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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 bills0
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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.0
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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.0
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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 owe0
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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.0
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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.
dfMaking my money go further with MSE :j
How much can I save in 2012 challenge
75/1200 :eek:0 -
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.
dfMaking my money go further with MSE :j
How much can I save in 2012 challenge
75/1200 :eek:0 -
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 DebtsDFW Long Hauler #109
Slowly, Slowly = Oct '09: £30693, Aug '15: £14820. Could Be Debt Free April 2020, but hoping for sooner!0 -
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:]0 -
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.0
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