Advice please. debt free Wannabe with Big Mortgage & Big debt

Johnny2323

Not a unique cry for help I realise but any advice at all would be wonderful as I find myself in a catch 22 situation of wanting to work out my finances and live within my means but just not having the tools to work out how to do it.

Previously I have played the zen mind trick of ignoring the crisis but it is now beginning to impact badly on family health.

Firstly my wife and I have very major debt and rather than clear it, we're getting deeper each month. At the same time our income is shrinking and our working hours are increasing. It's not a great combination but i'm sure others are going through similar.

So how do I get debt-free? I really do not know where to begin.

Our mortgage repayments are very high. Takes up about a third of our income. Next is debt repayment - credit cards, overdraft.

My first thought was to reduce mortgage by taking a year's payment holiday (last time I tried we did not meet their "criteria") - which would give us a breather and allow to pay down debts.
Only other option as far as I can see is to borrow more but this seems illogical - plus I doubt we'd qualify as we wouldn't meet affordability tests.

it's a all a bit of a mess.We do have some equity in the house so the ultimate solution would be to sell our home but we really don't want to do that. We live in the cheapest street in our town so would have to move away.

pennypusher

Post up a Statement of Affairs and let others help you work out the best thing to do.

Johnny2323

Sorry, I don't know what Statement of Affairs means?

matttye

Johnny2323 wrote: »

Sorry, I don't know what Statement of Affairs means?

http://www.stoozing.com/calculator/soa.php

It outlines all of your incomings and outgoings. People can make cutback suggestions.

When_the_going_gets_tough

Also visit the The National Debtline and have a careful read of what your options are. Continually borrowing is not sustainable in the long term - I guess you realise that so acknowledging that is a good start

sleepygirl126

I have a large mortgage, one income, a now reducing debt and a debt management plan....it may be your best option....

Sazzie23

Welcome to MSE forums, and well done for realising this is a problem.


Sounds like a need to spend less and earn more approach is needed,
and yes loads of us here been in your position. When you have done the SOA try looking at the Stepchange debt remedy tools.

You probably think you are being frugal already...trust me, there are folk on here that can really show you what frugal means:T.

Someone suggested DMP might be your way to go. Its a big step, have a look at the DMP support thread for more information.

Good luck with it

chevalier

Welcome to the boards. Martin often says there is no debt so bad that can't be fixed. Once we have a better idea of what your debt issues are we can help you by giving you options of where to go next.

So the SOA is important to get done ASAP. Then you will know to the penny what your situation is. Might be better than you think, might be worse. But you will KNOW and that is very empowering (and motivating)
good luck
chev