I am in deep trouble

wheretoturn

Please excuse the long post. I really want to do get this all off my chest and it could take some time.

Firstly, let me say I am not trying to blame anyone else bar myself for being in this terrible position. I have been stupid and immature in my spending and now find myself in deep trouble.

My current situation is thus:

I am a divorced man who lives alone and in April of last year I left a highly paid position. As it was not a redundancy, my mortgage protector and other debt insurances did not apply but as I had a very good pay off (paid via a compromise agreement), I felt I had enough time to secure another position. Unfortunately, despite my best efforts, this has not materialised and I now find myself with about 4 months money left i.e. enough to pay all the bills and survive. But after that, I am left with the prospect of no income whatsoever. I am currently up to date with all my bills and have no CCJ's or any other bad debt.

My debts are horrendously high:

Property 1. 204,000 on an interest only mortgage - £915 pcm (equity of around 35,000)

Property 2. 9,000 repayment mortgage- £130 pcm
Property 2. 12,000 Secured loan - £146 pcm
The above property has equity of around £30,000 but also has two unsecured loans from the same lender as the mortgage is with. These amount to a balance of around 22,000 with repayments of £280 pcm.

I then have CC debts of around £30000 spread over 4 cards.

As you can see, it is a desperate situation and I am now at my wits end and don't know where to turn. The most worrying aspect for me is that of property 2 as that is the house my mother lives in on a rent free basis. If I lose that then she becomes homeless and the thought of that makes me almost physically sick.

I have other commitments too and all in all my outgoings before any food etc total almost £3400 pcm.

As I said above, this is all through my own stupidity and I am not looking for sympathy but am desperately looking for advice. I am not sleeping and spend the day with my stomach in knots worrying about the future. I have even broken down and sobbed recently. This not through self pity but more through the terrifying realisation of what might be around the corner.

Any help or advice will be greatly appreciated.

moonlightpjs

Hi there
Just wanted to say "Hi" and welcome!
There are many people more experienced than me who will probably be along soon so don't worry, you will get some great advice.

I think the first thing to do is post a SOA (a list of all your income and outgoings) and also list your debts with APR's, repayment amounts and how long left to run then the good MSE's can help you.

Just remember, you are not alone and a lot of us on here are in the same situation, take a deep breath, make a cup of tea and wait for the advice to start coming.

Good luck, thinking of you xx

Sassers

Hello :wave: I just want to say well done for being brave and posting on here. You have had a hell of a time of it you poor thing....still, don't cry.
You aren't at that `corner' yet and I'm sure we can all help you onwards and forwards with this.
I have had a quick read through - and I hope you don't mind me asking a few questions...
Do you live in property 1? Do you have tenants in property 3? Is it possible you could sell or even rent your house out and you move in with your mum? And then maybe sell property 3? Those were my first thoughts to start with - also if you could post an SOA - see Southern Scousers sticky for more advice and what to include - we could also help you there too.
Please don't despair
Love Sas x

wheretoturn

Thank for the quick replies and supportive words.

I think my initial post is somewhat confusing. I currently have 2 properties. Property 1 has the biggest mortgage on it and that is the one I live in. Property 2 is where my mum lives.

I have thought about renting my own house out and moving back in with my mum and this may still be an option but the downside to that is the location. by that I mean she lives in an area of very high unemployment and therefore the chances of me securing a position is slimmer than my current location.

I will work on the SOA this evening and post that back up shortly.

Once again, thanks for the supportive words.

Mrs_Sparkle

Welcome to the board- you've come to the right place. Please don't be upset- no one will judge you here, we've all been there.

Is there any way you can move into property number 2 with your mum and sell your first property? How are you dealing with the credit cards at the moment- are you keeping up with the minimum repayments?

4 months money is a good start. Do you know why you haven't been successful with finding another position? It sounds to me like your confidence has taken a bit of a battering so this may be a factor but I don't know you so ignore me if I'm wrong. Would you consider taking a more modestly paid job just to get back in the employment market?

Sorry, not much help but the important thing is you've found us and things can only get better from now on x

LookingAhead

Hi there. Welcome and excellent that you joined before the money ran out and/or things got worse. I am sure there will be lots of advice coming very soon.

With regards to your Mother, obviously your situation has changed and I just wonder if there is anything that your Mum can get to pay for her 'rent'. You don't say how old she is but over a certain age as far as I am aware, you can't be made homeless, I thought (if the worst came to the worse) she could go to sheltered housing. But it may not come to that.

My Mum is over 60 now and she gets some of her mortgage paid for...but I don't know what the criteria is...hopefully someone else will know what I am going on about and can shed more light.

LookingAhead

Or could your Mum move in with you?

albacore1854

I was out of work for three days once.Cold called loads of companies,took the first sales job I was offered, and used it as paid job hunting.It kept the wolf from the door, and I got the use of a laptop, car, and a mobile.

in_my_wellies

Could you get a lodger?

Toto

Hi, welcome and well done for posting. I know it all seems really desperate right now but there is nothing going on here that can't be fixed.

If it were me, I would probably sell house 1, use the equity to pay off the mortgage and secured loan on house 2, move in there for the time being. There is no reason why you can't move in but apply for jobs in another area, travel for interviews, then once you have a new job you could look at moving out and perhaps rent something locally. But certainly take advantage of the low cost living arrangement with your mum until you have a new job.

If there is anything left over I would then pay it off the highest interest bearing loan or card. I would then call and write to all of the remaining creditors and explain your situation in full, that you have been unemployed actively seeking work and struggling to maintain your repayments. Ask for their help, ask them to freeze interest and allow you to make reduced payments until you can find another job. Try to cut as much as possible off your monthly expenditure, post your SOA and we will help you with that.

There is a light at the end of the tunnel, honest.

xx

nelly_2

You really need to get shut of one of them houses and I'd say the one with the higher payments too.

Basically unless you get a job that pays around a grand a week soon you will lose the lot.