Sell to rent back

jen_jen_2

if you are thinking of renting because you may be able to claim help with your rent in the future i am fairly sure there are restictions on getting benefits for living in a home you used to own.
i cant imagine what the benefit for you will be from a scheme like this.
it may be worth (and look into it very carefully) some kind of equity release scheme, that a company give you money and it gets paid back from the sale of the house once you die. i dont recommend any scheme like this it depends on your personal circs but perhaps a bit better than paying rent forever.

lottie26_2

Sorry sounds pretty dodgy, if they are a company like what Messy said they are juat trying to make huge profits out of you and you dont want that when you are in debt.
everyones right post your SOA on here everyone will be able to see ways for you to cut back and contact one of the above debt help they are not there to make a profit out of you ,good luck.

Edited: sorry just posted your SOA when I was writing this.

lottie26_2

What available balance is left on the lowest rate cc?
Can you put your SOA for your houshold bills as well.

Bestthingsinlifearefree

sollydog wrote:

3 adults in family

Monthly income 3000

Outgoings / Month Outstanding Interest/Month

Mortgage 1300 145000
Car loan 175 7000
Bank loan 300 17000
N/Rock cc 115 5800 0.548
Barclaycard 100 4900 1.527
RBS 115 5050 1.385
MBNA 85 5200 1.385
Capital 1 125 4200 0.851
Mint 105 4600 1.385
Cahoot 77 3800 11.8 apr
Cahoot loan 80 3800 11.5 apr

Total/month 2577

House is worth about 210000

All this debt without the other essentials :eek:

Any advice appreciated

Hi Sollydog,

well done for taking the first steps in getting back in control.

You have a lot of monthly income (3K). The problem is not your income but where it is / has been going.

You need to post your monthly expenditure list e.g car,food, sky, car costs,utilitiy bills etc.

Is it possible for you to get any zero % balance transfer credit cards and transfe the debt of the high interest rate cards onto the zero interest rate cards (ie reducing your interest bill allowing you to pay off the capital)>

As a general rule you should aim to pay off the higher interest rates cards / first.

£1,300 per month for a 140K mortgage seems a huge amount.(£950 would be about right).

Why are you paying £1300 a month. What is the interest rate you are paying ? Are you paying over a reduced term of time (hence the higher monthly payments).

Keep posting and we will give you our best advice (and its free !!)

sollydog

Thanks for the replies. When I can I will show all the other details.

I have filled out a Personal Budget Sheet from National Debt Line and my total Outgoings come to nearly £2500. These include council tax, utilities, insurance, housekeeping, sky, telephone birthdays and Xmas.

This has left me with about £500 to pay Credit Debts, outlining how much a month I should pay them. Dont know what the CC will think of it

Nortern Rock has the lowest apr with about £9k left on it.

The mortgage payments are due to my age and retirement age I planned, looks like I'll be working longer :eek:

rchddap1

Its still important to list all your outgoings here. Its hard to give advise until the full picture is known.

However, instantly I see you mention sky......one way to safe a few ££s is to cancel it.

sollydog

sollydog wrote:

3 adults in family

Monthly income 3000

Outgoings / Month Outstanding Interest/Month

Mortgage 1300 145000
Car loan 175 7000
Bank loan 300 17000
N/Rock cc 115 5800 0.548
Barclaycard 100 4900 1.527
RBS 115 5050 1.385
MBNA 85 5200 1.385
Capital 1 125 4200 0.851
Mint 105 4600 1.385
Cahoot 77 3800 11.8 apr
Cahoot loan 80 3800 11.5 apr

Total/month 2577

House is worth about 210000

All this debt without the other essentials :eek:

Any advice appreciated

Other monthly outgoings:

Council tax 113
Utilites 100
House Ins 20
Life Ins 50
Travel Exp 220
mobile 25
Housekeeping 300
Sky 45


Been looking at Payplan and CCCS, which is best? Is an IVA or DMP better?

Bestthingsinlifearefree

sollydog wrote:

Other monthly outgoings:

Council tax 113
Utilites 100
House Ins 20
Life Ins 50
Travel Exp 220
mobile 25
Housekeeping 300
Sky 45


Been looking at Payplan and CCCS, which is best? Is an IVA or DMP better?

Hi Sollydog,

Thats a good start but there needs to be more detail on your outgoings.

First lets reduce your outgoings then you have more money to throw at the debts.

sky needs to go (I reduced my package from £42 to £21 by getting rid of sport and film channels which I never really watched any way and have never missed since).

Mobile - get a pay as you go.Emergency / essential calls only. Should not need to spend more than £10 on mobile per month.

Life insurance - many would say that is a unecessary luxury at the moment.

£300 "house keeping" travel "220" you need to break this down into more detailed parts.

Keep going you are doing well !!!

Verbatim

Hi Sollydog,

A previous post suggested Equity Release. If s/he means a scheme whereby you sell all or part of the house and get a lump sum or monthly income and the interest is rolled up and is taken when you move or die I'd say you are too young! The amount you'd get would be low as you're likely to live so much longer than someone 20 years older! I think such schemes are rarely advised for the under 70s ish. Also if it's partial sale with the interest compounding over the years there would be little value for you left when the house is sold.

Equity release can also just mean increasing an existing mortgage, but I'm sure that's not what was meant as it'd be the last thing you'd want.

There are so many inspiring stories here of people sorting out large debts and coming through the other side.
I hope things go well for you.

Kevicho

With regards to the IVA vs DMP cccs will be able to judge this better (albeit we do give good advice it is amateur)

IF you are thinking of selling Have you considered selling up (not to that shady company) and moving to somewhere cheaper?

That way you have a home and can clear off some or all of the debt