Don't know what to do?

judithalison69

Hi,

My husband and I have got ourselves in to a state following our lightbulb moment where we realised we were 38k in debt, cards ,loans etc.

We have taken out a DMP with CCCS and are paying back £823/ month but are still finding this a struggle each month- 3 kids and 2 cars that although poorly are needed! The plan started in Feb for next 4 years or so.

We currently have a mortgage for 53K and are currently looking at remortgaging (we do this every couple of years through London Country) and the house is worth 165,000.

I do not want to add the whole debt on to the mortgage (20 years to run) but we were wondering if it would be better to pay off 20K by adding this on?

Will the fact that we are on a DMP effect are ability to remortgage? Any advice would be gratefully appreciated!
Regards
J

Jolinar

Welcome to the boards Judith

I would suggest revisting your budget with CCCS if you are struggling with it. At the moment on your DMP presumably most interest has been frozen, it will all be paid off in four years personally I would not add anything on to your mortgage and I'm sure CCCS will advise the same. I'm with CCCS and they are just brilliant if you have any worries at all they are happy to advise. It is possible to remortgage on a DMP, I was told this when I started mine, CCCS hold a list of lenders prepared lend.

In the mean time if you feel brave enough you could share your budget with us here and maybe we can make suggestions to help you out?

lynzpower

dont add it to your mortgage, youll be paying the debt of for 20 years instead of 4!! With interest as well! Dont secure unsecured debts, its a basic rule!

judithalison69

Thanks for that, when I thought abot it being only 4 years away, I was plesaed but this seems far off now.
We have tried to trim down all our overheads and have kept a spending diary, but 'emergencies' keep cropping up MOT,TAX ETC that keep throwing us off!

Mortgage 358
Water 33
Council Tax 112
Gas 35
Electricity 35
Building and Contents Insurance 27
Telephone incl. Mobile/Internet 50
TV Licence 12

Life Insurance/Private Pensions 31
Vehicle Finance 30 3 months left
Spares/Servicing 20
Road Tax 30
Insurance 50
Fuel & Parking 180


Food & Housekeeping
Food, Toiletries, Cleaning 416
School Meals/Meals at Work 43
Clothing & Footwear 63
Misc. Goods & Services
School Trips/Activities 15
Hairdressing 19

Medicines/Prescriptions 10
Dentist/Opticians 14

Newspapers, Magazines 6
Sports, Hobbies, Entertainment 25
Children's Pocket Money 30
Church/Charity 10

Sundries / Emergencies 45


TOTALS
Total Expenses 1690
Total Income 2513
Surplus/(Deficit) 823




ADDITIONAL INFORMATION
No of Adults 2 Take Home Pay (1) 1523
Smokers Take Home Pay (2) 700
Dependants 3 Child Benefit 160
Child Ages Child Tax Credit 130

Cause of Debt Over Committed On Credit

judithalison69

lynzpower wrote: »

dont add it to your mortgage, youll be paying the debt of for 20 years instead of 4!! With interest as well! Dont secure unsecured debts, its a basic rule!

Thanks for the advice, I know the rules but ohhh it seemed less painful. Have spoken to the CCCS and they will review our budget in a couple of months, if we are still struggling.
Many thanks:T