I spent all my life avoiding debt by always paying for things like my mortgage with money I saved or had earned, however that all changed
My husband became ill and was no longer able to work full time, this meant we were £1500 per month worse off each month and debt built up.
My husband was receiving some disability benefits but it still left us short and I couldn’t do any more hours at work to make ends meet.
Our mortgage was our biggest expenditure but we couldn’t reduce it any further as we were already on the interest only payment plan. We did have some equity in the property which only meant our creditors were even more insisted on us repaying them.
We began burying our heads in the sand about the debt, which meant it only got worse and suddenly we found ourselves in 3 months mortgage arrears.
Our overall debt between credit cards, loans and the mortgage arrears totalled around £25,000 and with only one income we were trapped.
My mortgage company wouldn’t stop calling me night and day but they never offered anything which could help me, such as selling the property.
I had asked they maybe help me with the fees in selling the property and they could get money from the sale and the debt would be cleared, but they refused.
How I Solved My Mortgage Arrears Debt
I tried to sell my property but due to the housing market collapsing and the banks not lending to people we were unsuccessful.
My husband then suggested we speak to debt experts and see if there was something they could do to help us resolve our problems. I searched the internet and found a charity who told us how we could keep our house and pay our debts.
They told me we could enter an IVA which would allow us to keep our property and make affordable payments to our debts over 6 years. After the 6 years any debt still not paid is just written off, I couldn’t believe our luck when I heard about this, although I did think it was too good to be true.
I done a little more research into because I had heard about these companies promising to write of debt but it was just a scam. I was surprised when realised an IVA was in fact a debt solution.
Although the IVA wouldn’t solve my mortgage arrears directly it would help them because we would be paying less money to our other debts.
So in the end we entered the IVA and haven’t missed a payment for 3 years now, even though my husband still can’t work our finances are manageable.
[accordion title=”Story By” load=”hide”]Dawn Coleman[/accordion]