DFW Newbie

SkintMumof2_2

Hello,

Been advised to pop over here from the mortgages sub-forum.

To introduce myself, I'm married with 2 kids, nearly in my 30's and already more in £k debts than my age. I'm more than thoroughly ashamed of myself for getting my family into this situation, and my goodness I cannot wait to get out of it! The sleepless nights are taking their toll and I've taken some forward thinking action today, which I am so, so hoping will lead to me being debt free (in the longer term).

Basically we've applied for some additional borrowing on our mortgage, which would take our loan to value up to 60%. The process is now with the mortgage underwriters, and having checked my credit rating tonight I've discovered it has moved from 'fair' (where it has been lingering for a number of months), to 'poor'. I'm now panicking that this will cause the application to be rejected as this is the only way out of the situation that our bank could suggest, as there is nothing they could offer us that would help. I'm guessing a rejection would also cause my credit rating to plummet further. If anybody has experienced a similar situation to this I would be so grateful for words of advice/warning/experiences. I feel so out of my depth with this and I just don't know where to turn next.

Unfortunately (and the most ridiculous part of the whole scenario) because if my line of work, an IVA is absolutely not an option.

The credit cards have all gone, spending has been slashed to minimum levels and for the first time since we met my husband is aware of our financial situation. Things must be bad!

All joking aside, I'm probably going to be here for some time, so nice to 'meet' you all.

_-*Sally*-__3

Hello
I am new (but old!) and am kind of similar situation....

3 yrs ago we were £70k in debt (excluding mortgage) - and now we are £56k.... a long way to go, but going the right way....

ANYWAY - you have found the best place for tips.. I am really beginning to see that "look after the pennies and the pounds will look after themselves.... " makes sense..... by basic changes I have made!!! (I would NEVER have believed it until I was in the situation!)

Welcome! and keep posting

houseiseverything

I was in a similar situation as you, and had been told by everyone, eg my bank, 2 mortgage brokers, that our only option was to sell our endowment. Until I read these forums and realised there was another way... We are now on a Debt Management plan with Payplan, which means that we will pay off our debt gradually over- gulp-11 years. Have a read at the sticky at the top of this thread about where to get help, and you will learn all about DMPs and you can decide if this is an option for you.x

SkintMumof2_2

Thanks for the kind welcome

I'm just going through my budget spreadsheet and the belt tightening is really noticeable already (2 months in), so irrelevant of what happens with the decision on the additional borrowing we will be carrying this on. I'll definitely be on the lookout for lots of tips!

Unfortunately the DMP route is not viable for me either from what I have read up on

I feel like this is pretty much rock bottom - there really is only one way up.

_-*Sally*-__3

awwww no - sorry to hear DMP not an option....

I was MASSIVELY against it... and felt we could cope...(we couldn't) - My DH phoned CCCS - he was the one who mostly ran up the debt - BUT we are a team, it takes 2 bla di bla... (he was bothered about expensive things like cars and cameras!, my clothes and clutter spending almost paled into insignificance!!!)

ANYWAY - I really dont know how it works - but DMP seems quite private.....
I now tell people as I accept it is our problem and we need to sort it....

BEST THING - when you get the sales calls/ charity calls - they cant put the phone down quick enough when you tell them