Help, Need Advice Before It All Goes Pete Tong

Matt_the_hat

Hi, I Am Very New To This And Need Advice As Where To Start.

Situation:

Mortgage £65,000, Debts £50,000. Monthly Outgoings £1900. Monthly Income £1500 (maybe A Bit Less Until April When Child Tax Credit Comes Back In Again). I Earn £22,000 Plus Bonus, My Wife Earns £2000. Tried To Remortgage With Abbey Nat As House Is Worth Around £200,000 But No Go. The Reason For The Majority Of Our Debts Is Because I Was Self Employed For 2 Years And Took A Huge, Huge Drop In Salary (explained This To Abbey), Had To Give Up Self Employment After Lots Of Effort And Now Working Full Time Permanent Again.

On The Bright Side, We Have A Bonus Coming, Inheritance £25,000. This Is Where I Need Advice, Do I Pay Off Biggest Debts First I.e. Credit Cards, Loans Etc, Or Pay Off A Lump Sum On The Mortgage And Try And Re Mortgage Again ??? We Have A Fixed Rate With Abbey Until July 06, If We Try To Change Lenders Before Then We Get Charged Alot.

Please Help, All Of Your Comments And Suggestions Will Be Greatly Appreciated.

Love The Site, And I Am Glad To See "it's Not Just Us".

Thankingyou.

ms_london

Matt_the_hat wrote:

Hi, I Am Very New To This And Need Advice As Where To Start.

Situation:

Mortgage £65,000, Debts £50,000. Monthly Outgoings £1900. Monthly Income £1500 (maybe A Bit Less Until April When Child Tax Credit Comes Back In Again). I Earn £22,000 Plus Bonus, My Wife Earns £2000. Tried To Remortgage With Abbey Nat As House Is Worth Around £200,000 But No Go. The Reason For The Majority Of Our Debts Is Because I Was Self Employed For 2 Years And Took A Huge, Huge Drop In Salary (explained This To Abbey), Had To Give Up Self Employment After Lots Of Effort And Now Working Full Time Permanent Again.

On The Bright Side, We Have A Bonus Coming, Inheritance £25,000. This Is Where I Need Advice, Do I Pay Off Biggest Debts First I.e. Credit Cards, Loans Etc, Or Pay Off A Lump Sum On The Mortgage And Try And Re Mortgage Again ??? We Have A Fixed Rate With Abbey Until July 06, If We Try To Change Lenders Before Then We Get Charged Alot.

Please Help, All Of Your Comments And Suggestions Will Be Greatly Appreciated.

Love The Site, And I Am Glad To See "it's Not Just Us".

Thankingyou.

If I were you I would use the inheritance for your debts, clear those with the highest APR. But also, you need to trim your outgoings so that they are WITHIN you salary - otherwise you will accrue more debt!!

Could you post a SOA and list your incomings & all of your outgoings including your debts? Then perhaps we could give you more advice.

Ms_London