debt headache

worry_2

Hi

Im just dont know what to do for the best at the minute , Were in £40k of debt again and this had been the 3 time we have re morgorgaed 3 times and have a huge mortgage and no equity in our property now and i find it a real struggle evry month to make my miniumum paymts . I aslo felt that as long as i could make these i was ok , we have always lived beyond our means and like to indulge i have tried to ask for help ( lower pymts freeze interest on credit cards ) but they wont do anything untill im well bhind with payments which i dont want to do , ( I have worked in credit card collections and know what charges can do to you ) . I also worked until very rentcently in a bank and left do the way they treat customersa and there crippling chagres , which i have on my account too . My husband is self emplyed and we struggle with a regular income and have had to pay off business debts with credit cards and bail out the business finances .

i have changed over credit cards to 0 percent but these have ran out now and i cant get credit now as i have tried lots to get further loans and new o percent cards .

Im not sure whether to write to evryone and ask for a payment plan ( but i dont think they will do this as im not missing lots of paymts or whether i should just keep on making the min pymts as long as i can ?

advice anyone

StayingPositive_3

Hi there

I am sorry you are going through this. Lots of hugs. It may be best if you post on the debtfree board as there are a number of people who may be able to advice you well on your situation if you post your statement of affairs.

I hope it gets better for you.

jojo1978_3

I too am sorry to hear of your predicament, It might also be worth contacting an advice bureau, as they offer free help. Somewhere like citizens advice bureau, or consumer credit counselling service

coolcol1

hi,
-the citizens advice was very very helpfull with me also and go and see them
and they can advice you on writing to the companies and will even write on your behalf-as with me,they will not want you to go bankrupt.
-the National Debtline.co.uk, for FREE CONFIDENTIONAL ADVICE is worth using
-and martins site is very helpfull.

can i say that i had alot of debt on 5 credit cards-and never refused a 6/9/12
month 0% interest-so worth applying/looking at others-also i found that when i moved debt from one to the other they would offer me a deal to return!
also to look for the tranfer the balance for 4.9% and similar as i found that
unsecured loans were not offered cheap!!-9.9% and 10.9% when my debt was huge.
i very much hope i been of use.

coolcol1

hi again,
-you say you live beyond your means-if you spend lots control it totally so budget and be hard!!(use martins advice)-you need to get your money head back on,and more pounds in ya pocket.
-no money in your property but could you move to a cheaper one-so having less of a mortgage?
-you know about debt/charges etc but min payments are themselves charges
so you should think how to generate more to pay off quicker,2nd part-time
job?cheaper travel?assets to cash?borrow off family?lodger?(hate to say it but could u live with mum,dad etc?)
-would your partner be better off on paye for regular money?or doing something that would generate enough without the business?

hope that helps you

worry_2

thanks
I know we must budget , its been a really hard couple of years not long had our 3 child , 3 under 5 is not easy . I really dont want to have to move weve only been here for ayear and half and we couldnt afford the solictors fees again and weve only just paid out alot to remortgage ,havent really got anything to sell of value and i cant work more than couple of days due to the babies and husband works all hours

jamesp_3

worry wrote:

thanks
I really dont want to have to move weve only been here for ayear and half and we couldnt afford the solictors fees again......

I'm not being nasty but this is the problem. You acknowledge that you are living beyond your means (presumably this also includes the type of house you own) yet straight away you are saying that you can't move. If you downsize significantly you will be able to afford the fees and the savings could be significant.

40K of debt is huge and the only way out of it is by making significant changes. Sadly, this will mean shrinking your assets and services (cars, mobile phones, tv, toys, nights out, holidays etc etc) you use and making those decisions which you are not going to like. I would love to live in a house 3 times the price i have now but if i did, i would end up in a similar debt situation to you.

Good luck! I'm sure you can do it.

Jim

overbudget

If you post an SOA (Statement of Affairs) on the Debt Free Wannabee board you'll get lots of advice on how you might budget and start to reduce your debt. If you go to the board there is a sticky for new DFWs at the top which tells you how to do an SOA (sorry my system isn't letting me post a link at the moment).

Good luck.