When you think it can’t get any worse!

This weekend I spent some time reviewing this last month  and the work I have been doing with my new clients.

I have a very lovely couple who I have been working with, a man 72 his wife 58, she still works, he is an accountant. I understand he has a small pension and recently has lost his income he earned for some accounting work….non payment… small firms not using him etc etc.

They have a mortgage of £250,000+ from a Northern company that was taken out about 3 years ago, he has some credit cards like we all do….

• Husband          Wife

• credit cards     £18,000          £21,000

• loans               £35,100           £7,500

• unsecured debt            £74,600

• secured debt               £250,000

• debt totals                  £324,600

Hmmm not so bad, if there are lots of assets with value or equity remaining in them. I took the liberty in some free time to look at a property website I use in my business www.ourproperty.co.uk , to see how much houses have been selling for in their street/area, they have SOLD for between £141,000 & £450,000 from March 1997 and July 2007.

Clearly the 1997 values can be easy to achieve in this depressed market. However, taking the highest value

• £450,000 of property in July 2007

• £324,600 minus their total debt

• £125,400 equity remaining!!!!!!…

Now I have just looked at this as I am writing, and I am staggered at the dreadful situation this couple find themselves in. At their age in this market it will not be simple and easy to re-mortgage, furthermore to find a property for £124,000 or less in their area dammed hard.

Even worse if you were to think that their property could sell for less than £350,000 or just meet £324,000……in July 2001 a House on their street sold for just £1,000 more than this.

So what is the answer you ask yourself, try to repay your debts! DOH Not so simple!

Or try and make a claim against your lender…an excellent chance to remove the debt and be free from its burden.

Please understand I am not a critic of these people, I am just so aware that credit was & has become so easy to get, and so difficult to unburden yourself from. The consequences are potentially devastating.

I trust that this couple can find the strength to make a claim, and free themselves from their burden of debt.

Just one question…..DO YOU WANT THE MONEY?

If so give me a call: 07803 961 246

Please read the latest news from USA

http://community.nytimes.com/article/comments/2008/10/29/business/29credit.html?rss=1

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