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

imoneyop

sarf_london_guy wrote: »

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%

The APR on the Citigroup CC is awful - why not Balance Transfer it onto one of the other cards with a lower APR?

mouseclick

imoneyop wrote: »

The APR on the Citigroup CC is awful - why not Balance Transfer it onto one of the other cards with a lower APR?

As your Garlik score seems reasonable, I presume you can still get credit cards. What about a smart search at moneysupermarket for a low balance transfer rate credit card while your credit rating is still good? Maybe get one with a low lifetime balance rather than a 0% for 6 months, just in case things are not looking so good in six months time? M&S for example to lifetime transfers of 5.9%. None of the cards you have look good rates.

I presume your earnings - when you apply - would be based upon your most recent accounts?

Are there any penalty clauses for early repayment of the Nero loan?

PS - others feel free to tear me apart if I am going along the wrong tracks,
I do not have much previous experience of good advice in this area, its just my observations that's all

rayday2

I really can't see much card swopping working there just is so much going out a month and thats without normal living costs.

All you actually owe totalled together is 246,219.95 which is more than the house is worth. I am at a loss as what to suggest. Have you thought about selling and having a complete area change you can take your online business with you anywhere.

imoneyop

sarf_london_guy wrote: »

I used this to pay of credit cards and car lone.

Just noticed the above - if you do decide to BT some of your credit card debt then make sure that you cancel the cards you transfer from. It looks like you've consolidated before and then put money back on the cards.

Sarahsaver

The secured loan is the scariest one to me. Can you get that debt moved onto something else at a lower rate? I have never paid more than 7% interest for any debt. What you would need is something which offers a low rate for life then you do not have to make so many apps. In my experience bank overdrafts unused are best cancelled as they are an evil temptation whispering 'use me I am here'. Proceed with caution as a lot of aplications for loans, CC's etc leave a footprint on your credit report.
Even if you have the business selling stuff (u r ok with your taxes I assume;)I would suggest the tax credits need to be looked into ASAP. Your wife could still work at other times like evenings or weekends.
Start witht he basics I know you are protecting your wife but If it were me I would appreciate you laying your cards on the table.
No new clothes, holidays, takeaways, cancel sky if you have it, and so on and so on. Can you get a cheaper car? Water meter? Imagine what you would need to just survive and work your way up from that.
I wish you good luck and hope everyone here can help you.

Storm

I've calculated your mortgage, loans & cc minimums to be about £1744 per month - this is before council tax, utility bills, food, clothes etc.

I'm a bit confused by your income though - when you say it had dropped to £1000 a month is this what's coming from your own business rather than a salaried job? Is this what your wife is going to be taking over for you?

You need to sit down with your wife & get a complete idea of tax credit & child benefit that you've got coming in - £70 a week means about £240 a month coming in TC's, but there will be CB too.

With the Abbey bank charges - yes, there is a test case going on, and the banks have permission to hold off settling claims at the moment, but go through the statements and get everything ready to go - you can send it to Abbey so when the test case is over they'll be ready to roll with it.

A_Nice_Englishman

One further thought for you and for those working out budgets for you. I assume you are self-employed as far as the online business is concerned? If so, don't forget that you will have to pay your tax in January.

mouseclick

rayday2 wrote: »

I really can't see much card swopping working there just is so much going out a month and thats without normal living costs.

But surely it is better to transfer debt from a higher interest to a lower interest wherever possible, regardless of the circumstances. It is an instant saving with beneficial long term effects, it's easy to do (fill out a form) and costs nothing to set up, so why not try?

rayday2

Because I think without a huge increase in incoming they could loose the house or maybe have to consider bankrupcy. But I have never experienced either.

The main problem is the cost of the amount of secured debt so even if you do swop a card it does not alter the status of secured debt.

mouseclick

rayday2 wrote: »

Because I think without a huge increase in incoming they could loose the house or maybe have to consider bankrupcy. But I have never experienced either.

The main problem is the cost of the amount of secured debt so even if you do swop a card it does not alter the status of secured debt.

5 new credit cards, pay off the secured loan with balance transfers from the cards?

If possible, should reduce interest rate by at least 4% and take away the risk of repossession.

His credit rating is currently very good, so he may as well take advantage of this. In the meantime he can take steps to boost his income. He has plently of time on his hands, and he has some good ideas (know cos I spoke to him).