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sadmum_3
Posts: 11 Forumite
Hello. I am a mum of 2 and wife of 1 in debt crisis. I have just been to the CAB and started to fill in a financial statement with a view to seeing a case worker ( think thats the right term) when they have had chance to review our statement.
We presently owe many thousands in credit cards, loans and overdrafts. My first question is:
Do I write to our creditors to inform them we are doing this, as our payments are soon due again?Or do I make the payments and spend another month crippled financially?
Do I approach the mortgage lender to see if we can extend the term of our mortage? we currently pay off in 14 years, and are tied to a 10 year fixed rate for some of the mortgage?
We presently owe many thousands in credit cards, loans and overdrafts. My first question is:
Do I write to our creditors to inform them we are doing this, as our payments are soon due again?Or do I make the payments and spend another month crippled financially?
Do I approach the mortgage lender to see if we can extend the term of our mortage? we currently pay off in 14 years, and are tied to a 10 year fixed rate for some of the mortgage?
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Comments
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Hello. I am a mum of 2 and wife of 1 in debt crisis. I have just been to the CAB and started to fill in a financial statement with a view to seeing a case worker ( think thats the right term) when they have had chance to review our statement.
We presently owe many thousands in credit cards, loans and overdrafts. My first question is:
Do I write to our creditors to inform them we are doing this, as our payments are soon due again?Or do I make the payments and spend another month crippled financially?
Do I approach the mortgage lender to see if we can extend the term of our mortage? we currently pay off in 14 years, and are tied to a 10 year fixed rate for some of the mortgage?
Pop us up a Statement of Affairs (SOA) with this link and we'll see what we can do. Until we have a clear picture of your financial situation, we can't really give any advice. It might turn out that you can make enough cut-backs to not be in debt crisis at all.
Kayleigh0 -
Thank you, I have done the form but don't know how to save it and post on my thread , help anyone?0
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can you just copy/cut and paste?0
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Sadmum.. as far as i know, if you have clicked the MSE button, you can then go ahead and paste it into here as a reply. You need to use the MSE formatting though or it wont look right and will not be very easy to read. There is a way also to save it for your own records as well... i think, but i'm not sure how, ive never used it so cant really be sure.
GB
If you can, help others; if you cannot do that, at least do not harm them~Dalai LamaHow people treat you is their karma; how you react is yours~Wayne DyerLet none find fault in others. Let none see omissions and commissions in others. But let one see one's own acts, done and undone~ch4 vs500 -
Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 2050
Partners monthly income after tax....... 1570
Benefits................................ 134
Other income............................ 0
Total monthly income.................... 3754
Monthly Expense Details
Mortgage................................ 1405
Secured/HP loan repayments.............. 150
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 126
Electricity............................. 175
Gas..................................... 56
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 72
Mobile phone............................ 60
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 700
Clothing................................ 80
Petrol/diesel........................... 120
Road tax................................ 10
Car Insurance........................... 43
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 100
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 44
Contents insurance...................... 0
Life assurance ......................... 32
Other insurance......................... 43
Presents (birthday, christmas etc)...... 50
Haircuts................................ 30
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 3398
Assets
Cash.................................... 0
House value (Gross)..................... 190000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 194000
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 178000...(1405).....0
Hire Purchase (HP) debt ...... 3288.....(150)......0
Total secured & HP debts...... 181288....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Next...........................294.......22........0
Comet..........................565.......23........0
Barclay visa...................7423......170.......0
Santander cc...................4400......90........0
MBNA Virgin master.............8644......206.......0
Coop...........................381.......32........0
Additions Catalogue............758.......35........0
JDW catalogue..................892.......45........0
Barclay Master.................4719......95........0
Barclay visa...................3070......70........0
Total unsecured debts..........31146.....788.......-
Monthly Budget Summary
Total monthly income.................... 3,754
Expenses (including HP & secured debts). 3,398
Available for debt repayments........... 356
Monthly UNsecured debt repayments....... 788
Amount short for making debt repayments. -432
Personal Balance Sheet Summary
Total assets (things you own)........... 194,000
Total HP & Secured debt................. -181,288
Total Unsecured debt.................... -31,146
Net Assets.............................. -18,4340 -
Managed to do it, please all advice welcome0
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Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 2050
Partners monthly income after tax....... 1570
Benefits................................ 134
Other income............................ 0
Total monthly income.................... 3754
Monthly Expense Details
Mortgage................................ 1405
Secured/HP loan repayments.............. 150
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 126
Electricity............................. 175
Gas..................................... 56
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 72
Mobile phone............................ 60
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 700
Clothing................................ 80
Petrol/diesel........................... 120
Road tax................................ 10
Car Insurance........................... 43
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 100
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 44
Contents insurance...................... 0
Life assurance ......................... 32
Other insurance......................... 43
Presents (birthday, christmas etc)...... 50
Haircuts................................ 30
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 3398
Assets
Cash.................................... 0
House value (Gross)..................... 190000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 194000
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 178000...(1405).....0
Hire Purchase (HP) debt ...... 3288.....(150)......0
Total secured & HP debts...... 181288....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Next...........................294.......22........0
Comet..........................565.......23........0
Barclay visa...................7423......170.......0
Santander cc...................4400......90........0
MBNA Virgin master.............8644......206.......0
Coop...........................381.......32........0
Additions Catalogue............758.......35........0
JDW catalogue..................892.......45........0
Barclay Master.................4719......95........0
Barclay visa...................3070......70........0
Total unsecured debts..........31146.....788.......-
Monthly Budget Summary
Total monthly income.................... 3,754
Expenses (including HP & secured debts). 3,398
Available for debt repayments........... 356
Monthly UNsecured debt repayments....... 788
Amount short for making debt repayments. -432
Personal Balance Sheet Summary
Total assets (things you own)........... 194,000
Total HP & Secured debt................. -181,288
Total Unsecured debt.................... -31,146
Net Assets.............................. -18,434
Food Bill electric bill and haircuts stand out as too high ... what are other child expenses ?
and can you not get a better deal on your mortgage ?
mobile phone bill far too highIn London, you're never more than 20 feet away from someone telling you you're never more than 20 feet from a rat .0 -
I'm not an expert and there are loads of people who are and will post, but do you really spend £700 pm on food? Does this contain other stuff which should be elsewhere?
Your electricity is also very high as are your phone bills
How old are your children?
£50 pm on presents is also quite high as is the £30 pm on haircuts
What are the other child related expenses0 -
you also need some contents insurance and your household telephone is too highIn London, you're never more than 20 feet away from someone telling you you're never more than 20 feet from a rat .0
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Hi Sadmum - I would write to any unsecured creditors and say that you are currently experiencing financial difficulties and that you are seeking advice from the CAB and enclose a token payment of 1 pound and that you will be in touch shortly.
Keep paying the mortgage and priority bills - ie gas/electric, council tax etc as best you can.
You also would be well advised to get a new bank account away from anyone you owe money to and get your salary and any benefits paid in their as otherwise the bank may just take money to pay off an overdarft or credit cards and leave you in a worse pickle and leave you short for the mortgage etc - this should be sorted as soon as possible.
As for trying to extend the term of the mortgage I would advise against this at the moment - wait and see what CAB suggest - if you change your mortgage it will cost you a lot more in the long run.
Good Luck
dfMaking my money go further with MSE :j
How much can I save in 2012 challenge
75/1200 :eek:0
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