Cash Poor but Asset Rich

Mark_Galvin

Hi there,

I find myself unemployed for longer than expected and have run out of cash. 
This means that I am behind on payments for my mortgage and other unsecured credit.

I have a large amount of equity in my house (about 75% of the value) and if I can access a relatively small amount, then I can get up to date on all my debts and have some money for a cushion to make all my required payments until I am employed again.

When I am employed, I earn a good wage so any additional payments will be easily managed.

Do I have any options available to me?

Thanks

Mark

retiredbanker1

To be honest here you are unemployed so who will lend to you - how can you afford to repay?
Perhaps take any job going if only temporarily to get funds in and/or check that you are claiming all benefits that you qualify for,

IMO forget borrowing your way out of debt - it will never work.

Talk to your mortgage lender ask for a mortgage holiday or perhaps a temporary change to interest only - if you ring them they will help you.

Good luck.

enthusiasticsaver

You won’t get a loan if you are unemployed and no bank will lend on the grounds that you will earn a lot when and if you get another job. You may have to take a lower paid job in the meantime. 

The equity you have only matters if you intend to sell and realise it.

What I would do is speak to your mortgage lender and other debtors. Prioritise the mortgage and lenders have to help by extending the term or letting you move to interest only in the interim. Do you have income protection insurance and are you claiming benefits?