Absolutely terrified and in a jam

missbiggles1

Could you clarify why you can't downsize as this would seem to be the obvious choice. I know you mentioned something about a trust fund but how does that restriction affect you?

amorge

I can't sell the house, it's not in my name, the mortgage etc is in my name but the house deeds are trustees. It's the a trust fund that was set up years ago - I have mentioned to my parents but have been told is it a definite NO

Tixy

National debtline website has templates if you want to offer your creditors reduced pro-rata payments.
Or this cab tool is good for a self-managed DMP https://nedcab.cabmoney.org.uk/dmp.asp

In 8 years time are you hoping to downsize and buy somewhere with no mortgage/debt?

Is it parents restricting the sale through the trust fund? or is it not an option even if they agreed to it?
If it is them that are restricting the sale are parents aware you will have to sell at that point anyway?

amorge

It's not my parents restricting, it's the trust fund.

Yes, my plan in 8 years is to sell and downsize, not sure about mortgage free, it's expensive to live in the town I'm in, I will clear all debt and but may have a £10k mortgage or similar.

chesky

How can you sell in eight year's time but the trust won't allow you to now?

amorge

chesky wrote: »

How can you sell in eight year's time but the trust won't allow you to now?

The trust will dissolve in 8 years and the house gets signed over to me.

MallyGirl

amorge wrote: »

The gas/electric is the bane of my life. We have no heating on the moment, water heated 2 hours in the morning & 3 in the evening. I think it's all the small things; phone/laptop chargers, music systems etc.

I understand this completely. My bills are way higher than this - the house seems to eat power just by existing.
Do your kids know you are in financial difficulty? If not then it might focus their minds - maybe get one of those energy meters and show them the difference that turning their stuff off can make.
We have changed the water to be just 1 hour in the morning and 1 in the evening - that is enough for a full tank. DD showers in the eve but there is still plenty of water left for washing up and OH and I shower in the morning - last one through may end up with a bracing rinse but it has helped to reduce the gas bill. Washing machine is run during the day so it takes any leftover hot water in the tank and then heats further if needed.

andyfromotley

Gosh you are in a real pickle, although you need to hammer down your expenses, they are pretty slim anyway and no amount of fiddling with the budget is going to resolve your problem. As already identified the loss of your benefit in a couple of years will make your situation terrible.

As i see it you are probably reduced to three options.

1. Debt relief - contact the experts CAP/stepchange/National debt advice line.

2. Can you increase your income? I reckon you are on about £19250. This is not a high wage. Can you get promoted change jobs? You need to earn about £10k more to cover your deficits (including the benefit change in a couple of years). Not an easy task i know but you are paid well below the national average and could perhaps look to improve? Whichever way out of this you choose this should be part of your plans.

3. Your problems could be solved by selling some of the jewellery and paying off your unsecured debts. I see your comments about your mum and dad, however you are in a financial emergency!!! I'm wary to get involved in family dynamics but do they realise that you are insolvent? Do they know that when you sell the house to give them their cash back you won't be able to get a mortgage as your credit history will be trashed from the DMP? Do the understand how serious things are for you? It may be worth at least discussing it with them.

3(a) Is there any possibility to rent out the property and live somewhere much cheaper. I haven't run the numbers on that but it may be an option which will improve the situation even if it doesn't solve it.

Sorry there is no magic wand, you are in a bad position, but it can be sorted.

QueenBeruthiel

Is there anything - apart from the heirlooms - you can sell? Not meaning this nastily, but you must have bought a ton of stuff - clothes, jewellery, household items, maybe.

The good news is that your mortgage is quite low. If you could make inroads into the CC debt, then you would find yourself in a comfortable position.

If!

[Deleted User]

Any way to take the young drivers off the insurance?

Also, as a home owner, you really should have an emergency fund.