Remortgaging to pay off cards?

loveGSDs

i was just about to suggest ebay - however you could also try car boot sales - iv done two over the past few months and made just short of £200. got another planned for next weekend (fingers crossed!)

have a rake around, ul be surprised what you have which you dont use/need

xx

Primrose2004

jemandscout wrote: »

You're right eyeopener, it's a bit startling to see it in black and white that we're spending more than we have coming in. I think the kids' stuff would be the last stuff to go though - ballet is £3 a week, toddlers £6 and they get so much out of them. The playgroup will maybe have to go I guess. I feel so guilty:(

Don't feel guilty, he/she won't notice as they're only little, it's you who feels bad, and you shouldn't. Could you go to toddlers every other week? Are you friends with any mothers who could come to your instead?

I know how hard it is to be stuck in with a toddler (I have dd-6 and ds-3) but there is lots you can do for free or cheaper.

Please try not to feel guilty for the children they really won't notice or worry. Children are amazingly adaptable, it's us as parents who are stuck in our ways

Good luck, I hope you find a soloution:)

eyeopener2

Hi

You might want to fill in this statement of affairs, it covers everything including things like presents, haircuts, clothes. Post it back here when done, it may take a bit buts it worth it.

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

It gives a much clearer idea of where you are.

goingforward_3

jemandscout wrote: »

Yeah, the electic bill is a real burden. I've tried to be really strict and only use things within cheap times (economy 10), though we've let that slide a bit with the shower, which probably costs a fortune actually. Electric central heating is horrendously expensive compared to storage heating though - a huge mistake I've been regretting since I got it put in. We live in a tiny 2 bed terrace would you believe!

Sorry i didnt realise you didnt have storage heating.

jemandscout

Thanks everyone - will fill in that make sense of cards form tomorrow - getting too sleepy! I really appreciate all the advice, been researching cheaper options for broadband etc, and trying to come up with a cheaper shopping list. Been hunting for ebayable things too! And not thinking about Xmas just yet. When money's a constant worry it's so tempting when someone offers you a quick fix, but I don't want to make a bad decision. Back tomorrow! Thanks again xx

jemandscout

Mini update... have called BT re switching my broadband to Sky and they've given me a new package, saving me £13 a month! My options are a bit limited re TV etc as no digital here, but it's a start! Have also read my elec meter and sat down with my bills to work out usage. I've used average of £72 a month of electricity since May, and been paying £220! So that should hopefully have made a dent in the balance, and we can renegotiate the monthly payment (call centre shut so can't call til Monday). Working on a strict shopping list - will go for a big shop next weekend (after payday!) and use up freezer and cupboard stuff til then. If people can do it for £300 a month there's no reason why I can't!
Thank you so much everyone - I feel more positive already just with doing a couple of little things that took about 20 mins(why did I not do this before?) I've decided not to remortgage just yet I think - paying a huge fee seems mad doesn't it? Particularly as the cards are on 0%, so I'll have made a £2k dent in the balance by June. I'll be back!

dancingfairy

Hi - at the moment you appear to be approx 100 off balancing. If you can cutback by 100 pounds and struggle on until the loan is paid off in March then things should get easier.
The other option is to contact one of the debt charities Martin recommends and set up a debt management plan through them with your 'spare' money after living expenses being divided between the companies you owe money - yes it will give you defaults and trash your credit ratings but will mean you have money to live on and only 'spare' money is given to your creditors.
Maybe have a chat with one of the debt charities and see what they think?
I would also maybe try the board on here that deals with gas and electric and see if they can help as your bills are massive with repaying arrears - perhaps they can help you negotiate paying the bill over a longer period of time since your budget is soo tight to give you a bit of breathing space until your loan is paid off?
Good Luck
df
PS:
I think I would continue as you are by making cutbacks and see how you do and then if it is still too much consider the dmp option personally.

dancingfairy

Re the car issue - there's probably a motoring forum on here - there seems to be a forum for everything - it might be worth trying to find out the second hand value of your cars and see how much a new second hand car would cost and find out about insurance and petrol etc? It might be possible to go to a second hand car place and part exchange your car for a cheaper one or one that is cheaper to insure and run?
I don't know anything about cars but you could investigate this.

df
Edit: found Martin's article on buying cars - it looks really useful
http://www.moneysavingexpert.com/shopping/cheapest-new-cars
Good Luck

jemandscout

Hi dancingfairy, thanks for your replies. Good suggestion about the cars, but unfortunately that's a no go - my mum gave me this car, so I can't sell it (or if I did I'd want to give her the proceeds), and my husband's car is really old and dodgy so no one would buy it! A DMP would be a very last resort, but to be honest I'd rather remortgage than go down that route, particularly as we want to move fairly soon if we can. I will speak to the electricity company - the call centre isn't open til Monday though - very frustrating, I want to speak to them now! You're right about the cutbacks - if I can get my groceries down the books should balance a bit better. Thank you x

HappyMJ

If you want to move then remortgaging is a very bad idea. A remortgage although sometimes portable will add an extra £4,000 to your debt. You must get your monthly expenses down and/or your income up ASAP. Remortgaging works for some and I woud suggest it to some but really in my opinion in your case it's a bad idea. I'm assuming a little here. I'm assuming you are on an interest only loan and you have 4 times your OH's income already and have a £100,000 mortgage. At the very least wait until June 2011 when the deal finishes and there is no ERC. That will in itself "save" you the £2,000 ERC as long as there is no extended tie-in. I don't believe there are any deals that will save you £200 per month without actually costing you A LOT more in the long run. Keep trying to pay the £220 in CC payments and use other forms of debt advice to get expenses down. A DMP will usually involve the freezing of interest and will save you more than a remortgage.

So satisfy my curiosity. What is the value of your home? What is the outstanding mortgage? What age until you retire?

P.S I personally never recommend a remortgage if it takes you over the magic 75% Loan to Value. It opens up so many low interest deals at or below that point but never worth it over 75%.