In need of advice...

Tabbykatt

Hi everyone

Firstly let me say how fantastic everyone is on this board, helping out everyone else. It has been an inspiration to read!

Now then onto my problem...
I am classed as a single mum, on benefits, that has no debts and pays everything ontime etc etc. The problem is my fiance. He lives with his brother as my circumstances do not allow us to live together, but we were planning on buying a house together after he has cleared off his enormous debts he accumilated before he met me. All has been going well, I am a control freak with money (I think anyone who has experienced living on virtually nothing is!), and have been helping him curb his spending and paying off his most expensive debts first etc etc. Now here comes the stickler... I have recently found out I am pregnant and expecting early next year.

We so want to be living together and married when the baby gets here but that would mean me coming off of benefits and losing the small income that I do get. At the moment all of his money goes on his debts (he earns about £1800 per month), he has two credit cards with a total outstanding debt of £10k and he has a loan which ends next October which is £520 per month.
Can anyone give any advice as to how we could manage these debts along with house/food/bills AND 3 children? 6 months is not long to pay off 10k! I have suggested 0% transfers but he said that no-one would give him that kind of credit limit on a new card. As I have never had a credit card in my life I have no idea how they work or indeed if he is right?

All these money worries mixed with morning sickness is not good, believe me Oh how I wish I had a fairy godmother to give me a quick fix!
x

James240

hi Tabby kat Im not too sure how you should proceed, im my opinion perhaps a loan may be better but im sure there are other moneysavers on here that maybe able to suggest other ways. It may be best to post up yours and your Fiancee's outgoings and then money savers on here can have a break down of were the money goes.

Hang in there and im sure the great people on here will be able to help x

James

:T

Squiffy

First of all, congratulations on the pregnancy! :T

You need to break down your income and outgoings. If you really can't make them match, then some sort of restructuring of the debt repayments might be best.

For instance, a loan of £520pcm until next October probably means that about £8k is outstanding? This isn't beyond what you could possibly get with a 0% offer from a credit card.

If the monthly outgoings vs income is really a problem, you could look at renegotiating the loan over a longer term?

rcosgrove

Hello,

Congrats on the new baby Kat.

I'm not a debt expert, except that I used to be heavily in it, so take my advice as you will.

First thing, your and your fiance need to work out a new - realistic - budget for when you are living together with the new baby. Someone here is bound to help, but you could also contact your local Citizens' Advice Bureau (https://www.adviceguide.org.uk) and National Debtline for help with this (https://www.nationaldebtline.com).

Once you've done this, have your fiance contact all his creditors and explain the situation to them, and then offer to pay back as much as you can during this period. Again, CAB and Debtline can provide you with information on how to do this. Creditors want their money back, but they will be willing to spread the payments out over a longer period, rather than demand it now and risk not getting anything.

Bad news is this'll probably mean any spare cash you both have will have to go to the creditors.

If you are planning on marrying or living together, I think you should get some expert financial advice to find out if you will be better off financially if you marry (take into account benefits, tax breaks, rent/mortgage payments, utilities etc)? Will you be liable for your fiance's debts?

As for the 0% transfers, personally I'd try and apply. So long as your fiance has been making credit card payments and loan repayments on time, his credit rating should be OK. But as soon as you get the cards, I'd make him cut them up.

I know nothing about mortgages, except they're expensive loans, so these ideas may be impossible or even illegal: but if you're buying a house is there any chance you could use part of the mortgage to pay off part or all of your man's debts? (Like adding a few grand onto the mortgage, or get a mortgage with a cash back offer and use that to pay back the credit card companies?) Like I said, probably impossible or illegal.

- Richard

debtbuster2K5

rcosgrove wrote:

I know nothing about mortgages, except they're expensive loans, so these ideas may be impossible or even illegal: but if you're buying a house is there any chance you could use part of the mortgage to pay off part or all of your man's debts? (Like adding a few grand onto the mortgage, or get a mortgage with a cash back offer and use that to pay back the credit card companies?) Like I said, probably impossible or illegal.

Hi,

Probably not the best idea to put you loans or cards onto the mortgage as you will be swapping unsecured debt to debt that would be secured against your home.

You will also pay far more in the long run, as it will accumalate interest for the term of the mortgage.(20-25 Years).

Fantastic news about the baby though..

Regards

margaretclare

Hi Richard

No, she won't be responsible for her fiance's debts whether she marries him or whether she doesn't. So long as it's all in his name and none of it in joint names, she's not responsible.

Aunty Margaret

Tabbykatt

Many thanks for your advice.

Last night my partner and I sat down and did some serious thinking/working out.
We have decided to go for a re-financing option therefore lower monthly payments leaving to more excess cash to save towards a deposit. If our maths are right we should have at least 10k saved by the time the baby gets here which will be a healthy deposit for a house and also as mortgage companies will not give you a mortgage unless all your outgoings (incl the new mortgage) are under 60% of your income, the payments we have decided on for the un-secured loan easily fits into this. It has all been agreed (luckily my partner has a fantastic credit rating!) and we should have the cash in about 5 days. I know that it will take us longer to pay off but there was no way that we could have lived with that amount of debt AND a large family, we now have a chance to have a fresh start.

Now its the time to buckle down to a strict budget and to hide those credit cards. Its amazing how the responsibility of becoming a parent really focuses a mans mind :-)

Going to spend alot of time looking through these boards for advice esp. as we have a a wedding to plan now, and its going to be a MSE masterpiece

Squiffy

Well done. Sounds like you have things well in hand.

Good luck with your pregnancy and wedding. Remember to keep us all updated on your progress.

abc

rcosgrove wrote:

I know nothing about mortgages, except they're expensive loans, so these ideas may be impossible or even illegal: but if you're buying a house is there any chance you could use part of the mortgage to pay off part or all of your man's debts? (Like adding a few grand onto the mortgage, or get a mortgage with a cash back offer and use that to pay back the credit card companies?) Like I said, probably impossible or illegal.

- Richard

Mortgage Express have a Max 130 mortgage that will lend 130% of the value of the property.

http://www.mortgage-express.co.uk

Northern Rock have a mortgage that will lend 125% of the value of the property.

http://www.northernrock.co.uk/mortgages/together.asp

debtbuster2K5

abc wrote:

Mortgage Express have a Max 130 mortgage that will lend 130% of the value of the property.

http://www.mortgage-express.co.uk

Northern Rock have a mortgage that will lend 125% of the value of the property.

http://www.northernrock.co.uk/mortgages/together.asp

Going for a mortgage of this size in the current climate, would be absolutely crazy. What would happen if interest rates continued to rise? (Although it is widely predicted they will fall)

Why instantly put yourself into negative equity. This really is not a wise idea.

Just imvho

Regards