help i'm new will sorting debts affect renew of mortage?

rayday2

Moneysupermarket again could help with finding cheaper insurances I used them for a joint critical illness life assurance and we pay £67 for our mortgage protection which covers redunancy it is £8.

We had to go for critical illness as we have no family close by so if the worst happened we would need to give up work to care for each other.

climbgirl

charliemouse wrote: »

don't feel like i'm getting any further ahead as to what step to take next....how do most people go about dealing with their debts? is it through CAB etc?

They start by reducing their outgoings. Paying off debt is essentially very simple - you need to do two things. Reduce your outgoings to the absolute bare minimum to free up as much money to pay the debts off. And increase your incomings. You mentioned the dogs were stud dogs - how much money do you earn from this? Can it be increased? Start selling things on ebay, everything that you don't use can go. You need to start thinking creatively on how to cut back and do without and how to make some extra money.

You can go to CAB or Payplan or CCCS but they're going to tell you the some things we will. Reduce your outgoings and maximise income. They can offer you debt management plans (DMPs) and things like IVA or bankruptcy. But these will all ruin your credit rating (meaning a remortgage is out of the question) and things like IVAs and bankruptcy will take your assets (including the house) into account.

Personally, I don't think you need to go down this road yet. I think you have a LOT of overspending in your budget that can be cut drastically and which will free up a lot of money to pay back these debts. You will need to be disciplined about this though. Stop wasting money and consider every single penny you spend.

Wannabesaver_4

hi - your critical illness cover HAS to go - we had it and were paying around the same amount as you - its a waste of money!

Regarding CAB vs CCCS - i went through the CCCS and it was the best thing i ever did - give them a call now - you have nothing to lose. They will help you with all your questions and are completely non judgemental.

I think people are helping you save money as its something you can start now. i know its hard to hear about the dogs etc but its worth thinking about if you want to really get your debt down and because that and Diesel are your biggest financial outlays on your SOA.

I know it can be hard to open up to the thought of changing your life but you have taken the first step! Welldone!!!

rayday2

I think the CAB and CCCS will say the dogs is to big an expense for credit companies to accept, and you cannot cut back on food for humans for food for dogs, could you sell two of the dogs if they are known in studding market and keep one? Its a compromise. On a different note three dogs in a house with a newborn is going to be challenging, one labrador was years ago.

charliemouse

Lizalu wrote: »

I think people are trying to help you save money - so that this can be used to throw at your debts.
Re life insurance critical illnes etc. My boyfriend is also self-employed but pays a lot less than this - think it's more like £90.

this figure is for 2 people so your £90 x 2 would be near to the figue that i have quoted for us (£200). We had this looked at 2 years ago by a finacial adviser when we renewed our last mortage & all the cover reduced as much as possible down to basic policies.... unfortunatly It is a clause on our mortage that we have to have life insurance etc... but i will get the finacial adviser to look at this again when we do the mortage.

rayday2

Try searching yourself on money supermarket your financial advisor will work with certain companies that give the best comission to him! Sorry its true worked in an estate agents and we had our advisor and even if they are whole of market they lean towards what pays there mortgage!

charliemouse

rayday2 wrote: »

I did mine through the national debt helpline and worked it out on my own. I didnt fancy going to CAB ours you have to queue up all morning. A lot on here use CCCS and Payplan I think you can sort CCCS out on line if you dont want to talk to anyone but they are there over the phone too.

Someone else will be better placed to say how they deal with things. I downloaded the information pack from national debthelpline and took it from there really.

Sorry can't help much more

this is a great help... i will look into this over the weekend

rayday2

Well good luck and if anything is not clear I will try to help mine was over a year ago and I have suspended interest, remember if this is of interest you must open a neutral bank account from any creditors you owe too.

It is easier than it sounds but its hard in the respect that you have to save for everything no cards to fall back onto and budgeting becomes a huge necessity if you want to eat for a month lol!

climbgirl

charliemouse wrote: »

this figure is for 2 people so your £90 x 2 would be near to the figue that i have quoted for us (£200). We had this looked at 2 years ago by a finacial adviser when we renewed our last mortage & all the cover reduced as much as possible down to basic policies.... unfortunatly It is a clause on our mortage that we have to have life insurance etc... but i will get the finacial adviser to look at this again when we do the mortage.

I know these are essential to some mortgages but I've never come across anyone on these boards who is paying this much money for these types of insurance. Not even close.

Rayday is right - the people who recommend them will be looking out for their own commission, not for your interests.

Get on some of the switching sites and make sure you're getting the best deal.

Wannabesaver_4

life insurance might be neccesary but critical illness and umeployment are not. i woudl bet anything that the critical illness is what is doing it - when we realised and did away with that we save about £140 a month!!!!!!