I could lose my new house what can I do please help

Debt_Free_Chick

Earnings - £1,000
Mortgage - £ 800

Council Tax ....? £150?

Does your wife work? Could she work?

flower_72

Hello sarf,
just wanted to say that you've come to the right place to get the situation sorted. Most of the people on here know first hand how debt can affect your health and keep you awake at night!

Like others have said, start by making a full list of all your outgoings and all of your debt. From that you will get a lot of practical help and advice.

Good luck with it all.

Debt_Free_Chick

Whilst I agree that you need a full budget, including your debts, you both need to get more income fast. There's no way that £1,000 a month is going to keep you if your mortgage eats up £800 of that. You must be running up more debt every single month, so you need to act quickly.

So - make a start on your budget, but also check out your benefit/tax credit entitlement.

Are you self-employed? What do you sell? Could you get another job to fit around your current one? Your wife needs to work - anything will do. If it's a rural area, what about cleaning, ironing etc? Lunchtime shifts in local bars/restaurants would fit around the lad's school-time.

Have you talked to your wife about this yet? She needs to know (as I've said many times before) .... there's no point in trying to manage a budget, keep a roof over your heads and put food on the table if she is in the dark and spending money like Imelda Marcos!

teacup_2

Hi just wanted to add my hubby was earning £23,000 last year and changed jobs and earns £17,000 , after tax £13,000 and a bit and we were struggling and then someone told me to apply for tax credits and they have awarded me £226. a month based on hubby working , me not and 2 children, it would be more but we owe them some money from receiving too much once. I applied at beginning of week and 5 days later I received all the details. Get on to it, you will be the same as my hubby maybe and perhaps earnt more at the beginning of the tax year, but dont worry they will work it out. Get a pack asap.
Not sure if you have told your wife or not, but I urge you to do so. I would not like to think my husband would keep this away from me , so not to worry me( I know you are being kind in doing so ). You can both tackle it together

Also dont spend anymore their is nothing worse than being in debt , but you can stop being a pound more in debt, now this minute.

We have had students as a host family for £100. a week , not ideal but a help

You will have to budget really carefully, keep a spending diary too

HairyHandofDartmoor

You can't lose your house because of credit card debts, as these are unsecured. So pay your mortgage first, utilities and council tax next, then food for your family. After that pay your credit cards if you have anything left over.

Give us a full statement of affairs as you will get much more detailed advice then.

fiveyearplan

I think you should put your wife in the picture after all this will affect her too and she may be able to help. Also you shouldn't have to go through this on your own. Good luck!

sarf_london_guy

Thank you all for your kind advice and your time, I really appreciate it.
I will be getting my soa together as soon as possible along with more information. I will try to submit this tomorrow there’s so much advice on this site it’s taking me ages to digest. My wife is not totally in the dark, she knows I have problems.
I have been busy looking for work for myself & may take time to reply to you all.
Thank you very much I can’t believe how helpful people are on this site regarding my dets. I have been suffering with depression because of my dets and after reading your replies its has made me fill better. Thank you all. I will be back.

mouseclick

sarf_london_guy is a good mate of mine, I have known him abut 10 years or more. I suggested he joined this, well done SLG!!

When I was young, I went silly on credit cards in the 1980s and know the horrible feeling of being in debt, although I was only renting at the time and had no family. But the APR then was 20%, and my monthly interest was staggering.

Nowadays I am still single, and I am a credit card tart, I owe around £20k on cards but the interest rate I pay is 3.9% / 4.9% for life, and if I paid anything off it would be the mortgage. I first saw MSE about 2 years ago, and realised that the advice given in here was the same as what I took years to work out so I would have no hesitation in recommending this place to people. If every I need advice, I will ask here.

Good luck, sarf london guy. Give me a phone if you need a hand with doing the figures. I won't comment much, will leave it all to you to explain. I think you are in good hands here.

Dumb_Blonde_3

Morning Sarf London Guy,

Just a few things ...... is it a three bedroom house? if so rent out the third spare room - you can do this without being taxed on it. Also you don't mention if your wife works - would she mind getting a part time job to help out?

Will have a look in again once you have posted your SOA

sarf_london_guy

OK here it is

SOA

I have just joined garlic.com (credit Report)

I have a credit rating of 850 4 stars I was surprised it was that high
Surly I could do something with this to help ?

What Debts I owe

Mortgage
Abbey started in Jan 07 2 years contract
Balance £177.998 monthly payments of £798.93 going up to 800 & something because of interest rise


Personal Lone

Northern Rock
Currently Owe £19.146.70 APR 5.7%
5.7% Monthly payments 178.10

Secured Loan on property

Nemo Personal Finance
Started on 1st June 2007
Balance £35,395 Monthly payments £431.82 APR 13.672%
I used this to pay of credit cards & debts

Credit Cards
HFC Bank Beneficial £-297 in credit ( I am using this credit to pay utility bills)
Credit Limit £1.250

MBNA Europe Bank TSB Credit card
Balance £3,921.69 Available £1,978 APR 14%

Citigroup Citi Credit Card
Balance £945.75 Credit Limit £1,550.00 APR 27.9%

The Co-operative Bank Smile visa gold
£1922.81 available credit £527.00 APR 11.9%

Banks Accounts
Abbey
Balance £20.00 bank charges don’t know why as stopped using them because of bank charges & started the ball rolling by sending £10.00 & getting a report but need to work it out as they sent me 6 years of statements & need to try & work out how much they have taken from me.
But not shore what to as I read there’s a test case going on and it looks like banks are trying to get out of it I don’t know if I should carry on ? or what to do next.

First Direct Bank (Main Bank)
Over drawn £300 limit £500 overdraft

Smile Bank
£10.99 in credit no over draft

( UPDATED 30th Aug )

Income:
Tax Credit about £70.00 a week.
This is spent on weekly shopping & other bits.

Telephone bills £15 a month “business Telephone & internet is paid by my company.

Gas £105 Qtr
Electric £140 Qtr
Council Tax £110.00 Month “behind 3 months”
Walter £550.00 a year not paid yet .
Car tax runs out today £190
MOT runs out today £60 I think .
Car insurance full com £400 due December.
Petrol £40 to £60 a month do not travel to work as work from home.
With the new job, I will get picked up for work then will have company van In a month hopefully.

Most of the family needs are taken out of family tax & also my wife runs a catalogue I think there’s a balance of about £500 that my wife pays.

Smoking we drive to begum to buy cigarettes.
I smoke tobacco in the shops there over 10 per pack I pay £2.90
Wife Cigs £28 for 200







My Online retail Business at the moment is paying me £1,000 a month this is profit

Month that my wife manages 4 hours a day

I have automated my business so my wife can run in her spear time. My business sales has dropped in sales as its seasonal we sell adult toys but don’t want to mention name of business
Also as times are getting harder I think people are spending less money.