I'm Very Worried. :(

COBRA2008

Hi Guys,

As I can already see, I'm not alone here seeking advice.

Basically I'm 28 years old, living at home with my Parents. I'm disabled, but I have a full time job within the NHS.

My Parents are retired. Have been for a few years (like 2 for dad, and 5 for mum).

Before I started work I'd never had a job. Since I finished college at 18 I struggled and gave up on finding work. That was until October 2003. I joined the NHS and loved it since.

Before I started work I had a little debt (in comparison to today). Since then the debt has continued to be with me and grow even though I started to earn more money.

Plus to add to that we enquired about a R.T.B from the Council. We all agreed it was in our interest (mainly for my future, even though mum & dad were retiring).

Forward 5 years with me trying to spend what I see as I've earnt, paying bills and basically not caring too much about my spending I've got to a point were it cant go any further and is really making me feel ill with worry.

I have a personal loan of £25,000 over 7 years. My outstanding balance is something like 28,300 at the very moment. Our outstanding mortgage is in the region of 78,000 and out of our initial rate period. Also a personal credit for my home computer which I regret dearly (£2,700 outstanding).

Mortgage is £470 (This is with £150 off due to Pension Credit helping) and £25 PM for Council Tax. My Personal loan is £370. Plus bills.

I'm just managing, but its hurting me badly. I have only a £500 overdraft and £500 credit card so I cannot increase the problem further.

I just don't know what to do to help. I know my mum and dad are also struggling with contributing and paying their own debt (credit cards etc). This is with much warning not to get into any debt themselves.

I currently earn 14k Gross but with also disability and tax credit ontop of that.

I've thought about looking at a remortgage to bring it all into line, but it would appear my earnings are too low and they seem only to look at my work money NOT anything else.

PLUS to that, Mum & Dad would lose their Pension Credit contribution to the mortgage as it stands now and the Council Tax would jump to £90 a month.

Is there anyway out of this? I mean I know I have and do accept responsibility for the fact I've managed to grow such a big debt. Trying to live a life I couldn't afford and now I'm suffering mentally and physically.

Mum & Dad also are struggling and I know for sure my dad is at max on his credit card.

Remortgage seems to most ideal and sensible idea I can see? Do you know of any other avenue I could look at. I sometimes think of selling but I can't do this to mum & dad, but at the same time I didn't know what this mortgage was going to do to me when I signed up. I'm just so lost at the moment.

Any help or info will be most appreciated!

Thanks.

Jenna

Hey,

It's late so I'll reply properly later but just wanted to say welcome to MSE & please, don't re-mortgage!

The reason being that the debt is then secured on your home which makes it an even bigger problem to deal with.

Can you put together an "SOA", which is basically a list of your monthly income, outgoings, and debts? That will help me (and everyone else) to give you some advice that relates to your specific situation.

Night xx p.s. don't panic these things are always possible to sort out and seem worse in the middle of the night! Try and get some sleep and then you can look at this more calmly in the morning

SunderlandBlackCat

Hi Cobra

Welcome to the board.

The best starting point whatever direction you take to deal with your debt is to create a statement of afairs (SOA).

There's a template at http://www.makesenseofcards.com/soacalc.html

Once you've completed it post it up here & we'll be able to offer advice specific to your situation.

--Gem--_3

Hi there, Im abit of a newbie at the online advice thing so bear with me lol...

Firstly, your still alive. Try not to worry too much as you will become ill.

That being said you need to tackle this now and sort things out. Not just for your own financial health but your overall well being aswell.

I suggest you put together a financial statment. Let us know what you have coming in and out.

From what you have advised so far there are a few options open & im more than happy to guid you through them.

I have alot of financial experiance & I am hoping to put it to good use going forward on here.

So let us know what you have coming in & out, expand on what you have mentioned in your first post in regards to your benefits as trust me, DLA is accepted within some banks when looking at credit/mortgage applications in terms of income.

Gem x

GeorgeUK

Hi Cobra - as others have said, a statement of affairs will help us to see the possiblilities much better. The link Sunderlandblackcat posted is a good tool which will work it out for you - just post the result up in MSE format. We need to know the income amount, expenditure and what the debts and APR's are to properly advise you. We may be able to suggest savings you can make from your expenditure (possibly get your folks to do this too). It may also be possible to use creditcards with 0% promotions to your advantage and reduce the debt faster. Just be sure not to spend on them.

COBRA2008

Thank you very much guys, I'm reading into this SOA and will hopefully gather it all up for tomorrow.

Thank You!!!

savingholmes

Just wanted to say hello and welcome - I've gained so much since joining this board in July and I am sure if you stick with us all - you will too! Good luck with sorting out your SOA it can be scary to see it up on the board but without doing that I would be at least £3-4oo worse off a month than I am now. I also plucked up courage to ask for a payrise and was successful, a change in hours to reduce childcare bills and was successful and have changed a few other things around. I also have earnings through the £10 a day challenge and cash back sites that I never knew were possible or existed. So all hope is not lost and there will be different avenues available to help lift you clear of the mess you've fallen into - at least that's the way it is working so far for me...