In debt and scared.

paulindebt

I'm new to this....and scared. Recently our income has taken a battering. We've lost our Working family tax and my wifes wages have dropped due to her employer dropping her wages to the national minimum wage. This is a combined loss of £600 per month. We have CC debts of £22,000. We also have various loans of £18,000 outstanding. We are up to date with payments and not defaulted but the stress is starting to take its toll and I see the worry in my wifes eyes and I'm worried for her. Its only a matter of time before we start missing payments. We have a mortgage of £72,000 on a property worth £169,500 and have 12 years remaining. We enquired about getting a second mortgage to pay all these debts off and 0% balance transfer cards reducing the monthly repayments but we got declined. We have already worked our budget out and got better deals on our gas etc but we still fall short. Any advice would be really appreciated. Thank you.

MuffinTops

Hello Paul,

Are you able to put up a statement of affairs? Do you know what this is or do you need a link?

That will list out to everyone on the site what your incomings and outgoings are and from there it's much easier to help you.

Don't panic though. Lots of us have been through this, and we're all here to help and support and put forward our knowledge. You've got this!

MT

eskbanker

You have nearly £100K of equity in your house and a relatively low LTV, did your existing mortgage provider refuse to consider remortgaging? Ideally if you could increase your mortgage to circa £110K that would eradicate the unsecured debts, although its unclear if you'd be able to service a mortgage at that level?

Would selling up and downsizing be an option, albeit a fairly drastic one?

paulindebt

I'm not sure what that is. A link might be more helpful. Thankyou MuffinTops.

Pablosammy

paulindebt wrote: »

I'm not sure what that is. A link might be more helpful. Thankyou MuffinTops.

http://www.stoozing.com/calculator/soa.php

Once you're done, click the "Format results for discussion boards" MSE button and post it up. Remember, nobody knows who you are on here so don't be embarrassed, we're just here to give advice where we can.

MuffinTops

I believe this is the link to the SOA. Once you've filled it in you should be able to copy and paste it on here so that people can give you their advice on what to check etc.
http://www.stoozing.com/calculator/soa.php

I'm sure this is the correct link, but if anyone knows of a different link, perhaps they could correct me?

MT

paulindebt

Re eskbanker. I was a little surprised I couldn't get a remortgage as i've been with the same provider for 10 years. Never missed a payment and both my wife and I have decent credit scores. Whether I can get one through another provider I'm not sure but after shopping around the interest rates tend to be higher. I've never been in this situation before and its not knowing who to turn to for the best advice for my circumstances. I can only assume it because I'm at the top end of my credit limit on 2 of the credit cards maybe...

paulindebt

I'm unable to downsize as I have a 3 bedroom house and 3 children.

paulindebt

Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget SummaryAmount(£)Total monthly income2,670Monthly expenses (incl. HP & secured loans)1,953Available for debt repayments717UNsecured debt repayments936Amount short for making debt repayments-219
Personal Balance Sheet SummaryAmount(£)Total Assets (things you own)174,000Total Secured & HP Debt-87,000Total Unsecured Debt-32,272Net Assets54,728Household Information

Number of adults in household2Number of children in household3Number of cars owned1Income, Expense, Debt & Asset Details

IncomeAmount(£)Monthly income after tax1620Partners monthly income900Benefits150Other income0Total monthly income2670
ExpensesAmount(£)Mortgage530Secured/HP loan payments134Rent0Management charge (leasehold property)0Council tax125Electricity57Gas40Oil0Water Rates31Telephone (land line)45Mobile phone25TV Licence11Satellite/Cable TV0Internet services0Groceries etc.500Clothing50Petrol/diesel100Road tax14Car Insurance34Car maintenance (including MOT)30Car Parking0Other travel0Childcare/nursery0Other child related expenses0Medical (prescriptions, dentists, opticians etc.)45Pet Insurance/Vet bills0Buildings Insurance86Contents Insurance0Life Assurance26Other Insurance0Presents (birthday, christmas etc.)50Haircuts10Entertainment10Holiday0Emergency Fund0Total monthly expenses1953
Secured & HP Debt DescriptionDebt(£)Monthly(£)APR(%)Mortgage72000 (530) 0Secured Debt15000 (134)0Secured & HP Debt totals87000 - -
Unsecured Debt DescriptionDebt(£)Monthly(£)APR(%)credit card140002400credit card57001500credit card1886460catalogues30002750loan3526870loan36501270credit card510110Unsecured Debt totals32272936 -
Asset DescriptionValue (£)Cash0House Value (Gross)169500Shares and bonds0Car(s)4500Other assets (e.g. endowments, jewellery etc) 0Total Assets174000

paulindebt

Sorry its not allowing me to post a stoozing post as im a newbie and causing spamming

MuffinTops

paulindebt wrote: »

Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget SummaryAmount(£)
Total monthly income 2,670
Monthly expenses (incl. HP & secured loans) 1,953
Available for debt repayments 717
UNsecured debt repayments 936
Amount short for making debt repayments -219

Personal Balance Sheet SummaryAmount(£)
Total Assets (things you own) 174,000
Total Secured & HP Debt - 87,000
Total Unsecured Debt - 32,272
Net Assets 54,728

Household Information

Number of adults in household 2
Number of children in household 3
Number of cars owned 1

Income, Expense, Debt & Asset Details

IncomeAmount(£)
Monthly income after tax 1620
Partners monthly income 900
Benefits 150
Other income 0
Total monthly income 2670

ExpensesAmount(£)
Mortgage 530
Secured/HP loan payments 134
Rent 0
Management charge (leasehold property) 0
Council tax 125
Electricity 57
Gas 40
Oil 0
Water Rates 31
Telephone (land line) 45
Mobile phone 25
TV Licence 11
Satellite/Cable TV 0
Internet services 0
Groceries etc. 500
Clothing 50
Petrol/diesel 100
Road tax 14
Car Insurance 34
Car maintenance (including MOT) 30
Car Parking 0
Other travel 0
Childcare/nursery 0
Other child related expenses 0
Medical (prescriptions, dentists, opticians etc.) 45
Pet Insurance/Vet bills 0
Buildings Insurance 86
Contents Insurance 0
Life Assurance 26
Other Insurance 0
Presents (birthday, christmas etc.)50
Haircuts 10
Entertainment 10
Holiday 0
Emergency Fund 0
Total monthly expenses 1953

Secured & HP Debt DescriptionDebt(£)Monthly(£)APR(%)
Mortgage 72,000 (530) 0
Secured Debt 15,000 (134) 0
Secured & HP Debt totals 87,000 - -

Unsecured Debt DescriptionDebt (£) Monthly(£) APR(%)
credit card 14,000 2400
credit card 5,700 1500
credit card 1,886 460
catalogues 3,000 2750
loan 3,526 870
loan 3,650 1270
credit card 510 110
Unsecured Debt totals 32,272 936-

Asset DescriptionValue (£)
Cash 0
House Value (Gross) 169,500
Shares and bonds 0
Car(s) 4,500
Other assets (e.g. endowments, jewellery etc) 0
Total Assets 174,000

Made that a bit easier to read, although not sure I put figures together correctly.