Please Help!

Tixy

Sorry hadn't registered part of it was a family loan.

Is your current mortgage interest only?
You might be right about the downsize option and whether you would get a new mortgage. I was just thinking that as you have a 70% LTV now, if you downsized to a house worth say 250k with a 70% LTV you would free up £45k to clear a big chunk off your debts, and then end up with a mortgage of say £175k, which whilst maybe a bit more than your current mortgage repayments at least you would be paying off the capital.

If thats not possible then considering your mortgage is interest only then personally I'd be leaning towards selling, before interest rates start rising.

Tixy

RAS - wouldn't you target the halifax card first? higher APR and lower balance. So always a hope they might get a promo deal once cleared?

ShelleyR

RAS wrote: »

First, can you go back into your SOA (hit the edit button on you first post) and alter the amounts/ add notes if possible.

And yes, it could well take you 15 years if you do not get a job.

The problems you are are several

1. If you go bankrupt or do an IVA, you will have to release the equity in the house to pay your debts. You will end up paying more than you owe to cover the insolvency practitioners fees on an IVA. What APR you would have to pay to do this is difficult to predict.
2. Because of the very high amount of equity, if you do a DMP, the creditors will come after you get CCJs and charging orders, which will reduce the equity you have when you sell.
3. Even though your SOA is fair and reasonable, if you really want to tackle this debt you need to get your income up and your spending down. Basically live like paupers for two years until you get things under control.

What do you have in the house that you no longer use? Can you start to gather thsi together and work out how to sell it.
Go through all your spends, including that life insurance and see if you can reduce the cost, then use a cashback site like Put every spare penny against the Cap 1 card.

Please can you list the maximum limts of your cards.

CCCS have advised that we would be unable to do an IVA because of the equity in the house.

I completely agree the only realistic way to stay here is to increase our income, Husband would have to substantially increase his beacause of the higher rate tax he pays, and like I said before Iam applying for everything I can. I am trying to sell off the kids clothes we no longer need although I try to keep alot as they can be used again for the baby also selling toys books and any other bits we can.

ShelleyR

Tixy wrote: »

Sorry hadn't registered part of it was a family loan.

Is your current mortgage interest only?
You might be right about the downsize option and whether you would get a new mortgage. I was just thinking that as you have a 70% LTV now, if you downsized to a house worth say 250k with a 70% LTV you would free up £45k to clear a big chunk off your debts, and then end up with a mortgage of say £175k, which whilst maybe a bit more than your current mortgage repayments at least you would be paying off the capital.

If thats not possible then considering your mortgage is interest only then personally I'd be leaning towards selling, before interest rates start rising.

Thanks Tixy I completely agree however we stuggle to get a 2 bed flat for £250k around here!! House prices are still silly where we are.

ladymarmalade1970

Only briefly looked at this but could you let the kids share a room for a bit and take in a lodger??? TBH my house would be the last thing to go. It may be hard now but if you hang in there things should get easier. Not sure where you live but in the SE where i live you would easy get £80 per week for a room and a house here valued at £420k and selling would be a nice house. If you live in a more expensive area then the rents will be higher.

Also, have you underestimated your gas and electric??? Sorry :-(

ShelleyR

Also meant to add, we were offered a secured loan from Nemo for £25k which was £343 p/m for 10 years the purpose being to consolidate the credit card debt although the reason we held off was the fear of turning unsecured debt into secured, although it would mean that we were paying nearly £400 p/m less than we are now on minimum repayments that will never be cleared, also when the 2 loans finish Tesco in 4 years and A&L in 3 years we would have that cash to chip away at it.

Sorry should have said this earlier my head is spinning

ladymarmalade1970

Can you husband rent a room down here a couple of nights a week to save money on fuel? Could work out cheaper. Will his company let him work from home a couple of days a week to save fuel?? He could use the arguement that if he works from home mon and fri then he could stay in brackell tue, wed, thur and work more hours.

RAS

Do not secure debt, please please.

And please can you list the cards and their limits.

ladymarmalade1970

Also sorry to state the obvious but have you been to the CAB? They have a great debt counseling service and can often get the interest rates dropped and the payments reduced.
Briefly looking at that you have half of your debts covered every month so if you could get interest rates dropped or even stopped and payments reduced you would be fine...

ShelleyR

RAS wrote: »

Do not secure debt, please please.

And please can you list the cards and their limits.

I have the cards and the limits on the SOA what more info should I put??