Mortgage payment difficulty advice

iB1

How can one base expenditure on a worst case scenario? That would be if neither my wife or myself had work and both were unable to acquire any. We would have no income and would be unable to meet any obligation other than that funded from whatever the state was willing to provide. Assuming a worst case scenario would paralyse us (and, for that matter, anyone else) completely. Surely one should assume a likely scenario or a ‘worse than average but not entirely rock bottom’ one?

That's fine, but I still haven't seen what you're going to change to offset this £700pcm deficit? You can't go interest only, you can alter repayments for a short amount of time, but what if you don't get work for 3 months, and then that income averages out to the £15K per annum that your accountant initially suggested? If you ended up in arrears, then getting more credit could be problematic. I'm sure that you could cut down on Sky, alter the mobile contract and spend less on food in the short term to help you by

SouthCoast

If I get another job

Is the Depression word banned on this site?

Assuming you are self employed here is another link:

http://www.bdl.org.uk/

incogni2

TotallyBroke

Thanks for your ideas, I have turned them into headings and responded...

Sky

The cheapest tv mix I would consider is single entertainment pack + sports + HD. This would be £45.25 per month (and would save me £2). I cut movies, kids, music etc. several months ago.

The cheapest broadband is capped at 2GB per month which is not acceptable (I probably use that in a couple of days).

Telephone

I'm currently on an 18-month contract at the second lowest tariff (£35), I will investigate switching to the lowest (£30).

Currently, I keep the landline purely so I can use the ADSL provider of my choice.

Council Tax

Currently paid at a fixed rate due to changing location part way through the tax year. £150 per month charge (until April).

Water

I've prepaid the standing charge until June. It was less than £80 per year (due to lack of connection to main sewage).

Electricity

I will do as you suggest though all appliances are AAA rated, if that implies anything about draw while on standby.

Major expenses are fish tanks which require 12 hour, high intensity lighting and 24 hour filtration, aeration and heating (compounded by the fact that there is no heating in the living room which means that several 300W aquarium heaters are continuously active).

I also have 5 computers, the server runs continously (and needs to because it hosts my, and others, email). My computer is on a lot! The current power draw is around 400W as I speak but may peak at nearer 1KW (1.5KW if the others are on in the evening).

The utility providers currently believe me to be in credit but I have taken meter readings and believe us to be £250 in debit. We really need to increase the current direct debits by around £100 per month.

Thermostat

Done - turned it down; although below an ambient temperature 20C "death risk begins" according to this article http://news.bbc.co.uk/1/hi/health/5372296.stm

Food

Actually, due to lack of space and the move we have almost nothing in the cupboard - only herbs, spices and condiments. (We only have a single food cupboard.)

We are already both vegetarian so are onboard with the vegetable/pulse recommendation.

It is my intention to save approximately £100 per month by buying fewer ready meals and dropping down a brand as you suggest.

Thanks again.

incogni2

SouthCoast wrote: »

Assuming you are self employed here is another link

I am not self-employed. I am employed by the limited company of which I am the major shareholder. (And I am the only employee.)

I require the limited company in order to do my job (when I'm doing it that is).

The link still applies, however. The business is currently about £400 in debt (credit card). This is without including the amount which I am personally subbing each month.

getmore4less

I thank everyone for their comments. It is however astonishing how one can ask a question about mortgage payments and receive so many answers relating to personal expenditure

There was more than just the mortgage in the first post and the reality is that it is more than just a mortgage problem, the mortgage should be the last thing to consider defaulting on when dealing with debt(income less than outgoings)

Looks like the pension needs to stay, you say final salary in one of the statements.

Worst case/likely case either way I would look to budget/ballance the books on one(wifes) income and consider this as the norm for the longer term.

Even if you get more work or another job this may not be that permanent, safe and reduce the debt levels to free up more money from the one income for lifestyle changes. Keep the long term commitments on the one salary and use surplus from seecond for one off's(holidays capital purchases) that have no long term commitment, get into the habit of earning/saving the money to spend, rather than spending and trying to earn

Using debt to fund spends just increases costs(more interest) and it spirals quickly meaning you have to borrow even more the next month, get spends under control now and you will survive for much longer if not forever on one income.

You have a chance to catch this now don't wait for 2 years borrowing on credit and find it impossible.

atlantis187

Why do you NEED to have sky sports?
I used to think like u until I found this great site called www.!!!!!!!!!! they air all live football matches and other major sporting events.

TotallyBroke

incogni2 wrote: »

TotallyBroke

Thanks for your ideas, I have turned them into headings and responded...

Sky

The cheapest tv mix I would consider is single entertainment pack + sports + HD. This would be £45.25 per month (and would save me £2). I cut movies, kids, music etc. several months ago.
£2 in your pocket is better than in Sky's. Do you really need HD from what I've been told you can't tell the difference at the moment because the technology is not at it's best yet.

The cheapest broadband is capped at 2GB per month which is not acceptable (I probably use that in a couple of days).
Would you really download more than 2gb to your pc? Maybe I'm being thick here but I thought downloads were songs and films etc.

Telephone

I'm currently on an 18-month contract at the second lowest tariff (£35), I will investigate switching to the lowest (£30).

Currently, I keep the landline purely so I can use the ADSL provider of my choice.
Keeping the landline is fine so long as you are only paying the rental and a couple of 0845 0870 numbers. No point in paying £30/35 per month if you are not using all your (free) texts and minutes

Council Tax

Currently paid at a fixed rate due to changing location part way through the tax year. £150 per month charge (until April).

Water

I've prepaid the standing charge until June. It was less than £80 per year (due to lack of connection to main sewage).

Electricity

I will do as you suggest though all appliances are AAA rated, if that implies anything about draw while on standby. Anything that has a light is using electricity. So if you are not using it turn it off.

Major expenses are fish tanks which require 12 hour, high intensity lighting and 24 hour filtration, aeration and heating (compounded by the fact that there is no heating in the living room which means that several 300W aquarium heaters are continuously active).

I also have 5 computers, the server runs continously (and needs to because it hosts my, and others, email). My computer is on a lot! The current power draw is around 400W as I speak but may peak at nearer 1KW (1.5KW if the others are on in the evening).
You can get some clever devises that can reduce the computers outage when on standby have a look in other parts of the forum for what they are called or information on what people think of them.

The utility providers currently believe me to be in credit but I have taken meter readings and believe us to be £250 in debit. We really need to increase the current direct debits by around £100 per month.
You may not have to increase as in the next few months you will be going into summer (hopefully) so all your heating will be off and the costs will be spread over the year.

Thermostat

Done - turned it down; although below an ambient temperature 20C "death risk begins" according to this article http://http://news.bbc.co.uk/1/hi/health/5372296.stm
I couldn't use the link but a lot of people have their thermostats set at 15-17 degrees

Food

Actually, due to lack of space and the move we have almost nothing in the cupboard - only herbs, spices and condiments. (We only have a single food cupboard.)

We are already both vegetarian so are onboard with the vegetable/pulse recommendation.

It is my intention to save approximately £100 per month by buying fewer ready meals and dropping down a brand as you suggest.
You can easily save £100 for two adults on a £300 grocery bill. I'm spending £25 per week approx. for 1 adult 1 2yo still in nappies at £8 per pack.

Thanks again.

I do hope you nip things in the bud now by taking some advice from everyone. We are only trying to help. If you found the £700 that you think you are overspending now it would save you getting into worse trouble in the future.

ILW

incogni2 wrote: »

TotallyBroke

Thanks for your ideas, I have turned them into headings and responded...

Sky

The cheapest tv mix I would consider is single entertainment pack + sports + HD. This would be £45.25 per month (and would save me £2). I cut movies, kids, music etc. several months ago.

Beginning to wonder if this is a wind up.
The OP says he is overspending by £700 each month, but cannot live without a £45.00 Sky package.
Seems to be a case of "Head In Sand" syndrome.
Good luck though.

Bambywamby

Very similiar situation to my brother..."thanks for the advice but we will manage". A year later, bankruptcy and losing the house are very much a reality for him and his young family.

People aren't judging you or lecturing you, they have been there or know people that are there and are trying to stop you from making the same mistakes.
Before it's too late start taking the right measures, that will save your family their home. Get an another job (anything until your business picks up), cut back on anything that's leisure or pleasure if it costs and look at ways to save money, (starting with your food bill).

Good luck, you will need lots of it until the light bulb switches on.

X x

getmore4less

incogni2 wrote: »

I am not self-employed. I am employed by the limited company of which I am the major shareholder. (And I am the only employee.)

I require the limited company in order to do my job (when I'm doing it that is).

The link still applies, however. The business is currently about £400 in debt (credit card). This is without including the amount which I am personally subbing each month.

Looks like you have been drawing too much money from the business if it is in debt and does not have enough money to keep the the web services going.

You want enough to at least keep it going for as long as you have commitments or the time it wouldd take to wind it up if no work came in say a years worth of running expenses.