Please Please Please Help And Advise Me

julie8314dave

Hi to all you lovely people out there!
I am a complete newbie, but feel very unsettled, harrased, suicidal(well nearly) and just wanted some advise.
Have you got an hour to spare if you have here goes.
Hubby is in full time employment salary £21k needs and wants to change his employment of three years, loved job until new management took over thus making impossible working conditions.
Hubby gets offered new job that he will love. but taking a pay cut of 3k a year, this may not seem a lot but we have a mortgage of 150k with a tie in until december 2007 paying £1,140.00 pcm. we have gone into re-mortgaging but they have told us that they will not start it until december 2007 because that is when the penalty of £5,000 will be finished with, whilst i appreciate that that is good advice from them it does not help us now, the new job will only hold for two weeks for acceptance, (if hubby stays at old job i fear that he will become unwell with the stress and end up leaving or being sacked) no good asking them all to stick together and complain they do not listen.
My dilema is if he takes a lower paid job now we wont be able to keep up with mortgage payments until december (our payments come down to £750 with remortgage in december) then if we dont pay we wont get new mortgage anyway. should we put house on market and rent somewhere cheaper, or should we rent our house out and rent somewhere, we have other credit card debts that amount to £5.700 and council tax to £500.
If we sold we could pay of debts and have no more worries, we have nothing left to sell, as i have been doing e.bay. boot sales and amazon for past couple of months. the biggest problem that i also have is that our four year old is due to start school in september this year and is really happy there so we would have to stay in area, we have contacted existing mortgage (interest only) they can not obviously lengthen term and will not take reduced payments for a short term (i suppose that would affect credit rating mortgage etc anyway). our credit rating is less than perfect as we have had to use credit to live on each month as out of hubbys £1400 take home pay there is nothing left. i get £20.07 a week for ctc and £72.40 a month cb but this barely feeds and clothes him. you may wonder why i am not doing my bit to help, but due to my husband working nights and sleeping part day time, little one at nursery time limits us. so i have done bootsales etc. when my son starts full time on dec 17th i will try and get a job, but my problem now is getting to december and what to do in the mean time.
sorry this is so long, but i feel a bit better now putting it down on paper.
we do not have sky, we have changed all providers, downsized car, walk where we can, shop in lidl, family and freinds can not help us.
thankyou for reading
Julie xx

MrsMop

hiya Julie
sorry you feel like that, but i think you have answered your own question. Hubbys current job is affecting his health and you are worried he would end up leaving or being sacked anyway so he needs to take new job.

I know it would mean taking on more debt but seems it is only short term as you could probably start working yourself in Sept. Is there anything you could do in the meantime maybe avon catalogues or something?

Not much help am i! But believe me it will get easier when your child is in school full time.

Romani_Ite_Domum

Take a look at this:

http://www.entitledto.co.uk/

you will find the ctc would rise if your hubby gets paid less. Might not be enough but it is worth running the figures to find out.

julie8314dave

Hi Mrs Mop,
thanks for that, hubby will definatly take new job i think, but still not sure whether to get in more debt while waiting for job, sell or rent either way there is no alternative.
thank you anyway.
julie. xx
p s to many avon ladys, betterware, kleeneze agents already, exausted e bay bootsales etc.

whowants2brich

Hello,

Not a good situation to be in, but I think that there may be a few (short-term) solutions:

a: Rent out your propert on a six-month contract to someone, assuming that you can get a fair bit more than your mortgage payments (minimum of £1200 pcm). However, you mentioned that it's an interest-only mortgage - are you putting any money aside to cover the actual cost of the house, or do you not have any repayment vehicle?

a(i): When you have managed to rent out your property, ensure that you get the cheapest property you can, to rent, for the near-term. Somewhere close to the hubby's job and school would be ideal. But where does the ideal scenario come into this - it's already far from ideal... Maybe you will need to compromise and settle for somewhere in the middle. Near to the school, but your hubby will need to commute a bit. If it's the other way round, you'll find yourself commuting all the time, when your son is ill and needs to be picked up from school early, etc - probably not a good idea!

b: Maybe look into 12+ months of interest-free credit cards. If you can get one, it could help greatly. This way, you can use it for your current spends (eg groceries, school uniform and equipment etc) and pay it back next year, as soon as the mortgage swaps over. Just make sure that you don't go OTT with the spending, and that you ensure that as soon as possible, you begin to set aside some money to cover the card. It will require self-discipline, and if you haven't got any then don't go down this route because it will only lead to financial ruin even faster!

c: Ask your hubby if he can sacrifice some of his salary for nanny vouchers. It's a government scheme to get money to pay for nanny care (deducted from pre-tax earnings). This may be a cheaper way to get someone to look after your son thus allowing you to get at least a part-time job - between now and December.

d: Don't give up on the situation, if none of these options are viable. There may well be other options, and I'm sure that there are other people out there who can find numerous others...

Good luck with this one!

Whowants2brich

lynzpower

hi Julie

have you been over to the debt free wanna bee board to have a look at your outgoings.

Most people manage to save at least 100 off thier outgoings, but switching suppliers and generally slicing back. Id be pretty surprised if there isnt the same option for you.

What might be an idea is looking at reduced payments for your debts in the short term, we can advise on this over on DFW, do come over and get advice from the experts over there

Lynz
x

mystic_trev

Julie

Sorry to hear of your problems but I'm sure you'll find some help at hand! As Lynz has said the first place to start is the DFW forum.

Regarding your current mortgage, the repayments seem steep, is it with a 'sub prime lender'? Kensington? As you're tied in to the end of the year it may be worth while getting short term credit to pay off the morgage repayments, not something one would normally recommend, but in your circumstances it might work? Another couple of months and then put your house up for sale and move into rented whilst you sort your finances out!

I know this is drastic action, but it could work for you? House prices have probably 'peaked' so I doubt you'd lose out by moving into rented for a period of time.

These are only my thoughts, and you really need to seek out Professional advice on your finances in relation to your circumstances.

Hope it all works out for the best!

rchddap1

Financial advice does seem the way to go. A first step is to put all your details on the debt free wannabe boards. Seems a bit like airing your dirty washing....but the people there will give you good honest advice.

If your partner's job is affecting his health then you have no other choice...its just a matter of how you manage things. However, bear in mind that people to expect interest rates to rise further. So if the new mortgage isn't on a fixed deal you'll also need to build in some free cash so you don't come unstuck further down the line. That's if you decide to continue where you are that is.