Author Topic: Home owner - husband depressed and has £27k credit card debts  (Read 2229 times)

wobane

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My husband worked for 26 years.  Feb 2009 he was made redundant.


He would not sign on, his company treated him very badly in respect of his redundancy and he became massively depressed.


I'm his main carer and we have 4 school aged children and a mortgage.  He has £27k on credit cards.  £17k with MBNA and £9k with BoS.


I became desperate and forced him to sign on in September 2009.  Since then I have been borrowing from friends and family to keep us afloat. 


They can no longer help us out.  Our total income including, benefits, child tax, child benefits each month is £1,500.  Our outgoings are £3,600.  £430 (MBNA) interest charges and £200 (Bos) of which goes on these two cards.  Our mortgage is £700.  The rest goes on household bills for our family of 6.


Each month despite paying the minimum interest his balance increases.
 
I tried to see if we could sell and get rented accommodation.  Our house is in disrepair and a neighbour with an immaculate house is still trying to sell 18 months later, even though she has dropped her price by £100,000.  Our house is worth much less than hers despite being the same in size. 


I now have a letter from my husband's psychiatrist confirming his severe depression.


My husband has paid about £9,000 in minimum payments over the last two years on the MBNA card without reducing the debt.  He's probably paid about £3,500 on the Bos card too.


I have to do something but every time I ring up they will not speak to me because I am an additional card holder.
How can I freeze the credit card interest and payments?


Is asking to write part of his debts off (£12,500 already paid over two years) a possibility?


I would try to honor the remaining amount if I am able to get him back on his feet, thereby allowing me to go out and work.


Any advice and information would be greatly appreciated. 


James Falla

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Re: Home owner - husband depressed and has £27k credit card debts
« Reply #1 on: Sep 08, 2011, 11:48:14 AM »
Hi wobane
 
Sorry to hear about your situation. I am afraid that asking the credit cards to write off part of your husband's debts will probably fall on deaf ears. Can I ask ou a couple more questions about your house? What is the approximate market value (bearing in mind the neighbour's price) and how much do you owe on the mortgage / secured loans? I ask because if there is little or no equity, then your will have more options. Perhaps your husband could declare bankruptcy which would write off his debts or you could even hand back the property to the mortgage lender and more to somewhere cheaper.
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wobane

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Re: Home owner - husband depressed and has £27k credit card debts
« Reply #2 on: Sep 08, 2011, 02:24:06 PM »
Hello James  -thanks for your post. 
 
Market value of our house is now worth £260k (£50k less that my neighbours final sale price - no idea what price it would finally fetch), our mortgage is £132,000 plus an overdraft attached to our mortgage of £30k, which I have used to keep us going and cover the shortfall between our income and outgoings.  Cannot remortgage as husband not working which would have offered a way of paying off credit cards in full. Cannot move onto 0% deals as he is not working. 
 
Have looked at various options in trying to move.  e.g. If I could get a buyer tomorrow, pay off cc 27k, legals 3k.  I have monies that I owe to family and friends who have also kept us going in the region of £40k. It's been agreed that any property sale would see me pay back my mother (I am her part-time carer) who is owed £25k as she helped me from her pension money and savings.  The remaining £15k friends and other family understand will be paid back in the future when we're back on our feet.  That would leave about £69k to try and buy a two bedroom flat for the 6 of us that will allow all the children to remain in their schools/nurseries* and me to continuing caring for my mother. I am also being treated for a tumour at a nearby hospital.
 
*Due to dealing with my husbands illness the children were out of school for periods this year and Welfare education have become involved.  Therefore it is imperative that I keep them in school from this term onwards. 
 
I have looked at renting and can afford two bed based on being able to sell the house tomrrow but Landlords I contacted would not entertain renting to a family of 6.  3 beds cost £1,200 per month and I would need to find upfront fees to cover months rent and deposit at £2,600.  In desperation a friend offered her 1 bed flat for us to move into and try and rent out the house until the market picks up.  The flat is also close to my mother.  The estate agents require me to undertake a lot of work to make it rent ready, which I simply do not have.
 
I'm going around in circles.  Help!

James Falla

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Re: Home owner - husband depressed and has £27k credit card debts
« Reply #3 on: Sep 12, 2011, 01:09:56 PM »
Hi wobane
 
Your situation is not an easy one. Given that you have considerable equity in your property, bankruptcy is really out of the question as this would put the property at risk of a forced sale. From what you have said, selling your house would help settle all of your debt but there is no telling how long this would take. As such, my suggestion at this stage is that you consider setting up a debt management plan for your husband's credit card debts. This would reduce the payments to a manageable level and give you a good chance or reducing or freezing additional interest.
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Saviour80

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Re: Home owner - husband depressed and has £27k credit card debts
« Reply #4 on: Sep 30, 2011, 07:11:54 AM »
Wobane....Once your Credit card or loan debt is sold to a Debt collector or agency you actually do not lawfully have to pay it back.....its a fact! Ive worked for these vampires and i know the REAL facts. I can help you clear these.

James Falla

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Re: Home owner - husband depressed and has £27k credit card debts
« Reply #5 on: Sep 30, 2011, 09:56:01 AM »
I am sorry Saviour80 but what you have said is simply not correct. If your debt is sold by the origional creditor then you are most ceetainly still liable under the law to repay it to whom ever has bought it. If this was not the case do you really think that large companies such as Max Recovery would be in the business of buying debts which are not enforceable. I think not....
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