no income but husband works - what happens?

spentapenny

Hi,

I hope somebody can help with this tentative enquiry. In a couple of months my virgin 0% deal will end. The most recent letter said the interest will be 29.9% after the deal ends.

I don't have anywhere cheaper to shift the debt to, and I can't afford the min repayments once they start charging interest on the debt of almost 7k.

I'm a stay at home mum at the moment although I could look for work in a few months. I have no income, but my husband pays my min payments. He says to ask them if they will freeze the interest and take an offer of smaller payments. Are they likely to accept this? My husband works and we have both our names on the mortgage. I assume they can't make my husband pay them, but can they insist that we sell the house? There's barely any equity in the house and we're on a fixed rate for a while yet.

I'm just wondering what my options are, having no income but having my name on the mortgage.

ILW

The company may allow you to make reduced payments if you can show you are struggling. The problem is that by having a joint mortgage, you and your OH are financially linked. This will mean that not only yours but his credit record will be trashed. This in turn will probably lead to you being excluded from decent mortgage offers etc for many years.

gfplux

As ILW says this is a joint problem.
I think you need to look at your husbands income as your joint income.
You need to do a statement of affairs and work out where your money is going and where you can cut back.
I think you need to do this now.
good luck.

spentapenny

Thanks

We do see his money as our joint income but I just wondered how it affects my debts, with me having no income - I thought perhaps virgin would go easy on me seeing as it's my husband who pays them and I have no income. Never mind

I've been sorting out budgets and so forth, where we can cut back and I've been harsh on my husband's spending for his hobbies. The children's gymnastics etc. will have to finish and I'm looking through recipes etc. to cut down on the shopping bills.

I hope to be able to find enough money to make the min repayments, it's not ideal but until I get a job it will have to do. Perhaps there are cheaper places to shift the debt to - I'll put some figures into Excel tonight and see if the banks' overdraft is any cheaper, and I'll call any empty credit cards to see what balance transfer rates they will offer.

RAS

Hi - no income measn you are viewed as a poor risk and therefore get more expensive credit, basically.