This is a long story but I don't think I can shorten it, I know the way out of my situation but no one will help so any advice from anyone out there would be really appreciated.
2 Years ago I had numerous credit cards no outstanding balances although huge credit availability on my cards, I have the same job and same mortgage. So where did it all change.
I managed to get planning permission to build a house within my garden, this was the time when we all watched Grand Designs and aspired to do the same. I couldn't wait to build and take this chance in a lifetime and do something I always wanted to do. I had planned to move in and turn my house into a buy to let.
RBS agreed to fund the project on a build roll up mortgage, in Jan 08 it started and they would release stage payments to me and I would sort out payments to the builders and the relevant contractors. As we headed to the 3rd quarter of 08 I could sense that the builders had problems, another project they were working on were struggling to pay them. I was not sure as to the extent and a lot of it was rumour but I had always negotiated with builders on each payment anyway. Suddenly in Oct 08 RBS decided they would no longer pay me and would only pay the builders direct. I advised against this but at the same time was scared they would pull the funding for the project as it was RBS making headlines everyday as they credit crunch really hit. I reluctantly signed an agreement to pay the builders, I didn't realise at the time the builders did have a petition to be wound up against them, I subsequently found this out from companies house.
This stage payment was for about £20k, this money was paid directly to the builders against my wishes even though I was made to sign the money directly to the builders or RBS would not have paid. A lot of this stage payment was needed to pay contractors, and supplies which were special orders. Consequently they didn't get paid. The contractors walked offsite and suppliers were going to retrieve the special orders. To over come this and to get the contractors back on site I had to pay them for the work already completed, also pay for the supplies and continue to fund the project ongoing. Far from ideal but I wanted the house finished, this was all extremely stressful and not exciting as it should have been in anyway.
A few months later after taking control of this myself I pushed RBS for the very last payment, I didn't want them to know about the builders in case they pulled the plug. They reverted to the previous method and paid me the last stage payment, why this change I don't know. By this time my credit cards had built up and continued to do so so I could get the house signed off. I have now put in a complaint to RBS to ask why they gave the money to the builders when it is MY land and MY build if I default then they take it from me but if the builders default I suffer.. This is a David and Goliath situation they made me sign an order to pay the builders even though I have an email saying it is not a good idea. They have refused my first request for compensation yet didn't answer my question as to why they paid the builders. I will go to the Ombudsman if I get nowhere.
To try and cut this story shorter - I have ended up with credit card debt of £54k two houses, and five rooms rented out to support my income and continue to fund this debt. At the moment I am paying the equivalent of over £15k pa interest on these credit cards . I have NEVER ever before this situation ever not paid of a credit card in full every month. Probably why the card companies had put my limits up so high and continued to send me credit card cheques through constantly.
If I could consolodate this debt to a sensible loan or even raise £10-20k I could really push to get back on my feet rather than constantly tread water. Because the cards are now maxed no one will lend me any money, no cards will let me apply for a 0% car to transfer which will make the difference, my mortgage company will not let me borrow any more due to salary mulitpler restrictions now implemented despite good capital in my property.
If I now sold the second house I would end up losing around £100k on the proposed value and this was my long term investment and end up no better off. I at least wide to ride the market crash. I was going to apply for a buy to let on completion but now lending criterias have changed they have lowered the LTV to 60% which will not help me.
Every way I turn I hit a brick wall, I HATE paying these card companies 20-30% I have phoned them all up asking for a rate offer. For instance my Barclaycards £20k would really make a difference if they transferred to their lifetime balance rate of around 6% for new customers but not for a 17 year loyal customer. I am trying very hard not to go down the IVA route, I have spoken to mortgage advisors but no one will help. All I need to do is swap the debt and I could save well over £1000 pm, I feel I am now going round and round in circles I know what to do but no one can help. I don't want to go to one of these debt companies who charge me to go down an IVA route which I don't want. I can afford the debt, only just but am trying very proactively to do something about it. Also why are the cards reducing my limits as they come down this continually makes my credit score look worse.
If anyone out there can offer any advice, not debt agencies I would really appreciate it. This situation is rediculous I could really speed up and reduce my monthly risk and not keep hitting my overdraft limit everymonth if I could just get a proper answer from someone. What should have been a chance in a lifetime is now a nightmare from hell.
Thanks for reading this long post if you got this far, there is a lot more to it, but I would need to write a book.