Just dont know what way to turn

worried2bits

So my partner up and leaves 4 weeks before Christmas. The house is mine and I have 3 children.

I have £184,000 mortgage with 2 secured loans on the house. One is for £30,000. One is for £10,00. If I pay all the bills, we dont eat.

The one for £10,000 finishes in 18 months as I have been over paying it. There should be 9 years left to go with the payment being £245 but have overpaid for quite a while hence the 18 months. The current balance is just over £6,000. I make a payment of £400 a month

The £30,000 is interest only and has about 5 years left to go. The idea being once the smaller one was clear, I would direct that money to the £30,000.

House is now worth roughly £300k. I imagine slightly more. Monthly mortgage payment is £405 on an interest free basis.

To rent would cost me £1200 so £14400 a year.

I actually dont know which way to turn. Im now suffering from trigeminal neuralgia which I think has been made worse by the stress. Yes I could rent, but the equity would last a few years, what do I do after that? Do I approach my mortgage company for a payment holiday so I can clear the £6000?

I have been applying for second jobs but to no avail so far.

Any advice?

National_Debtline

Hello there.

The first thing to do is to maximise your income. Depending on your earnings you may be able to claim tax credits. In addition you should also (if you have not already done so) investigate claiming child maintenance payments from the father of the children.

To get an idea about what your benenfit entitlement could be, there is a useful calculator here: http://benefits-calculator.turn2us.org.uk/AgeRelationshipEmployment/OTLG5MEQ?pageAction=continue&displayHeaders=True

Please consider completing a statement of account, we'll all be able to provide you with some ideas if you do this: http://www.stoozing.com/calculator/soa.php

If you feel that you might struggle to meet the mortgage or secured loan payments you should certainly be proactive and contact the various lenders. Can you remember how much you borrowed from the secured loan firms originally (there could be other options depending on the answer to this)?

We have a general guide covering mortgage arrears which you can find here: http://www.nationaldebtline.co.uk/england_wales/guide.php?page=guide-mortgage-arrears

I really hope you find this information useful.

Best wishes,

David @ NDL.

worried2bits

Hi David, thanks for the reply.

I am already claiming tax credits and dont have a hope in hell of claiming child maintenance as my ex is no longer in the country. My outgoings, all basic, exceed my income by about £50. This is cutting everything down, no luxuries.

WTB

National_Debtline

Hello again,

Do you have any other debts such as credit cards, loans or overdrafts?

Thanks and best wishes,

David.

jnowlin123

Hi

I hope you don't mind me replying to this but just wanted to say your not alone and it does get easier. two years ago my ex-husband up and left me. he offered to pay nothing towards loans or mortgage etc. After bailiffs visited and tried to evict me and my son, I went to court and stood tall. I have been upfront with all my creditors and two years later, I can see light at the end of the tunnel.

I just wanted to let you know that it might be dark and hard work at the moment but it does get easier and you will get there.

worried2bits

Many thanks for the replies. No other debts, just the ones secured on the house. But my credit rating is crap due to the loans with my ex husband which I was left to pay.

jnowlin123, did you manage to stay in your house?

jnowlin123

Hi yes I am still in my house :-)

Just take one day at a time. It does get easier.

My credit rating was left crap as well and the buzz you get from your credits going from red to green is great when you know YOU have done it yourself. Don't get me wrong its hard and you wonder where you get the will power at times but just remember there is light at the end of the tunnel.

I was scared to speak to my creditors but once you do and tell them what you can afford it will make it easier.

Principia_2

As far as I can see you are in a super tight spot for a maximum of 18 months (not that it's going to be easy afterwards but at least easier), it would be shame for want of an extra £50 per month if you lose your home so here are some ideas for you to play around with.

While you are looking for a better job could you increase your income through something like Avon/Betterware etc? Even a paper round? A friend's lad had two week day and a weekend rounds and he earned about £20 a week (harsh hourly rate though) but it would only be temporary, might be hard to get one pre christmas but if you did - possible tips also.

Could you get rid of the tv - £12/13 per month saved on the licence fee and you can always get the tv back when you have a better paying job or after 18 months when things aren't so tight. That means you only have find £37/£38 every month - less if you pay for tv package.

Same with mobiles - giffgaff did a £5 per month goodie bag with something like 200 minutes and 200 texts and once it's gone it's gone so no racking up bills by exceeding your minutes. If you all have mobiles can you get rid of the landland temporarily? This may not be possible depending on your broadband provider but it might be worth looking into - again it's only temporary.

Do you have anything to sell on ebay/gumtree or similar to make up the shortfall each month?

Depending on the age of your children could you consider a lodger while the children share a room - again stress to them it's only temporary. Some people take in students during term time only or I think there are websites where you take in someone mon to fri and they leave for the weekend.

Again depending on the age of the children, can you do something in the evenings - bar work or even babysitting.

Try posting a statement of affairs on the debt free wannabe part of the forum http://forums.moneysavingexpert.com/forumdisplay.php?f=76 using http://www.stoozing.com/calculator/soa.php

Lots of people there are trying to make their income stretch while they are paying off debts so lots of good ideas plus you can keep a diary in the subsection to keep yourself motivated as well as reading the journeys of other people.

I really wish you the very best of luck and I hope your health also improves.

worried2bits

Hi, once again thanks for the replies.

Should have said outgoings exceed by £50 but that doesnt include food. I can pay everything but cant afford to eat.

Just spoke to my mortgage company and they arent prepared to do anything. No concession, no payment holiday. So what do I not pay. Even if I reduce the payment to £245 on the £10000, that frees up £155 a month but increases the debt back to 9 years and about £20000 interest.

Sitting here in my coat cos I darent put the heating on.....

BJV

Just wanted to say your partner sounds like a !!!!. No there is never a good time to leave and relationships do break down but with children this close to xmas. Nice!

So sorry I do not have any pearls of wisdom except to say really disappointed about your mortgage company. Surly it is in their interests to make sure that you carry on paying for the house. It is not as though you have simply stopped paying. Far from it you are being upfront and asking for help.

How old are your little ones? I.e will your partner have to provide in some way for them?

TheGardener

Hi
You will get lots of support and encouragement on this forum but I would say right now you need clear, independent, professional, FREE advice. StepChange were life savers for me (start with their website and debt remedy online tool) but you will find a list of others on the sticky posts at the top of the board. The National Debtline reps are fab too.

I thought I knew everything about debt until I talked to the professionals and they showed me things I had no idea were options. :A

You sound like you are in a complete tailspin just now and no wonder! Take a few deep breaths and get some professional advice and keep talking to us for support and further information.