Can anyone give me any advice please

wilkster5

Merlot wrote: »

Whilst everyone is entitled to their opinion, Michelle my advice to you is seriously think before taking the above advice and remortgaging your home, its rarely a good idea to consolidate unsecured debt into secured debt.

Please call the CCCS on Monday.


Edited to add: Michelle, based on your income, i doubt the bank would offer you a remortgage anyway in order to consolidate your debts, just my thoughts.

Merlot

yep good advice Merlot, but i see there is already a secured loan.

michelle75_2

Thanks to everyone for taking time to give me some good advice, Im going to see what I can cancel and cut back on, as I know that we are over spending on loads of stuff. Regards the mortgage I will ring them to see if I can take a payment holiday or switch to repay the interest only, the property is on the market at £169950.00 Ive just switched estate agents today. My secured debt is £95430.18 on the mortgage and £28272.71 on the secured loan, I have to pay 6 months interest to pay off early (around £1700.00) I took the advice of an independent financial adviser when taking out this secured loan, how I wish I didnt bother, you think your getting the right advice but maybe not. The unsecured debt on credit cards and overdrafts is £28612.99 therefore a total of £154109.88 of debt. Does anyone know if I am best contacting the cccs rather than contacting the companies direct? Im just worried about getting black listed or my credit rating being affected as when we sell the house I will need to rent a property and dont want this to be affected.
Cheers Michelle

Keeping_Positive

I would contact CCCS first as they have the knowledge and experience.

madmum33

michelle75 wrote: »

The unsecured debt on credit cards and overdrafts is £28612.99

I think you mis-calculated - the unsecured debt on credit cards and overdrafts I make £42,666 (not counting the pennies)

I wish I could advise but I'm here looking for suggestions myself!

Merlot

wilkster5 wrote: »

yep good advice Merlot, but i see there is already a secured loan.

Wilkster, you are quite correct, what I really meant was, that it isn't a good idea to turn the other unsecured debt to secured debt.

Merlot

michelle75 wrote: »

Thanks to everyone for taking time to give me some good advice, Im going to see what I can cancel and cut back on, as I know that we are over spending on loads of stuff. Regards the mortgage I will ring them to see if I can take a payment holiday or switch to repay the interest only, the property is on the market at £169950.00 Ive just switched estate agents today. My secured debt is £95430.18 on the mortgage and £28272.71 on the secured loan, I have to pay 6 months interest to pay off early (around £1700.00) I took the advice of an independent financial adviser when taking out this secured loan, how I wish I didnt bother, you think your getting the right advice but maybe not. The unsecured debt on credit cards and overdrafts is £28612.99 therefore a total of £154109.88 of debt. Does anyone know if I am best contacting the cccs rather than contacting the companies direct? Im just worried about getting black listed or my credit rating being affected as when we sell the house I will need to rent a property and dont want this to be affected.
Cheers Michelle

Michelle,

I had just readded your figures up,

95430.18 - mortgage
28271.71 - S/Loan
1700.00 - Interest on Secured Loan if repaid early
42666.00 - unsecured debts

168067.89 total and not 154109.88 as you stated.

This does not leave you any money for selling/removal fees/or a deposit on a rental home.

I hope I had added the figures correct, Michelle, phone the CCCS on Monday.

Merlot

southernscouser

diamonds wrote: »

your in dire place - cancel evrything thats out of contract for a start

Orange
pet insurance etc etc.....if you have equity in your home refinance the 12.60 secured loan to a better rate with as much as you can borrow and CLEAR & CUT the credit cards, selling is a no go in this slow down.........if you can remortgage & borrow as much as poss on the remortgage & pay your debts in one mortgage payment say over 30 years

I know none of us are professionals and we all post with the best intentions, but this is really bad advice. Your solution is the very last resort and there are plenty of other routes to explore first.

Can I kindly ask that you don't suggest this to anyone else because it only takes one person to follow it and you could ruin their lives for a very long time.

Karmacat

Hi Michelle
There's some really good advice earlier on in the thread- mostly about cutting back and finding cheaper services. I did a quick run-through of the suggestions in post 2, for instance, and conservatively if you followed whats in there, you could save over £300 a month - half of that, admittedly, by cutting that food bill, its really huge, especially if you're not working and can spend time cooking from scratch - head over to the Moneysaving Old Style board on here for tips on all sorts of things.

You don't mention an existing child (and congratulations on the baby-to-come, by the way!) so I'm assuming that you're catering for two adults and a pet - no, thats wrong, you mention kids clothes, but still, £450 is huge, you can cut down on that - way down in the end, but certainly bit by bit.

If you haven't picked up on it yet, most of us on here encourage people to start a spending diary - i.e., to see where your money is going, every single penny of it - every magazine, every bar of chocolate, every quick of cup of tea in the cafe. They really, really add up. When you've got a couple of weeks worth under your belt, have a look back and see where you're spending - you might be surprised at what you can slash.

Good luck, and keep posting.

michelle75_2

Hi everyone,
Thanks again for all the advice, Ive began to cut down and save on every area possible, I have also contacted the cccs, and have had lots of great advice from them, so I feel there is light at the end of the tunnel, I would recommend anyone in the same boat as me to give them a ring asap. Thanks again

Keeping_Positive

Thanks for posting an update, hope all goes well. OH has just started going through CCCS and is very happy with them. Looks like it will half the repayment time compared to what the other fee paying company were advising.