NEW DFW Hi Everyone - Lightbulb Moment?

vindalooloo

Hiyall!

Been lurking here for a good few weeks following the stories of people. Love the idea of the sigs with the debt going down so thought I'd jump in with my story (and sig to give me more motivation.)


Myself and hubby not *massively* in debt, but it's bad enough. Until 2 1/2 years ago we were going along alright, me with a small business doing OK, hubby not working. Big change came when we moved to the seaside. In hindsite we would have been better staying inland, but you don't realise this at the time!


A couple of months after moving my business started going downhill ... and down and down and down! Therefore hubby had to go out and get a job. What we *didn't* realise though was there is hardly any work in a small seaside town! Therefore it took him ages to get something (at Nat Minimum Wage!). My business was still going downhill - so badly that a couple of months ago I packed in altogether and went to look for a job.


Got something part time, in a very well known National High Street health food shop, so at least were both working now. But because of hubbys forced unemployment and my failing business we had to take out loans and CCS (FOR THE FIRST TIME IN OUR MARRIED LIVES!) just to make ends meet - you know - cost of living and all that.


Final straw came last month when we couldn't pay the Council Tax (again) so they threatened us with a summons if we didn't pay the whole of the remaining seven hundred quid! Had to put it on the credit card! :eek: So, our problems come not from frivolousness but from simply not being able to afford the cost of living. (Our current balances are below in the sig.)


Currently have the house up for sale as we have about 50k equity in it, but again, because we are in a fairly run down seaside town, most people are on Nat Min age or seasonal work. It's a massive 4 bed Victorian terrace up at a mere 119,950. Not had a SINGLE enquiry in 10 weeks! I suppose people can't afford it


Hoping to move to something smaller and pay off any remaining debts, but the (smaller / ex council) houses were looking at seem to be only 5 or 10 grand less than ours .... which we can't get our head round (if our massive house 1 street back from the beach, 2 mins walk to 24 hour Tesco and 2 schools within walking distance, is so undesirable how can they be asking 115 thousand for an ex council house on the outskirts of town ?!?!)


Our current mortgage provider (A well known Building Soc with daft adverts, named after a town in Yorkshire!) has turned us down for a mortgage on next property because of our low wages here, even though we've NEVER defaulted or missed a payment on anything ... although it's been TIGHT this last couple of years ... so we're having to get one of those affordability mortgages from a Financial Adviser in the town, who to me seems dodgy - but he's not of course, he's just into getting you a mortgage - he's not bothered if you can pay it back or not, type of thing.


Anyway .... this is my story up to press. I get my first wage this week so hopefully with hubbys wages as well we should be able to get the overdraft down somewhat. By writing everything down, it sort of clears the head and gets you focussed doesn't it.

bluezone

Hi there, cheers for posting.

How about you post a SOA (statement of affairs) and we'll all see if we can help you cut down in some places.

BestFootForward_2

Hi vindalooloo

Welcome.

Pop over to the Mortgages & Endowments forum. There are brokers over there who are very knowledgable and helpful.

Also post your SOA, and the folks here will provide excellent feedback.

Good luck and let us know how you get on.

BFF

severussnape

hi

well done for posting, you say you're not massively in debt but it must be enough to make you worry which regardless of how much it is, it's not good.

as the others have said please post a soa.

have you tried northern rock they do 4x your salary or at least they did last year when we got ours.

Broken_hearted

Hi and welcome

Well done on finding jobs. Your debt is manageable and we can sort it. Have you posted a SOA.

lynzpower

welcome from me too :wave:

bobbadog

vindalooloo wrote:

Hiyall!
Currently have the house up for sale as we have about 50k equity in it, but again, because we are in a fairly run down seaside town, most people are on Nat Min age or seasonal work. It's a massive 4 bed Victorian terrace up at a mere 119,950. Not had a SINGLE enquiry in 10 weeks! I suppose people can't afford it

119500 for 4 bed house? Where do you live!??! x

The_Tax_Mans_Cash_Machine

Rather than overstretching yourselves with a huge mortgage on a small/ unideal house (if you can get a mortgage), why not sell it, pay the debts, put the money away, & rent a small one bedroomed flat (I assume you have no children). If you have children, renting somewhere with enough rooms, but as cheaply as possible.


By keeping the outgoings lower you won't find yourself stretched financially & will be able to save. I know people say that renting is dead money, but I'm renting a 4 bedroomed Victorian house in a quite a nice area (Yorkshire - not far away from the town the building society is named after ) for £400 per month. A mortgage would be costing me probably £1000 per month.

We've managed to save loads that we couldn't have saved if we had a mortgage, & our plan is to aim for buying outright in a couple or more years.


Can I ask you what your business was before you packed it in please?

gallygirl

Hello & welcome!!! Your debts are small, although I realise as you are both on a low wage they represent a high proportion of your income. However, presumably you moved to that house because you loved it and it would be a shame to sell without trying other options (esp. as it looks like you'll have to drop the price). You need to post an SOA to see what advice we can give. In the meantime - have you considered letting out a room - assuming you have a spare? You are allowed around 3k a year before paying tax. What type of business did you run - is it possible to do part time? Finally, does your mortgage company allow you payment holidays? That would give you a little breathing space to sort things out now you have 2 wages coming in.

vindalooloo

bobbadog wrote:

119500 for 4 bed house? Where do you live!??! x

BRIDLINGTON. Here's the details
http://212.50.188.107/cgi-win/vebra.cgi?details1?src=vebra&PropertyCode=1717001/RICHM/10471/1

vindalooloo

The_Tax_Mans_Cash_Machine wrote:

Rather than overstretching yourselves with a huge mortgage on a small/ unideal house (if you can get a mortgage), why not sell it, pay the debts, put the money away, & rent a small one bedroomed flat (I assume you have no children). If you have children, renting somewhere with enough rooms, but as cheaply as possible.

Can I ask you what your business was before you packed it in please?

We have one child (11) and a daft old soppy cat that I WILL NOT get rid of. We already thought of renting, but 99% of rented properties round here want no children and absolutly no pets. He's like a third child to me and we've had him since being a kitten, so no way will I get rid of him.

Artist. But it's been SOoooooo difficult these last few years that I've painted myself out and have NO inclination to paint at all at the moment. It's too painful and reminds me of failure, so taking a complete break from it for a while.