Is A Secured Loan The Only Solution?

geniegal

Hello – this is my situation – can anyone offer any situations as to the best solution for me?

Me and hubby are both self employed (SE), with non regular income. I have only just been SE for under a year, earning nothing til now and suddenly it’s taking off with £800 worth of sales this week (£110 already in the bank and the rest spread out over the next 3 months). I really need to concentrate on my business now and not return to supply teaching. (I live in a rural area and supply work is v patchy at best.)

Hubby earns between £500 - £1000 a month

We get 535 child tax credit plus 135 child benefit per month

Debts: I owe
4260 – Lloyds credit card –payement approx £80 month
5209 – Barclaycard – pay approx £90 monthly
4197 – virgin card - £95 monthly
5952 – Lloyds loan #1 - £350 montly
5953- Lloyds loan #2 - £150 monthly

total debts = 25, 571
total monthly payments = 765

As well as this hubby owes 1500 on Lloyds credit card = 30 monthly payment
Plus owes roughly £8 – 10 k to creditors. He put it all in hands of churchwood financial who are appalling, they will not even tell steve how much he now owes. We did look at changing this using business debt line, but it would have meant us contacting the creditors to find out how much he owes each one and he will categorically not do that or let me do that. So it’s a catch 22.
Monthly payment for these debts = £257

We get 535 plus 132 benefits a month =667. At the moment hubby is making about 800 –1000 a month.

I have added up our monthly outgongs. Absolutely everything comes to 2265 incl all these debt repayments.

So over the next few months we will have a shortfall of about £600 monthly, that’s worse case scenario if I don’t make any more sales.

What I want to know is the best course of action for me? I am a homeowner with a good credit rating (I own our home on my own). My bank wont lend me any more money now I’m self employed. My mortgage co wont increase the mortagage.

I am going to try to get virgin credit card to accept a balance transfer fromone of the other cards, but what if they don’t? Is the only course of action open to me a secured loan?

Many, many thanks for your help

Tixy

Hi no a secured loan is not the only option (and possibly not a very good one).

I would suggest you speak to one of the free debt advice organisations to get some advice. I would also suggest OH stops using churchwood, no point paying fees when you don't need to, its only making your finances worse.

Have you worked out a detailed statement of affairs (i assume you have to know your outgoings are £2265) it might be worth using this format http://www.makesenseofcards.com/soacalc.html and posting on here to see if people can suggest ways you can save money on your outgoings and to generaly advise on what other options are open to you.

Good luck

geniegal

Thanks, I know the next step is talking to a real person. When I was trying to sortt out churchwood I had to speak to a really irritable man at business debt line who acted like how could i have got in this situation, when i was only trying to help my husband.

this mixed with the shame of having got into this situation has been putting up barriers to me getting some help

will look at that link to