Much needed advice....

Jase748

Thank all for the replies, its really heartwarming. I know I should of mentioned it :doh: just to clarify..... Im a bloke, Secondly Im married to a woman . I also have 2 kids, one of which is seventeen and he eats like a horse

Anyways thank to your advice I have started the ball rolling. I have just been thru USwitch and have applied for a new supplier for the eleccy and gas. Hopefully saving upto £25pm. I have also been on to Orange and have applied for pay as you go phone. Still trying to contact Sky re down grading my TV package (sorry guys I need one luxury, I know its expensive but I am reducing it). Am also in the process of sorting the phone/internet out as well.

Im sure there are some things I have missed out on the costs, at the moment though my car is off the road as it needs fixing. So no tax or petrol to worry about at the moment.

My next problem is switching mortgages. I know I need to switch as my current lender is somewhat expensive. I think I can possibly save at least £100pm by switching. However the dilemma is, do I switch just for the outstanding mortgage or do I get more and pay off some of the expensive debt?

Thanks again for showing some inetrest, I really appreciate it :beer:

Jase748

Just contacted my phone/internet provider, Im now on the minimum package for both so that has saved £15pm

lynzpower

Dont remortgage for the rest!!!! It will end up costing you in the interest over 25 years or whatever the remainder of the term is, and will push those payments up. Aditionally, if interest rates goes up, up goes the mortgage, and it costs you more to service the debts.

And welcome :hello:

CLAPTON

you are making great progress already.

my view about the priorities

a. consider increasing income
b. even after changing elec/gas suppliers check your timeswitches for ch and water and reduce considerably..still savings to be made here.
c. if you dont need the car, get ride of it , they are a sink for money
d. the mortgage. firstly i would talk to a mortgage company (look at Martin mortgage board first) but you may have trouble remortaging with your level of debts at least with a reasonable rate. Find out the facts before considering whether remortgaging is worthwhile. you dont say how the debts arose, but if you transfer some of the debt to the mortgage would you build it up again?

Jase748

At the moment it would be difficult for me to increase my income with a second job as I work as a CSI for the police on an alternating shift pattern which varies from week to week. My wife currently has 2 part time jobs, so not much scope for increasing income Im afraid.

The debt has simply accrued through mismanagement of finances, not sticking to a budget and debt consolidation after debt consolidation. To be honest the only thing I have to show for it is a clapped out car and a motorbike which Im in the process of selling. I hope to get about £4500 for the bike.

I hear what you say about re-mortgaging. I will have to try though even if its just to save on the monthly payments as Im sure I can save £100pm at least.

charlie007

have you looked at the budget planner that is on here? will be able to see how much you have to spend where per month. Also I have recently began bulk cooking and freezing food. I go shopping once a fortnight and make up meals, (which also saves on time spent cooking) and then go to the market to get fresh fruit and veg where it is loads cheaper.

Good Luck.

dang

"I hear what you say about re-mortgaging. I will have to try though even if its just to save on the monthly payments as Im sure I can save £100pm at least."

I agree, you should try to re-mortgage - get them monthly payments for your other bills down, and get them higher debts on lower rates... BUT and its a big BUT - make sure you start to overpay on your mortgage ASAP.Otherwise you would be better off not going down that road.

Cantdance_2

The problem is that putting your loans into the mortgage is just another reconsolidation under a less scary name - and if you don't change you spending habits then in a year's time you'll be in exactly the same position you are now but with a £140,000 mortgage instead of what you have now.

We did it and didn't change our ways and now have a mortgage of £134,000 (was £81,000) plus unsecured debts of whatever it says in my sig below.

I'd seriously focus on tackling the root of the problem rather than patching it up with more borrowing.

James

lynzpower

If you haverepeatedly consolidated and mismanaged ( as I have, your not on your own) then dont stick it on your mortgage.

You say you dont have anything to show for it, I thought that, then made 250 on ebay. Got a carboot corner swiftly encroaching on my whole flat. I reckon on pulling at least 50 from that. Any extra cash you can raise by these means, do it, better to have any proceeds paying off your debt than cluttering up your gaff IYSWIM

Jase748

Really appreciate the advice, keep it coming. I hear wot u say abot consolidation than racking up the debt again. Been there and done it. If I were to go down the remortgage road and consolidate some of the debt than I would definately stick to a rigid spending budget. See that has been one of our main problem not adhering to a strict budget. And thats the main reason were in the doggy doo were in today.

Do we need to look at IVA, or do you think we can get through this without?