Will I lose my home?

fatbelly

AdmittingDefeat said:

Posted in mortgages but been redirected here. 

I think that was me - I saw your post though I'm not normally on that forum.

The help that gets given by the regular posters here is exceptional - and I say that as an adviser working for Citizens Advice

I've subscribed to this thread now

EssexHebridean

Stop, take a breath. Sometimes the hardest thing is admitting there is a problem and asking for help - and you've done that bit now, so that's already a huge step forwards.

Great advice given already - especially about prioritising of payments - that's important. 

Sit down and get the SOA prepared and post that in here - then more suggestions can be made. 

AdmittingDefeat

Thanks for advice so far. SOA- will need some time to sit down and sort that so it’s as accurate as possible.

To give more info, we are in shared ownership, so mortgage (40%) and rent (60%). I did wonder about contacting the housing association that we pay the rent to, as well as mortgage provider, to see what support they could offer. Little one will receive the 30 ‘free’ hours in January 2025, but if the recent childcare announcements come to fruition (which I highly doubt with this government) then he should be eligible for 15 hours next April. 

Recently consolidated 3 credit cards and a loan into 1 larger loan which has almost halved my monthly payments, with the aim of building up an emergency fund before mortgage increases.

stymied

Please say you then cut up the credit cards so you don’t leave yourself at risk of re-spending on them?

AdmittingDefeat

I am keeping one in case of emergencies and plan to close the accounts of the other two. 

Sarah1Mitty2

Start cutting back on everything that can be cut back on, start saving into the highest rate savings account you can find, meaning you have money make overpayments or just to cover interest rate rises next year.

RAS

The idea of an emergency fund is that you don't need to use credit cards.

Start by reducing your limit on the remaining card, freeze it (so it really becomes a pain to use) and as the emergency fund increases, reduce the limit. Then close.

kimwp

AdmittingDefeat said:

Thanks for advice so far. SOA- will need some time to sit down and sort that so it’s as accurate as possible.

To give more info, we are in shared ownership, so mortgage (40%) and rent (60%). I did wonder about contacting the housing association that we pay the rent to, as well as mortgage provider, to see what support they could offer. Little one will receive the 30 ‘free’ hours in January 2025, but if the recent childcare announcements come to fruition (which I highly doubt with this government) then he should be eligible for 15 hours next April. 

Recently consolidated 3 credit cards and a loan into 1 larger loan which has almost halved my monthly payments, with the aim of building up an emergency fund before mortgage increases.

You seem to have lots of the right thinking to be able to navigate this - you are solving the issue a year ahead and you want to get your SOA accurate. I have every confidence that with a little bit of help from us, you'll be on a good path very soon, so try not to worry.

To get your SOA accurate, the easiest way is to look at the last 12 months of statements - this will show you any annual payments that you make. 

Emmia

AdmittingDefeat said:

I am keeping one in case of emergencies and plan to close the accounts of the other two. 

Plan to close.. 

Please close them ASAP. Closing reduces temptation, and removes a route by which your debt situation can become a more significant problem.

Has the loan made the balances on these cards zero?

AdmittingDefeat

Emmia said:

AdmittingDefeat said:

I am keeping one in case of emergencies and plan to close the accounts of the other two. 

Plan to close.. 

Please close them ASAP. Closing reduces temptation, and removes a route by which your debt situation can become a more significant problem.

Has the loan made the balances on these cards zero?

The balance is now zero. I work long hours but on my next day off I will ring the other credit two cards (they were balance transfer cards where the rate has ended, I never actually bought anything with them) and close them.