debt help real desperate

jamieT_3

i lost my job in october and since then have been hunting for a new job woth no luck i cant claim any benefits as my wife is still workin but only earning 13k a year ive got debts that are 7k to first plus (secured loan), 6k lloydstsb credit card, 6k overdraft, 3k lloydstsb loan, and i have a mortgage of 760pm ive got no income myself and my wifes money goes nowhere near as she gets 860pm and pays 200 for her own debts and 25pw for electric and the rest goes on other bits for my son, i just dont no where to turn at the moment and am so worried im going to have to go bankrupt and lose my house ect would really like some help and advice

RAS

Welcome

let's take this one step at a time.

How much is the mortgage worth and what is the value of the house?

jamieT_3

mortgage is 155000 and house only worth 152000 as dropped alot since i took the mortgage

RAS

jamieT wrote: »

mortgage is 155000 and house only worth 152000 as dropped alot since i took the mortgage

And you have a 6K secured loan?

Now take this gently, but if the worst you fear happens, you made be able to go bankrupt and keep the house.

The big BUT is whether you could rent the same house a lot cheaper then you could paying the mortgage and secured loan?

RAS

Can you do a household Statement of Affairs? http://www.makesenseofcards.com/soacalc.html

And can you ring one of these debt charities as well http://www.moneysavingexpert.com/loans/debt-help-plan#help

jamieT_3

RAS wrote: »

And you have a 6K secured loan?

Now take this gently, but if the worst you fear happens, you made be able to go bankrupt and keep the house.

The big BUT is whether you could rent the same house a lot cheaper then you could paying the mortgage and secured loan?

i have a secured loan of 7k on the house, a 2 bed property around where i live are around the same price to rent as my mortgage

RAS

OK, impossible to tell because it depends on the OR and the sitauation at the time (it takes a year to sort out).

Are you signed on? Even if you are not getting any JSA, have the missus applied for WTC/CTC and council tax benefit? You might get something now and it you may get help with the mortgage at some point - you need to take advice on when you becoem eligible.

rog2

Hi Jamie - and welcome to DFW. It can be very daunting for someone to suddenly find themselves in your current circumstances - there will be many more as the recession deepens.

I know that it is easy to say, but try not to let your situation get you down - there is help out there, and coming to this forum is a good start.

It looks, to me, that you need to be trying to come to some arrangements with your creditors before the situation becomes unbearable. This may mean negociating a mortgage break, or reduced payments on some of your loans.

I would suggest that you talk, in the first instance, to one of the Debt Counselling charities, such as:

• CCCS - www.cccs.co.uk/ - tel. 0800 138 1111
• National Debtline - www.nationaldebtline.co.uk/ - tel. 0808 808 4000
• A debt adviser at your local CAB

Any of the above charities will be only too pleased to explain the many options open to you, and most will suggest the best way of contacting your creditors. They are free, professional and fully endorsed by this site.

We can offer as much support as you need, but it is also best to have a professional body working with you.

Another thing you can do is to post your SOA (Statement of Affairs) listing all your income, expenditure and debt. The good people on this forum will overwhelm you with sugestions as to how to save money on your day to day expenditure,

And RAS will be able to point you in the best direction for help.

Good luck.

jamieT_3

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 850
Benefits................................ 120
Other income............................ 0
Total monthly income.................... 970
Monthly Expense Details
Mortgage................................ 760
Secured loan repayments................. 156
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 104
Electricity............................. 90
Gas..................................... 0
Oil..................................... 0
Water rates............................. 34
Telephone (land line)................... 20
Mobile phone............................ 60
TV Licence.............................. 11
Satellite/Cable TV...................... 20
Internet Services....................... 20
Groceries etc. ......................... 450
Clothing................................ 50
Petrol/diesel........................... 40
Road tax................................ 10
Car Insurance........................... 55
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 44
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 25
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 55
Other insurance......................... 100
Presents (birthday, christmas etc)...... 50
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2189

Assets
Cash.................................... 0
House value (Gross)..................... 152000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 153500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 155000...(760)......4.89
Secured Debt.................. 7500.....(156)......12
Total secured & HP debts...... 162500....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
credit card lloydstsb..........6200......135.......7.95
sony credit card...............2500......50........8
overdraft......................6000......55........10
Total unsecured debts..........14700.....240.......-

Monthly Budget Summary
Total monthly income.................... 970
Expenses (including HP & secured debts). 2,189
Available for debt repayments........... -1,219
Monthly UNsecured debt repayments....... 240
Amount short for making debt repayments. -1,459
Personal Balance Sheet Summary
Total assets (things you own)........... 153,500
Total HP & Secured debt................. -162,500
Total Unsecured debt.................... -14,700
Net Assets.............................. -23,700
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

RAS

Statement of Affairs here http://www.makesenseofcards.com/soacalc.html

Rog has posted the debt charity links.

There is a way out of this, so try not to worry about the possible problems. Even those would not be as much of a problem as you think.

jamieT_3

RAS wrote: »

OK, impossible to tell because it depends on the OR and the sitauation at the time (it takes a year to sort out).

Are you signed on? Even if you are not getting any JSA, have the missus applied for WTC/CTC and council tax benefit? You might get something now and it you may get help with the mortgage at some point - you need to take advice on when you becoem eligible.

yes i was signed on but they told me today as wife works i cant claim a penny from them, we cant get working tax credits as i earned 5500 this year befor i became unemployed and wife 13k so we are over there threshold so they have said as im not working cant claim we get 45pw from tax credits council tax benefit works out at 11pw but having probs with that at the mo