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Help desperatly needed

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  • We would then prob rent somewhere in the region of £800 a month which is half our current mortgage payments, if we were to sell for £268000 that would cover the fees we would then be left with the credit card bills
  • sarahs999
    sarahs999 Posts: 3,751 Forumite
    Kel, before you do anything drastic like selling your house, please do what the others suggested and post an SOA. There may well be savings you can make elsewhere that mean you do not have to sell.
  • Ames
    Ames Posts: 18,459 Forumite
    I really think you're looking at this the wrong way round. Your home is important, it's your first priority. Credit cards are far less important. Unless you hate your house for some reason then that's worth saving more than the credit cards are. Are you sure that even renting you can make a dent into the credit card debt, rather than just keep meeting the minimum repayments? Because if you can't then you're giving up your house for absolutely nothing at all.
    Unless I say otherwise 'you' means the general you not you specifically.
  • Hi we like the house but don't LOVE it, we can't afford the mortgage payments longterm so in reality we have to move as even without the cards we would be struggling. Why di dwe buy it i hear you ask if we couldn't aford it the simple answer is we took a gamble we had our own business which if it had continued to do well we would have been fine but unfortunatly it didn't and we have found ourselves paying for EVERYTHING on credit cards hence the amount we owe
  • sarahs999
    sarahs999 Posts: 3,751 Forumite
    That does sound tough Kel. HOWEVER you're avoiding the SOA issue! Are you going to fill one in? If you want us to help you have to start there.
  • To be honest if you sell your house then what? unless you can get a lot of money for it and be able to settle the credit cards then you haven't really solved the problem - all you've done is to get off the housing ladder and gone into rental accomodation.
    Also if you are generally living beyond your means (before paying debts off) then again selling up and renting will not necessarily solve the problem.
    Selling your house MAY be an option but please sit down and go through everything before making a rash decision as it feels a bit like you are panicking and clutching at straws.
    df
    Making my money go further with MSE :j
    How much can I save in 2012 challenge
    75/1200 :eek:
  • O.k so it sounds like selling the house may be a good thing if it dramatically lowers your outgoings and having a mortgage you can't afford is obviously not a good plan. Is it likely to sell? not sure if houses are selling well or not at the moment.
    As well as selling the house you obviously need to look at sorting the cards out etc and you can get the ball rolling on all of that while you get the house on the market as that could take a while to sell.
    df
    Making my money go further with MSE :j
    How much can I save in 2012 challenge
    75/1200 :eek:
  • Queen.Bess
    Queen.Bess Posts: 1,062 Forumite
    Hi Kel, welcome to the forums! It's great you realised you had to do something about your situation, but I am concerned that your answer is a short term fix for no long term gain.
    What happens if you move house and pay less rent and with the spare cash start spending again? What would happen if you or OH were to become unemployed?

    PLEASE think of the bigger, longer term picture and please post an SOA as there might be savings to be made regardless of whether you sell or not. What's the point in wasting money for the sake of it?!

    I wish you well though.
    Official DFW Nerd Club #20 :cool: Proud To Be Dealing With My Debts :D DFW Long Hauler #109 :o

    Slowly, Slowly = Oct '09: £30693, Aug '15: £14820. Could Be Debt Free April 2020, but hoping for sooner!
  • wel here it is ou soa i don't know how we let it get this bad i feel so stupid allowing ourselves to get in this much of amess



    Statement of Affairs and Personal Balance Sheet
    Household Information

    Number of adults in household........... 2
    Number of children in household......... 2
    Number of cars owned.................... 1
    Monthly Income Details

    Monthly income after tax................ 200
    Partners monthly income after tax....... 1900
    Benefits................................ 152
    Other income............................ 0
    Total monthly income.................... 2252

    Monthly Expense Details

    Mortgage................................ 1300
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 30
    Council tax............................. 155
    Electricity............................. 45
    Gas..................................... 45
    Oil..................................... 0
    Water rates............................. 40
    Telephone (land line)................... 22
    Mobile phone............................ 15
    TV Licence.............................. 12
    Satellite/Cable TV...................... 20
    Internet Services....................... 0
    Groceries etc. ......................... 450
    Clothing................................ 0
    Petrol/diesel........................... 45
    Road tax................................ 20
    Car Insurance........................... 28
    Car maintenance (including MOT)......... 30
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 20
    Other child related expenses............ 40
    Medical (prescriptions, dentist etc).... 10
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 28
    Contents insurance...................... 0
    Life assurance ......................... 29
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 40
    Haircuts................................ 20
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 2444


    Assets

    Cash.................................... 0
    House value (Gross)..................... 275000
    Shares and bonds........................ 0
    Car(s).................................. 500
    Other assets............................ 0
    Total Assets............................ 275500


    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 256800...(1300).....6.5
    Total secured & HP debts...... 256800....-.........-

    Unsecured Debts
    Description....................Debt......Monthly...APR
    barclaycard....................7150......162.......19.9
    natwest........................2200......48........12.8
    capitol one....................5260......154.......9.5
    tesco..........................5000......90........12.8
    virgin.........................5000......120.......15.2
    tsb............................4600......70........0
    egg............................3500......85........21.8
    mbna...........................7500......142.......21.2
    american express...............2920......73........15.2
    virgin.........................5500......25........0
    tesco..........................1150......33........15
    Total unsecured debts..........49780.....1002......-


    Monthly Budget Summary

    Total monthly income.................... 2,252
    Expenses (including HP & secured debts). 2,444
    Available for debt repayments........... -192
    Monthly UNsecured debt repayments....... 1,002
    Amount short for making debt repayments. -1,194

    Personal Balance Sheet Summary
    Total assets (things you own)........... 275,500
    Total HP & Secured debt................. -256,800
    Total Unsecured debt.................... -49,780
    Net Assets.............................. -31,080

    :eek::eek:]
  • sarahs999
    sarahs999 Posts: 3,751 Forumite
    Well done kel!

    First thing is that yes, your mortgage is way too high. It's 58% of your total income (including benefits), which is just unsustainable. So you are right that long term you will have to either change your living arrangements or get a higher-paying job!

    Short term, your gas and electric look very high. Have you changed recently? You could get a much better deal than that. A;lso nothing for internet - have you included that in the satellite? Could you do without satellite TV? NOt really a necessity these days with freeview available.

    Other things: Presents budget is way too high. That needs to be slashed. Try for things on ebay or freecycle, or get things in sales throughout the year.

    Those are my initial thoughts. I'm afraid it'll only make a drop in the ocean but it's a start.
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