Owe about £40K mainly on credit cards

want2be

Hello,

We owe around 40K mainly on credit cards.

We also have a 120K mortage.

Our annual income is around 20K that comes from a commercial property. The monthly payments are irregular.

Now if we sold the property we could pay off all our debts - problem is then we would not have any income.

In theory we could also pay off our 120K mortgage, which currently costs us £1200 per month. We are tied in for another year.

Quite simply we just about limp by from month to month paying all our costs and shifting the credit card debts every few months. problem is before long this will not be possible and we will start to incur large amounts of interest.

So I am asking for any suggestions.

Do we sell the property - but then we would have no money to live on at all?

I honestly do not know what to do.

We have cut back as much as possible and save where we can.

For various health reasons either of us getting a job is unlikely.

I have thought about a loan - but not sure this would really help - or would it?

Hannah_10

So asside from a regular full time job what about taking in a lodger, becomming a house sitter or doing a spot of mystery shopping? There are lots of ways to get more income coming in asside from PAYE.

DarkConvict

Does all your income come from the property?

Is this some kind of commercial rent?

A loan is probably going to make things worse.

If you are unwell and cannot work, the government would provide you income from benefits. Although there is alot people can do even if it is just office based work.

want2be

Hannah_10 wrote: »

So asside from a regular full time job what about taking in a lodger, becomming a house sitter or doing a spot of mystery shopping? There are lots of ways to get more income coming in asside from PAYE.

Sorry should have said, also self-employed but that loses money rather than makes it, or at the best will break even.

No room in the house with 2 children either.

Will try and investigate other ways to earn - but cannot do a 9-5 sadly.

want2be

DarkConvict wrote: »

Does all your income come from the property?

Is this some kind of commercial rent?

A loan is probably going to make things worse.

If you are unwell and cannot work, the government would provide you income from benefits. Although there is alot people can do even if it is just office based work.

Yes, commercial rent - so never guaranteed.

Not a chance on benefits - 'earn' to much at the moment - despite in reality last year earning just £12K before £2000 income tax. So under £10K in reality

You see whatever I do I am in a right mess and cannot put my true earnings down on paper as I just do not know what they are.

Yet the tax man just looks at the £20K and taxes me on that

Wish I had not started this thread as I know I am doomed whatever I do.

Sorry - will bow out.

PNPSUKNET

sound like you need an accountant as you should know what you earn to the penny

GentleGiant_2

sorry - deleted.......

Fang_3

If you're too ill to work then you could claim sickness benefits. So you could sell off this property become debt and mortgage free and then start again.

Hannah_10

want2be wrote: »

You see whatever I do I am in a right mess and cannot put my true earnings down on paper as I just do not know what they are.

So your first step then is to get the information you currently lack. What you need is a spending diary.

You get a cheap notebook (mine was from the Co-Op for 65p) and every time you spend anything you write it down. Each day you start a new page and head it with the date. Include everything from when a direct debit goes out of your account to the 2p coin you lost when it fell out of your wallet and rolled down a drain.

In your case you don't know your incommings either so you need them logged in the spending diary too. Again everything that you gain. Any refunds you get from a shop, any old jumpers you flog on eBay, it all goes in.

After a week you'll be starting to see a pattern. After a month you'll have the figures you really need.

NorthernLas

W2B - There are charities who can advise you on debt, but you need to have an idea of income and expediture. So a spending diary is a good idea.

Have a look at the link : https://forums.moneysavingexpert.com/discussion/2077631