Please Help!

eyeopener2

ShelleyR wrote: »

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.

Have you considered moving areas, ie to a cheaper one, at all? I know all this is a lot to take in but you need to cover all options, however unpalatable.

billymadbiker

Although it is true, the value of the house could rise, is it likley to rise as fast as the intrest you are paying on the outstanding debt?
Looking at your soa,
Your 'average' apr is 12.25% And that's including the low rate on the mortgage.
On debts of 64k you will be paying intrest of around £8k per year.
To cover this your house would have to increase in value by 2% each year and even then, this increase would not actually help you to reduce the debt in any way.

Also, just being nosey, how did you manage to get a mortage for over 8x his income?

On paper I suspect the best way would be to sell the house, pay all the debts off, start again with a decent deposit. For the £950 p/m you pay on the mortage you could rent for long enough to rebuild your credit rating (if this has been knocked) plus you would be able to save £1400 p/m from not paying debts back.
Do this for a year or 2 and you would have decent credit history and a large deposit.
Don't feel so bad about it, I know it's not me who has to think about giving a house up but with the situation I'm in yours does not actually look that bad!

Merrylegs1969

Hi Shelley,

Not everyone's cup of tea but, have you tried any of the supermarkets for part-time work? I did just this with Sainsbury's, my children were very young and I was able to work in the evenings when my husband was home from work. For a 20 hour week you should clear £500 per month, and that's just on starting level. The big plus to this is that you also get a discount card after 6 months, 10% off everything except petrol/diesel and this rises to 15% at Christmas (stays at 15% for around a month before and after), Easter, etc and is worth it's weight in gold.

Have a think about it, Sainsbury's list all their vacancies on their website and normally something will come up in any given area, just keep an eye out.

RAS

This assumes that you can still spend on these cards.

Did not realise that you had added the limits to the original SOA.

ShelleyR wrote: »

Unsecured Debts
Description....................Debt......Monthly...APR
Capital One CC.................13600.....415.......21 Limit £ 14500
Try to reduce the amount on this card once the Halifax card is cleared.

HSBC CC........................6200......150.......16 Limit £10500

So you have £5,300 pounds spare on this cards at a lower rate.

You may not be able to do a balance transfer but you need to put all your monthly spends onto this card ASAP.

And every time you spend on it (say £50 petrol), you pay the exact same amount off the halifax card.

With a bit of luck you can move all the halifax debt across in a couple of months.

Then start shifting £600 of the money on the Cap1 card across to this as well.
Halifax CC.....................3700......101.......24 Limit £13500 - you want to move all the debt from your most expensive card.

Clear this and ring up to close it. It worst it will improve your credit rating, at best you will be offered some sort of balance transfer. Could well be worth it if you can get anything around 18% or lower with a 3% charge.

MBNA CC........................3700......57........18 Limit £4000

Once the HSBC card is full, transfer the little you can to this card

You end up with

ShelleyR wrote: »

Unsecured Debts
Description....................Debt......Monthly...APR
Capital One CC.................12800.....less than415.......21 Limit £ 14500
HSBC CC........................10500......more than 150.......16 Limit £10500
Halifax CC.....................0......0.......24 Limit £13500
MBNA CC........................3900......more than 57........18 Limit £4000

if you can BT the halifax card, even better.

ShelleyR

eyeopener2 wrote: »

Have you considered moving areas, ie to a cheaper one, at all? I know all this is a lot to take in but you need to cover all options, however unpalatable.

We are considering this, we would have to move quite a long way from where we are and this would also mean that if I am able to get a job we wouldnt be able to use the inlaws for childcare. But we are still looking at this.

ShelleyR

Merrylegs1969 wrote: »

Hi Shelley,

Not everyone's cup of tea but, have you tried any of the supermarkets for part-time work? I did just this with Sainsbury's, my children were very young and I was able to work in the evenings when my husband was home from work. For a 20 hour week you should clear £500 per month, and that's just on starting level. The big plus to this is that you also get a discount card after 6 months, 10% off everything except petrol/diesel and this rises to 15% at Christmas (stays at 15% for around a month before and after), Easter, etc and is worth it's weight in gold.

Have a think about it, Sainsbury's list all their vacancies on their website and normally something will come up in any given area, just keep an eye out.

Yep I am not proud!! I have tried all our local Tescos and also check the Sainsburys, ASDA and Waitrose website weekly have applied for a few at Waitrose but not even got to interveiw stage, not sure if this is cause I have no Retail experience ??

ShelleyR

RAS - Thanks so much for your advice will have to have a couple of reads to make sure I understand what you are saying!!

And a big thanks to everyone else for all your help and advoce so far it is really appreciated

ShelleyR

Do you think it would be worth taking a payment break from the mortgage? C&G said we could take up to 6 months which would free up £5700.

RAS

Hi

Can you read what I sugest and work it out.

Put the two schemes (now and idea) into the snowball on www.whatsthecost.com

Then run another snowball with the mortgage and the payment break, using the money to pay off the Halifax first and some of the Cap 1 card.

Merrylegs1969

ShelleyR wrote: »

Yep I am not proud!! I have tried all our local Tescos and also check the Sainsburys, ASDA and Waitrose website weekly have applied for a few at Waitrose but not even got to interveiw stage, not sure if this is cause I have no Retail experience ??

Can't speak for Waitrose but, I shouldn't think so. Keep checking, it'll pay off eventually. Like I said, it's not everyones cuppa but it is quite flexible in that it can be tailored around the main wage earner without having to arrange childcare. Good luck.