SOA cont from ' scared to lose the house' thread

poppy25

ok so ive done my SOA which was followed by a fight with partner and then me sitting alone crying for an hour.

i dont know if this could get any worse we are paying out double to the income we are actually getting in. fingers crossed for me that my job interview goes well on friday
ok here goes.........

Monthly income- £1200 + £200 in ctc += £1400

Mortgage- £1000
coucil tax- £109 (owe £400 which must be paid by march 1st)
car finance- £124 (have to pay £400 in arrears in the next 2 weeks)

loans
Barclay loan £183 (this loan finishes in sept)
finance £66

Credit cards
Halifax £50pm (£2509) partners sis pays this as she had a loan from us
Monument £10pm (only £56 left on that)
Citi (now with legal collections) £48pm (£1607)
Royal bank of scotland £15pm (£258)
Egg £50pm (£2522)
Royal bank of scotland £66pm (2500)

Catalogues
Next £160pm (as ive missed payments total debt £630)
Look again £80pm (£540)
Studio £10 (£30)

Gas £43
Electricity £39
water £66 (only 1 more payment of this then down to £15)
Shopping £200 (was £240 cut it down a bit, but its the baby stuff that bumps it up)
phone £50 (yeah i know, i dont understand why im paying that either)
Broadband £24 (were stuck in contract 4 2 more mths then we can switch)
sky £18 (were cancelling)
Mobile £30 (im ending contract and switching to pay as u go)
Sofa finance £39
tv license £10
Car insurance £66
Home ins buildings and contents £52
petrol £40

it works out around £2330 and we have £1400 coming in i cant believe it.
dont know if anyone will be able to help me or give advice.

the worst thing is i have a 9mth old child and i feel so guilty bringing him to all this i love him so much and just want the best for him.

babesandbrats

I'm no good at the financial advice Poppy but I know someone will be along soon to give you some. Just wanted to say I'm thinking of you and your family and with some hard work you WILL get out of this situation. DOn't feel guilty for your baby - you give him all the love in the world which is the main thing for him.

Conor_3

I take it your partner works? Have you put in a claim for Working Tax Credit and Child Tax Credit? It'd be backdated so you'd get a lump sum which would help pay something off.

OK, here's the order of importance for paying bills:
Roof over head, food in mouth, heat and light. Everything else.

Check you've not got Home Contents/Building Insurance already from the mortgage supplier. I made the mistake of paying for it twice for about two years - LOL.

Need to seriously reduce the phone bill. If you're a high user, check the options BT does or consider switching supplier.

Gas/Electric. Make use of USwitch.com. BEWARE THE REDUCED MONTHLY DIRECT DEBIT TRAP where companies ask you how much you're paying and offer you this wonderful low monthly payment. What they don't tell you is that it will not cover what you actually use and you end up £100s in arrears at the end of the year. In that first year when you query it, you'll be told all kinds of lies about it balancing itself out. You need to know the price per kwh and the daily standing charge.

Car Finance. Do you absolutely need a car? Could you manage in a £300 runaround? Plenty of decent early Mondeos for a few hundred quid. You could hand the car back to the finance company and wash your hands of the debt.

Credit Cards/Loans. Phone them up and explain the situation. Ask them if you can come to an arrangement to freeze the interest and make low repayments. Offer this as a temporary situation. You'll lose the credit cards but TBH, I suppose that won't make much of a difference at the moment.

Have you any equity in the house? Would it be worth selling it, clearing off some debts and renting for a while then starting again on a firmer footing?

Finally: THE WORST THAT CAN HAPPEN is that you lose the house and end up renting. It's not the end of the world and if it helps, home ownership is a relatively new thing in this country for working/middle class as even as recently as 30-40 years ago the majority of people rented.

A_LANCASHIRE_LAD_2

If it really really really gets to the stage where you may lose the house - sell it yourself before it gets to the heavy stage of repossession - that happened to me and they still came chasing me for the difference as they sell for less than you could get yourself

Other option - live in a caravan - we sold our house & did this for 12 months - no bills just caravan site fees, bliss! plus you get to see a bit of the wide open spaces.

roswell

Just some idea`s,

Change morgage to interest only for a few months, Get home phone set to only recieve in comming calls, try get 0% or low Life of ballance credit cards, If you cant get new cards make token payments of £1 to each and call a company like CCCS or payplan.

Call the catalog companys see what they will take as a single final setllement figure (even if you can clear one a month its a good start) some times they will accept the original debt amount and scrap the interest.

Im sure someoen will have some more advice tomorrow.

Xbigman

You have 1400 coming in and a mortgage of 1000. That is unbelievable. How did it happen. How big is the mortgage, how much equity in the house? And any other details you can give us. Quite honestly that is killing you. You need to reduce it one way or another.
Regards



X

RichyRich

If I were you I would make a few phone calls. People who can help you for free include:

The Citizens' Advice Bureau - your local branch telephone no. is on the web site
National Debtline - 0808 808 4000
Consumer Credit Counselling Service - 0800 138 1111

Do not approach companies such as Baines & Ernst - they do precisely the same thing as the CAB can do for you for free but charge an extortionate fee.

Good luck
Rich

lady_noluck

First things first, get a pack from National Debtline. http://www.nationaldebtline.co.uk/england_wales/index.php There's some very useful factsheets in there. You don't have to listen to all their advice though- they told me I had no option but to go bankrupt but after 2 years of panic and hard work I'm nowhere near going bankrupt!!


Monthly income- £1200 + £200 in ctc += £1400 As everyone else has said, make sure you're getting the benefits you're entitled to. I have no idea how to do this as I don't qualify for any benefits.

Mortgage- £1000 This is the most important one of all. Pay this before everything else.

coucil tax- £109 (owe £400 which must be paid by march 1st) Will the council accept a smaller payment temporarily whilst you wait to hear from your creditors (regarding token payments)?

car finance- £124 (have to pay £400 in arrears in the next 2 weeks) Not sure what to advise on this one except hide the car far, far away! The bailiffs can't take it if they can't see it. (I know it's not grown up advise but it is 6:20 AM and i'm running out of ideas.) If the creditors accept your token payments, you could use the money you would have been paying for this instead. Could you give the car back to the finance company? How much have you got outstanding?

Barclay loan £183 (this loan finishes in sept) How much is left? Ask if you can have a payment holiday? Sometimes companys let you take a couple of months out.

finance £66 What's this for? How long's left and how much is left?


Monument £10pm (only £56 left on that)
Citi (now with legal collections) £48pm (£1607)
Royal bank of scotland £15pm (£258)
Egg £50pm (£2522)
Royal bank of scotland £66pm (2500)
Next £160pm (as ive missed payments total debt £630)
Look again £80pm (£540)
Studio £10 (£30)

Write to all of these offering a token payment. The companies would prefer some payment to none at all. Use one of the sample letters on the National Debtline website. (Link at top)
They hopefully shouldn't refuse. If they do, don't panic. Just write to them again explaining your other creditors have accepted and could they reconsider. If they still won't budge, they may threaten to take you to court. STILL DON'T PANIC:

(borrowed from....you know where.... National Debtline!)

"Sometimes a creditor threatens to take you to court when you feel you have made a reasonable offer of payment. You may have tried repeatedly to persuade the creditor to accept your offer of payment and freeze interest. You may also be making regular payments at the rate you can afford.
Sometimes a creditor will accept the offer then tell you they intend to take you to court anyway. If you do not want to be taken to court to allow the court to decide your rate of payment you can trying using SAMPLE LETTER K. (On the website)

This letter tells the creditor that under the new Civil Procedures Rules the court will expect people to "act reasonably" to avoid having to go to court at all. You can suggest to the creditor that the court may find their refusal to accept your offer of payment as unreasonable. Point out that you will ask the court to look at this argument if they do take action against you.

You may be able to get the creditor to accept your offer at this stage and agree not to go to court. "


Shopping £200 (was £240 cut it down a bit, but its the baby stuff that bumps it up)
Sign up to as many baby clubs as you can to get coupons and vouchers. It won't save you loads but as a well known supermarket says "every little helps"! See if you can sign up any friends/ family addresses so you can get vouchers at theirs too.
Try:
http://www.huggiesclub.com/uk/baby/welcome/ £4 coupons when you join
http://www.tesco.com/clubcard/btc/ Tesco money off vouchers
http://www.pampers.co.uk/en_GB/signup.do £4 coupons when you join
http://www.hipp.co.uk/register.htm No idea what they send you, but doesn't hurt to register in case!
Look out for any deals or offers in the supermarkets and try to get fruit/veg from your local market. (Much cheaper than supermarkets.)
Don't be afraid to shop in places like Lidl, Aldi, Nettos and Farmfoods. Some of the food's suprisingly good!And check out the forums here for moneysaving old style of course!!

phone £50 Use http://www.uswitch.com/ to check you're getting the best deal. This also goes for gas, electricity, water (water meter?) and broadband for when you change.
Mobile £30 When does this end? Try using your free minutes only for mobiles and emergencies and your home phone for landlines. This may save a few pennies. Check out http://www.call1899.co.uk/index2.php I find they're probably the cheapest for landlines and this http://www.moneysavingexpert.com/ for cutting the cost of mobiles (cutting the cost of everything in fact!!)

Sofa finance £39 When does this end and how much do you owe? What's the apr? Could you possibly sell the sofa and buy a cheaper one?

Home ins buildings and contents £52 Check uswitch to ensure you're getting the best deal. See link above.

petrol £40 Can you save on petrol by walking or taking the bus instead? A bus fare may work out cheaper.

Car insurance £66 Check you're getting the best deal with uswitch. See link above.

If you can make do without the car for a while you'd save £106 straight away, just from the above 2.

I'm posting this bit (copied from national debtline) JUST IN CASE. Hopefully it won't come to this but if it does.......
IF THE BAILIFFS HAVE NOT BEEN INTO YOUR HOME BEFORE TO COLLECT THIS DEBT, THEY HAVE NO RIGHT TO COME IN. THEY CANNOT BREAK IN. YOU CAN CHOOSE NOT TO LET THEM IN.

• DON'T open the door to them as they may try to push past you. If they get inside, they may have a right to enter again and may break in to take your goods.
• DON'T leave windows open or doors unlocked - bailiffs can legally get in through these. Bailiffs CANNOT get the police to help them break in.
• BEWARE some bailiffs may leave you a phone number, and arrange to come round to 'have a chat'. Don't let them in, even if they say it's only to use the toilet or make a phone call.
• Bailiffs MAY try to break into sheds, garages, greenhouses etc., even though this is illegal. KEEP VALUABLES SAFE! They may be able to take cars, motor-bikes and other vehicles parked near your home.
• Politely but firmly refuse to let the bailiffs in. Offer what you can afford to pay. If the bailiffs accept your offer, ask them to return to their car, and go out and pay them. Make sure you get a receipt.

DON'T SIGN ANYTHING! If the bailiff leaves papers for you to sign and return, you do not have to do this. You don't have to sign agreements posted through your door either.


I hope this helps in some way. You can always pm me if you wanna chat anytime. My ears are open (If not slightly waxy :eek: )!

headchef

My advice - print out Lady_noluck's post (and some others) and use it as a checklist! I know you won't be able to take all this in at the moment - particulary if you've had row with other half - and it will help in a really practical way.
X-Bigman is right about the mortgage payments (although he hasn't seen your first post and, like others, doens't realise at the moment that this amount includes arrears). Like others have said, it is a priority (roof over head) but this amount just isn't sustainable. Could you let us know more details about the mortgage - how much for, interest rate, which type of product (fixed etc). There is certainly a point in doing eveything you can to negotiate with the mortgage comany to accept lower payments for the arrears but I certainly think you need the help of the professionals (as posted above). They will be able to negotiate on your behalf and the mortgage company are more likely to appreciate that you are in genuine difficulties.
I am sorry you've had a row with partner. Is he burying head in sand? Or too stressed to think rationally? Don't reply if you find it too upsetting (I do know what it's like - my partner is a bit of a hot head!)

ozzyfan_2

hi poppy25 have you forgotten to put your child benefit on ?

thats another £68 to add to your income.

big hugs

xx

jcr16

the caravan idea is wonderful. just like an all year round holiday. no one will think any less of you. i have heard so many people say how fantastic caravan living is. when we had trouble we were considering this. we found a gorgeous caravan with 3 bedroom and balcony thingy.it was on an amazing site and the total cost was £11k. all that had to be paid was £2k a year for water , electric and services.


try not to dispair as scary as it is , you have done the right thing and there is always a light at the tunnel . it may be far away but u will get there

if u do go to work , will this be evenings ? or will u need child care ?

your baby won't love u any less for having money trouble. they will love u no matter what and they will cheris every kiss and cuddle.

HTH