what would you do?

hyoerruby

Hi all, was wondering if you could give me advice on what I should do! I'll keep it as short and waffle free as I can. I'm begging for advice guidance!

-got interest only mortgage with Ulster Bank Oct 2007 for £152,000
-9 years on have lost job twice had two mortgage holidays - £3000 in mortgage payment arrears
-still on same mortgage term and interest only
- I'm 41 prospects looking much better and have my own business - income OK but will increase with more new customers
- house is in negative equity worth approx £100 - 110k

Pros - Finances better and like the area I live in
Cons - I'm 41 with £152,000 mortgage to pay in 21 years time.

Should I dig on and try and get myself out of this mess or hand the keys in?

thanks all x

John

Thrugelmir

hyoerruby wrote: »

Should I dig on and try and get myself out of this mess or hand the keys in?

What's the alternative for you. Renting? How would this compare to chipping away at the debt.

MacMickster

How would handing back the keys help? You would still owe the additional money. You would do further damage to your credit history which may impact on your business. You would need to pay for somewhere else to live.

muhandis

The first question to ask yourself is - given your (realistic) income, living expenses and outgoings to service debt, do you think you are in a debt crisis? I personally would define that as not being able to make the minimum payments to service the debt I owe and maintain minimum living standards, pay utility bills on time, etc.

If you do think that you're struggling, then you should get advice from an appropriate source who can look at your entire circumstances and suggest a way forward. This article by Martin should be a good starting point http://www.moneysavingexpert.com/loans/debt-help-plan There is no point in slogging away if all that does is delay the inevitable or worse you fall further and further behind throwing good money after bad.

If you don't then you should hunker down and do your best to chip away at the capital by making regular overpayments, however small they may be.

I sincerely hope things get better for you, but at the moment, given the way things are, I would be very conservative when estimating future income.

hyoerruby wrote: »

Should I dig on and try and get myself out of this mess or hand the keys in?

thanks all x

John

csgohan4

what is your income?