panic moment

orson_2

hi

i am having that moment of panic when it all feels like your life is falling apart

I have been struggling with debt for a year now as I have been trying to sell my house and free up some cash to pay off the debts, today my over draft facilities were withdrawn

I was due to move soon and needed to raise money to move in to rented accomadation

i have huge debt but should have sufficient cash to make a big hole in it but you need so much money to sell a house

income £2060 wages a month

outgoing

£886 mortage
£110 council tax
£55 gas
£32 electric
£28 Water
£10 TV
£17 phone and internet
£15 Sky
£80 petrol travel
my wife looks after food and household items

£380 nationwide credit card balence £12,800 at 11.9%
£239 mint credit card £10,000 at 15.9 %
£110 capitol one credit card £4000 at 15.9 %
£230 AA loan £10,000 balence at 5.9 %

none are in arrears yet!

I also have just had over draft with drawn

£2300 overdraft

a grand total of £ 39,100


I currently have a mortage for £138,000 with no arrears and sold my house for £172,000 once i can afford to pay the solicitor and raise a deposit for the rented house

i should have £34,000 from the sale less costs

£ 2,000 early redemption penalty
£ 1720 estate agent fees
£ 800 solicitor fee's
and moving costs

thats £4,520 costs

that should leave me around £ 29,500 to pay off debts leaving less than £10,000 debts and reduced costs I hope to leave the loan AA loan in place then save up a deposit for a house again. I just need to get over the hurdle of selling my house and having no money to raise deposits and pay things so when my bank withdrew my over draft i no longer know what to do

any advice would be most welcome and i know how stupid i ve been to get in to this situation.

roger56

Read Martins guide
http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1089226742,17582,

Maybe ditch Sky
Can you shift some of the higher interest loans to an increased AA loan to reduce monthly payments? Rather pay 5.9% than 15.9%

Cut up credit cards except for one for emergenicies - makes you think more about spending. Also reduces risk of getting deeper into debt.

Good Luck

roger56

selling house fees:
estate agent and solicitor fees will come out of sale proceeds so you don't need to find money up front.

early redemption fees - hopefully someone will come along and help in a minute.

are you going to rent after selling, that will need some up front budgetting eg depost and agents fees

orson_2

yes i am moving in to rented and us the cash to pay credit cards off

it some £230 cheeper than the mortage and with no credit card payment i should have some £900 a month better off

its just getting over the deposit hurdles

roger56

sorry, didn't spot in your OP about renting.

perhaps discuss the overdarft with your bank, tell them what you're doing and see if they will hold off withdrawing the overdraft for a month or two whilst sale goes through.
Maybe give them your solicitor details so they can check.

TTMCMschine

dont forget stamp duty

orson_2

hi

i dont think there will be stamp duty as i am not buying in the move just going in to rented

orson_2

I also have a question can they just withdraw an overdraft with out telling you ? mind you the letter may still be in the post with it being christmas

roger56

Read the Ts+Cs for your account.
Giving you some notice would be reasonable however.
30days notice seems to be a typical figure.

thesaint

They can withdraw an overdraft facility without telling you, if you keep them informed of your plans this is less likely to happen.