Hoping for advice. Feel trapped. Not sure what to do next.

cas444

I am married with two children.

We are up to eyes in debt (roughly 26k), have a house that is worth roughly £170,000 with a £160,000 mortgage which we pay interest only on.


We are in a debt management plan with Payplan which we should be aiming to pay £200 a month into however we are paying roughly £100 and can barely survive with what is left let alone pay anymore.

We really dislike our area with awful neighbours that I am very scared of. I think we should just sell, get an IVA and be debt free in 5 years.

My husband however thinks we would struggle to find a landlord willing to rent to us and doesn't want to get off the property ladder as he believes we will never get back on it.

I feel so trapped in this situation. What on earth is the best thing to do?

LovelyLeeds

cas444 wrote: »

We are up to eyes in debt (roughly 26k), have a house that is worth roughly £170,000 with a £160,000 mortgage

With the greatest of respect, you should point out to your husband that you're not really on the property ladder with only a potential £10K equity and £26K in debt. That's a huge ego to finance - you've had your LBM but sadly you'll have to wait until your husband has his. Hopefully, once some of the more seasoned posters read this, you can show this thread to your husband, and he will see that your situation is untenable as it stands.

cas444

Whats a LBM?

I keep telling him this cannot continue. We are not achieving anything, we are not anywhere close to paying down the debt.

I think, with reassurance that I am right I could get us through this (sell the house etc) but I need to know I am right IYKWIM. Every time I have this conversation with my husband he thinks I am crazy and for a while I have been guitly in believing him.

It's so good to hear from an outsider that I am not going mad.

LovelyLeeds

LBM - light bulb moment
No need to get yer own back with your acronym!! What does yours mean!!! :rotfl:

cas444

if you know what I mean!!

LovelyLeeds

Oh I do now!:p

Good luck with the decent replies, I know you'll get.

suleskerry

I think you're right. Why would you have a problem finding a landlord? If you are working, it shouldn't be a huge problem. Paying only the interest means you're not really on the property 'ladder', tbh.

cas444

Worried about renting because of our bad credit rating - if they do credit checks our recent credi history is awful due to being in the DMP.

cas444

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 687.68
Partners monthly income after tax....... 1453.76
Benefits................................ 172
Other income............................ 0
Total monthly income.................... 2313.44

Monthly Expense Details
Mortgage................................ 760
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 133
Electricity............................. 69
Gas..................................... 33
Oil..................................... 0
Water rates............................. 17
Telephone (land line)................... 0
Mobile phone............................ 70
TV Licence.............................. 10
Satellite/Cable TV...................... 60
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 50
Petrol/diesel........................... 50
Road tax................................ 20
Car Insurance........................... 33
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 13
Contents insurance...................... 14
Life assurance ......................... 14
Other insurance......................... 25
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 10
(Unnamed monthly expense)............... 0
csa..................................... 187
Total monthly expenses.................. 2068


Assets
Cash.................................... 0
House value (Gross)..................... 170000
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 170500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 160000...(760)......5.75
Total secured & HP debts...... 160000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
DMP............................26000.....200.......0
CSA arrears ...................200.......50........0
Total unsecured debts..........26200.....250.......-


Monthly Budget Summary
Total monthly income.................... 2,313.44
Expenses (including HP & secured debts). 2,068
Available for debt repayments........... 245.44
Monthly UNsecured debt repayments....... 250
Amount short for making debt repayments. -4.56

Personal Balance Sheet Summary
Total assets (things you own)........... 170,500
Total HP & Secured debt................. -160,000
Total Unsecured debt.................... -26,200
Net Assets.............................. -15,700

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

*zippy*

cas444 wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 687.68
Partners monthly income after tax....... 1453.76
Benefits................................ 172
Other income............................ 0
Total monthly income.................... 2313.44

Monthly Expense Details
Mortgage................................ 760
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 133
Electricity............................. 69
Gas..................................... 33
Oil..................................... 0
Water rates............................. 17
Telephone (land line)................... 0
Mobile phone............................ 70 can you reduce this?
TV Licence.............................. 10
Satellite/Cable TV...................... 60 can you downgrade to a basic package
Internet Services....................... 0
Groceries etc. ......................... 400 You should be able to reduce this check out the old style board
Clothing................................ 50 can you reduce this for a while and manage with what you have
Petrol/diesel........................... 50
Road tax................................ 20
Car Insurance........................... 33
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 13
Contents insurance...................... 14
Life assurance ......................... 14
Other insurance......................... 25
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 10
(Unnamed monthly expense)............... 0
csa..................................... 187
Total monthly expenses.................. 2068


Assets
Cash.................................... 0
House value (Gross)..................... 170000
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 170500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 160000...(760)......5.75
Total secured & HP debts...... 160000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
DMP............................26000.....200.......0
CSA arrears ...................200.......50........0
Total unsecured debts..........26200.....250.......-


Monthly Budget Summary
Total monthly income.................... 2,313.44
Expenses (including HP & secured debts). 2,068
Available for debt repayments........... 245.44
Monthly UNsecured debt repayments....... 250
Amount short for making debt repayments. -4.56

Personal Balance Sheet Summary
Total assets (things you own)........... 170,500
Total HP & Secured debt................. -160,000
Total Unsecured debt.................... -26,200
Net Assets.............................. -15,700

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Cass I'm no expert, but noticed you were a few pages back without any replies to your SOA so hope this helps a little and it will give you a bump to the front page. You should be able to manage your payplan budget with only a minus figure of £5, but as you aren't I think a spending diary would help you see where your money is going and take a tighter grip on it. With the savings above maybe you can put some savings away as an emergency fund

The house with insurance is costing you £787 a month that's not including up keep though obviously. I can't give advice on that so maybe check out the house renting section of the site, but I would consider how much would it cost you to rent and are houses selling where you are, is there a chance its worth less than you are hoping? Here a 3 bed semi to rent is about £600, check what it is in your area. Even if it frees up £200 a month, its easy to fritter away £50 a week on nothing especially when you have kids, so I would get the spending diary up and running while you look into selling at least then you will know what you can afford. Good luck with it, hope it all works out for you.

CH27

You could reduce your grocery bill.

Keep a detailed spending diary & you will soon see where you are frittering cash away.