Interest rate rise

tizzzzy_2

While I was still employed in a full time position we took out a loan, (consilidated) and although the costs were high it was managable but since then I have been made redundant and we have really been stretched, I have been looking for work but as I live in a small town where most of the firms etc have gone bust in the last few years and as I do not drive my options are fairly limited. I only have one months job seekers allowance left, thought I would have found employment by now but I'm really getting scared now and then yesterday we got a letter through the post - The company is Central Trust and they have put the interest rate up by 0.10%, which doesn't sound much until you look at the figures, £379.52 up to £398.58. Know there is the credit crunch, but our building society has put there rate down twice recently, not up, so don't really understand why. Loan is for £30.000 over ten years, but we are only in the second year. Realise would have been cheaper via the building society but my mum is helping up pay off our mortgage and sees the statement each month. It would break her heart if she realised we owed money elsewhere.

scorched_earth_erotica

What type of of JSA are you getting? If you are getting Contributions based then once your 6 months are up you will need to apply for income based JSA to continue recieving benefit.

tizzzzy_2

Husband earns too much for me to qualify, but unfortunately not enough to cover all our commitments, mostly taken out when I was working with no idea I was going to be made redundant, foolishly I had thought job would last me out

Broken_hearted

Is it a secured loan, if it isn't I'd go on a payment plan, if it is not sure what could be done without moving it.

tizzzzy_2

I'm afraid it is secured, when I was made redundant we cut everything to the bone and got rid of any unnecessary commitments, although some ie. mobiles, internet are on a fixed contract and have to wait till these end, it was tight then but possible, but with petrol and food prices etc going up, it's getting harder and harder and I don't want to get further in debt.

Dithering_Dad

You might have to swallow your pride and put this onto your mortgage rather than with Central Trust. While it's nice that your Mum is helping you cover your mortgage, I'd wonder at why she needed to see the mortgage statement.

The other suggestion I have is that if you can't afford the mortgage (hence the assistance from Mum) and you can't afford the loan secured against your house, then perhaps it's time to consider cutting your losses and selling up. You can pay off the debt with the house sale and rent while you get yourself on a better financial footing. This would be the better solution, but probably not the most palatable one. You do need to sit down and ask yourself whether you really want home ownership enough to spend the next 30 years of your life in debt.

Good Luck though.