could we ?

A question about : could we ?

six years ago we had our house reposessed. we was left with a debt of around Ј14,000, which we are now paying off at Ј30 a month, we are a low income family. this amount does go up every 6 months. i was told by the collection agency that i could make 1 payment to clear the debt of around Ј2000 maximum.i would love to get sorted and buy a property again but dont know if i would be black listed for that. also does anyone know where i could possibly get Ј2000 from with a low repayment that would have the debt payed off quicker?

Best answers:

• Unfortunately, a low repayment usually means a longer payment period. And the longer the repayment period, the higher the total interest, so the more you borrow.
  Also, you are likely to have a blot on your credit record to reflect the house repossession and the subsequent repayment plan. If so, you will find it just about impossible to get a loan at a good rate of interest. You may have to go to a specialist (sub-prime) lender who will charge a very high rate of interest - and you really don't want to do that.
  Is the lender adding interest to the amount you owe on the house? If not, then you have an interest free loan - something not available elsewhere. Can you afford to pay them more than Ј30 a month? Do a robust budget and see how much you can afford to pay and consider upping your payments to clear this off more quickly. But do be sure you can afford what you offer.
  You could pay Ј2 to each of the credit reference agencies and get your credit records by post. This will show what is recorded regarding your current situation.
  You can get your credit records here
  www.experian.co.uk
  www.equifax.co.uk
  When you have them, post a new thread with any questions.
  HTH
• If you are a low income family you may be able to get an interest free loan from the DSS I think its about Ј1000 max but that would be half of it - I think you would qualify if you were on income support maybe on other benefits but its worth a try.
  Go to the citizens advice bureau - they are brilliant - they will be able to out you in touch with debt agencies that will help you free of charge - there might be another way around your problem that you can't see because you are so close to it but an 'outsider' could?
  Good luck
• Hiya Spanky
  I agree with halloweenqueen about the CAB, they are great and can give you all the info you need,
  or another alternative is the consumer credit councelling service, this is the link https://www.cccs.co.uk/
  I've known many people contact these as well and they've helped them out of debt, the service is free and so is the phone no,
  Good luck