im in it big time,need help/advice.....

mickey66_2 · 5 January 2007 at 11:39AM

right here goes......
im a married man with 3 young kids,my wife and i earn roughly £46+ per year

now the bad bits.....
have a mortgage of £145k (£800per month interest only)....but also have a secured loan on my property of £77k (£740 per month)

with regard to the above i am now in the process of getting another mortgage and an un-secured loan with the same company to just have one payment,my mortgage will now be roughly £217k! at a cost of about £1178(includes mortgage & unsecured loan) per month(interest only).......bad news is my house is only worth £190k......not ideal but i really dont know what else to do.

other debts...

my Bank... constantly upto and over my overdraft (£1870)every month.bank charges galore,which im dealing with now.

credit cards...
marbles £10,800
egg £5,600
mint £3,400
citi £2,000

loans...
egg £4000
abbey £2,500

various store cards about a thousand £ worth.

i think thats it,heads abit messed up at the moment!

im at my wits end,and really dont know what to do,im not a gambler/excessive drinker,dont lead an excessive lifestyle no flash holidays,just a normal family man who got into debt and cant get out of it,its ruining my life feel depressed most of the time and feel like im letting my wife and kids down....

basically need some help/advice

Seaxwyn · 5 January 2007 at 11:47AM

Hello Mickey

I haven't got any advice, just wanted to say hello and welcome and don't despair, people will be along in a moment with some really good advice. Don't sign anything for the new mortgage until you've looked at other options for reducing the debts first.

I'm in a similar position to you, (£153k mortgage and £50k-ish other debt), but since finding this site I feel much more optimistic and have got loads of good ideas about reducing the total and getting back in control

Best of luck and I'll look out for your posts

mickey66_2 · 5 January 2007 at 11:54AM

both terrible when it comes to money,normally one half of the relationship is half sensible but not in our case-financially clueless!,the pair of us.

chinagirl · 5 January 2007 at 11:59AM

Do you have any expensive items around the house that you could sell? What about jewellery or your cars, can you sell and buy cheaper perhaps.

iceicebaby · 5 January 2007 at 12:02PM

Hiya Mickey

Just want to say welcome and dont worry

You need to post a full SOA (statement of affairs) so that the more knowledgeble ones here can offer advice and suggestions. If you look at southernscousers sticky at the top of this board for help how to do this.

You have made a major step in facing up to your debts...well done

CLAPTON · 5 January 2007 at 12:04PM

post a full SOA i.e. a complete list of income, spending, debt (amounts, APR and minimum repayments)
once we see the complete picture it will be possible to give some advice.

for details of SOA see

http://forums.moneysavingexpert.com/showthread.html?t=107280

mickey66_2 · 5 January 2007 at 12:05PM

Cherokee jeep that ive been trying to sell since March 2006,nobody wants them anymore,cos of all the bad press-just my luck

nothing else of real value really,and trouble is i feel so down that its hard to get motivated if you know what i mean:(

jitsuguy · 5 January 2007 at 12:06PM

I think you need to do a full SOA see this thread here:

http://forums.moneysavingexpert.com/showthread.html?t=107280

I advise you keep a spending diary immediately (start it on a piece of scrap paper if necessary) . This will let you see where all your money is going.

Plus do you have Sky, could you cancel. Find cheaper broadband gas/elec providers to reduce your outgoings.

It might also be worth having a chat with the kind people at CCCS (see above) or Payplan. They are both charities that help dealing with debt.

Jitsuguy

jitsuguy · 5 January 2007 at 12:08PM

Where to start:

Tonight go through all your statements to find out what is going out monthly and which you could cancel. Sit down with a cup of coffee and your OH and go through everything and I MEAN everything.

Jitsuguy

Storm · 5 January 2007 at 12:10PM

Hi Mickey and welcome :hello:

As others say, grab all your paperwork & a cup of tea and write out a full SoA - once you see exactly what you've got coming in and out each month you'll be able to make a plan of action. Make sure you find out the APRs too, and then you can see which are the first debts you should be tackling.

Don't panic though, you're in the right place!

tyllwyd · 5 January 2007 at 12:17PM

I agree with other people - don't rush into signing the papers for your re-mortgage without getting some impartial advice first. If you make a mistake now, it will be hanging over you for the lifetime of your mortgage, so I guess 25 years or so, which is an awful long time if you find you have made the wrong decision.

You sound a bit down and lost - is your wife fully aware of the situation - is she able to give you any emotional support.

I think you should talk to one of the debt counselling charities - CCCS or PayPlan - they will be able to go throught the whole situation with you and talk through your options.

im in it big time,need help/advice.....

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