Debt Advise - Continued

shaunc196

Hi All,

Well my previous thread - http://forums.moneysavingexpert.com/showthread.html?t=357812&highlight=Debt+have+I+missed+anything seems to have a major problem, and I cannot access it, view it, update it or anything. So here is a cut and paste from it.

Hi all. Thanks for the offers of ear bashing, but I have some excellent friends online ( good job I have an online hobby Fordman, thats me

Anyway, back to business.

Monthly Incomings:

My salary - £1,391.26
Total - £1,391.26

Monthly Outgoings:

Mortgage/Rent - £252.55 - Fixed for 2 yrs, runs out this year Oct time. Don't care if I get penalty to change it though.
Council Tax - £120 -> Only for 3 months. She !!!!!!ed it up, and now have court costs + missed payments
Gas - £43 --> Looking to change that
Electric - £45 --> Looking to Change that
TV License - £11.16
Sky £15.00
Phone - £35.00 --> Will go down, but new account and I have free mobile
Food - £?
Secured Loan - £679.86
Contents and House Insurance - £22.76
Personal Loan - £67.78 - This is being paid to her parents, only half also.
Water - £41.76

Total: £1,333.87

Credit cards
Well I don't know the excact amounts, but have been on special conditions for over 1 year now, £5 per month. There is 5 of them, so the balances are not much different. I have already wrote to them, explaining in details the circumstances and what I can offord to pay them and what I cannot. After reading these very helpful forums, I know there is not else I can do with them.

There is no car costs on there, as I get company car and free fuel ( well pay through my tax code ) so thats a bonus.

Apart from changing the few I can, I don't really see any other options I have. I would like to stay in the house, because in Oct 2009 I get a very large payout from the secured loan insurance. I guess its just struggle until then

Anyway again, can not say this enough, thank you for your help.

Shaun

Credit Cards.

I have already arranged with the creditors for them to freeze the interest and stop the charges. Because of my bad credit history, I am unable to move these anywhere, and also paying them token payments.

Secured Loan.

Well this is for £69,000 and is currently at 9% I think. I took out the insurance policy, and if I don't claim after x yrs I get a lump sum back. I have spoken to First Plus, and they have confirmed that this will be Oct 2009 and for approx £12,000+

Mortgage.

This is a fixed Mortgage with Alliance and Leicester for £50,000. The fixed term runs out this year, Oct I think.

The house is worth £100,000

Food, clothing, socialising, these will all have to be the bear minimum. I will go eat at parents, and families etc etc. and spend time around theirs. I have enough clothes to see me through for a while.

you are paying nothing for the children ..is that correct?

I have nothing left after taken on all the debts. I am keeping a little aside for treats when I have them, sweets, mac'd's little things like that.

The more I look at the whole situation, bankrupcy seems to be an option now

Thanks for taking the time to read and help.

Shaun

angelavdavis

Hiya, welcome to MSE!

I suggest you keep a spending diary so you can track how much you are actually spending on food, etc.

Good luck!

misspoppy

Hi

I would take proffessional advice from CCCS and a solicitor, if your wife goes for benefit they will come looking for you and as you have no room to move financially it will send your stress levels through the roof.

The only other bit of advice is to check you have single persons discount on your council tax and check you are in the right band, Martin has an article on it.

Good luck

angchris

i dont mean to be nosy and you dont have to answer.. it will just be easier to understand why you are paying out such a huge amount for the secured loan...what was it for and who is it with and is there anyway of getting out of it? or is there any ppi you can cancel on it?

shaunc196

No Problem. Not much point asking for help if you cannot be honest. It was to clear up all our other financial problems we had a long time ago. It wasn't for that amount originally, but then we had things go wrong with the house, car ( before I had company car ) etc, and borrowed somemore, and then a little more, and little bit more.

Its with First Plus.

Unless I go Bankrupt, sell the house, or win the lottery, there is no way out of it.

angchris

hmmm so with the secured loan + mortgage you are in a bit of negative equity.. i personally would try and wing it untill oct 2009 and then stick that lump of £12k to try and help clear the mortgage. how long to go on the secured loan? definately try and use your house to generate some income, rent spare rooms out and put bunk beds in your room for when the kids stay over if neccisary (sp:o ) also maybe look to getting a part time job somewhere and use this extra cash to try and hit the credit cards every extra little thing you can do at the moment will really help out! anything you could flog on ebay? any chance of talking nicely to the in laws about the money you owe them? explain your situation and try and work another method of payment out? also check to see if there are any overpayments with the gas and leccy that they owe you..you never know! when the fixed term runs out on your mortgage get straight on the case and try and find a good deal, threaten to leave and alliance and leicester will normally match any other offer out there

shaunc196

Yes that is what I was thinking. Then hopefully, the house will be worth a little more, and then not as much Neg Eq to take with me. I will use that 12K to pay off the personal Loan "we" have with her parents, and whats left will be nice Deposit for new house and new life :beer:

angchris

yep stay in the house as long as poss, house prices should hopefully go up and you will be in a better position and you never know whats around the corner things change as you have unfortunately found out. your oh might decide the grass isnt greener on the other side and you get back together, you might meet someone else who knows! keep your chin up im sure everything will work out ok in the end. you have come to the best site online to help you every step of the way through your journey;)

shaunc196

Thanks ANGCHRIS. Although only words, its amazing what simple words can do, when you feel you have nothing left.

Nutty_Tart

Hello Shaunc196

I too am new here, but have found loads of helpful information on this site - big thanks to everyone!! I did notice though that your water charge is very high? Could you change to a meter? I did and saved loads - me & 2 kids. Pay £20/month, but I'm sure I have overpayed and they owe me - something to check on next statement!

In the meantime, I hope it all works out for you - I know it can be tough sometimes but from what I have seen on this site, there is lots of help and support available. It has been an inspiration to me

shaunc196

Thanks Nutty Tart

I have rang the water company, and they have changed the bill to my name, and its generated a new bill so payments are down to 33.60, go figure?

Same for Gas and Electric, they have reducted the DD's to 30 and 35 respectivly. BT won't budge, as its a new account, and they need to see the usuage before they change the DD's

Sky is dropping to £15 in February. And I just won a Full Size Digital Camara in a competition I done, so that can go on Ebay.:rotfl: