Mortgage or credit card or food

pepper33

I am off sick, and have no money to pay the mortgage, but would if I didn't pay my credit card. I suppose the mortgage is the more important, but they have given us a breathing space of one month. I am really frightened of losing the house..... any opinions:eek:

mrsrwallace

mortgage payments are always classed as priority debts as they are secured on your home so need paid first no matter what. credit cards are non-secured debt and can be dealt with more easily.

my advice to you is to go and seek urgent debt advice from CAB or CCCS or contact National Debtline, there is always someone there who can take your income and expenditure and see what your debts are and work with you and your lenders to come to an arrangement using any surplus income.

If there is little to no income left then the adviser might suggest paying token payments of £1 to the credit card company to show you are serious about repaying your debt but that you cannot afford more at this time. This would give you a chance to get back to work sooner as the stress and pressure would ease a bit and aid your recovery.

your mortgage lender might be lenient in that they give you options such as payment breaks, extending the term, paying a lesser amount for a say the next 3 months and then reviewing your situation in 3 months and seeing where you can go from there. i know my mortgage company let me extend the term and reduce my payments and are now letting me sell the house as we really can't afford to keep it on so get advice asap and you won't feel so overwhelmed when there is someone there who knows how to help and can give you proper guidance.

so my immediate answer to you is pay the mortgage as if you are wishing to stay in that house it is essential you keep paying them each month as if you don't then they can take action. Check if you have insurance with your credit card which might pay out the minimum payment while you are off sick. Don't keep the problem inside, get someone like an adviser or a very trusted person to talk to and share the load as it helps to get it out.

good luck x

RTNI

I know my church has started collecting items of food for the local area foodbank - this might help you out for food.

pepper33

thanks for the advice and offer of food, but we are in contact with the mortgage company, and I do have the money set aside, but they said they would not collect this month. You're right Mrs Wallace, it would take a bit of the stress out of the situation, as it is very stressful, and I would be much happier paying the mortgage than the credit card. Think I will stop worrying for a bit, as I am worried out....

HappyMJ

Most if not all mortgage companies will allow you to just pay the interest on the mortgage depending on what equity you hold in the property.

What income do you have? Have you looked into claiming benefits? You can also claim a benefit that will pay the interest on the mortgage if you need help.

mrsrwallace

it can all be overwhelming and constantly in your head and it is only natural to fret about it but with the help available there is always a solution to any problem no matter how bleak it appears x