Please help

savingholmes

Helpus wrote: »

The other house only has about 10k equity in it, and we had it up for sale and no one wanted it so we have had to put it back up to rent. If we sell this, after fees etc there wouldn't be anything left, but we would have less stress I guess. That house is on a standard interest only mortgage at the mo and the one we are living in is a BTL as we haven't changed the mortgages over.
Our mortgage on this house is £530 a month and we have about 30k maybe more equity in this one, but really don't want to sell it as we need a house at least this size with our 2 young children.

They want me to work more hours which is fair enough as I only do 8 a week, but its hard to see when I can do them as I am home with the children all day and neither families are willing to help out with child care. I work evenings, but I can't imagine life where my other half is out all day and me every evening its just not fair on the kids, but I know we have to do something, my stomach is in knots. I am so scared of losing everything. There are a couple of things we can cut back on but can only really save about £40 a month from what we spend now and its just not enough.
Please tell me there is a way out over a reasonable amount of time and I won't lose everthing?

I think the first thing you need to think about is that statement of affairs - if you list where you are currently spending your money people may be able to offer advice on where you could save extra.

Also from what you've said above you owe £38K plus the mortgage but you have assets worth £40K (split between 2 houses). So with a positive thinking hat on technically at least your assets are worth £2K more than your debts. I know the housing market and the economy are not doing great right now but if you look at say a 30 year trend you will find that this kind of pattern does repeat regularly and afterwards house prices etc shoot up again.

I'm new to this too, but have tried car-booting, quidco and selling unwanted stuff to friends so far.... and have made approx £200 in 4 weeks! See the make £10 a day challenge for more suggestions on how to do this.

I know you've said that you don't feel selling the other house would get you any money - however if it would save you shelling out a further £6K this year and stop you being £44K in debt this time next year perhaps it is still worth doing if you have been struggling for a prolonged period to rent it out.

If you did want to keep it - think about it in the same way as if you were selling it - what could you do that would make it more rentable. Does it need a lick of paint? Some kerb appeal through a flowering pot of plants, does the lawn need mowing, are there things that need fixing. Do you rent through an agent - if you do consider moving to another one? If you don't rent through an agent - is it worth giving an agency a try?

On the hours of work thing... We have 2 kids and we both work full time. I think that it is a very personal decision how many hours you both work, however depending on income you may be able to get help with childcare costs from the government. Perhaps you could work more evenings at say a late or all night shop? Perhaps you could do mystery shopping or mystery telephone shopping? Perhaps you could do surveys or write reviews? Look at the up your income board for ideas.

Hope that gives you some useful ideas...

System

Hi Helpus, you are in the right place, keep posting as much as you possibly can beit financial or no, whatever you need to do to get it off your chest. There is a way out and your health is way more important than anything else; I know that may seem low on the list of your priorities right now, but it will get easier from here and that dark cloud that has been hanging over you, the sleepless nights and the bags under the eyes will ease off and you will feel much better. Trust me Len

happymoneysaver79

Hi there.
Just wanted to say hello. I am in almost the same position as you at the moment, the only difference being that we have a tennant in our rented property. I have been racking my brains to think of ways to increase our income as my partner earns the same as yours roughly and I have a child of 2 years and another one due in feb. We have cut back on almost everything and i am now trying to set up an ironing business to help out. I just wanted to wish you well and tell you that you are not alone. There are some fab people on this site who can give you the support you need. I can't offer much in the way of advice and help, just wanted you to know your not on your own. I wish you all the best on your debt free journey x x x

lincroft1710

I notice from your SOA you have no contents insurance, or is this combined in with buildings insurance.

chevalier

You mentioned earlier that you didn't want it to be that you never saw your OH because you were working more evening. Unfortunately as things stand then you may have to grit one's teeth and one of you do this for the time being. Doing extra hours will massively reduce your debt free date.

Have CCCS said they could not help or are you trying to find another way that doesn't involve a DMP?
chev

10past6

Bear in mind, your debt free date will be earlier than 58 years, as one debt is cleared, this will allow more money towards other debts.

Helpus_3

rayday2 wrote: »

Sorry its not clear from your first post are the CCCS willing to help you still or is just the 58 years that is playing on your mind?

They didn't really say. It was my other half on the phone and he said they didn't really say much else except it will take 58 years to pay off.

Helpus_3

msmicawber wrote: »

Hi and welcome. While you're updating your SOA, I'll comment on what's there already:
Electricity - that's very high. Are you paying back debt? If not, there's lots you can do to reduce usage. Consider switching supplier.
Mobile phone - a little high. Can you move to PAYG?
Groceries - eek! for 2 adults and 2 children, you could halve that easily. See the Old Style board for tips & recipes.
Petrol/diesel - high again. Can you combine journeys or do anything else to reduce this?
Haircuts - £240pa is very high for 4 people. Could easily reduce this.
Entertainment - this is too high in your current circumstances. Look for cheap/free alternatives.
Holiday - would recommend waiting until debts are sorted before having a holiday.

Is the 'other income' the rent from your second property?

I hope that helps a little. I can see lots of scope for reducing your expenditure.

I am going to change my phone contract and go to pay as you go, the other income is from the other house. The people have put their application in today but yes I will still not have this for a month or so.

Helpus_3

lennymfo wrote: »

Hi Helpus, you are in the right place, keep posting as much as you possibly can beit financial or no, whatever you need to do to get it off your chest. There is a way out and your health is way more important than anything else; I know that may seem low on the list of your priorities right now, but it will get easier from here and that dark cloud that has been hanging over you, the sleepless nights and the bags under the eyes will ease off and you will feel much better. Trust me Len

To be honest I don't know what to do. I just feel sick and weak can't seem to do anything. This is one of the worst feelings I have ever had.

Helpus_3

happymoneysaver79 wrote: »

Hi there.
Just wanted to say hello. I am in almost the same position as you at the moment, the only difference being that we have a tennant in our rented property. I have been racking my brains to think of ways to increase our income as my partner earns the same as yours roughly and I have a child of 2 years and another one due in feb. We have cut back on almost everything and i am now trying to set up an ironing business to help out. I just wanted to wish you well and tell you that you are not alone. There are some fab people on this site who can give you the support you need. I can't offer much in the way of advice and help, just wanted you to know your not on your own. I wish you all the best on your debt free journey x x x

It sounds like you are doing a great job of sorting things out. I wish I had you enthusiasm. I have someone putting in a application on the house as we speak but don't know if I would be better off just selling it. I don't understand all this capital gain etc