Are my debts bad,normal ? Should I worry

Rustic_Ron

I am in my late forties and a family man.
I work and only earn £12k and my wife earns £8.5k. we recieve a total of £700 a month in benefits too.
However I am concerned about my/our level of debt. The mortgage has got 15 yrs to run and £55k outstanding. I have unsecured debts of £17k. These debts are at low rates or 0% so I know its no point shifting the debt else where. Unless I put my £17k debt onto my mortgage. After our debt repayments and living costs we have very little spare cash.
The question I would like to ask is: Is my situation typical of the adverage working class man or should I be taking drastic action. I am open to all ideas and suggestions. (p.s My credit history is good)

[Deleted User]

I would say there are lots of people like you!

You should not have debt if you can help it, I would look at a long term plan to be debt free, you don't appreciate it until you start feeling the benefits.

You don't seem to need to worry, but I would make plans for the future and have some savings and no debt, you can then manage anything that may happen knowing you are in a better position than most.

HTH and good luck either way.

[Deleted User]

you probably have more unsecured debt than some.less than others;but in relation to your joint income of 20.5k then 17k unsecured debt is on the high side,if you have equity in your house(and it sounds like you do)then if a mortgage of 72k is doable,and you can definately say you wont run up more unsecured debts then a remortgage might be a solution

brettcooper1

i suppose at the end of the day its how you FEEL about them that counts?
if the debts were built up reasonably and on purcashing assets (a car loan or home improvements etc) and you are making the payments each month and crucially the balance is reducing each month AND if you're happy then why not?
alternatively if the debt has built up due to general living expenses and continues to grow each month as you sink further and further into debt to continue living, with no assets to show for it, and/or the debt is making you miserable/getting you down then maybe it's time to do something about it?
either way you've come to right place my friend! welcome aboard

brettcooper1

or purchasing assets, if you havent purcashed them... ahem... :embarasse

taffy056

Sorry I disagree with a re-mortgage , if your debts are on 0% or very low interest I would look at getting additional payments to these debts, was looking at another thread about paying small amounts to the debts on top of what you are paying, maybe a £5 a week will bring down the debts slowly but surely. If you put a SOA up we can see where you can make savings. Re mortgaging secures debt that is unsecured right now.

brettcooper1

in full agreement with taffy on this as well. why secure a lump of debt to your home needlessly?

Rustic_Ron

brettcooper1 wrote: »

i suppose at the end of the day its how you FEEL about them that counts?
if the debts were built up reasonably and on purcashing assets (a car loan or home improvements etc) and you are making the payments each month and crucially the balance is reducing each month AND if you're happy then why not?
alternatively if the debt has built up due to general living expenses and continues to grow each month as you sink further and further into debt to continue living, with no assets to show for it, and/or the debt is making you miserable/getting you down then maybe it's time to do something about it?
either way you've come to right place my friend! welcome aboard

Thanks . I am beginning to panic abit for two reasons.....1, My age because its time now to go downwards with debt. 2, I am currently only on NMW and this is because I was made redundant twice in the past 3 yrs and I have had no option but to take this low paid work..
I have looked into taking out a further advance from the "Nationwide" and they will do it. So it may be a solution.

May I say. My debts have risen due to mid life divorce on the mortgage front. And due to general holidays,gadgets,home maintenance etc on the unsecured front.

I can say that "Credit Cards" have been the route to my excessive debts. They are easy to obtain and easy to run up an huge balance. Not so easy to pay off when its snowballed out of control.

blacksta

U need to paste a statement of appears

brettcooper1

Hi ron,
An SOA would be useful when you get time? that way people might be able to suggest where you might be able to shave a few pounds here and there. 2 heads and all that..
what do you think the chances of you coming off NMW in the near future are? without meaning to be too forward, what percentage pay cut have you taken from your redundant positions to todays figure?
I know other posters have said it but PLEASE think very carefully before securing this debt against your house. as things stand currently (and as a very worst case scenario) you could declare BR and keep the equity in your home.
P.S you have my sympathy on the credit card front. we've all been there. just too easy to do so hard to say no..

Rustic_Ron

To be honest, I have thought about simplifing my debts ,reducing monthly £'s and putting them in a further advance with the nationwide on my mortgage. I am weighing up all my options and scenarios. My main reason for stalling above all else is :...... If I get in to bad difficulty now and as things are ..I could do an IVA or go bankrupt....I think....But if I secure my home....then I will not have these options and I would lose my home.......Am I correct??