Is an IFA fit for my situation?

TheRootOfAllEvil_2

Hello Everyone,

I am seeking to reduce my debts so I hope this is the best forum to post this concern of mine.

I have a feeling that just seeking a loan to consolidate my debts may be shortsighted and inappropriate when I should be taking into account my future plans such as children and moving home.

I figure I need advise but am not sure if an IFA is the best person to speak to because they specialise in particular areas such as mortgages, or insurance.

I need someone to consider my current financial picture as a whole and factor in my intentions to move into a bigger place and start a family.
It may be that there are more options open to me than just 1 or more unsecured loans when one considers the ENTIRE picture.

Who in the professional world can offer such advice?

Anyways, here's my scenario:
Marital Status: Married (3 years)
Full time employed: 58K per year gross. 3K per month net.
Savings: none, (used to cope with father's recent death and to keep me within OD limit!)
Home owner
> shared ownership scheme for 4 years
> 2 bed flat in London approx value £183,500 (I own 50% share)
> mortgage: 20years 77K @ 4.9% fixed until 2012.
> LTV ration is 82% so a remortgage has been denied by Halifax.
> rent per month: £389.00
> Overdraft: £6K paying approx 60.00 per month (NEARING LIMIT EVERY MONTH!)
> Total Credit card debt: £36,100.00 paying approx £640.00 p/m (APR's from 14.8 to 29.6%)
> Loans: 3
> 6 year 25K @ 12.9APR (3 years to go) £491.00 per month
> 5 year 15K @ 6.9% APR (2 years to go) £363.71 per month
> 5 year 10K @ 9.9% APR (4 years to go) £209.40 per month

My wife contributes to some of the debt repayments but basicaly I earn less per month than I spend. This is causing me to slide deeper and deeper into my overdraft - i am now at a point where next month I will definately go beyond it - NOT GOOD! :eek:

We want to start a family but need to move out as the flat is too small for just the two of us!

Not many lenders deal with shared-ownership remortgages and Halifax, the best lender wont entertain me so I have been mainly looking at unsecured loans to reduce monthly debt payments which is currently 1,763.00 per month!

Shall I continue to seek out unsecured loans (under my wifes name) or does the fact that I want to move property give me more options?

Any advice would be appreciated!

GeorgeUK

I think you should probably get your spending under control and within your limits before you look at moving. There are lots of extra costs involved in this and you cannot afford to put any money aside just yet.

I would suggest you fill in a statement of affairs and look at how you may be able to reduce your outgoings. We may be able to spot some areas where you can reduce your outgoings and a posibly also reduce the amount of interest you are currently paying so that your debt reduces quicker.

I realise this isn't an IFA solution, but i really don't think you can afford to look at anything until you can get your spending under control and within your limits.

http://www.makesenseofcards.com/soacalc.html

WASHER

I second GeorgeUK response.

An IFA may charge you a fee upfront as well, I'm personally not a fan of IFA, I had one a few years ago and I was sold every insurance policy under the sun, for the "just in case" (not saying they are all like this - my personal experience).

RAS

Hi

I agree. You need to talk to a debt charity advisor about your situation as they can take a holisitc look at your situation. The serevices they offer are free. I note from your are also suffering from a recent bereavement and need a bit of help there too. Are you also supporting mum at the moment?

Yet another loan is not going to get you out of this fix.

Since you are married and presumably have a joint mortgage, you need to look at your joint household income and expenditure.

If the flat is small you may not have a lot stored but you need to check round and see what you can sell off. Also see what is hiding in the loft from when you left home.

It will be more important to pay off the 30% credit card than anything else, as doing that will reduce your monthly outgoings.

If you do an SOA, it will be possible to find ways to reduce your expenditure and make this situation more bearable.