hi all new guy here after some advice pls

pvfc

hi all just found this great site,just wondered if anyone could answer my questions and offer advice.
here goes,basically me and the wife were financially sound with a bit of money to play with each month last year,then we had a baby called liam,who is great,but basically now that my wifes maternity leave is ending shortly(september)we are gonna have to find about 500 pounds a month to put the boy in nursery.
we have two loans which amount to roughly 14000k which we have paid 380pm off quite easily for the last two years,both loans have just under 3 years to run.
we have a morg of 90kish which takes up 450 a month in repayments and when my wife goes back to work she will be earning less,we will get NO help at all from the overnment for childcare cost as they tell us we earn enough,alledgedly!
now basically we will be about 200 p/m short monetwise of what we need to cover everything so we are not sure what to do.the main question i have is this-
1.our two loans are unsecured so if we miss any repayments can the loan providers make a claim agaisnt our equity in the house?(which is about 10k so not enough to remorg and pay off the debts)
2.the last thing we want to do is incease the loan terms as one these are up in three years we will never take out another loan and plan to move into a nice house with garden for my son to enjoy his childhood in,so is there anyway we could reduce the loan payments without extending the term?
3.i have read about ivas ect but would we be best remortgaging the house,which is due for renewewal in april 09,before

boredofbeingathome

Why not pop up a state of affairs, (Soa calculator at top of board)then we can see if there is any leeway in your budget. I am sure that you will be able to find the money, as you have managed on maternity leave. The only problem i can see at the moment is that you are thinking the worst before it has happened!

There may be allsorts of things you can do, and you never know about the future as your wages will go up, and promotions will be in the offing!

Also you say the govt reckon you have earned to much for help, but your wages will have taken a knock back this last year, so i would suggest that you reapply for tax credits and you may get the childcare element in it!

pvfc

thanks for yourn reply,we managed on maternity pay as we saved 4k to cover the reduction of income whilst the wife was off,had a good long look at saving anymore money but there aint any way as we have no credit cards ect all the debt we have is the two loans and morg.just had my pay rise of 2.5% but thats soon taken with fuel bill up 20%!if we do start to really struggle would i be best to make sure the morg gets paid and then deal with the loans seperatl,if we have o default on the loans then so be it the only thing im really concerned about is the house not becoming a problem.

boredofbeingathome

It sounds like you have been managing very well so far, so congratulations on that.
Are you sure there is no way to make any savings (not being rude) I thought the same when i came on here, but i have managed to shave an awful lot off outgoings by being as ruthless as i can.
I started off with the cost cutting quide of Martins.
Looked at switching gas and electric and phone providers.
sourced cheapest fuel andused quidco for cash back on switching.
Looked at 0 % cards ( i know you have no credit card debt)
Renegotiated council tax over 12 months..have never had arrears.
Also made sure i budgetted quite tightly, have never had bank charges.
Pay all priority bills.
look on old style for menu plans and ways to save there, i can honestly say we eat extremely well on half of what we used to..Old style also have good tips on cutting back on electric and gas..last month through very few measures,we were actually £130 in credit..so do look at everything!
look at surveys and things for ways to get vouchers for treats..
I can go on, but i am only on the tip of stuff..Hypno and others are the masters at this kind of thing!

boredofbeingathome

Just had another thought, if your mortgage is not interest only you can negotiate to put it on interest only through your mortgage company..if you are considering re mortgaging then it may be an option to consolidate, but you can always look at all the options before.

I just think you need to think through everything before considering an IVA, they will muck up your credit rating for a long time, and as you say your loans will be clear in three years.If you do think this is the route then please contact the free debt charities about it, not one of those companies which advertise!

pvfc

cheers mate,maybe i am just panicking for no reason as my wife says i am but so scared to letting my eight month old son down by not providing everything he deserves,never thought about switching the morg to interest only for a few years that would possibly free up the extra cash required,but wouldt the morg provider want to see proof that you were making provisions for the non interest side of the morg to be paid off?

boredofbeingathome

No, i have not come across this, but as you quite rightly say there will be cash freed up and then there may well be provision for this when the mortgage deal comes to an end.
Most providers will make an arrangement for an agreed length of time, and i suggest you do it to the end of your fixed deal. Give them a ring on Tuesday, they can only say no! Iknow that Northern Rock charge £75 fixed for transfer to interest only, and the same agin when you go back on repayment. so long as you are fully aware of what it entails, then i don't think they have a problem. Also have a look at all the other cost cutting measures, i think you will find you are a lot better off.
also have a look at some of the diaries on here, mine tends to waffle about turnips and stuff, but there is a bit of debt busting ..honest. Hypno's is great for inspiration as are the others ..i get new things to think about every day!

Good luck and i forgot to add welcome to the board...very remiss of me.
BOB X

boredofbeingathome

Hi back pvfc, i have just been reading baileys diary..and have just taken on board some advice which i think is pertinent to us all..by Hypno of course. Post 52.

http://forums.moneysavingexpert.com/showthread.html?p=13609209#post13609209

pvfc

thank you had a look throug and seems like a good plan may have to start writing lists

McKneff

Welcome to the boards

i think youre just panicking at the momentwhich is the most natural thng in the world.

i bet folk on here could save you a fortune if you posted your SOA

badgerbread

Hi
to help with the shortfall you could try and do one of the challenges like £10 a day I know it sounds hard to do but once you get in to it it gets easier there are things like mystery shopping, paid surveys, cashback sites Slice the pie, dooyoo and I am sure many more that all help bring in some money this way tou can cover the extra £200 a month needed. I know it can be daunting especially with a little one (I have had 3 not so little now though) but read as much as you can on these forums as you will be suprised the help you can gain from the forums.

Oh and welcome by the way