In need of serious help/advice

anniee1981

OK here goes:

House worth £130,000
Outstanding: £112,000 fixed at 5.6% until Feb 09 then goes to 7.8%
Egg Loan: £8238.91 7.6% pa Ends 01/03/12
Loan from Parents: Can't do anything about this end in 7 years
Northern Rock Loan: £13,302.95 6.9% pa Ends in 5 years
Lloyds TSB Loan: £18449.39 11.8% APR 6 Years

As for outgoings well we spend about £45 every 10 days on pertrol, £40-£60 a week on food, £20 a month on nappies, I breastfeed (sorry if to much info lol)

rayday2

I recommend keeping pet insurance but going on money supermarket and getting a quote, I have two cats and a dog and have a small pet insurance policy with £50 excess and it costs me £7.95 a month.

What screams at me is a lot of loans and credit cards that are crippling you and yet you don't seem to be paying your mortgage off just the interest - that would worry me with a family. I would rather have a repayment mortgage and ruin my credit history on a DMP and pay lower amounts to loan companies.

Krasnoludek

Hi

I am in a similar situation with a 19m old and 5 yr old. I almost got conned into an IVA this week which was completely wrong for us. We like you dont have much equity in our home, I phoned CCCS and it was a relief, they dont charge you for any advice and they have put us on a Debt Management Plan that still allows us to live but pay off our debts at an amount you can afford and will be acceptable to your creditors, dont struggle on give them a call. You may have to wait for an appointment with a counsellor but you can keep calling quote your case number and see if they have any cancellations, I called on the offchance today and managed to speak to someone.

The CCCS will help you budget according to government guidelines so you wont be left without the essentials.

They really can help more than you imagine, this should be a wonderful time in your life, dont let money problems ruin it, your family are more important than that.

Hugs to you and I hope you get some sleep and good advice soon

Krasnoludek x

anniee1981

I am going to phone CCCS and seek their advice, we really want to change to repayment mortgage too

Jelly_Babies

Hi there

Everyone has offered you excellent advice and the best being ring CCCS. It is clear you cannot continue like this and with a newborn baby, you do not need this added stress. Hopefully if you can agree a DMP you can get back on an even keel.

FWIW I agree that you shouldn't cancel your cat and contents insurance but do look around for the other insurance to see if you can reduce them, and if you go via quidco you can get cash back.

When are you likely to return to work and see an increase in your income?

Good luck with everything and let us know how you get on.

rayday2

anniee1981 wrote: »

I am going to phone CCCS and seek their advice, we really want to change to repayment mortgage too

I am sure you will feel better after speaking to the CCCS.

I know on this board its contraversial me saying I would want my mortgage paying off everyone seems obsessed with paying a credit card off. But we are in a bad way financially we can't afford pensions so the only thing we have in our old age is our home. So we take the slower route of a DMP where our mortgage is going down and our debts and more importantly we don't add more to what we owe in life which is a huge feeling of relief to get out the borrowing cycle.

itsnever2lateisit?

I have had a look at your previous thread http://forums.moneysavingexpert.com/showthread.html?t=301074

It seems you have taken 1 step forward and 2 steps back :eek: Are your credit cards still active? If they are please cancel them, from what I read you borrowed from your parents to clear them and now they are maxed out again. As others have said go see the CCCS you need good professional advise, and they can give it

itsnever2lateisit?

anniee1981 wrote: »

I am going to phone CCCS and seek their advice, we really want to change to repayment mortgage too

The repayments will be higher than interest only

C_Ronaldo

I wouldnt cancel breakdown insurance but try and find a cheaper policy though

ald65

Hi Anniee1981
We were in a position where our outgoings were more that our income.
We went down a DMP route several months ago and have never looked back.
Now there is light at the end of the tunnel
good luck