confessions of a newbie

2nd_time_around

Hi everyone, I'v been reading this forum for a couple of weeks and have finally plucked up the strength to post. A little about my situation: I own 2 propertys, a rather large house and a city center appartment. a year ago I was on an excellent salary and decided to gut the house (as it was in a very bad state) and give it a complete refurb so that I would be able to rent it out instead of it just costing me money every month, as I worked abroad and my daughter is at Uni miles away and she lives in the appartment near the uni which I also call my base.
6 skips of old furniture, chimney breasts and rotten floor boards later, I was put on to half salary as the credit crunch reared its head and the company I work for started to have probs. So work on the house stopped, 3 months later I could not see things improving, and I was still in the UK as there was no work for me. So I rolled up my sleaves and got stuck into the house myself with the help of a builder/friend. In the process I have built up £30,000 debt. BUT after 13 months of doing up the house it is now finnished and rented out for the next year!!!!!!!!!PHEW
Now the worse bit.........how do I get out of the debt???? The company I work for have now offered me 20% of my previous salary this is really because they cant afford to pay me the 3 months salary I would be entitled to if I were made redundant.
Barclaycard have allready registered somthing against my credit rating and I have not made any payments to my other credit card for 2 months. After finding this forum I have now contacted payplan and hopefully we will be able to come up with a plan that suits my creditors as well as myself.
Sorry for the long ramble folks, but I was hoping someone would be able to advise me on the following:
I would like to ask HSBC for a summary of all my charges as I am sure over the last 8 years they could mount up to quite a bit,HOWEVER I am very worried about doing this as my mortgage (£164,000)is also with HSBC and I am petrified that they forclose or somthing because I owe them 2 loand and a CC.

smsfrancis

That was quite an interesting story! Am pleased for you that you managed to finish the house and rent it out, shows a great deal of determination.

Have you looked at the step-by-step guide on this site for Bank Charges? It's at moneysavingexpert.com /reclaim/credit-card-charges

2nd_time_around

Yes I have looked at the step by step guide, but I am still frightened to do anything at the moment incase it rocks the boat with my mortgage

gfplux

hello 2nd time around.
The issue of Bank charges is not that urgent. The only thing that happens if you don't put in a claim now is that you do not stop the 6 year (or is it 8 year) clock. Given that you have two property's I think you will not be considered a hardship case (I could be wrong, anyone?) So you will not get any money repaid shortly and you need to get cash flow positive NOW.
I suggest two steps.
1) Start a spending diary TODAY to find out exactly where your money goes. That knowledge will shock you but also give you power. You only need a pen and a paper.
2) Make out your SOA (link - http://www.makesenseofcards.com/soacalc.html ) Try not to guess at the figures, dig out the paperwork! However remember a partial completed one is better than none. It is in fact one of the most IMPORTANT things you will ever do to start on the road to recovery. If you want a lot of help on this forum, posting your SOA is the first and most important step. After it is done it is very easy to keep it up to date. In my opinion everyone should have an up to date SOA even if you have little or no debt. It is a great tool to manage your life with. If you post it on the forum answer the obvious questions before they are asked so you get immediate feedback, such as :-
If there is “other” Income explain what it is
Mortgage – interest only or not.
What is the age of any children.
Council tax over 10 or 12 months.
Electricity and gas any arrears.
Water rates meter yes or no.
Mobiles, how many and when are the contracts up for renewal.
If no contents insurance is it include with buildings insurance.
If pets cost money, what are they.
House or flat value, has it been valued by an Estate Agent and when.
The more that can explain about the financial figures and circumstances the quicker the post will get advise rather than lots of questions.
When you have posted it and it does not look right or you want to change it, do so and repost it.


Good Luck