Help! Help! Help!

gooner_pete

The crunch has finally happened. I have now no money left after all debts are paid from my monthly income. My only hope is to sell my house in the Spring and pay off all debts. Although, I would rather not.

Here is my grisly outgoings:

Mortgage 1 - 551 - amount remaining in this mortgage 102000 - house valued at 180,000

Mortgage 2 - 300 - amount remaining in this mortgage 26000 - house valued at 205,000 (this the house my mum lives in and can't be sold)

Loan 1 - 290 - amount remaining in this loan 25000

Loan 2 - 125 - amount remaining in this loan 14000

Loan 3 - 73 - amount remaining in this loan 2000

Loan 4 - 90 - amount remaining in this loan 900

Credit Card - 160 - amount in debt - 3000

Rates bills - total of 100 for both properties

Income: 1760
Outgoings: 1689

Which leaves a total of: £71

I applied for and was turned down for homeowner loan of 46000 over 25 years from a loans company to get solvent again.

All advice greatly appreciated - although I do believe I will have to sell my own house to clear all this.

Thanks

Paul.

southernscouser

Hi Paul.

I'm really sorry to hear you're a gooner.

First things first, why are you paying for your mums house? :undecided Does she contribute anything to this?

Secondly, how do you pay for food, petrol, travelling expenses, clothes, haircuts etc?

Are any of the loans secured to the properties?

First thing in the morning I'd phone these guys for some advice. They are a registered charity and their services are 100% free.

gooner_pete

Thanks SouthernScouser - I've just completed their online form and will call them on Monday.

The lines aren't open on weekends.

In answer to your questions: my mum is a pensioner, so I can't very well ask her for money.

And to your second question: I've been running down the credit card trying to get by.

Paul

gooner_pete

Oops - forgot to add - NONE of the loans are secured on properties.

Thanks for your reply,

Paul.

Mrs_Sparkle

Welcome to the board! Is there any way you'd consider selling your house and moving in with your mum for a while? This would release about £80K which would still net you £70K+ profit after legal and estate agent fees.

immoral_angeluk

I agree with Mrs Sparkle.. you're paying for 2 houses but living in one and it's crippling you!

Mrs_Sparkle

Or... rent your house out and move in with your mum. You can't carry on paying for 2 houses or you'll get deeper into debt, although I totally understand why you're helping your mum.

gooner_pete

Imoral_angeluk and Mrs Sparkle - thank you for you advice.

I've decided to sell, and use the profit to clear all debts inclusing my Mum's house.

I will not move in - bit rather rent.

However, I'm in a pickle at the moment in that I'm barely able to get by each month and the housing market here in NI is flat at the moment.

I've been told that it will pick up in March - but that's a good few months away.

Any ideas on how to survive until then?

Thanks

Paul.

Mrs_Sparkle

OK, sorry, I've just reread your first post and you did say that you were planning to sell- sorry!

Do you have a spare room that you could rent to a lodger? Do you have anything you don't use that could be sold? CDs, books etc for Amazon, unwanted gifts, clothes etc for eBay? Do you have any spare time in the evenings or weekends, could you take on a bar job or cleaning? Are you registered on quidco, pigsback, topcashback etc? Mystery shopping too-it's not much but it all helps.

bathgatebuyer

The lodger idea is a god one if you have a spare room. I did it for a year and shared with a guy who paid me £300 a month for a 8 x 10 room. It saved my bacon and staved off debt collectors while I faced a pretty big loss in income after being made redundant.

If you have the room, by all means consider it as it would effectively pay off your credit card or loans 3 and 4 within 12 months.

Jules

I know you have decided to sell, but the CCCS are a good first point of contact in the meantime. I was in a similar position to you in 2004 and thought my only option was to sell the house, but thanks to the CCCS I still have my house and my sanity.

The housing market is very slow here in N.I at the mo, my neighbour has had her house up for nearly a year and not a nibble and its by no means an expensive house so get on the ball with your budget and go from there.

I would redo your budget leaving off the unsecured debt and from that work out what you can afford to pay them not what they want, make sure you put on all your day to day expenses including food and travel etc. There is a sticky at the top of this forum that will help you with this as will the CCCS but it does no harm to get a head start.

The lodger idea is a good one I have done it and although its weird sharing your house, once the regular rent starts coming in the weirdness wears off.

What about a part-time job? Not the best time of the year to be looking for one, but there are jobs out there and every wee bit helps.

Good luck and keep posting.
Jules