Any way out of this?

getmeouttahere

d70cw6 wrote: »

Telephone (land line)................... 15
Mobile phone............................ 80
TV Licence.............................. 12
Satellite/Cable TV...................... 30
Internet Services....................... 30

seems very high

I am a web developer so I need a good internet connection. Sky could probably come down a little but we're on a minimum contract so not sure how that would work. Mobile phone is for mine and my wifes contracts so is £40 each.

moxter

getmeouttahere wrote: »

I completely agree with you but at the same time, I have no-one to blame but myself. It's not the regulators/credit providers fault that we applied for the credit in the first place.

The problem is even over the past 2 weeks my wife has had letters from two of her credit card companies telling her that her limit is increasing

True - yes it's your own fault (by admitting that you've made a good start!) but systems shouldn't allow you to make those decisions/mistakes so easily.

You don't need me to tell you what you should do with those credit cards (if you burn the letters informing you of credit increases you'll be able to save £0.01 on your heating bills...)

Good luck.

hohum

Ouch.

I doubt you will be able to convert this debt in secured debt, and other posters on here would say that's a bad idea. So actually that might be a blessing in disguise.

any chance you can up the income?

Your SOA is missing things like holidays, Christmas etc and that is expenditure you probably do/will have so at some point your overspend will be greater.

Even without these, you are over £900 short. Every month. That is £11k a year that you are increasing your debt by if you don't change anything. Even shuffling the debt is not going to save you £900. i think you may need to look at more urgently increasing income or more drastic expenditure reduction.

Are you showing the rent income in the SOA above? Are you showing the second house as an asset? Or do you mean the tenant's rent covers the mortgage on the second house?

I think actually you might not be so daft to sell the second house.

From what you've posted, I think you are in a situation where you need to consider every option. Have you talked to one of the debt charities? Might help to consider options. I don't want to freak you out but from an outside perspective it looks like you are heading for trouble, and you need to take some pretty drastic action.

getmeouttahere

hohum wrote: »

Ouch.

I doubt you will be able to convert this debt in secured debt, and other posters on here would say that's a bad idea. So actually that might be a blessing in disguise.

any chance you can up the income?

Your SOA is missing things like holidays, Christmas etc and that is expenditure you probably do/will have so at some point your overspend will be greater.

Even without these, you are over £900 short. Every month. That is £11k a year that you are increasing your debt by if you don't change anything. Even shuffling the debt is not going to save you £900. i think you may need to look at more urgently increasing income or more drastic expenditure reduction.

Are you showing the rent income in the SOA above? Are you showing the second house as an asset? Or do you mean the tenant's rent covers the mortgage on the second house?

I think actually you might not be so daft to sell the second house.

From what you've posted, I think you are in a situation where you need to consider every option. Have you talked to one of the debt charities? Might help to consider options. I don't want to freak you out but from an outside perspective it looks like you are heading for trouble, and you need to take some pretty drastic action.

Thanks for your post. My wife is currently unable to work due to disability. I have applied for Working Tax Credit but even that's only going to be about £10 per week.

I've not included the second house in the SOA about, nor have I included the rent as the rent is the same as the mortgage. To be honest, it's not worth uprooting the family that live there, nor the stress and expenses associated with selling the house to come out of it with £5,000 max (it could be less than this as well) and it wouldn't be an immediate fix either because who knows how long it could take to sell.

Up to now, we've managed to continue paying bills by selling things but unfortunately we're running out of things to sell (without selling the TV, computer, etc) so really need to come up with a better plan.

The last thing I want is to end up not being able to pay any of the bills and therefore ruin both of our credit reports (they're not brilliant anyway but there's no late payments on them ever to date) but we've probably got enough to last another two weeks and then we're snookered (unless we can raise some additional money in the meantime).

gallygirl

You may have to consider selling the hosue you are in and moving into the rental property - that seems to be the only other viable option.

getmeouttahere

gallygirl wrote: »

You may have to consider selling the hosue you are in and moving into the rental property - that seems to be the only other viable option.

That's not an option at all. The mortgages are the same but the rental property is worth less (the interest rate on the rental property is double what it is on our home and the LTV is higher). The only thing that would achieve is releasing the equity in the house, however, as silly as this sounds, I would rather end up in a DMP than selling our house. We've put far too much work into this house to make selling it an option (and even then, the house still isn't 'finished' so would need a fair amount of money spent on it to get a quick sale).

Karen777

Talk to a debt charity. And I wouldn't worry about your credit report - you only need that to be good if you want more credit (for credit read debt) and why would you want more of that? A DMP might be an option, as might be an IVA - speak to a free dmp company (Payplan or Stepchange) and at least work out what your options are.

Larac

I would suggest you to talk to Stepchange or Payplan and discuss your options. There is no way you can continue paying the interest on the cards. They may suggest a DMP which allows you to pay the creditors at a more affordable rate, if the creditors are agreeable. It will screw your credit rating, but chances are that that has already occurred. Also by not having access to credit will stop you from living beyond your means. It was a harsh lesson I learnt as in been in DMP for the last 3 years and are halfway through my journey.
Best of luck

Stewart_78

Not silly at all. If you can keep your tenants paying the mortgage then in the long term you will have a nice asset. It costs a lot to get in and out of these things as you allude to. I would sit tight on your investment property as long as it is truly covering itself 100%.

If I were you I would have a long talk to your wife. Your credit files sound like they are doomed to me. I spent so long trying to save my perfect rating and all I achieved was ruining myself and giving the banks a lot of interest. My file is shot now but hey, in 2016, all those bad debts will disappear and if I can come to some low settlements for my debts, I will be free and clear. It's a longish and painful road but it sounds to me that unless you have some silver bullet, you are well on the way down it. Denial is the first thing to get over. Again, not trying to be harsh, just speaking from my own mistakes and experiences.

BillJones

moxter wrote: »

Not a dig at you and won't help you I'm afraid but what on earth is the credit rating system for if not to avoid situations like this? Surely credit providers should be able to realise that anyone with £30k of debt at 30%+ APR is unlikely to end up in a good place. But they offer more credit regardless? Did the considerable media attention and heightened regulation we saw a couple of years back achieve nothing? That's not having a go at you by the way.

Please, don't go trying to blame the credit providers for this. They did not hold a gun to anyone's head. The OP asked for a service, was offered the service, and agreed to take it. They now need help to get out of it, whic hopefully they'll find here, but immediately looking to blame someone else for their problems makes no sense at all.