Just looking for a little clarity please....

diddlepops

I am not sure I am posting this long missive in the right place but I am a DFW but there are other things happening right now and I just need pointing in the right direction.

To explain, we have approx £20,000 unsecured debt and 2 x mortgages totalling around £230,000. At present, I would anticipate that the housis worth around £200,000 so we would have a shortfall of £30,000 plus costs.

My husbans is a Technical Director with an engineering firm and earns circa £55k. With this comes a nice car and a fuel card and a mobile phone.

I work 25 hours a week and earn circa £800 before tax.

The company my husband works for is in difficulties at the moment. I am not sure what the future will hold - come middle Jan they could have to go into Administration.

What does this mean for us? How do I pay the £2,400 monthly outgoings that we have (which includes min payments to all our debts) with £800 a month plus Child Benefit.

My mind is going into overdrive - already have us bankrupt and on the streets - what would you suggest we do - do we stop paying the mortgage/credit cards and wait to be repossessed?

If work and cash flow improve - the company may survive - the boss has taken to his bed and my husband is trying to save it! I just need to know what we should do - if anyone knows?

Thanks

Diddle

JayC1987

Do you really need two houses?
Maybe reduce the times you go out for dinner or the pub?
Look for cheaper food?
Is there anything in your house that you'd be willing to sell?


I'm trying to sound like a pain in the bum, just trying to get you thinking of ways to help you.

Good luck, hope your hubby keeps his job.

diddlepops

Just one house!!!!

Don't go out for dinner or the pub - 3 kids puts paid to that

Have things we could sell - if it comes to it and I would

Already on the lowest brand in Supermarket. Despite a great salary - we are not rich by any standards - this debt comes from husband's accident on 1 December 2000 when we had no income for a year and lived on credit!

I know you aren't trying to sound like a pain in the bum but I just need to know what I have to do - where do I start?

JayC1987

Whoops I miss read the two houses my bad. (It's to early).

Contact the CCCS (However they've just renamed themselves I cannot remember their name) Or the National Debt Helpline

downsizer3

If you go onto makingsenseofcards.co.uk you can fill out a statement of account and attach it to this thread. Then we can see your income, outgoings and more importantly the debts and associated interest etc.
Regardless of the outcome in your OH's job situation you need to get on top of this.
How can you raise additional income? Can you take in a lodger or get extra work?
You need to pay off the debt first - and then concentrate on the mortgage. Can you get a better interest rate? Payment holiday?
Do you have any savings?
What are your childcare arrangements - can this be reduced in terms of cost?

FireWyrm

JayC1987 wrote: »

Do you really need two houses?
Maybe reduce the times you go out for dinner or the pub?
Look for cheaper food?
Is there anything in your house that you'd be willing to sell?


I'm trying to sound like a pain in the bum, just trying to get you thinking of ways to help you.

Good luck, hope your hubby keeps his job.

I suggest you re-read most of that...it comes across a bit nasty and judgemental.

FireWyrm

OK

First step is obviously, what do you have and what do you need. So, complete an SOA, you can find it on a sticky at the top of this forum. That wil give us some idea of what leeway if any there is.

Second, accurate values for any outstanding balances on credit cards. You need to know, without a doubt, exactly where every penny is going.

Third, can you take a payment holiday on your mortgage if you have to? Do you have an redundancy insurances, if so, how much and how long does it pay for? What are the realistic chances of your husband picking up a new job relatively quickly and how long are you likely to need to bridge the gap?

What do you have in your cupboards right now and what do you expect to have in the next 2 months? Could you feed everyone for at least a month out of your cupboards and freezers alone? If not, I suggest a 'constrained' Christmas until you get a clearer idea of what is happening with the job.

What savings do you have? What gold do you have? What assets do you have that you can liquidate? Any additional cars? Annuities, savings etc. You get the idea.

Get that information and we can make some suggestions going forward.

diddlepops

Did a long reply and then lost it!

SOA - will put this up as soon as I can - I did start it last night but was feeling very raw and ended up in tears! Will try and get it up over the weekend.

Job situation - husband is very glass half full, I am glass half empty - I am the worrier - he says he will get another job and pay the mortgages - I am just trying to pre-empt our situation. Do we concentrate on the secured debt/utlities and leave the unsecured and hope we can sort it out when the crisis has passed?

Additional income - no room for a lodger - as three kids - but am happy to try and get extra work - work from home during day and am looking to increase hours to do evenings as well

Mortgage - main mortgage is NRAM - !!!! !!!!!!!s that they are! We are in negative equity so doubt anyone will take us on! Might be able to extend term of mortgage - when we bought 6 years ago, we had 20 years mortgage so only 14 left - so we could extend it and reduce payment - if NRAM are willing to let us I guess. Not sure how sympathetic they will be - they will probably want us out!

No savings!

No childcare costs - i am the main and only carer!

Thanks for your reply x

FireWyrm

diddlepops wrote: »

Did a long reply and then lost it!

Happens sometimes. I usually write offline and then copy and paste it into the box.

diddlepops wrote: »

SOA - will put this up as soon as I can - I did start it last night but was feeling very raw and ended up in tears! Will try and get it up over the weekend.

Its scary but suprisingly cathartic to do one. When you have, you'll know exactly (good or bad) how things are and you can start to get a handle on things. You cant figure out how to efficiently eat an elephant if you have no idea what it looks like or how big it is.

diddlepops wrote: »

Job situation - husband is very glass half full, I am glass half empty - I am the worrier - he says he will get another job and pay the mortgages - I am just trying to pre-empt our situation.

Very sensible.

diddlepops wrote: »

Do we concentrate on the secured debt/utlities and leave the unsecured and hope we can sort it out when the crisis has passed?

You pay, in this order, 1) mortgage 2) Council Tax 3) Utilities (although cut DD for a short while if need to), 4) secured loans 5) Food, 6) Fuel and finally 7) everyone else if you have anything else left.

Civil debts are almost unenforceable and the worst that will happen is a trashed credit rating (trust me, you'll see that as a blessing down the line). Council Tax can get nasty and they can add hefty fees which is why it is a priority debt. Mortgage needs to be paid because banks are getting funny about reposessing people with no more than 2 months arrears, dont give them an opening. Mortgage gets paid even if all else fails.

At the end of the day, civil debts are the easiest to brush off since there's nothing much they can do about it.

diddlepops wrote: »

Additional income - no room for a lodger - as three kids

No reason why you cant double up the kids to make some room if push comes to shove. An extra £120 a week might be rather useful in the long run...worth a little inconvenience to the kids I think.

diddlepops wrote: »

- but am happy to try and get extra work - work from home during day and am looking to increase hours to do evenings as well

Hubby might also like to consider that option too. Depending on how old the kids are, they might also start to help.

diddlepops wrote: »

Mortgage - main mortgage is NRAM - !!!! !!!!!!!s that they are! We are in negative equity so doubt anyone will take us on! Might be able to extend term of mortgage - when we bought 6 years ago, we had 20 years mortgage so only 14 left - so we could extend it and reduce payment - if NRAM are willing to let us I guess. Not sure how sympathetic they will be - they will probably want us out!

Dont go off half cocked. You have no idea what they will say until you speak to them directly. Most creditors are actually pretty helpful and understanding.

diddlepops wrote: »

No savings!

No use crying over spilt milk now, but if this all comes to nothing, you know what your mission next year is dont you.

diddlepops wrote: »

No childcare costs - i am the main and only carer!

Good.

downsizer3

Hard as it is that SOA is critical to us helping you find a way forward.
All sound advice so far. Any relatives nearby that can help with kids if you went full time at work of some kind or increased your self employed work?

RAS

Have you thrown your details into https://www.turn2us.org.uk.

At this stage in the year, your hubby's previous income would exclude you from most means tested benefits but you would get additional support from April.

You need to really pull in the horns now and try and get at least a month's mortgage payment tucked away somewhere. that is priority.