Help really Worried we are going to go under!

spen_2

These situations are always difficult to resolve because there are always a million reasons why any or all suggestions would not work, but at a glance these are the suggestions i can make. The unfair part of this is that many of the sugestions would affect your credit rating, but that would be better than losing the home or going under. And you are not the only person struggling at the moment

1) if you cant sell both cars and use one, the place one on a sworn and save the fuel/tax bill - get your car tax refunded - make sure you then store the car in accordance to manufacturers guidance and NOT on a public road as this will lead to a fine for non payment of road tax. The Rover car suggested earlier is a great car and if you get a diesel these will run on anything, I run mine on my own boi fuel 25p per litre 65 miles per gallon!!

2) not sure what your husband does but it sounds like he is freelance, get him to go limited and try and save tax and offset expenses. If not then i feel due to his wage fluctuation that a rebate may be long over due, write to your tax office.

3) talk to all of your unsecured debts and ask them for a break or if you can for the forseable future reduce payments, second make sure you ask if they can freeze the interest, if not suggest to them that you may need to otherwise consider going bankrupt (this normally helps)

4) do NOT make any phone calls that would increase your phone bills, and talk to your service provider about cancellation or going on a reduced tarriff

5) cancel sky!

6) goto out of town farms to buy fruit and veg and meat, this has shaved 15 pounds of our 70 quid a week shopping bill

7) have you a mortgage break option on your mortgage

8) is the property valuation real, or has this been made by a greedy property investor, or similar

hope this helps

C_£44,000

There has been some fantastic advice already offered, and I can only agree that there are still some changes that you could make. I am sure your children would appreciate that extra quality time with Mum rather than being at a expensive day nursery.

I don't wish to sound harsh but if you had to make 15 mortgage applications before one was accepted, why did this not ring alarm bells? My guess is that you have a high LTV, high income multiple borrowing with a sub prime lender. ( Although I can appreciate that owning your own home is the main drive for may people ) Don't forget that borrowing 12 months ago was so much more flexible than it is now. You may well find it difficult to remortgage elsewhere as many of the major players in the sub prime market have now ceased trading. As you are already on interest only there is no scope to alter your repayments when your product rate ends and you convert to standard variable rate, even changing the term will not affect payment on interest only loans. As someone has already commented, Early Repayment Charges will be applied and are unlikely to be waived by lenders if you are fortunate enough to remortgage away from your existing deal.

Whilst you have recognised there is a problem, I would suggest seeking professional advice from CCCS or other debt charity as soon as you can to try and assist with your difficulties as soon as possible.

From one third time expectant mother to another, I can only wish you well.