60K is there any hope.??

in2deep_2

Ive done a bit of totting up today.

I'm to depressed to list every thing but here is a summary.

Total owing £58500(cards/loan) costing £1100 a MONTH.(not including regular bills living costs)

I only earn £1500 a month and the mortgage and council tax alone are £600 on top of that.

What in gods name am i to do.

If my house takes a year to sell how am i going to meet these costs in the meantime.??????????????????????

boredofbeingathome

I think you really need to contact one of the debt charities. If only to stop you from worrying, i know exactly how you feel. My OH has occured debts from his being self employed.
The worst ( as in knowing) is behind you. Please contact them and see what they have to say.
All the best Bob x

LilacPixie

Take a deep breath in2deep.

Yup you are deebt in debt but it is not insermountable.

Firstly have you tried ebay/car booting everything that isn't nailed down. 2 kids under 3 means lots of outgrown clothes toys baby stuff.

Secondly your OH cards are in the list but no income?? could they possibly get a p/t job to fit around your hours for extra income. Could you work extra?? SOme stay at home parents become child minders to boost income maybe an option??

Have you tried contacting your CC companies and asking for a 0% deal or even a lower apr??

When you feel up to it still post a full soa including all your card APR's Maybe alsopop over to the up your income board for money making ideas and the old style board for money saving ideas and feeding a family on a shoestring.

hypno06

Hi there, and welcome - this is a scary situation at the moment, but believe me, it is something that is "do-able" (I have been there, with over £100k of unsecured debt, on top of a £175k mortgage, with only one regular income of £1300 pm coming in)..............

So, how you approach it will determine what happens next.

When you sell your house you clear your debt. OK, this reduces your equity and thereby your deposit for a new house, but at this point in time which is more important - being in debt which you cannot afford and which causing you incredible stress, or having a smaller house, or in a less desirable area, or renting for a while. Renting may even be a "profitable" option for you, should house prices go down, and the general opinion is likely to be that they are stabilising at least, which means that you could save up extra money towards a deposit once you are debt free.

If you want to get back on the housing ladder, can you afford it or will you end up back at square 1 in 1 or 2 years time? This is something you really really need to do the number crunching on.

In any event, you can increase your income a million ways by using the sites on MSE - as mentioned above, I have a huge amount of debt, and generally had a "negative income" figure due to self employment, and OH not earning a huge amount.......

we got second and third jobs, part time, (not ideal, but hey, it paid the bills)
we ebayed, amazoned and car booted
we did mystery shopping
we played free bingo
we did matched betting
we joined quidco and endless survey sites

etc etc etc.........effort needed, but it kept us (and many others on this site) from going under.

Your SOA does not show income for 2 people - are you both working and if not, can the other one get some work to make up the shortfall?

Go grab a coffee, and a pad of paper and a pen, and get brainstorming!

Good luck!!

in2deep_2

OK I've never done an SOA before and I'm sure I've left out most of what you want to know (please tell me)

COUNCIL TAX 113.94
DOMSTIC AND GENERAL 11.99
BRITISH GAS 17.00
SHOP DIRECT(CATALOGUE) 17.68
SKY DIGITAL 21.00
LIFE INSURANCE 23.82
TV LICENSING 11.37
CTF 10.00
CAR INSURANCE 18.73
WATER (METER) 43.00
BRITISH TELECOM 33.00
MORTGAGE (joint) 411.12
ELECTRIC IS PREPAY 35.???
DIESEL(CAR) 30

DEBTS

NORTHERN ROCK(me) 255.10
CAPITAL ONE(me) 139
CAPITAL ONE(oh) 200
HALIFAX (me) 140
LLOYDS (me) 110
MBNA (oh) 127
MBNA (me) 195

WAGES 1534.81

Plus allowances for 1 child under one and one under 4 (I'm not sure how much exactly)

Every thing above is monthly i know there are a few savings to be made but I'm so so so far over every month even if i didn't have any bills my debts will take my wages.
All the cards are on full rate % at the moment.
This is so frustrating as i have the equity to pay them all off.!!!:mad:

Selling and renting somewhere is an option i will consider but no one can guarantee a sale in the next 12 months.!!
Is selling and renting back this house an option...(Devils work.???):eek:
Is there some sort of loan/remortgage option until either i can sell the house.
OH will be looking for pt work but baby is still only 5 months and currently childcare is very difficult.(hasnt worked since child number 1)

What could i realistically ask the card companies to do, i don't want to get black listed everywhere as when i sell i can pay them off.


.??.

Lorne

Well done for posting the SOA, The regular bills like food, clothes and petrol are missing though. Have a look at http://www.makesenseofcards.com/soacalc.html it is a helpful tool that guides you through all of your payments, that way you know that you are not missing anything. Knowing the apr's on your debts would be helpful too.

in2deep_2

How do i check the APR's i cant seem to make head or tail of the %'s on the statement.


strangely i had two limit rises this week on my cards.!!!!!

dopester

in2deep wrote: »

The thing is with this we do actually want to move but by losing 60k of my 90K equity its going to be very very very hard to secure a new mortgage...:eek: especially with the recent 'credit crisis'.

There are alternatives. There is nothing demeaning about renting. In many instances you can find a great house or apartment, where the rent is cheaper than the interest payments on a mortgage. Big savings.

And would you really want to buy again in this market? Your £30K remainder could put you in a much stronger position than you realise - if you sell and sell quickly, clear your debts (perhaps trying to get them to write-off some of the debt too) for near your asking price.

Merlot

Hi, reading your first post, have you been offered £180K for your house?

If so, i would seriously consider this offer in the current conditions.

Renting is not so bad, and it will enable you to repay your debts and start afresh.

My apologies if I had read that wrong regarding the offer in your first post.

Merlot.x.

thevinternet

Hi there in2deep,

If you aren't sure about your APRs, you could phone your credit card company who will tell you how much they are. Is there a possibility of getting another card with a 0% balance transfer on and shifting some of the cash across? You must be very careful not to spend on this new card however, or you'll lose any advantage you had.

If you have a spare room, could you look at getting a lodger? If you have a garage, you could even look into renting it out?

You may feel as though there is no hope, but there is always a way out if you are prepared to put the hard work in. I know it sounds ridiculous now, but you can turn this round and it'll have the added advantage of making you much more careful with money in the future.

I'll keep my fingers crossed that someone wants that house of yours! And quickly! xx