I dont know where to start

angels11

Please can anybody help or give me some advice?

My mortgage has just shot up by nearly £400 and i dont think we can manage now, my debts are out of control and i dont know what to do.

I am also due to go on maternity leave in the next couple of months. The bank wont reduce my payments to interest only as i am still paying people what i should be and not asked the creditors for reduced payments ( I dont really want to do that). After doing my SOA i didnt realise they were so out of control.

Any advice would be greatly received.

HELPPPPP!!!!!

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1776
Partners monthly income after tax....... 780
Benefits................................ 130
Other income............................ 0
Total monthly income.................... 2686

Monthly Expense Details
Mortgage................................ 1233.46
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 96
Electricity............................. 30
Gas..................................... 40
Oil..................................... 0
Water rates............................. 47.8
Telephone (land line)................... 27
Mobile phone............................ 30
TV Licence.............................. 11.95
Satellite/Cable TV...................... 0
Internet Services....................... 7.5
Groceries etc. ......................... 350
Clothing................................ 20
Petrol/diesel........................... 120
Road tax................................ 20
Car Insurance........................... 20
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 40
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 20.53
Life assurance ......................... 32.05
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 15
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2261.29

Assets
Cash.................................... 0
House value (Gross)..................... 235000
Shares and bonds........................ 0
Car(s).................................. 9000
Other assets............................ 0
Total Assets............................ 244000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 180000...(1233.46)..5.74
Total secured debts........... 180000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................0.........98.17.....0
Halifax CC.....................214.67....5.........15.9
Halifax CC.....................5341.53...106.......16.9
Littlewoods....................707.52....37........15
Next...........................260.81....25........15.9
Barclaycard CC.................1880.84...42......14.9
A&L CC.........................482.12....17........15.9
A&L CC.........................356.06....11........15.9
RBS CC.........................5479.45...123.......15.9
Virgin CC......................4325.16...130.......0

pania

hello sweetheart, firstly don't panic. just going to take a look at your SOA and will be right back. can you make a cup of tea or coffee while we are doing that and relax on the sofa for a minute. there IS a way to sort this hon. How many people do you have living in your family unit? is it just yourself and hubbles with one pending or any others? Big hugs for now

angels11

HI

Thanks for replying so quickly, its so nice to know there are people out there willing to give advice. I have 2 other kids aged 11 and 8. I will go make a cuppa. X

pania

angels11 wrote: »

Please can anybody help or give me some advice?

My mortgage has just shot up by nearly £400 Did you get any advice regarding remortgaging onto a cheaper product? your soa shows a rate of 5.74 but i suspect that the variable rate you have just gone on to is above that now. Your previous broker should've contacted you to let you know that your rate was coming to an end and to explore other options. and i dont think we can manage now, my debts are out of control and i dont know what to do.

I am also due to go on maternity leave in the next couple of months. The bank wont reduce my payments to interest only Is this for the mortgage payments? If not explore this option.The lender should allow it unless you aer currently in arrears when they can get a bit humpy about it. as i am still paying people what i should be and not asked the creditors for reduced payments ( I dont really want to do that). After doing my SOA i didnt realise they were so out of control.

Any advice would be greatly received.

HELPPPPP!!!!!

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1776
Partners monthly income after tax....... 780
Benefits................................ 130 check www.entitledto.com to see if you are claiming all the benefits you can. xx
Other income............................ 0
Total monthly income.................... 2686

Monthly Expense Details
Mortgage................................ 1233.46 see comment above re switching to interest only.
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 96
Electricity............................. 30
Gas..................................... 40 both of these sound reasonable but shop around to see if you can get them supplied cheaper by another provider.
Oil..................................... 0
Water rates............................. 47.8
Telephone (land line)................... 27 as above for both of these,(incl mob) that sounds like a good ol' BT package. do you use all of the allowance or could you drop it down a level.
Mobile phone............................ 30
TV Licence.............................. 11.95
Satellite/Cable TV...................... 0
Internet Services....................... 7.5
Groceries etc. ......................... 350zoiks!! tis high. this can easily be reduced hon. Check out the old style board for ways to cut this, meal planning, (cheaper supermarkets;) ) etc. thiis is the area you can make a pretty large saving.
Clothing................................ 20
Petrol/diesel........................... 120
Road tax................................ 20
Car Insurance........................... 20
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 40
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 20.53 hmmm again pretty high, take a look at www.quidco.com to see if its worth swtiching and claiming the cashback.
Life assurance ......................... 32.05 necessary!! please cancel this only only only in the direst of circumstances
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50 try and halve this if poss, it is possible to do.
Haircuts................................ 15
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2261.29

Assets
Cash.................................... 0
House value (Gross)..................... 235000
Shares and bonds........................ 0
Car(s).................................. 9000 any chance of selling and downgrading for a while to free some money to clear a debt?
Other assets............................ 0
Total Assets............................ 244000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 180000...(1233.46)..5.74
Total secured debts........... 180000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................0.........98.17.....0
Halifax CC.....................214.67....5.........15.9
Halifax CC.....................5341.53...106.......16.9
Littlewoods....................707.52....37........15
Next...........................260.81....25........15.9
Barclaycard CC.................1880.84...14.9......42
A&L CC.........................482.12....17........15.9
A&L CC.........................356.06....11........15.9
RBS CC.........................5479.45...123.......125.9
Virgin CC......................4325.16...130.......0

I think the best thing to maybe look at here is shuffling those cards. can you tell us which have available balances and how much those balances are? (i'm really hoping that barclaycard one is the wrong way around...) and a typo inthe rbs card i hope!!!

chat soon. P xxx

angels11

The groceries and presents were all a rough estimate and i probably dont spend that much. Sometimes i can go shopping once a fortnight and only spend £50 other times its £80 + so that does that vary.

Halifax CC.....................214.67....5.........15.9 LIMIT £4900
Halifax CC.....................5341.53...106.......16.9 LIMIT £5550
Littlewoods....................707.52....37....... .15
Next...........................260.81....25....... .15.9
Barclaycard CC.................1880.84...14.9......42 LIMIT £4410
A&L CC.........................482.12....17........15. 9 LIMIT £5000
A&L CC.........................356.06....11........15. 9 LIMIT £3500
RBS CC.........................5479.45...123.......125 .9 LIMIT £4500
Virgin CC......................4325.16...130.......0 LIMIT £5000


Wedo have two cars as we have needed them to get to work, but we are selling one and it is advertised at the moment so we should get about £3500-£4000 for that, I will have to start walking everywhere as i am on sick leave from work and will probably starting my mat leave beginning sept, but it will be good excercise.

The life assurance is for both me and my hubby. The buildings and contents are paid together and i just halved it that is £40.53 for both. I have just change gas and electric, i was paying over £100 per month but i will be looking at BT i have just cancelled the broadband with them and moving over to O2 for £7.50 pm.

I think we are only entltled to child benefit as my hubby earns too much, working tak credit wont give me anything as they overpaid me about 3 years ago so that is still been paid back.

As for the mortgage we have been paying interest only for 6 months and that period is now at an end. I had to fill in a budget form to see if we could stay on it and I got the letter today saying they wont let us until we reduce the creditors payments. Think i need to try and see a mortgage advisor. X

tyllwyd

angels11 wrote: »

As for the mortgage we have been paying interest only for 6 months and that period is now at an end. I had to fill in a budget form to see if we could stay on it and I got the letter today saying they wont let us until we reduce the creditors payments. Think i need to try and see a mortgage advisor. X

What is going to be the situation when your baby is born? Will you be going back to full-time work when your materity pay runs out, and will you have to pay childcare?

I think you are going to have to be realistic - your mortgage is huge on your current income, and if your income drops any further you are going to be in real trouble. I think you should talk to one of the debt advice charities to see what they say. If you are going to have to go onto a debt management plan, it is better to get advice now while you have a bit of breathing space, rather than six months down the line when you have fewer options.

angels11

My mum will be doing the childminding so that wont be any further costs to pay

rubydoiwannabee

Hiya
Do you have a loan? The SOA says you are paying a monthly amount, but on a 0 balance.

Who is your mortgage lender? Are they saying that since your fixed rate has come to an end, they are not happy with you having an int only mortgage??
I am amazed, loads of people have int only. I ask because I have a fixed rate with just under 2 years left and owe similar amount to you. We have just converted to int only to try and reduce our monthly outgoings and the mortgage company were fine. do you have any arrears on your mortgage?

pania

just typed you a blimmin long reply and lost it!! BAH!! got to dash out for a bit hon but can see a way forward with regards to transferring those card balances that may makes things an awful lot easier than going onto a dmp.
hang in there, hugs!! xxx

angels11

Yes the loan is for about £4000.

The mortgage are just not happy about us been on int only and i did explain it was temporary for about one year max until i go back to work and it was for the same reason as yourself to try and reduce our outgoings.

The letter i got from them said this ' The society is not prepared to accept reduced payments at this time in view of the fact that payments are currently been made to your other creditors. I suggest you approach them with a view to agreeing a reduced payment more in line with your present financial status'

We have never been in arrears and i always make sure the bills are paid on time. They dont even offer a holiday break which would really help us out too.

rubydoiwannabee

angels11 wrote: »

Yes the loan is for about £4000.

The mortgage are just not happy about us been on int only and i did explain it was temporary for about one year max until i go back to work and it was for the same reason as yourself to try and reduce our outgoings.

The letter i got from them said this ' The society is not prepared to accept reduced payments at this time in view of the fact that payments are currently been made to your other creditors. I suggest you approach them with a view to agreeing a reduced payment more in line with your present financial status'

We have never been in arrears and i always make sure the bills are paid on time. They dont even offer a holiday break which would really help us out too.

Hiya, sorry to keep going on but having read what they have said, it sounds like they are thinking you would like to just pay less for a while, (forgive me for saying this twice, I just know it has made the difference for us. We have the same size mortgage as you and have been paying it as repayment, converting the whole mortgage onto interest only has allowed us to balance the books each month, by knocking £300 a month off our outgoings). Have you asked for reduced payments or have you asked to convert the whole of your mortgage to INT only?

Call me annoying.... if that is what you are saying and I'm just not getting it!!!:D