Ex-fool needs to get back on feet

dayzed

Can anyone please point me the right direction. There's a lot of info here, I hope not too much though.

My current situation is this:
I own 2 houses.
Residence: value £180k. Mortgage £104k. (£76k equity)
Other Family house: value £120k. Mortgage 25k (£95k equity)

debts
credit card 4k
unsecured loan 8k

I currently have no mortgage arrears or any other debts.

I am self employed and work away from home and can earn good money (2500 - 3500 pcm), BUT have not worked for the past year, living on savings (which have now gone). This has been to stay and home and look after my partner who has a back and hip injury. She has recovered well (the main thing) and will will try to get back into the workplace in the new year (if only for a few days a week to start). This means I can also start work again. I hope to be earning by April next year. So longer term, providing I pull my finger out, I have should be ok.

However, my problem is this:

I have a bad credit history including 1 CCJ. I've recently realised that my partners depression due to her poor mobility has also effected me meaning I was not paying bills on time, not opening mail etc and simply burying my head deeper and deeper into the sand. I have become an expert in blocking out problems and simply not dealing with things.

I've can see this now, but haven't been able to in the past. It's been hard to pull my head out and look around and see what kind of mess I am in. Even though I do not have major debts like some people i've seen on here, I do have a major problem in that the savings have gone, and that I am unable to meet my commitments moving forward. I could probably scrape together enough for this month.

Realisticly speaking, in order to see me though until I am earning again I need to raise about 15k.
5k to pay off credit card, 5k to make some urgent home repairs and about 5k to live and pay bills. However if I ignor the home repairs until i'm working, 10k would be enough.
However being technically unemployed, my current credit history and no recent earning evidence I'm unsure of the best approach to take. I have approached my mortgage lender and explained the situation and they said they will happily extend my borrowings once I have a new contact. Which does not help me at all in the short term.

I would like to act now rather than let things get worse so would it be wise to try and extend my borrowing in order to meet short term commitments, even though it would mean paying more in the long term. As my mortgage lender has refused, who should I approach next.

Any help and advice you have to offer would be a great help.

skintchick

What is the second house for? Do you rent it out? Who lives there?

I'd suggest selling it.

khizman

skintchick wrote:

What is the second house for? Do you rent it out? Who lives there?

I'd suggest selling it.

Only as an extreme last resort,

gentlepurr

hi dayzed,

reading through your post twice, one thing that concerns me is if your partner is aware of your impending financial situation, it could affect her recovery?
i only ask this because if she is aware of the situation, would she be agreeable to you employing someone to be with her during the day, so you could go back to work sooner? it sounds like your earning potential would be greater than what it would cost to employ a carer for a few weeks. seems cold hearted i know, but needs must when the devil drives, and at least perhaps she could feel that she is not "to blame" for any strain on the finances. I only say this because being a woman myself, i know all too well that i often blame myself for things that i shouldn't take the blame for!

i wouldn't sell the second property unless i was really desperate thoug. if itis rented, i would look at rent increase, or getting an extra lodger in.

is there a friend who could sit with your partner even a couple of evenings a week, perhaps you could get a bar job or something a couple of nights a week. crap money i know, but at least its a few quid in your pocket, and you would have a bit of social interaction while you were working.

finally, assess your current outgoings, and only buy what you need, not what you want. try cheap own brand versions when grocery shopping.

sorry if i,m trying to teach you to suck eggs. good luck