£40k Debt, any advice please?

Magical30

Emergency fund is an expense that the cccs said you have to include in your budget, in case of emergencies. Suppose in case you need it, like the washing machine breaks down or something like that. I failed to mention that the reason we are in this mess is because i own a flat, which we didn't sell before buying the house. It was empty for a year, so had two mortgages, and two lots of council tax to pay. Couldn't sell flat, market dropped. Now only rent it out for cost of mortgage, £430. No income generated, but have to pay buildings insurance.

Happytogetdebtfree

could you rent your house out and go stay with family for abit ?? is there no one that can help??? whathave you got that you can sell now is not the time to keep up with the jones's if you desperatley want to keep your house sell a nice car and buy a banger i drive a cinqchento ( dont know if thats spelt right ) it cos me 300 quid i put 40 quid pm in it for fuel costs and the insurance is 50 quid because im under 25.... i stopped caring about having nice cars if you own 2 veichels this is something you can do ..... dont let it run away with you you can do this ..... cut back on all luxuries for a few months do what you can ... otherwise you have to face cold hard facts and i dont think somebody taking your home is one that people want to be faced with so you need to bite the bullet and cut the losses now.... ie sell a nice car make some cash and make good use of it x

skintandscared_2

Magical30 wrote: »

Emergency fund is an expense that the cccs said you have to include in your budget, in case of emergencies. Suppose in case you need it, like the washing machine breaks down or something like that. I failed to mention that the reason we are in this mess is because i own a flat, which we didn't sell before buying the house. It was empty for a year, so had two mortgages, and two lots of council tax to pay. Couldn't sell flat, market dropped. Now only rent it out for cost of mortgage, £430. No income generated, but have to pay buildings insurance.

How much is the flat worth? Is it mortgage-free? Couldn't you sell it at an absolute bargain price and have enough to pay everything off?

Magical30

We have two cars, both need these for work, I'm a mobile carer. No relatives we could stay with and rent house. The flat I own has a mortgage, and is in negative equity, owe £105k, would only sell for £100k if i was lucky.
My partner not keen on selling house as he thinks we'll have nothing, keep explaining we may end up that way anyway. Thing is it was valued at £220 when we brought it, I reckon only worth £195k now.

tiddly_widdly

Looking at your food bill. There are 5 of us. 2 adults, 2 teenagers and one 10 year old. so lots of hungry bodies to fill. I used to spend around 400 per month on food. Ive always cooked from scratch, due to children having food allergies ready meals have always been a no no. When food prices started to rise I decided enough was enough and every fortnight make a menu of main meals. I listed the ingredients needed for those meals. I then go through the cupboards to work out what I really need to buy. I go to Lidl first with my list then go to either Asda or Tesco to top up on what I couldnt find in Lidl. I very rarely deviate from the list. Ive halved my monthly food bill.

It takes work and organisation but its worth it.