Real Stress

miltonkeynestrunk

Have a £100,000 mortgage on a £200,000 house

Owe £20,000 on several credit cards, all up to the limit.

Loss of job last july, wages reduced by a third with new job. Just cant meet demand anymore.
tried applying for 3 new 0% credit cards to put all on one transaction to give breathing space, but refused as wages now too low for debt.

could sell house problems solved..............but, wouldnt get house as good or anything like current mortgage on new wage.and i have 2 small children and wife to consider.

With 48 hour week looming, wages will be cut by a further £90 per week due to working time directive.

NEED TO PAY OFF THESE STORE CARDS AND CREDIT ASAP......... HOW???

Becles

If you list the debt amounts, interest rates and monthly payments, I'm sure someone can advise.

Have you tried contacting the lenders to see if they will freeze interest or negotiate a repayment schedule? If you are not confident on doing this yourself, the CAB will help.

Is it possible for your wife to get a part time job when you are not working, such as an evening shift in a bar or supermarket? I know it wouldn't be much fun and would be tiring, but more income would help clear it quicker.

miltonkeynestrunk

thanks.but wife does work 4 evenings a week and 2 dinners times, i will make a list and see what it all equates too. thanks

Becles

Sorry - when you didn't mention she worked, I just assumed she didn't.

This gets mentioned a lot here: www.nationaldebtline.co.uk which may be of help too.

9611114

Hi - just a few thoughts:

Do you have the opportunity to extend the duration of your mortgage, thus reducing monthly payments, and possibly allowing equity release to settle some or all of the 20K? I would seriously cut up the cards though if this is an option.

Also, would it be possible for you to take in lodger(s)?

You mention the working time directive, but you should be able to opt out of that if you want to - I have just had a form from Personnel asking me if I wanted to opt out. (We can go back in again on three months notice).

Main point - good luck!

Cheers

Matt.

munchies

Hi have you thought about a free debt management plan? This is where you pay one monthly sum to a debt management company who negotiate with your creditors on your behalf. Your credit file will be affected but you can't get any more credit anyway. Watch out there are loads of companies who charge for this service- don't! see National Debtline website link above for more info. Or contact Payplan https://www.payplan.com or CCCS https://www.cccs.co.uk.
Good luck

Malestrom

Good advice above, not really too much to add at the moment other than to confirm that you can opt-out of the working time directive. I had to go to personnel and sign an opt-out form and I contantly work 55+ hours a week.

I would also agree that you contact National Debtline or CCCS as you're living beyond your means and they can help you deal with your creditors and work out a realistic budget. Lastly, the two most important things to remember are:

1. Pay the mortgage
2. Feed your family

The rest is just debt and there are ways to deal with it - you've come to the right place for that. Post more details on your finances and we will help you cut back, save money and get a handle on those debts!

Conor_3

miltonkeynestrunk wrote:

With 48 hour week looming, wages will be cut by a further £90 per week due to working time directive.

I take it you're a HGV driver? If so, don't worry. The WTD won't alter a thing. They've introduced a thing called Periods of Availability ( such as waiting to get unloaded) which don't count towards the 48 hrs. Basically it translates as "situation normal".

miltonkeynestrunk

i wish you were right my friend..................rdt, cant opt out, and no waiting for me mate, 4hrs 25 mins straight trunk...............trailer change, 45 min break,,,,,,, then 4hrs 25 back home,,,,,if busy traffic 2 x 10 hrs drive used up. basically,,,,,,9 hrs drive 5 days a week= 45 drive............x2 maximum 90 hr fortnight.

shift 12 hrs a day x 5 = 60..............12 hours a week over new law.

im beginning to think for the first tiime in my life i may be better offf on the dole with 2 kids.

the good news is i have today been offered a 8,000 interest free for 9 months credit card, i now have to work out how to play it clever.......

i have £4900 mbna
£4900 tescos
£1800 debenhams
£900 capital one
£4600 morgan stanley
£500 marks n sparks
so far this is about it i think.

if i get this right i may just win in the end..........

dougk_2

What most people would say would be move the ones with highest APR...but ......

I'd be tempted to cto do two smaller ones capital one an marks and sparks just to get rid of them and cut the number of cards you have.

MBNA and Morgan Stanley sometimes give good offers once you have cleared the balance and theraten to close the account (i.e. additional intrest free periods or low aprs)... so it maybe wise to transfer those. You can then transfer the other balances to one of those if they offer you a low rate.

Malestrom

Miltonkeynestrunk: If you post all your incomings and outgoings and the APR's of your cards (or the min payments), we might be able to suggest ways in which you can make up for the shortfall that your cut in hours is going to produce. There may be ways to shave money off your living expenses that you haven't thought or new ways at looking at your lifestyle. Moving your debt around could save you a fair bit too.

Its good news that you've been approved for the 0% credit card as that gives us some room to work, although given the number of maxed-out cards you already own its a bit surprising. If you can post some more details, the APR's at the very least, then we'll do our best to help you out.

Just a thought...this card you've been offered at 0%....is that 0% on balance transfers or just purchases?