Hi I'm New

johntech

Hello,

I'm new here, i have over the past few years run up massive debt, i used to be a contractor so on paper i was on a massive salary which meant that i could get any credit card i wanted and big limits. I of coarse used them all, between my wife and i we had 9 all together which we ran up debt on, the thing was we were using these when i was out of work to pay bills and the mortgage etc promising to pay them off once i got the next contract but it didn't happen. I was out of work for 3 months and my umbrella comp that delt with my pay and paid my tax etc went bust taking some of my money with it so we were left with only the cards to live on. I decided to bite the bullet and go into permanent work and we are now trying to sort out our debts, my mortgage comp won't give me a re-mortgage as we have a 5 year fixed mortgage and we missed a few payments etc, we are trying to get a loan to pay off all the cards etc (which have all been cut up) and clear all of our debts but the only thing they will offer us is a 40 year secured loan !!! it works out that borrowing just enough to pay off the cards and a few other things but still having other debts we are looking for £25,000 ish but over 40 years we will be paying back over £70,000 !!! so we are looking for other ways to sort it out. Anyway the play is to work it out so that we can be debt free as soon as possible.

homer_j_3

Welcome to MSE and you are in the right place.

What you need to do is list your statement of affairs so we can look at what your income is and outgoing. List balances and interest rates aswell as monthly payments with you unsecured loans/cc's and mortgage.

Hopefully we should be able to make a bit of an impact for you

Avogirly

:hello: welcome to MSE

You've come to the right place and advice will be on it's way!

Bestthingsinlifearefree

HI John,

welcome to MSE you have come to the right pace for FREE quality advice.

You are right to avoid taking the consolidation loan ie taking on more debt to clear debt is not the solution.

You need to get your income UP and costs DOWN ASAP.

Post here all your income,out goings e.g mortgage,car,utilities,food and debts amount,interest rate etc

and the people can start advising you.

Good luck mate well done for starting to tackle the problem and getting your finances under control.

crystal_clear

Hi Johntech

welcome to the boards. There are lots of MSE'ers Just waiting to help and give you advice, but in order to make a start it would be veru helpfull if you could post a full SOA of income and all expenditure then list debts with apr's balances and limits if you could do that. I am sure you will be inundated with replies to help you become Debt free ASAP..

Hope this helps
Crystal

johntech

Hi,

We didn't get the loan we were hoping for from our mortgage company, they basically said they couldn't help us even tho our outgoings are minus a few hundred a month and with the loan and making all our payments we would be more like + £600 plus a month ?? Figure that one out !!

So we are out of options short of chucking myself under a bus i don't know how i can clear these debts for me or my wife.

As it stands we owe £41,176.76 on loans, credit cards, to parents etc.

Our outstanding mortgage is about £128,000 and the house got valued at £175,000 last month

If we sell the house for the £175,000 be basically break even and are left with £0 after paying costs etc etc

After all our bills etc and paying rent we will be left with £900 a month to try and save for another house of our own when you consider the market the way it is it will take us something like 5-8 years to save for the deposit and even then we will only be able to get something for £170,000 which means a 1 bed flat by that time.

This is a very depressing state to be in, never ever ever buy anything on credit !!!!

oops_a_daisy

Hi Johntech - welcome to MSE. Im new here too so I will let some of the more experienced posters on here give you some advice. If you post a 'Statement of Affairs' they will go through it and give you truthful advice on how to manage your debt. Dont enter into anything untill you have gone through everything on here first. All the best.

youngandreckless

Johntech I can only echo the others, post your aprs and all outgoings, you'd be amazed what some people can do with a few figures! Try not get too down about the loan, you never know it may be a blessing in disguise you didn't get it (even if it doesn't seem like it right now).

CLAPTON

yes post a statement of affairs and people will have sufficent detail to offer informed help

If you browse the bulletin board you will see examples but the general format is

: statement of income:

: statement of expenditure
this should be quite detailed but excluding debt repayment
: a subtotal to save us all having to add it up

: statement of all debts including
for credit cards show: outstanding amount, monthly repayment , APR
for loans/HP show: outstanding debts, mponthly payments , number of payments still to pay,

a subtotal of the total debt and of the total repayments, to save us having to add it up

also add a brief details of your situation, partner, any children, rent or own property, value of house and mortgage, any special circumstances that are relevant

johntech

I got that figure completely wrong for the amount we would have free to save for a new place, my wife hadn't added the cost of renting onto that as well.

so we would actually only be left with a few hundred to save for a place which just wouldn't happen.

Willsnarf1983

Post A Soa!