Response to URGENT HELP NEEDED!!

Mia,

Really sorry to hear all this.

In answer to your questions

1. Doubtful that you will ever receive agreement from First Plus to reduce their monthly payment - besides the compound interest rate would increase the debt significantly and quite simply screw you more in the long run.

Also Natwest will have informed them that it is their intention to repossess and therefore i believe negotiation with these COWBOYS will fail - Shame on you Carol Vorderman!!!

CONTINUE PAYING THIS

2. DO Increase Natwest payments as previosuly advised

3. Finding a lender to remortgage with is gonna be tough as right now you have secured debt which swallow 87% of your current property value and have 5 months arrears with your first charge lender. You would therefore be better AT PRESENT to stick with Natwest as their rate is much more in line with Bank of England Base Rates.

I say at present because I cannot think of a 2nd charge lender who will go behind Natwest to redeem First Plus with good enough interest rates to make any switch worthwhile.

Longer term you may be better to remortgage Natwest & First Plus accounts with a better than average 1st charge sub prime lender such as GMAC RFC (NOT AN ENDORSEMENT BUT AS I HAVE BEEN A MORTGAGE ADVISOR FOR A NUMBER OF YEARS I HAVE FOUND THEM TO BE FAIR AND COMPETITIVE) as even when you clear your Natwest arrears and maintain regular payments you will still have the unsecured arrears adversly effecting your credit file record so high street lenders are out of the question.

To cut down your Payplan payments (excellent organisation!!!)is an option, afterall it sounds like none of these creditors have securitisation. I would contact Payplan and explain your present situation, afterall any Court if it went that far would agree that Secured debts are highest priority - see if Payplan can squeeze a reduction in the monthly payment and then STICK TO IT.

Your arrears with Natwest works out 5*£545 = £2725 / 12 months(offer to payover) = £227.84 pm arrears + regular monthly payment = £772.84 per month + legal fees for natwest, as yet undefined / 12.

Conclusion

Your gonna have to change your lifestyle as money is gonna be tight, YOUVE NO CHOICE IF YOU WANT TO MOVE FORWARD.

Then after 12 months if you have followed this advice you should have

Clean 12 month history with Natwest and Nil arrears (may be alittle left due to interest added from missed payments)

Clean record with First Plus

Hopefully your house increasing in equity

12 months demonstrating your ability to keep to arrangements to clear unsecured debts off

= Remortgage with appropriate lender (longer term if need but not longer than retirement!!!!) resulting in MUCH lower payments.

Hope this helps

For even more detailed advice you will need to supply an income expenditure analysis. But be careful, lenders read this site!

If you wish i will email one to you?

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