Are we totally screwed?

cavework

Sorry but I really need some advice. We 'own' our own home. We have a mortgage, interest only.. no way of paying it off in 2011 because OH has had to use his pension lump sum when he was first made redundant.
We also have a second huge secured loan . If we sold tommorow we would hopefully walk away with approx £5,000 after all our debts were paid off including credit cards.
My OH is 60 and was made redundant twice in the last 2 years .. first time he was employed for over 18 years earning over 30K a year .. second time just over 18 months on a hugely reduced wage.. company went into receivership
He started his own business 12 months ago but in the last 2 months has had no income .. no work..
I run my own business as a partner .. worked long and hard to get where we are today .
I earn £300 a week net..
Sorry for this but to be honest we are in a position where we are going to loose our home , we have paid all our debts up till now on time with no arrears, but we can't continue..
We have 2 sons one is 23 and is employed and pays his way .. other is 17 still in 6th form and wants to join the police when he is 18.. he has just got a low paid job to work around his studies..
Do we sell the house .. pay off all the debts and rent?
Is there any other way around this?
Any advice would be great but please no sarcastic comments about being stupid with money...we are in the same situation as a lot of people.

cavework

tried to delete this thread.. can't do it???
sorry it's our problem...

blind-as-a-bat_2

Cavework, if you want help, there is no shame in asking, trust me its the best thing i did, it may be your problem, but as the old saying goes, a problem shared and all that.

Its hard posting for the first time, it took me about three months, but i am glad i did;)

philnicandamy

well....we're here if you need the support..

have you tried speaking to one of the free debt charitys? (links below) they can be pretty helpful in giving you the best advice on where to go next

debtinfo

hi, have sent you a pm

MicheH

Aw, I can't offer any advice but the ones you've been speaking to are the best any way. You ask away if you like, we're a lovely bunch. As bat says a problem shared, if it'sgoing to help you then use us

firesidemaid

just thought i'd say hello and tell you i'm listening.

have you applied for all the benefits you are entitled to, and then checked again just in case you were told wrong the first time? child tax credits, pension credits, jobseekers etc. have you checked on the entitledto website?

are your mortgage payments high? ie. would a mortgage holiday help for a few months?

if it came to it and you had to rent, you may even be better off strange though it sounds.

my parents have always rented and are now in their sixties and renting - as children that has never bothered us.

just do what you can on a day to day basis x

confused76

this board is for sharing so don't feel like you have to take your question back. most people here are in a similar boat or have been so there is always someone who can offer advice or a friendly word. good luck x

snoopy89

no sarcastic comments about being stupid with money...we are in the same situation as a lot of people.
100% correct cavework. ask for help and on hear it will be given, no judgement, just help with a smile. we all have or where in similer times now or in the past.;)

MarsdenCuckoo

Cavework, you say you've paid all your debts up to now, in which case chances are that your lender will do their best to try and help you through. Arrange to meet face to face with your lenders and see if what they suggest. Just because you can't meet all your day to day indebtedness at the mo doesn't necessarily mean you're going to lose your home. Be honest and talk to all your creditors asap.

Not an expert by any means but off the top of my head:

* Would extending the term of your mortgage help? (Presumably switching to a better mortgage deal is not an option at the mo?)
* Do you have any 0% finance available via credit cards? Not a long term solution but may help in the short term.
* If all else fails, could you rent out your house to cover the mortgage and rent somewhere else cheaper for yourselves?
* Similarly, could you rent yours out and move in with family i.e. to cut down on costs?
* As already said by someone else, check what benefits you may be entitled to - look at switching utility co's (some may even offer cash back to switch), if you do qualify for benefits then that may result in reduced council tax and other ways to save on your outgoings
* any chance of part time work i.e. Avon even? (strange but some people doooo make a lot of money!)

Good luck.

fiveyearplan

Cavework - welcome. I would second Phil's advice and ring one of the debt charities in his signature. You're right we are all in the same boat (or have been).

Good luck and don't be embarrassed to post any other questions/concerns/thoughts you may have.