Its so unfair why wont someone help?

AMILLIONDOLLARS

If I were you, i'd get onto the internet and research what DMS (Debt Management Services) do. Bearing in mind that the BOS appointed them, I would think that they are there to ensure that the BOS recovers its money. They are not there to help you but the BOS

zcaprd7

The point is you can't afford to own a house!  Why are you gambling on house prices going up and interest rates continuing to fall when both are at historically distorted levels?

Whilst I would like to own and not rent I can't afford to - it is a luxury to be able to make bets on house price movements.

The rent I pay isn't far off what the interest repayments would be to live in the same place, however if interest rates go up I'd pay the same and if house prices drop I don't get stung (in fact I have a buying opportunity).

Its about flexibility, it is a myth that everyone has to own a house, to get on the ladder etc just ask those that were evicted in the last crash.

Tim_L

Some of us keep waiting for this eventual fall , but when will it happen?

The Motley fool have now said by June we should meet the trillion  £ mark of money owed .

But will the market collpase ?

Hopefully the next interest rate rise will start to address some of this  as we cannot continue to accrue this much debt .

Bubbles burst usually when people least expect it. Generally they continue to rise well past the point at which people start warning they are bubbles, and there comes a point known as the 'widows and orphans' phase where it appears that all the prophets of doom have been wrong and that the market is going to expand indefinitely. This is the point at which all those who have the most to lose invest.

The main thing to realise is that just as the forming of the bubble is not a rational process, the bursting isn't either. It's more related to the dynamics of mob behaviour than economic rules.

The conditions for the market bubble to collapse are essentially an increase in supply. This could be caused in one of two ways - people having bought to let getting nervous about selling at the top of the market (perhaps the tipping point may occur if rising interest rates increase repossessions and people start to panic). The other (much longer term) possible cause is an increase in people trying to sell to release equity for retirement, accompanied by falling population levels meaning there is less underlying demand.

Typically, bubbles burst with falls of anything between 30-50% of value. You can see this in the tech bubble, the last housing price, right back to the South Sea and Tulip bubbles. The wierd thing is that they still take people by surprise - every time "things are going to be different", or there is a "new paradigm".

Hard hats on, and get ready for the roller coaster!

lisyloo

Some of us keep waiting for this eventual fall , but when will it happen?

The way things are looking at the moment I would say that it still has someway to go.

The Bank Of England are caught between a rock and a hard place.
They would like to raise rates to stop people borrowing too much but they risk cripling manufacturing industry at a time when Sterling is very high.
On top of that the European Central Bank are probably going to reduce interest rates, which makes things even worse for exporters.

I can see it going on for another 12-18 months easily.

One of the reasons that I don't think sell to rent (STR) is a good idea is that I belive that any stagnation or fall could go on for 7-10 years (like the last time).
If this happens then renting for 7 years whilst waiting for the bottom becomes expensive.

Who knows?

System

zapcrd7

The thing is they will have to pay out the same amount of money for rent if not more, especially in the private sector, so they should try all out to hang on to the house. Also they are not priority on council/housing association lists (and are probably not even on a list). If they did have to move the business, work etc. would face even more disruption plus the move would cost.

zcaprd7

Fair point - but as the CAB person said, if they rent they could probably get housing benefits...

...however from my experience that is not something I would wish on anyone!

Its sad to say but its been left a bit late - the hubby was spending on a new cap one card whilst the mortgage was falling into arrears?  Had the mortgage not fallen into arrears a re-finance would have provided breathing space.

That's not to say its an impossible situation but the money being earnt by both parties seems rather low - lower than two full time minimum wage jobs?

thirdparty

Looking at their situation, it doesn't seem that bad.

They own their property albeit with mortgage arrears. They are in debt to the tune of around £4K (£2K arrears, £1K o/d, £800 creditcard).

Not knowing the fine details, the only thing I would be worried about is what if any the shortfall between essential outgoing and incoming.

If the gap is small then in the short-term this is manageable and they need to just keep plugging away trying to increase their income.

As suggested earlier, the business is a stumbling block. It is diverting the husband's focus on getting a full time job as he wants to keep it going. It may be better in the short term focusing on getting more regular paid work as oppose to the 3/4 days he does now and fitting the business around that. Then build the business up when they are more financially secure.

A fews year back (4yrs) we were in the situation on living of the creditcard and slowly building up debt. We were both employed but our outgoings were higher then incoming and we didn't really address the situation. To cut a long story short we had amassed creditcard debts of over £25K and loans of £15K during which time we puchased our first home and spent quite abit doing it up.
Looking back I know that we were extremely lucking. House prices were/are going through the roof and we were in secure full time employment. We kept spending knowing that the increase in house prices could more them offset our debt. We never did any budgeting and still don't really. We did manage to cut our debt by a third before I finally decided to re-mortgage. Our mortgage is still small compared to some of my friends and is half what our property is worth. I suppose we could have managed to clear our debts without remortgaging as we had only graduated back them and were slowly climbing up the ladder. I have learnt the lessons and will not do a repeat performance

Sorry for the long ramble but a lot of people are most probably in a similiar situation as we were and still are especially if you believe what you read.


Heddwen - just keep going and remain positive. Make sure there is good communication between yourself and your husband. There is nothing worse then not taking about the situation. At least you're on the right path as you have acknownledge that there is a problem and you are look for a solution and not just burying your head in the sand (as we did)

Finally, keep us informed

mistral_2

Heddwen  have you thought about night work at a local supermarket ?

They usually are looking for people and the money does tend to be better than day time work ?


It is hard work but it may get you out of a fix.


Be carefull about all the help re depression , eventually there is only one person that will get you out of this , and that is you.

Best of luck

Heddwen_2

thirdparty - Thanks for the support! Its nice.


zcaprd7 - No and we cant afford to rent either. To rent our house out it has been valued between £550 - £625 each month. But the latter is a tennant find service only, which may at first appear to bring in more 'profit' but the worries and hassles we went through once before with a previous house doing it this way wernt worth it. The first figure has a loss of £50 per month all inclusive fees leaving us £500. With our current monthly mortgage repayment at £465 that is covered and so are the fees.

This is what I am trying to get accross to the BOS that they can gladly have the £500 a month and use little the extra to pay off the arears we owe, I realise it will take years but its an offer. Plus what with the temporary savings on bills and food etc over 6 months in parents house we can share this out between paying more off the arears and other debts and put a little aside to help us move back into our own home and remain on our own 2 feet. I realise this saving wont be a vast amount over 6 months but its a positive to have any savings surely?

Ill go look at the website thanks for the guidance!

Will keep you informed.

Thanks as usual everyone!

nh

Heddwen,

Please don't take this the wrong way, I would never want to cause offence, but I have noticed on another thread that you and your husband have subscriptions on a Di Agnosti model-making magazine? You really need to stop spending on such unneccessary items.

I know your husband really wants to keep the business going but if you closed the business, he got a full-time job, you could get Job Seeker's Allowance (I think).

Things do not look good for your mortgage arrears if BOS have arranged for a company to 'help you' with you arrears. I fear this is the start of the repossession process. If your monthly income is less than your outgoings and you have exhausted all options on improving the business/getting more work for yourself, it seems an obvious decision. You do not want to lose your house, like you said if you get off the ladder you might never get back on. That has to be your priority. The other debts are quite low in comparison to some others on this site!

My advice would be for your husband to get a full-time job so you are certain of enough income every month to meet your outgoings. If these means closing the business, so be it. Hopefully you can do both.