Heavily in Debt!!!!! Advice please

udydudy

bluezone wrote:

hello,

The credit card bills are extra to the card loans - yes
The loan rates are between 7 and 9% and we have about 5 years to go on all of them.

The credit cards are on: 3 x Barclaycard, 1 x Tesco, 1 x Abbey National, 1 x HSBC, 1 x Capital One, 1 x WWF, 1 x Egg. They are all about 18% I think as I dont have the data at work with me only the final figures of amount owing.

Our freezer and cupboards are pretty full at present so aprt from washing powder etc we shouldn't need to go for a couple of weeks. On an average week including washing powder, comfort and cat food it is about £45.

"Can u not switch to pay as u go? this would then allow u to keep calls to an absolutle minimum........

James"

He cant as he needs his phone for his business but it is definately an option for me - thanks.

1) What I could suggest is you both do not have a Halifax One Credit Card which has 12 months interest free balance transfer. Maybe if you havent applied for credit in the past 2-3 months and not been rejected for credit cards in the near past 3-4 months. This would save you quite a lot of interest.

2) I suggest you take a adavnce against your house (If I rememebr right you have space to release 55k) to clear your credit cards. Getting that 35000 of credit card outstanding to loans/credit cards with interest rates of 0% to 6% will save you atleast 12% on interest costs. (18% current rates on CCards to 6% avg on new loan/BTs). Which is 1% per month savings. on 35000 that would mean 350 per month lesser interest charges.

I will read your old post as well as your reply over this weekend and give you my view for whatever is worth. I think you can get out of this mess in due course with proper financial discipline

Hope this helps

lizzielou

Have you thought about a re-mortgage? You could probably save on your current payments (just put your details into Egg calculator and that saved £75 per month) and release some funds.

Also have you thought about taking out another low rate loan to consolidate your credit cards, I know that may sound a bit daft but there are some really good rates about (6.9%) which would cut the amount of interest you are paying over the years.

Remember becoming debt free will not and does not happen overnight, it is a long term commitment. Good luck.

bluezone

Many thanks lizzieloue and udydudy. I cant remember the last time I applied for a credit card (definately not in the past 4-5 months). I have asked my bank Barclays for another loan but they said no "it wasn't visable at this time". I think re-mortgage is the best option at the mo and to come clean as to why we need it - consolidation, and see what they say. Will chat to hubby over the weekend about it and earn some money at the booty!! Chat to you all on monday ;-)

udydudy

bluezone wrote:

Many thanks lizzieloue and udydudy. I cant remember the last time I applied for a credit card (definately not in the past 4-5 months). I have asked my bank Barclays for another loan but they said no "it wasn't visable at this time". I think re-mortgage is the best option at the mo and to come clean as to why we need it - consolidation, and see what they say. Will chat to hubby over the weekend about it and earn some money at the booty!! Chat to you all on monday ;-)

Taking the advance against ur house is the easiest step but I think shud be your last resort. As you are turning your unsecured debt into secured debt which means shud u default u lose your home.

scheming_gypsy

Selling the cats - pretty sure the one who suggested it was joking, you people don't half take things way too seriously sometimes.,

Re-mortgaging - definately worth looking into on that one, your mortgage payments on 80k are £546. My mortgage is for 73k and payments are 413, although it is on a 30 year term at the minute but there shouldn't be that big a difference.

Phonix

I know other people have said remortgage but it's not a bad time to sell your house. It would remove a large proportion of the debt and then on clear the debt wouldn't take too long.

just alot of colaterol

homersimpson_3

i would agree with all advice above would probaly sell the cat only if things were so desperate it became a choice between a meal and keeping an animal. if this cat is receiving expensive cat food i would suggest you cut back and buy it tescos own (or whatever). if you should cut back so should the cat. i love animals but they only had the better quality foods when i had the money.
if you can get a second/third job can you husband also get another one. if necessary ask your husband to giving up roofing and work for someone else full-time until the debts are cleared. you need consistent income not 'as and when'. he can always go back to roofing when things pick up.
alot of people on this discussion group seem to think declaring yourself bankrupt is the answer to everything it's not. it has serious consequences for people's future and their families and should be entered into lightly. please ensure you seek proper advice before taking this action

johannamse

Before you remortgage...do some research...where in the country do you live?? If you sold your house, you would have about 40k of debt. Life would be simpler, and with your large income you could clear it quite quickly. I don't want to worry you, but we are at the peak of a very large house price rise. Property is very unlikely to go up anymore, some people think it will go down and others think it will stay the same. I personally think it will go down. People are obsessed (I am not saying you are) with keeping their houses AT ANY COST. You can buy again and this time you will be financially savvy and feel secure and happy and calm. The most important point to remember amoungst all the chaos, is that you always have choices. Some times it doesn't seem like we do, but we always do. Maybe you could move into a smaller propperty and the kids could share a room and you could move closer to your jobs to cut down on transport costs. Life is very precious and you have a big hill to climb, you are breaking your neck to keep your house. You can make anywhere a home. I hope I have not thrown a spanner in the workss, I just wanted to offer a new opinion. Good Luck.

Bossyboots

You will not be able to pay one premium for both cats. They have to be insured separately under individual policies.

meanmachine_2

Can I ask how and why you racked up such huge debts?

I'm not judging, but if there were extraordinary circumstances (accident, business collapse) then you are less likely to repeat your mistakes.

Sometimes cutting things here and there will make you feel you're in control, but I have to say, with such huge debts you do need help from professional debt counsellors.