Help really Worried we are going to go under!

tyllwyd

It is really difficult to make any sense of your SOA because your OH's income varies so much. On his basic salary, you are obviously totally overcommitted, and you need to get some help. But if he can bring in overtime, you can scrape by. The problem with going contracting is that you have such high monthly payments, it would only take a few weeks between jobs and things would have got even worse.

I think you need to talk to one of the debt charities and find out what your options are. The only thing I can think of is that maybe you need to downsize or maybe sell up and rent - your mortgage is cripplingly large and with debts on top it is dragging you down.

imcognito

Lizzybop wrote: »

Hi there, well done for posting, I'm sure there will be loads of great advice along soon. I can't help too much but do have experience of pre-school. How many hours does your oldest attend pre-school? As you are a SAHM would it be possible for them to only attend for the funded 2.5 hours per day, and the funding should cover all if not the vast majority of the costs. Or is it a private expensive pre-school. I just seems like a lot of cost.

Best of luck
Liz

Hi Yes is a private preschool, sessions are 3.5 hrs not 2.5 so am paying the extra, I would need to change schools t get totally free, am not sure thats fair on him after a year? Dh will get childcare vouchers next year tho which should help I think? maybe even cover the costs with tax savings??

xcat_girlx

imcognito wrote: »

Hi Yes is a private preschool, sessions are 3.5 hrs not 2.5 so am paying the extra, I would need to change schools t get totally free, am not sure thats fair on him after a year? Dh will get childcare vouchers next year tho which should help I think? maybe even cover the costs with tax savings??

no time to think whats fair. its what will save you from potentially an enormous problem!

imcognito

rizla01 wrote: »

Tear up your credit cards and sell both cars and buy second-hand (under £1000.00). My brother just bought a 2nd hand Rover deisel for £350.00. It has done only 78,000 miles and will probably not cost a penny in repairs for the next few years.

You have surely STILL been borrowing even though the present situation has been forseeable for the past 6Mths. Am I wrong?

Stop borrowing MORE money.

Wont cure your problem but your problem is the mindset of the pair of you.

Interest Only mortgage??? WHY? That will REALLY hurt in two years the way things are.

Your money is controlling you and not the other way around, it seems.

Relly Sorry to sound harsh, IMCOGNITO, (Good name) but your situation may be bad but could soon be very dire.

Am pretty sure under the finance agreements we are not allowed to sell the cars... They might buy them back but I doubt it. Can try I guess. DH really needs something reliable tho I mean he does 600 miles a week!
We had a cheap cheap 2nd hand car before it died left me and my 2 sons stranded miles from home with no coats shoes (them not me!) we had to walk in rain.

Why Interest only? Well because how on earth can we afford replayment on top of everything else? Can we? We can switch I have asked them but its finding the money to pay for it.

Yes in last 6 months we have had to borrow money when he has had his minimum wage, no overtime. we know its wrong but we can hardly let everything bounce.. or is that the better option, I know robbing peter to pay paul.. maybe we should just let them bounce?

Ok I need help!

Imgocnito was a spelling mistake LOL! wouldnt let me change but I like it!

xcat_girlx

imcognito wrote: »

Am pretty sure under the finance agreements we are not allowed to sell the cars... They might buy them back but I doubt it. Can try I guess. DH really needs something reliable tho I mean he does 600 miles a week!
We had a cheap cheap 2nd hand car before it died left me and my 2 sons stranded miles from home with no coats shoes (them not me!) we had to walk in rain.

Why Interest only? Well because how on earth can we afford replayment on top of everything else? Can we? We can switch I have asked them but its finding the money to pay for it.

Yes in last 6 months we have had to borrow money when he has had his minimum wage, no overtime. we know its wrong but we can hardly let everything bounce.. or is that the better option, I know robbing peter to pay paul.. maybe we should just let them bounce?

Ok I need help!

Imgocnito was a spelling mistake LOL! wouldnt let me change but I like it!

why on earth did you get a mortgage you couldnt afford unless it was interest only?

imcognito

tyllwyd wrote: »

It is really difficult to make any sense of your SOA because your OH's income varies so much. On his basic salary, you are obviously totally overcommitted, and you need to get some help. But if he can bring in overtime, you can scrape by. The problem with going contracting is that you have such high monthly payments, it would only take a few weeks between jobs and things would have got even worse.

I think you need to talk to one of the debt charities and find out what your options are. The only thing I can think of is that maybe you need to downsize or maybe sell up and rent - your mortgage is cripplingly large and with debts on top it is dragging you down.

Thanks yes we know those are the problems, downsizing? Hmm we moved an hour away from our parents so we could afford (just!) to buy - (I was working then ) we live in a 3 bed semi, with 2 kids and one on way. How can we downsize? We did rent before that was £1100 a month tho! I mean not a lot difference. I know I sound negative but I cant see how I cannot move further away from family what on earth will we have left?

CLAPTON

the way I see it

-you need 4,000 per month to continue as you are
-what was your average income over the last six months?
-how much has your debt increased/decreased over the last six months..
that should give you a feel for whether your SOA is realistic

basically you can't afford to be a SAHM and pay for child care ... if they stayed at home with you then you wouldn't need a second car or the associated costs.... this would probably save 400 per month once number 2 starts nursery
You need to cut out everything non essential until you can build up a float to even out the fluctuations in OH income and until you start seeing the debts go down

the alterantively are formal debt management options

a. bankruptcy... you have no assets... the house is worth less than the mortgage ... what would a rented property be in your area.

b. debt management plan...basically coming to an arrangement to pay less to your creditors

imcognito

xcat_girlx wrote: »

why on earth did you get a mortgage you couldnt afford unless it was interest only?

I was working at the time, my mum said she would look after the kids for me then went and changed jobs herself meaning she couldnt and I had childcare to contend with,. at £50 a day EACH meant I couldnt not work. my train fare was £40 a day.

Thats why we got a mortgage we could afford it at the time

xcat_girlx

print off that SOA and go to the CAB or CCCS, they may have another solution for you

xcat_girlx

with regards to giving the kids stimulation etc, instead of nursery, is there no mother and baby/toddler groups you can attend? better to pay a couple of quid to go to them than all of that for nursery.