Struggling to be able to afford to pay off mortgage balance

dancingfairy

Hi. I have only skim read this thread but the things that jump out at me are:
1) you are sinking by 36 a month by making the payment to payplan. Why not just make a payment you can afford oto them each month? If you can only afford 20 a month between your creditors as you are unemployed then so be it.
2) The other thing that struck me was that you are paying a disproportionate amount towards the electric arrears. Why so much? Why the hurry to get everything paid off in 6 months? I'm not sure if I'm understanding everything here but the mortgage would seem to be the most important priority. Obviously paying off the electric is important but your SOA shows you are currently going backwards by trying to do too much.
Anyway I hope the local council can help you get back on an even keel and renogitate payments for you.
As has been said with regards to the house 25 years is a long time and many, many things may happen before then. Do not panic yet.
Best of Luck
df

missi1

Niv wrote: »

missi1,

Thank you for replying so thoughly to pretty much everyone (if not everyone), it is nice when the OP does this (it doesnt often happen in my experiance).

I am glad you you seem happier with your situation after talking it out on this thread, and i hope you manage to sort out your debts and keep your home. I am confident that someone with your outlook wil be able to overcome this bump in the road and sort out your money situation over the next 2/3 years.

Niv

Thanks Niv, at least things are looking more poitive now and wont be worrying so much.

lazer

I jsut thought i would add that i thinking you a worrying too much.

I think you could cut down your bills by the £40 required, mainly in the groceries its only for 6 months until the electricity is paid then you are breaking even again - think tesco value, sansibury basic etc, I'm not saying it will be easy, but you could do it if necessary.

Long term, if you were only earning £1050 (net - £1240 gross)per month you would also be entitled to working tax credit of around £50 a week, so that is additional income you haven't budgeted for

missi1

dancingfairy wrote: »

Hi. I have only skim read this thread but the things that jump out at me are:
1) you are sinking by 36 a month by making the payment to payplan. Why not just make a payment you can afford oto them each month? If you can only afford 20 a month between your creditors as you are unemployed then so be it.
2) The other thing that struck me was that you are paying a disproportionate amount towards the electric arrears. Why so much? Why the hurry to get everything paid off in 6 months? I'm not sure if I'm understanding everything here but the mortgage would seem to be the most important priority. Obviously paying off the electric is important but your SOA shows you are currently going backwards by trying to do too much.
Anyway I hope the local council can help you get back on an even keel and renogitate payments for you.
As has been said with regards to the house 25 years is a long time and many, many things may happen before then. Do not panic yet.
Best of Luck
df

Hi Dancing Fairy and thanks for the response.
I might have came across wrong with the electric. Basically I owe approx £649 in arrears and the monthly payment of £114 includes £50 for ongoing electric and the rest is towards the debt which will probably take around a year to clear unless I get the grant I have applied for from the energy trust.

Im hoping that the council can help me get back on track, she thought the electric payments were horrendous but this was the amount the elec company said they would accept.

missi1

lazer wrote: »

I jsut thought i would add that i thinking you a worrying too much.

I think you could cut down your bills by the £40 required, mainly in the groceries its only for 6 months until the electricity is paid then you are breaking even again - think tesco value, sansibury basic etc, I'm not saying it will be easy, but you could do it if necessary.

Long term, if you were only earning £1050 (net - £1240 gross)per month you would also be entitled to working tax credit of around £50 a week, so that is additional income you haven't budgeted for

Hi Laser, cheers for the advice there.
£50 a week would be a massive help.
I just did a calculation on the tax credits calculator and also entitled to website and they both came up with the results that I would be entitled to nothing which was based on the scenario of me working 40 hours per week with no dependents (as my son will no longer be in full time education from later on this year) and taking home £1050. Did you use an online calculator to get the £50 per week?

[Deleted User]

Also remember that if you are needing to make phone calls during the day that are not included in your call plan to use SKYPE....this could be really useful if you are making a lot of calls to job agencies, replying to job adverts - it could save you a fortune.

missi1

Domino9 wrote: »

Also remember that if you are needing to make phone calls during the day that are not included in your call plan to use SKYPE....this could be really useful if you are making a lot of calls to job agencies, replying to job adverts - it could save you a fortune.

Thanks D, will take a look at skype as not used it before and also the say no to 0870 site.

lazer

missi1 wrote: »

Hi Laser, cheers for the advice there.
£50 a week would be a massive help.
I just did a calculation on the tax credits calculator and also entitled to website and they both came up with the results that I would be entitled to nothing which was based on the scenario of me working 40 hours per week with no dependents (as my son will no longer be in full time education from later on this year) and taking home £1050. Did you use an online calculator to get the £50 per week?

Apologies, I put in the monthly figure as annual income