I really need advice!!

SkintnScared

Hi
This is my first time on this forum and I really need some help and guidance please

Here is my financial situation:

I currently have a mortgage which is in joint names with my dad (helped me to get on the property ladder) and also 20k of debt (loans and cards) which is being dealt with through Baines & Ernst.

Anyway until the back end of last year I was coping well paying for both and having money left to spend every month (only a little but but liveable.) Anyway at the back end of last year, I was signed off work for 2 months with depression (mainly due to worrying about my debt), anyway since I was not paid for all of this sickness I have been struggling to monthly to make ends meet and it has gradually got worse over the course of this year.

I am now 2 months behind on my mortgage payment and although upto date with B&E, my credit rating it SHOT. I really really cant talk to my dad about this as he is really strict about money and didnt speak to my brother for 2 years over 2k worth of debt (oh my god he would kill me!!)

Anyway I soo just dont know what to do?? All correspondance for the mortgage comes to my house, so I have managed to hide this from him well. However, mixed with this and B&E...Im just sinking every month.

Please please can anyone offer any advice on what I can do??

Many thanks xxx

Little_Vics

Hi - just quickly to say well done for posting! I think most people would want you to complete an soa (statement of affairs) so we can help sort out the monthly finances. I'm sure there's a way out - the main thing is that you're facing it. Well done!

RAS

Hi

Two things

You have it the wrong way round. You must stop all payments to Baines and Ernst and pay the mortgage, the CT bill and the utilities. Then worry about consumer debt.

You need to ditch Baines and Ernst - they charge you a substantial fee every month to do the job you can do for yourself or do via CCCS or one of the other debt charities at no cost. I think B&E charge 17.5%.

So cancel the next B&E payment and tell them you are closing the DMP.

Write to (not ring) the mortgage provider and tell them what you have said above, and that you have been advised correctly now that you should be paying secured debts first and the next payment will be on its way shortly.

Then stop paying anything other than £1 token payments until the mortgage is sorted - none of the debt charities will start a DMP until the mortgage areers are cleared.

Fonz_2

I think the first thing is you have to tell your dad. If the mortgage is in joint names this will also be trashing his credit rating so he may prefer to help out and do some damage limitation.

Little_Vics

I agree about telling your dad, but you might want to get a plan in place first so you show that you can deal with the situation...

Tixy

Hi Skintandscared and welcome

How much are you paying to B&E each month for your debts? Do you know how much of this they take as their fee? Are you aware that there are organisations that will offer the same service for free thereby all the money you pay over goes to your creditors = saving you monay and keeping the creditors happy. Please consider ending your arrangment with B&E and using one of the following - http://www.moneysavingexpert.com/loans/debt-help-plan#help

How long have you been with B&E, have you had recent statements from your creditors? Do you know which have stopped interest and have you checked they are all receiving their payments?

With regard to your mortgage with your Dad - this could be a real problem the fact that you have a joint financial product means you are financially linked - you being on a DMP means that you are severly impacting on your credit file and by extension on his as well. If he tries to apply for credit or gets a copy of his credit report he will realise that you have a major problem. I really think you need to make him aware of the issue.

Being behind on your mortgage repayments also will impact on you and your dad and could see you at risk of reposession - how long have you owned the house - do you have equity in it?

Perhaps before you speak to your Dad we could help you get a plan of action in place, so you can say this is the problem and this is what I'm going to do to fix it.

Could you post a financial statement of affairs using this link - http://www.makesenseofcards.com/soacalc.html so that we can offer you some more advice.

SkintnScared

Hi

Thank you all for responding to me, I will complete the Financial Statement of Affairs asap and post.

I feel soo much better already knowing that there are people out there in the same situation and also people that can help. Although I am now also petrified about my dads credit rating!

Thanks guys.............be back asap with that statement xx

Frozenace

Saying sorry and asking for forgiveness is much easier than keeping it bottled up.

check if you have a payment holiday clause for your mortgage and if so, try to get that backdated before the arrears, talk it through first with your dad.

Ames

Your credit rating would have been trashed when you started with B&E, did they not tell you that?

As RAS says, consumer debt is waaaay down the list of priorities. Top, even above the mortgage, is your health. Make sure you see your GP regularly, and take their advice.

I agree with all the others about the way forward with this.

SkintnScared

Hi There

Here is my statement of affairs. I know it looks like I have quite a lot surplus (as previously mentioned) but after my period of sickness, this has been deminishing every month. So on paper it looks like ideally I should have a lot surplus every month, but after only being paid 400.00 for 2 months it really affected everything.

With regards to my debt I cant remember the individual breakdowns but the overall payment to B&E is £181.00 per month (£35 of which is their management fee)

I hope this helps and Im really greatful for all of your help xx

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1660
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1660
Monthly Expense Details
Mortgage................................ 300
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 113
Electricity............................. 26
Gas..................................... 0
Oil..................................... 35
Water rates............................. 25
Telephone (land line)................... 11
Mobile phone............................ 50
TV Licence.............................. 11
Satellite/Cable TV...................... 21
Internet Services....................... 15
Groceries etc. ......................... 150
Clothing................................ 0
Petrol/diesel........................... 120
Road tax................................ 10
Car Insurance........................... 25
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 7
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1029

Assets
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 123000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 79000....(300)......0
Total secured & HP debts...... 79000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
HSBC Loan......................10000.....181.......0
Post Office Visa...............2500......0.........0
Asda Visa......................250.......0.........0
HSBC Overdraft.................1000......0.........0
Catalogue......................250.......0.........0
A&L Overdraft..................250.......0.........0
Barclays Overdraft.............2000......0.........0
Total unsecured debts..........16250.....181.......-

Monthly Budget Summary
Total monthly income.................... 1,660
Expenses (including HP & secured debts). 1,029
Available for debt repayments........... 631
Monthly UNsecured debt repayments....... 181
Amount left after debt repayments....... 450
Personal Balance Sheet Summary
Total assets (things you own)........... 123,000
Total HP & Secured debt................. -79,000
Total Unsecured debt.................... -16,250
Net Assets.............................. 27,750

dancingfairy

SkintnScared wrote: »

Hi There

Here is my statement of affairs. I know it looks like I have quite a lot surplus (as previously mentioned) but after my period of sickness, this has been deminishing every month. So on paper it looks like ideally I should have a lot surplus every month, but after only being paid 400.00 for 2 months it really affected everything. that doesn't matter now - if you're earning a full wage now and have the surplus now - that's the important thing.

With regards to my debt I cant remember the individual breakdowns but the overall payment to B&E is £181.00 per month (£35 of which is their management fee)

I hope this helps and Im really greatful for all of your help xx

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1660
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1660
Monthly Expense Details
Mortgage................................ 300
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 113 single person discount? check you have this
Electricity............................. 26
Gas..................................... 0
Oil..................................... 35
Water rates............................. 25
Telephone (land line)................... 11
Mobile phone............................ 50 this is way too high - would do some research on tariffs available and approach current provider and say company x will offer me more minutes for 30 a month - what can you offer me?
TV Licence.............................. 11
Satellite/Cable TV...................... 21
Internet Services....................... 15
Groceries etc. ......................... 150 this could probably be cut a little
Clothing................................ 0 need something here - you need a budget you can sustain - even if you just need to buy undies and socks for a while you will eventually need some stuff.
Petrol/diesel........................... 120
Road tax................................ 10
Car Insurance........................... 25
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 7
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1029
Good news - nothing looks too drastic (apart from the mobile) and you have lots spare to repay to creditors.

Assets
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 123000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 79000....(300)......0 this is your priority.
Total secured & HP debts...... 79000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
HSBC Loan......................10000.....181.......0
Post Office Visa...............2500......0.........0
Asda Visa......................250.......0.........0
HSBC Overdraft.................1000......0.........0
Catalogue......................250.......0.........0
A&L Overdraft..................250.......0.........0
Barclays Overdraft.............2000......0.........0
Total unsecured debts..........16250.....181.......- Are these covered by B and E or are these seperate?

Monthly Budget Summary
Total monthly income.................... 1,660
Expenses (including HP & secured debts). 1,029
Available for debt repayments........... 631
Monthly UNsecured debt repayments....... 181
Amount left after debt repayments....... 450 is this after paying B and E?
Personal Balance Sheet Summary
Total assets (things you own)........... 123,000
Total HP & Secured debt................. -79,000
Total Unsecured debt.................... -16,250
Net Assets.............................. 27,750

What the next step is depends on whether the debts listed above are the ones covered by B and E or are new ones - I couldn't tell sorry. Once that is clarified we can give you a plan of action.
df