Please can someone help me - don't know which way to turn

lemoncheesecake

Hi,

My husband and I are in a bit of a mess and instead of things getting better they are getting worse. We have bills we can't pay and am pretty sure we won't be able to pay mortgage next month and we are already in arrears. I have a liability order for the council tax and today recieved a gas and an electricity bill and I cant see anyway that we can pay them.

We maybe able to make some of the mortgage but that would mean not paying the credit card and loan payments. My husband is working all the housr but he's in sales and nothing is selling so we have had no income from comission. I have 3 pre-school children and do a bit of typing for my old work when they have any available and cant think of any other way I can earn more. In the mean time we are sinking and I am so worried that if we max out the credit card and both overdrafts we wont beable to feed the children.

Please can someone help me make the right choices in deciding what we can do.

Thanks
Joanne

paybacktime2008

Welcome. You've taken the first step. Now do an SOA...statement of affairs. You will find in on www.makesenseofcards.com It will focus your mind, probably scare the living daylights out of you BUT then everyone on here can help you by seeing where you can save money.

Good luck. And remember...Mortgage comes first before credit cards.

Head-Out-Of-Sand

Hi there,

Don't panic - you're in the right place

There are loads of great, helpful people on here who will pop on & offer advice.

Right now it would be helpful if you could to a statement of affairs, go get yourself a brew & go to http://www.makesenseofcards.com/soacalc.html for the SOA calculator.

Chin up - things are rarely as bad as they seem, and if you post your info up, people will most likely be able to offer ideas you hadn't thought of.

Hugs, stay calm! xx

RAS

LCC

You have things back to front "the credit card and (unsecured) loan payments" are your last priority.

You must pay the mortgage, sort out the council tax, then eat and heat yourselves. Once that is sorted, then you wqorry about unsecured debts.

If in doubt, contact one of the debt charities

http://www.moneysavingexpert.com/loans/debt-help-plan#help

Head-Out-Of-Sand

paybacktime2008 wrote: »

Welcome. You've taken the first step. Now do an SOA...statement of affairs. You will find in on www.makesenseofcards.com It will focus your mind, probably scare the living daylights out of you BUT then everyone on here can help you by seeing where you can save money.

Good luck. And remember...Mortgage comes first before credit cards.

DOH beat me to it!

Lottebear

Yes you need to work out how much you have coming in what is going out, as your circumtances have changed are you getting all of the benefits you are able to?

Morgage and council tax first, then gas electric and fianlly credit cards.

elsie52

Hi,

I am not much of an expert......but I know people who are!

I am sure there will be a lot of knowledgeable people reading your posts fairy soon and they will advise you. Personally, I would post your SOA.....Statement of Affairs...I believe there is a link at the tope of the page, Once you have done that, peeps will be abl to give you advice. You could also speak to CCCS or Payplan...they are DMP and they may also b able to help you. Don't Panic.....we have all been in this situation, and we all know the feelings of desperation. I am sure that your priorities are keeping a roof over your family's head, and feeding them....

Keep on posting and you will get help.

lemoncheesecake

Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 800
Partners monthly income after tax....... 300
Benefits................................ 510
Other income............................ 0
Total monthly income.................... 1610
Monthly Expense Details[/b]
Mortgage................................ 754
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 122
Electricity............................. 40
Gas..................................... 60
Oil..................................... 0
Water rates............................. 43
Telephone (land line)................... 40
Mobile phone............................ 18
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 0
Petrol/diesel........................... 40
Road tax................................ 15
Car Insurance........................... 35
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 26
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 20
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
maintenance............................. 70
Total monthly expenses.................. 1545

Assets
Cash.................................... 0
House value (Gross)..................... 185000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 186000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 158000...(754)......5.7
Total secured & HP debts...... 158000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
HSBC credit card...............4000......99........0
Capitla One CC.................1400......80........0
Loan...........................1900......102.4.....0
Loan...........................1600......123.......0
Total unsecured debts..........8900......404.4.....-

Monthly Budget Summary
Total monthly income.................... 1,610
Expenses (including HP & secured debts). 1,545
Available for debt repayments........... 65
Monthly UNsecured debt repayments....... 404.4
Amount short for making debt repayments. -339.4
Personal Balance Sheet Summary
Total assets (things you own)........... 186,000
Total HP & Secured debt................. -158,000
Total Unsecured debt.................... -8,900
Net Assets.............................. 19,100

Hope I did that right - the income is very hard to work out because I do whatever is offered and my husband could earn more or less. He thinks he will only get £500 this mth because the sales he did make have cancelled so they are taking that comission back.

paybacktime2008

Ok. If your husband is only bringing that in next month get on to council tax and see if you are eligable for any benefit. Also tax credits.....is the income figure they have for the year correct? Re estimate it if it is wildly out and you may get more.

Can you go interest only on the mortgage....probably tricky if you are in arrears.

Car insurance looks HUGE. Try the comparison sites for a better deal. You are paying almost half the value of the car a year!

I presume landline includes internet and basic tv? If it doesn't you can get all 3 of these for under £30.


Just some thoughts to get you started. Good Luck


Also try to find out the APRs of cards ASAP.

RAS

Hi

We need to know, the APrs on the credit cards and loans, the maximum limits on the cards, when they were taken out and how many payments left on the loans.

Any PPI or charges?

Your SOa is not basd in terms of expenditure but there may be thigs you can skin a bit.

What can you sell that you no longer need. is the car vital?

Spentit_3

Hi Lemon Cheese Cake, I'm new here too but I wanted to offer my support. I'm sure you'll get things sorted out with a little help from people here.
Just a thought, have you tried this site? http://www.entitledto.co.uk/ there may be something more you can claim while your income is lower, definitley work out a yearly income and give the tax credits a call as they will change your award if your income drops significantly.

All the best x