£2000 totaling at the time £10k. Some of my debtors include wonga, quick quid (what killed me), hbos, littlewoods, O2 etc...I was and am still in full time employment (£20k salary)

I was so low and told no one and decided to call a company to seek help and before I knew it they were at my house quizzing me about income etc and I was on a trust deed! In the heat of the moment you are so vulnerable!I was one year into the trust deed and got a letter telling me my car was being repossessed so called them as I knew I was not behind. Indeed I was not, but I had entered a trust deed therefore breached my agreement with the car finance company. They told me they had been trying to contact my trust deed company to advise me of this but they had email chains from the trust deed company stating to hold etc whilst they investigated etc... I had not been made aware at all.

In any case I had to exit the trust deed as needed my car for work and they even reimbursed me all the money I had paid in for that year. Something very rare in the trust deed world.

I simply had to lay low until the car was paid off...awful times for me whilst imagining interest adding up.

My car payments have now ended and I am looking to sort my debt out once more.

Simple...? well I have now been advised of an inheritance I never expected of £20k.

This is great news but shortly followed by a bitter feeling...

If I am honest I am completely split between debt repayment OR fulfill something my parents wanted for me and a dream of mine... buy a house.

Your initial reaction will no doubt be "don't be silly" "you got yourself there" "its your responsability" etc... Mine too.

However...Context : I have no savings, Will not get a lump sum like this any time soon, I am 30, have always wanted a roof over my head, and have a poor credit rating as you can imagine and even if I paid off my debts and started from scratch would not be able to save that much any time soon. I also expect my debts to be at £15k (worse case scenario) now.

I know I cannot go and get a mortgage but my partner is looking for a mortgage at the minute and this could be part or all of the deposit.

Another option might be to put the inheritance into an investment option like an ISA, Bonds until I am debt free?[/size]

I am inexperienced in the area of debt management, inheritance, mortgages etc..

I am keen to read your thoughts and thankyou for taking the time to read me.