Mortgage & Credit Card Advice

mackem1879

Hi all

Thought I would register on here because I have run out of ideas on what to do.

We have recently had our house valued at £112,000 and have a mortgage of £102,177.93p currently on it with 19 years remaining.

Me and my wife have credit cards totalling £21,000 (yes that is correct!). We have cleared our debts twice by adding it on to the mortgage, original mortgage was for £85,000, you could say we like to shop.

We have tried switching credit cards to get a lower APR but nobody will offer us one now and we have just been rejected for a £21,000 loan from tescos to pay off the credit cards.

The only thing we have of value is the house, and if we upgrade it to a higher standard it could be worth more (it is 4 bedroomed with a double garage)

I am stuck with where to go now, any advice would be appreciated:money:

WASHER

Welcome to MSE.

An SOA (incomings and outgoings) would be great, it would enable us to see if we can reduce your outgoings further.

As you already know consolidation isn't the answer and very very rarely works. I am pleased you have been refused (in a debt free way, not a nasty way) the Tesco loan, it was never going to PAY OFF the credit card debt, only shift it into a loan.

My advice is post an SOA, stop spending and start looking around the house to see if you can sell everything on EBay. Debt repayment can be a long difficult road, but with the help of this board, you will see consolidation was never the answer, but reducing spending and taking control of your outgoings is.

WASHER.x.

mackem1879

I have sold everything in the house on ebay, got nothing left!

My in's and out's are as follows:

In

Combined wages - £2,713.28 per month

Outs

Phones combined £70 both contract
BT - £44.94
British Gas - £183.61 for new boiler
EDF Electric £65.00
EDF Gas £44.00
Life Cover £36.93
GE Money Car - £99.86
Halifax Mortgage - £737.51
Water bill - £35.00
Royal College of Nursing £16.08
Swinton Car Insurance £24.71
TV Licence £12.12
O2 Broadband £7.50
Council Tax £131.00

+ £390 credit cards!

WASHER

http://www.makesenseofcards.com/soacalc.html

Use this SOA, and press the MSE button at the bottom, it makes it easier for us to comment. You need to honest about everything, we are not going to judge you, we are here to help, and many of us are in the same boat.

mackem1879

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1000
Partners monthly income after tax....... 1450
Benefits................................ 167
Other income............................ 0
Total monthly income.................... 2617
Monthly Expense Details
Mortgage................................ 737.5
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 131
Electricity............................. 65
Gas..................................... 44
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 44.94
Mobile phone............................ 70
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 7.5
Groceries etc. ......................... 320
Clothing................................ 40
Petrol/diesel........................... 180
Road tax................................ 16
Car Insurance........................... 35
Car maintenance (including MOT)......... 8
Car parking............................. 16
Other travel............................ 15
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 8
Pet insurance/vet bills................. 0
Buildings insurance..................... 24.71
Contents insurance...................... 0
Life assurance ......................... 36.93
Other insurance......................... 0
Presents (birthday, christmas etc)...... 60
Haircuts................................ 40
Entertainment........................... 60
Holiday................................. 200
Emergency fund.......................... 0
Total monthly expenses.................. 2206.7

Assets
Cash.................................... 0
House value (Gross)..................... 121000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 125000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 1021779..(737.5)....5.25
Total secured & HP debts...... 1021779...-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
credit cards...................21000.....390.......24
Total unsecured debts..........21000.....390.......-

Monthly Budget Summary
Total monthly income.................... 2,617
Expenses (including HP & secured debts). 2,206.7
Available for debt repayments........... 410.3
Monthly UNsecured debt repayments....... 390
Amount left after debt repayments....... 20.3
Personal Balance Sheet Summary
Total assets (things you own)........... 125,000
Total HP & Secured debt................. -1,021,779
Total Unsecured debt.................... -21,000
Net Assets.............................. -917,779