Debt - Help me stay in the house we love!

whatatwit

I presume then that you have given notice on the nursery, to save fees until he starts school in September?

marko9

an au pair is defo out of the question! wouldnt dream of it personally, and the 3 year old has benefitted hugely from his time in nursery. but yes he will stop end of July before starting school in September. then we wont have no fees to pay till feb when the OH returns to work then the newborn will enter nursery and Lewis will required after school care....way of the world these days am afraid. having said that we have come up with another saving today and found out the OH company may start offering child vouchers which saves around a 100 quid a month...that’s a bonus

wyebird

Must confess, it has been along time since i was concerned with the cost of childcare (my youngest is 14), but £800 seems an awfully high % of income. Can you and your OH adjust your working hours to cut this down? We did this for a while, I worked three days a week and OH worked at weekends and took weeekdays off so we only had to pay for child care one day a week. I earned less, but as a family we had more money.

marko9

no not really we have looked into this and this sounds daft but 4 days is the same price as 5...crazy i know! even if you reduced the hours throught the day the savings are hardly worth it plus the income we would lose, we would be lot worse off

southernscouser

I know you don't want people telling you not to consolidate so I won't. I do however urge you to do a search for secured loans and read some of the horror stories.

For example people having taken say a £75k secured loan. Pay back £500 a month for 5 years. Enquire how much is left to be paid off only to find out the balance is £100,000 because of front loaded interest.

This isn't a criticism mate but becoming debt free is a lifestyle change. It's bloody hard work and it's depressing at times but it's the only real way to live within your means.

Have you considered an IVA or a debt management plan with someone like the CCCS?

wyebird

Yeah, it's difficult, I know, to find out what works best for you as a family. You have obviously looked into it but sometimes you look at your take home pay and don't see what it is costing you to earn it, I know I did. I used to travel a 90 mile round trip to work and one day sat down and calculated how much of my money was going to Esso, NCP,the childminder, M&S cos I was too knackered to cook etc etc.........took a lower paid job, less hours and ended up with more money. Hurt my pride for a bit though to take a pay cut
Good luck with it all, but be careful of those redemption penalties if you do go down the secured route, they can bite you on *** big time.

slippyhelen

You sound a bit like me sometimes - you have asked for advice from all these people who know how to do it (I don't include myself, I'm still a bit rubbish) and you seem to be ignoring everything they're saying and hurtling towards possibly losing your home and being in further debt. I hope that doesn't sound harsh, I mean it as an observation of the post, not a judgement. I was the same. I consolidated a couple of years ago, AND had a payment holiday and like an addict I just ran up more debts and now I'm twice as much in debt. Where's the sense in that?

brainfreeze

marko9 wrote: »

Ok the most significant change is that I have been paid off (well i am a man of leisure for next 6 weeks), however its not all bad cos its allowed me to set up my own ltd company which hopefully should earn me a lot more money

marko9 wrote: »

AND, I am in the process of setting up my LTD company so I can freelance/contract myself out (hopefully making me more money). Now what I was intending to do is remortgage pulling least 40k out of the house to consolidate the high interest debt BUT still only pay as an interest only mortgage!!!

marko9 wrote: »

I have to move quick before I set up LTD company and use my staff salary wage slips as proof (advice on this would be good)

Hi

Again, I know you probably don't want to hear this...but I wouldn't advise consolidation as a route to go down.

Regarding your comments above....assuming I understood correctly you are no longer employed and therefore if you were to use your recent pay slips as proof of income this would mean you would be fraudulently stating that you are employed and earning this income. Definitely a no no IMHO

I do agree with some of the other posters here....you are asking for advice and yet seem unwillingly to listen at times. As others have said, DFW is a complete change of lifestyle, approach to life and money and the impact of it affects the whole family. I appreciate you realise that you need to address your financial problems, but I don't think you have had your lightbulb moment just yet. Sorry if this sounds harsh...but I have been through the consolidation route and that was just a....OMG....things catching up...get a new loan...will never spend on CCs like again...only to be in the same boat less than a year later. I think, to me, this is what your situation will be in the not too distant future...rosy for a few months whilst you are riding high on the release of funds from consolidation, but only to have other debts being created, maybe slowly...but they will most likely come...and then you will be in the same situation, but with a higher total debt figure.

Please think about the long term picture and not just sorting the situation with a quick fix now...which is what a consolitation loan is.

Little_Miss_Winner

marko9 wrote: »

so the way I see it is get a home owner loan for 40k now, pay off the high interest debts, then for the next 6 months pay this home owner loan! Then once the mortgage break finishes we can remortgage the 144k and the 40k loan into one mortgage on interest only for a number of years until the child care fee’s are gone and the unsecured debt is gone, then I can change the mortgage to a repayment.

Right an interest only loan @ 5.75% on £40k will cost you £191.67 a month.... (are you sure you will be able to borrow this as an interst only loan?)

Then you say that after paying that for 6 months you will remortgage and add this £40k to the £144k already outstanding....

BUT.......................................What if you can't? What if you get turned down by the banks/building societies?

missloochie71

Hi there
I am a newbie so forgive me for piggy jumping.i cant seem to find a way of getting on .
Anyway, i have just moved in to my first home which I can just about afford.
I have the slight problem of an amex card that I have now defaulted on so the interest has been raised to 25.9!!!
I have complained regarding this and they are getting back to me.
The biggest issue though is how can I get this paid off ?
I have very limited income outstanding after my outgoings .
The balance outstanding is 12700 and I am desperate to get this paid off as quickly as I can .
Please help me

Thanks xxxx