£60,000 debts .... I feel sick!

Iggle

I've come to the realisation, after buyring head in sand, that we have £60,000 of unsecured debts ..... we currently can't afford all of our outgoings by around £600/month! How did we get here .. two babies, me the main wage earner and my company pays statutory mat pay, then the cost of childcare upon returning to work and no help from the government. We earn £55,000 between us, have a mortgage of £98,000 and a house worth around £160,000. Am thinking of remortgaging (as seems the only logical solution) but could only get a max of £35,000 which won't wipe out debts and means we still have loans etc. left. I am starting to panic that we are going to go bankrupt and lose our house .. with two kids under four I feel sick at the thought. I've done a budget planner and I can see where we are just losing money (or rather spending too much) and we are making a really good effort but it's not going to help us each month. We have never missed a payment as yet but I know that we are going to get to the that point.

Any help anyone can offer .. I tried calling the CAB and they told me I would have to go into the drop in centre. This is 35 miles from where I work, and I really can't take any more time out of work.

I tried National Debt Line but I was on hold for ages and then it kept telling me to try later.

I really do feel sick now ... anything you can offer will be greatly appreciated.

thank you,

pure_dead_dopey

Hi Iggle

Well done for recognising that you need to do something about your debts. You could go on the CCCS website and fill in a debt remedy, you don't have to give your name and its a good way of seeing just where the money is going, and they'll give you possible solutions. AND, there WILL BE a solution, you just haven't found it yet. Losing the house is a long way down the road, so don't worry about that. You could also post up a SOA here and the good people on this board are really whizzy with where money can be saved, sometimes quite painlessly. So sit down, habe a cup of tea and do a SOA and we'll see where you need to go.

xPDD

BILLIE

Hang on in there Iggle - I can't give advice but I know that someone will be along shortly. Just one thought are your mortgage payments interest free or would they let you take a 6 month payment free holiday? Might be worth asking seeing that you have never missed a payment. I know the others will ask for your SOA so start preparing and get ready to post. Good luck - more than you in this boat and one day we will all be debt free. Billie xx

gonzo127

congrates on being able to own up to your situation.

first place is to do a SOA and post it up here, the link is http://www.makesenseofcards.com/soacalc.html

that will get it in a easy to read format and will allow yourself and us to see exactly where you are and also allow us to hopefully spot some potential savings

on top of th CAB and national debt line there is also the CCCS and payplan who you can call, who are free charities

Tixy

Hi Iggle

Just wanted to add in that you are not alone and your situation is not uncommon on here. As the others have suggested I would start by completing the statement of affairs (as per gonzo's link).

Maybe we will see some easy savings you can make to decrease that £600 shortfall a bit. After that I agree that the next step could be the CCCS online remedy and then a conversation with them.

But first things first are to complete that form and post on here. Definitely do this before even consider a remortgage. Changing unsecured debts to secured debts is a last resort as it can put your home at a much greater risk.
Also have you checked you are getting all the benefits you are entitled to?

elsie52

You've been given some good sound advice there Iggle.

Don't panic, if everyone on this site panicked because they owed money, there wouldn't be many who were sane.!! That' why we are all here, we all owe different amounts but we all have one aim......to pay it back and be Debt Free.!

Have a cuppa, fill in a SOA and take it from there.

miss_missy

hi
i know how you feel we were just £65000 in debt when we realised we need to stop spending and repay are debts so i know how it feels
i agree with what others have said and posting an soa on here may well help you even more
youve already taken the first steps by looking for help so stay strong as it can be quite hard when you realise what you may have to give up to pay off your debts but they are plenty of people on here who will help and also some amazing stories of people who have managed to pay it all back whether it be with a debt charity help, doing their own dmp or paying it back on their own

keep posting as i think this site really does help to keep you focused and even if you just need to let off steam there is usually someone around to listen

p.s if you post a soa also list all your debts whats outstanding, limits, aprs etc the more info people have the more they can help

take care

JA1000

Just to say, you done the hard part in reviewing it yourself rather than hiding. Don't worry the house isn't going anywhere just make sure you have that mortgage payment as the firstpayment out on payday to make sure.

You are still makeing minimum payments which is fine, if you do an SOA then you will get loads of advice on here, but even reading that you are not the only one in this situation will make you more confident that there are ways around this.

Trollfever

Having problems with your mortgage payments?


http://mortgagehelp.direct.gov.uk/default.aspx

mamajojo

Hi Iggle
Well done on getting your head out of that sand... it really is much better out of there-honestly. You've had some great advice, and there is always someone ready to help and put things into perspective here. I would be filling the cccs online remedy in too. They have really helped us. My head didn't come out of the sand till we couldn't make the min payments-that was jan and already things seem so much better and I don't feel sick anymore. Be kind to yourself, don't panic, there will be a way forward for you to deal with this.
Let us know how you go Iggle x

happyhaddock_2

Hi Iggle, well done for posting and facing up to your position:T Have to echo other posters and reccomend CCCS we've recently done the debt remedy on their website and have now started a Debt Management Plan with them starting April:)