Feeling sick and worried about what to do!

bumblebee181

Hi

I've been a long time lurker on here, reading threads for advice but feeling so much anxiety about making a decision on my situation. I've had a call with a mortgage broker as my mortgage is due to renew in October 2025.

My situation - debts have build up due to a combination of circumstances I have been rennovating my house, so spent a lot on 0% cards which have now all started charging interest and then also impulsive spending (I have recently been diagnsoed as having ADHD and awaiting treatment) and poor mental health where I've bought things to make me feel better and poor financial planning skills.

I feel so much shame I'm in this situation and feel so paraylsed on what to do. I also have tried to live like I did before owning a house, I've gone out and done trips etc and not lived 100% frugally, so I recognise some of this is on me. 

The debts are 30k approx then I've paid off 20k off my mortgage, so wondering if I should try and consolidate some of them onto that to open up more balance transfer offers, I'm earning 38.7k.

The other option as I understand it, would be to 

a) stop paying all the credit cards and build up a savings pot. 

b) contact Step change and they will contact creditors. I think there is a case for unaffordability complaints as I kept being lent more and more on credit cards when I was also paying back loans.

c) push for the broker to ask about the consolidation option and free up some of my CC payments to  get them all cleared.

My main concern is I don't want this to affect my mortgage at all, one of the credit cards is with Halifax who my mortgage is with so I'm worried about that. Also worried about AMEX as I've heard they can be difficult. 

I'm really grateful for any advice and kind words I feel like a complete failure right now.

Grumpelstiltskin

You are not a failure, life happens.

Why are you not considering just going with Halifax for another mortgage deal?

The worse thing you can do is move unsecured debt on to secured debt - your mortgage so please stop thinking about that.

Give it another coupe of months then log into Halifax and see what they will offer you, there is no credit check if you are just renewing your mortgage.

Have you read through this thread?

In Debt and Wannabe Debt Free? first Steps to take are here, please read, then ask questions. — MoneySavingExpert Forum

When you can complete a honest and full SOA format for MSE and copy and paste on here, then when we can see the full picture we can give you the best advice.

bumblebee181

Thank you, I don't know I'm just in a mess not thinking straight, with all the CC payments, I'm worried I'll be in a vicious cycle once the mortgage goes up by £250 in the autumn. I'll take a look at the thread you shared, and complete a SOA too. 

Grumpelstiltskin

A lot of things can happen before autumn, mortgage rates could go down, no one knows so don't fixate on your mortgage just try and complete a SOA so we can help you.

bumblebee181

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 1

Number of children in household......... 0

Number of cars owned.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 2515

Partners monthly income after tax....... 0

Benefits................................ 0

Other income............................ 0[b]

Total monthly income.................... 2515[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 590 (THIS WILL GO UP AS BEEN ON A LOWER RATE) 

Secured/HP loan repayments.............. 32 (COFFEE MACHINE)

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 100

Electricity............................. 60

Gas..................................... 0

Oil..................................... 60

Water rates............................. 33

Telephone (land line)................... 0

Mobile phone............................ 48

TV Licence.............................. 0

Satellite/Cable TV...................... 0

Internet Services....................... 32

Groceries etc. ......................... 200

Clothing................................ 50

Petrol/diesel........................... 50

Road tax................................ 2

Car Insurance........................... 45

Car maintenance (including MOT)......... 10

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 80

Buildings insurance..................... 14

Contents insurance...................... 14

Life assurance ......................... 0

Other insurance......................... 6

Presents (birthday, christmas etc)...... 50

Haircuts................................ 20

Entertainment........................... 50

Holiday................................. 20

Emergency fund.......................... 20[b]

Total monthly expenses.................. 1586[/b]

[b]

Assets[/b]

Cash.................................... 200

House value (Gross)..................... 295000

Shares and bonds........................ 0

Car(s).................................. 4000

Other assets............................ 2500[b] (I have an item I could sell)

Total Assets............................ 301700[/b]

[b]

Secured & HP Debts[/b]

Description....................Debt......Monthly...APR

Mortgage...................... 145000...(590)......1.68

Hire Purchase (HP) debt ...... 559......(32).......16.9[b]

Total secured & HP debts...... 145559....-.........-   [/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

HSBC...........................5980......156.......25.9

Tesco..........................4880......193.......24.9

Virgin Money ..................4175......120.......23.9

Marbles........................870.......20........44.6

Barclaycard ...................1150......20........23.4

Kroo Overdrraft................930.......20........24.9

Aqua...........................2000......36.9......140

Paypal Credit..................2240......83........23.9

Halifax........................2920......142.......28.9

John Lewis.....................3195......130.......37.1

AMEX...........................3290......136.......35.2[b]

Total unsecured debts..........31630.....1056.9....-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 2,515

Expenses (including HP & secured debts). 1,586

Available for debt repayments........... 929

Monthly UNsecured debt repayments....... 1,056.9[b]

Amount short for making debt repayments. -127.9[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 301,700

Total HP & Secured debt................. -145,559

Total Unsecured debt.................... -31,630[b]

Net Assets.............................. 124,511[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

bumblebee181

I feel like I've buried my head in the sand a bit and seeing it all listed like this is a lot. would be grateful for any advice! 

Grumpelstiltskin

OK So you are not far off being able to pay.

Some questions Coffee Machine secured? surely not secured on your mortgage.

Clothing £50 monthly, honestly for a while it should be vital items only and bought as cheaply as possible.

Pet £80 any way to buy food etc. cheaper?

Medical, you never have a prescription, dentist appointment?

Parking you never pay to park your car?

Presents £50, you need to cut that back, everyone is feeling the pinch at the moment so expensive present should be out.

Holiday £20, you are not showing any savings is the holiday booked?

Worst of all no emergency fund, that is vital because if you are serious about this no spending on any credit card from now on and what happens if your fridge freezer breaks down the same week as your car fails it's MOT?

You have to realize to sort this out you have to have a complete change of mindset, realize you are in control not your creditors but also realize you have to completely change the way you spend.

bumblebee181

Coffee machine not secured, no

I have an item of jewelry I can sell and wondering about doing this so I can have a buffer

I know I can definately cut down on clothing and presents - I've previsoly overspent in these categories and have some selling I can do of clothing to make things up.

Holiday is for general trips out, I did have about £80 but then used that on a boiler service I had to sort recently. 

The pets spend is difficult, but I could check for offer deals on food but the insurances I'm often checking the market at renewal.

I do need to review the parking, I find it hard to estimate when I don't often pay to park but maybe 10. I stopped going to the dentist to cut back and atm waiting for meds for ADHD treatment which hasn't yet started.

I put details in StepChange and they are saying a DMP would be 1000 p/m but then if my mortgage increases a lot I guess I'll have to cut that back. I haven't missed any payments yet but I feel I'm one emergency away from that all the time! I agree, this is a huge wake up call for getting spending under control. 

bumblebee181

my credit cards have shot up because I was also paying back approx £15k in loans which I've now cleared but being offered credit rises as well, so I wonder if I would have an affordability complaint?

Grumpelstiltskin

Yes as you have realized you do need an emergency fund, in fact it is vital, and a boiler service isn't an emergency it comes round every year and should be saved for.

Be wary of selling jewellery, you can be ripped off and anyway it may not be worth as much as you hope secondhand.

If there is a proper jewellers near you who say they buy precious metal ask them, don't send it anywhere in the post, can easily get 'lost'

All your credit cards are high interest but you say you paid back loans , were the loans such high interest?

Affordability I don't know anything about but some people on here are expert, hopefully someone will be along to help you with that.

bumblebee181

yes, a huge shift for me is being better at sorting pots of money,  that's one bonus from this mess at least I'll have learnt how to be better with finances

one of the loans was around 16% interest debt consoldiation one, the one was less worrying a 4.2% car loan. 

thanks for your help! its made me feel much less alone in sorting this out.