Help

pinkhelen_123

Hi, I've been a member for 3 year and have kept thinking finances would improve. Am totally ashamed of being in this situation but it's been ongoing for years. I'm now at the point that I can't sleep, my husband is suffering with low mood - my husband I are now at crisis point. Our outgoings are way more than our incomes. Tried last week asking our bank if they could help but we're not eligible to get better rates etc but they put us through to another company that may help. They could by giving a loan( mortgage) to consolidate our debts - £44,000 over 13 years with a £5000 fee included - totally repayable £90,000. I really don't want to do this but this week we wont be able to make some payments. We have two loans, an overdraft & five credit cards between us. We also have a mortgage, which we have previously remortgaged of £64,000 outstanding due to paid off in less than 6 years. I work full time on minimum wage & my husband is self-employed but business has decreased over recent years - he is usually quiet Dec - Mar and this year we haven't managed to save towards the quieter work time. We have been paying £2400 per month on our debts. Can't see a way out - any help would be greatly appreciated. Sorry for the rambling post. Thanks

theoretica

To give good advice we really need more information - have you worked out your full SOA and could you post it here?
link to it is:
http://www.stoozing.com/calculator/soa.php

Could your husband look to getting a seasonal job to help over the slow period?

sourcrates

Hi,

First, do not go for the consolidation loan, that would be foolish, as it's likely you would run up the same debts again, and end up in an even worse pickle.

You need to tackle the root cause of why your in debt first, so if you are unable to service your unsecured debts, you should cease all payments immediately, your mortgage, council tax, and other essential payments come first, debt repayments are bottom of the list.

Go to the stepchange website, have a good look at debt options, then possibly give them a call in the morning, to discuss things further.

There's always a way out of debt, just depends on your circumstances which option suits you best.

DCFC79

Reduce your outgoings.

You also need the willpower to get through it.

pinkhelen_123

Thanks, I did the link and it states a shortfall of £919 per month. i have in the past suggested other work - I haven't broached thus far - I'm trying to not put more pressure on him - he's usually an upbeat person & I'm the worrier but he's had a couple of low mood spells since July. Any ideas as to whether we may have any other options would be appreciated.

pinkhelen_123

Am so upset - the borrowing has gone on for years - family mostly. We've scrapped by because we've kept borrowing thinking that we were getting ourselves sorted - sadly not the case. Am grateful for the advice - Thanks

enthusiasticsaver

Unfortunately I feel you may have reached the tipping point at which you may have to consider options like a DMP or an IVA or even bankruptcy.

Do not go for the consolidation loan, it will not help you especially if it puts your home at risk. Also a £5k fee is extortionate. If you are unable to make minimum payments on all your debts each month I would suggest you contact stepchange and open a new bank account with no overdraft (a safe account). Posting an soa on here so people can advise on how you could cut back is also a good idea.

Priority debts are mortgage and secured loan, council tax and utilities. If you are unable to meet your unsecured debt payments this week then contact them and advise them of this. You will need to do an income and expenditure report and stepchange will advise further.

MrsTinks

That loan is nothing but pure profiteering. They are in essence securing unsecured debt against your property which is bad enough, but then charging you excessive rates and a huge fee on top! Nope!

You would be better off even with a charging order against you (not likely to happen!) as then interest would be frozen I believe and no £5000k fee! So - short term - post up the SOA for us so we can see if you missed anything. Then we can tell you what direction might be the best for you to look at. You may find that once you have a plan then your other half can see the light and not only cope with his possible change in employment but also the situation in general.

Having "low periods" is one thing. If he's actually skirting with depression and a mental health issue then you need to encourage him to see the GP. If he's "just" being a moody git then he needs to snap out of it and help, if he's ill (and it IS an illness and nothing to be ashamed of) then he needs the appropriate help and support to enable you both to cope with this.

Good luck

EssexHebridean

Exactly what others have said above - please PLEASE don't go for that loan - whoever is offering this is simply preying on your current vulnerability.

Get that SOA sorted - the situation may still be salvageable but you won't know until you get all th figures in one place and analyse what if any savings can be made.

Sourcrates makes a very good point regarding prioritising what you pay - you MUST make sure you keep up with your priority payments.