Debt - Help me stay in the house we love!

Zulu_Dawn

Just to add to the things you don't want to hear;

DON'T DO IT!

I still don't think we've got to the bottom of your monthly finances. You've got nearly £80k of unsecured debt plus another £10k on a car. That is a really significant amount and you are technically insolvent. How has it arisen? By bailing yourself out partially now, there is a danger you are not facing up to the bigger issues- namely that you appear to have not been living within your means.

Even earning £4k per month (which is now by no means guaranteed), that's nearly two years wages assuming you spend nothing! If you can put say 25%of your current salary (£1k per month) against debt and assuming you can finance all your debt at an average of even 7%, it will take 9 years to repay it. If the mortgage companies get wind of your detailed position, you may even find it hard to get the kind of mortgage you talk about.

Please do what has been suggested and check out snowballing your debts to see what your options are. Then you need to get onto the Amexs and Cahoots and the like to see what they will do about interest charges.

You should do a detailed spending diary for a month or so to ascertain exactly what you are spending.

I also think you should consider contacting one of the debt consolidation charities (CCCS, Payplan etc.) as I suspect that if you want to keep your house, you will have to consider something a bit more radical.

Sorry this is not a message you want to hear. I'm just trying to be honest with you.


Good luck.

Regards,

ZD

lynzpower

missloochie71 wrote: »

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

miss loochie if you havent already start a new thread telling us about your problem and we will do everything we can to help xx

omg_3

Hi Marko9, I have just read thru all of this thread. In my opinion, you have not yet grasped the serious nature of your predicament. If it were me, I would be visiting the CAB soonest. Right now I would be cutting up all credit cards and cancelling as many things as possible. Spend time and read threads where others have been in similar situations, then make your decisions. There is not an easy way out. Not what you want to hear but.....

AWT

Ditto Lenny's point.

No offence, but you're entering self-employment AND considering exposing yourself to a greater risk of repossession if the unexpected happens. I think there are a lot more cutbacks that you can make (car, especially) at this time.

When you're having money issues, personal pride and outward appearances have to be put second for a while. I'm feeding my family on SmartPrice food, but at least my £40k debts are unsecured.

Andy

rayday2

I am no expert but risking the security of your house by securing debt for a business when a lot of business in the early days can fail is a bit scarey.

We went with firstplus a couple of years ago and consolidation companies are cowboys and once they have you they never let go, I wish I knew this site then. I feel very foolish for giving myself two mortgages.

You seem quite reluctant in what you are prepared to do, you say you love the house and yet you insist on coming up with ideas to sell it to but more secured debt on it - do you really love your house do you really want to keep it? Or is it your wife loves the house and you see it as an asset to get you out of the trouble?

I hope your company takes off and I hope you find a way but definately listen to the pitfalls in secured lending - I would have a couple of years ago because experience is a bitter pill to learn

rayday2

Also sorry one last point interest rates are rising and predicted to rise at least another .5% by the end of the year - does not sound a lot but secured debt goes up as well as mortgages it is a very difficult financial climate to start thinking about taking on more debt I am glad its not an option for me anymore!

chevalier

Have you had any more thoughts as to your direction?
chev

apples1

marko9 wrote: »

aaa no we have our 3 year old in private nursery but he starts school in sept which OH will still be on maternity. she was due back at work in November but decided to take up the full 9 months thus saving nursery fees from sept to feb.

If your wife is on Mat leave then why are you paying for your 3 year old to be in nursery? The 3 year old will get funding for their 5 x two & a half hour sessions from the government so can attend for those and then be with his Mum the rest of the time. You will not then have any nursery fees for the 3 year old whilst your wife is on mat leave.

danno_4

Hi Mark.
Hve read your threads,I point i picked out was that you were forming a limited company.I work in the insolvency industry which some of my time is spent with people who are the directors of the said companies.You must be very carefull when setting up ltd companies.If you need any advice on setting up and certain pitfalls then drop me a line i will gladly give you advice.
kindest regards
danno