Ive Been Knocked Right Back Down :(

missyp123

I have been posting over the last few days and have been so positive that we can make do untill we at least sell the house. Then pay off whatever huge debt is left once we are living with parents.
Woke up this morning to hubby saying that we only have £150 left once the mortgage comes out on the 1st and his pay day is'nt untill 23rd May, mine is four weekly so just after his.

I feel so down i just dont know what we can do.
Really the only options we have are to borrow more money off cards to carry on :eek: (but for how long? we could never sell).

Or cancel our loan & credits card direct debits (one loan is the unsecured with NR) - I am waiting for the pack from debtline direct - write to them with budget plan asking to freeze accounts for 6 months?

neither one is a situation any of us want to be in, everything has just hit us straight in the face in the last two years and no amount of ebaying is going to help us. I feel like giving NR the keys and f****** off.

I mean how long before baliffs start coming once we stop paying these debts? Could you face prison for not paying creditors?

Its all so messed up

MrsTinks

First deep breath and have a cyber hug... I'm sure someone will be along in a sec to offer some better help, I have to dash to work but I'll log in again as soon as I get there. Hang tight and try not to worry too much! Easier said than done I know

excel1

Try not to worry your in the right place for a start!
Whilst im no expert on juggling finances, It is not a crime to owe money (unless to a govt dept like council tax etc) so unless they can prove you obtained money by deception ( you havent) then you will not be in prison criminal courts or any thing like that.
Baliffs can only enter your premises after a long process has been through, you would have to be served default notices on those debts(please still pay the mortgage) then usually debt collection agencies take over and remember they have no legal powers this all takes some time, then what they do some may apply for a CCJ then go for a charging order against property but most dont do that , or mine didnt anyway:j

excel1

I forgot to mention if you have to go down this route everything in writing only if these people ring you they will get you to pay them usually by lying or some dodgy tactic NEVER TALK TO A DCA ON THE PHONE(unless you sadistic like me:rotfl: )

missyp123

Hubby just called said his bonus and pay rise is due in June so if we can strech till then and hope to sell soon we could just do it bonus will be about £1500 i think after tax not allot but better than nothing.

Feeling a bit calmer after BIG cry,

Quick question... Does anyone think we would benefit for auctioning the house for quick sale?
OM £124'500 (reduced for quick sale) was valued at £135'000
Freehold will cost us £5000 to buy on completion as lease is only 61 yrs.

Just thinking house is £10k below valuation and all other houses on our road are around the £135 mark.

Could we sell for less at auction but make up some diffrence not buying the freehold? what do you think?

bank_of_slate

You're looking for a quick fix here that isn't necessarily going to be good in the long run.
Try phoning CCCS today for some advice and to get things off your chest.
Can you use one of the letter templates on here to send your creditors a token payment?
...Linda xx

MrsTinks

Right I'm now at work and have had a chance to answer the most urgent mails
First things first... call one of the charities in my signature, I know that CCCS have a few of their volunteers who pop on here from time to time and they all seem to give very good advice. It may be that a DMP is the way forward but why don't you do a full statement of affairs for us and we can have a look and see if there is anywhere you can slim down etc.
Depending on how big your house is have you thought about a lodger? This might be able to provide you with a steady income to help you pay things off without loosing the house?
Definitely stay calm and collected - when it comes to food why not hop over to the old style board and do a storecupboard challenge? I bet you can probably make it through the month spending very little and use up some of the things in the back of the cupboard that has been gathering dust - and it gives you something to focus on

peb

Without knowing the full story I cannot say it is the right answer but yes auctioning would possibly work; you would need to ensure that the reserve is what you would and can accept. The reality is most purchasers at auction do not bother getting the title checked and therefore may not pick up on the short lease; it is however enough for most lenders -usually either 60 years or 30 years plus the term of the mortgage. It will do no harm to ask an auctioneer for guidance (remember you may have to be out of the house in 30 days) whilst looking at other options.

HTH

missyp123

[tt]
Statement of Affairs and Personal Balance Sheet



Monthly Income Details

Monthly income after tax................ 1380

Partners monthly income after tax....... 500

Benefits................................ 110

Other income............................ 0

Total monthly income.................... 1990



Monthly Expense Details

Mortgage................................ 670

Secured loan repayments................. 0

Rent.................................... 0

Management charge (leasehold flat)...... 0

Council tax............................. 100

Electricity............................. 40

Gas..................................... 40

Oil..................................... 0

Water rates............................. 30

Telephone (land line)................... 0

Mobile phone............................ 85

TV Licence.............................. 20

Satellite/Cable TV...................... 33

Internet Services....................... 0

Groceries etc. ......................... 400

Clothing................................ 0

Petrol/diesel........................... 120

Road tax................................ 26

Car Insurance........................... 131

Car maintenance (including MOT)......... 25

Car parking............................. 0

Other travel............................ 40

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 0

Buildings insurance..................... 17

Contents insurance...................... 0

Life assurance ......................... 25

Other insurance......................... 0

Presents (birthday, christmas etc)...... 30

Haircuts................................ 5

Entertainment........................... 0

Holiday................................. 50

Emergency fund.......................... 0

Total monthly expenses.................. 1887



Assets

Cash.................................... 0

House value (Gross)..................... 125000

Shares and bonds........................ 0

Car(s).................................. 2000

Other assets............................ 0

Total Assets............................ 127000



Secured Debts

Description....................Debt......Monthly.. .APR

Mortgage...................... 106000...(670)......0

Total secured debts........... 106000....-.........-



Unsecured Debts

Description....................Debt......Monthly.. .APR

northern rock unsec............30000.....237.......0

lloyds loan....................6500......150.......0

hfc loan.......................4000......150.......0

credit card ...................1065......25........0

Total unsecured debts..........41565.....562.......-



Monthly Budget Summary

Total monthly income.................... 1,990

Expenses (including secure debts)....... 1,887

Available for debt repayments........... 103

Monthly UNsecured debt repayments....... 562

Surplus(deficit if negative)............ -459



Personal Balance Sheet Summary

Total assets (things you own)........... 127,000

Total Secured debt...................... -106,000

Total Unsecured debt.................... -41,565

Personal net worth...................... -20,565



Created using the SOA calculator at www.makesenseofcards.com. [/tt]

I have posted a few weeks ago about selling etc... ill try to be quick!

The amount at the bottom will total to almost £35000 once we add on fees for selling and the cost to purchase the freehold on the house.

We have decided to sell to be debt free and start again, as you can see we simply have no money left at the end of each month and do not want to end up missing repayments etc.
Will be moving in with parents and paying £200 rent with our normal living expenses per month. (plus we have a 1 year old baby)

Can anyone give suggestion on two outcomes...
1) we sell for £120k plus fees etc (£35k debt left)
2)we cant sell

in both of the above ... how do we deal with creditors to lower payments or make payment agreements with a lower agreed settlement offer? (can this be done without resorting to not paying at all)???

Any ideas would be great as if we do live with parents it will only be a short term solution and not enough time to clear such a big debt.

This was the soa post i did the other day, i have had plenty of feedback and know that i can cut my gracery bill hopefully in half (ive joned the grocery challenge). im trying to earn extra form ebaying car boots etc.

There isnt any scope for overtime as o work a few hours a night once OH gets home cause we can afford child care.

I'm cancelling tv packgage but will have to keep the Internet for OH work.

Cant get rid of cars as we need them for work and there only worth a few hundred each - ins is combined and OH prem is high due to two accidents last year.

RAS

Hi

Have you got anything that can go on amazon, e-bay or to a car boot sale to help you over the hump? It is the bank holiday this weekend, so you might get a £100-200 to help this month.

Talk to CCCS or NDL about your situation and if necessary only pay a minimum to the unsecured creditors this month.

Do a store cupboard challenge on the Money Saving Old Style - list whats in the cupboard and the freezer and see if you can live off that for the month, with say bread and milk only added?

Merlot

missyp123 wrote: »

[tt]
Statement of Affairs and Personal Balance Sheet



Monthly Income Details

Monthly income after tax................ 1380

Partners monthly income after tax....... 500

Benefits................................ 110

Other income............................ 0

Total monthly income.................... 1990



Monthly Expense Details

Mortgage................................ 670 IS THIS INTEREST ONLY, IF NOT, CAN YOU CHANGE IT FOR THE MEANTIME

Secured loan repayments................. 0

Rent.................................... 0

Management charge (leasehold flat)...... 0

Council tax............................. 100

Electricity............................. 40

Gas..................................... 40

Oil..................................... 0

Water rates............................. 30

Telephone (land line)................... 0

Mobile phone............................ 85 - GET RID - YOU CANNOT AFFORD THESE

TV Licence.............................. 20

Satellite/Cable TV...................... 33 - GET RID - YOU CANNOT AFFORD THESE

Internet Services....................... 0

Groceries etc. ......................... 400 - AIM FOR £200 PER MONTH, IT'LL BE TOUGH, BUT TRY

Clothing................................ 0

Petrol/diesel........................... 120

Road tax................................ 26

Car Insurance........................... 131

Car maintenance (including MOT)......... 25

Car parking............................. 0

Other travel............................ 40

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 0

Buildings insurance..................... 17

Contents insurance...................... 0

Life assurance ......................... 25

Other insurance......................... 0

Presents (birthday, christmas etc)...... 30

Haircuts................................ 5

Entertainment........................... 0

Holiday................................. 50 - SORRY, YOU CANNOT AFFORD THIS JUST NOW EITHER.

Emergency fund.......................... 0

Total monthly expenses.................. 1887



Assets

Cash.................................... 0

House value (Gross)..................... 125000

Shares and bonds........................ 0

Car(s).................................. 2000

Other assets............................ 0

Total Assets............................ 127000



Secured Debts

Description....................Debt......Monthly.. .APR

Mortgage...................... 106000...(670)......0

Total secured debts........... 106000....-.........-



Unsecured Debts

Description....................Debt......Monthly.. .APR

northern rock unsec............30000.....237.......0

lloyds loan....................6500......150.......0

hfc loan.......................4000......150.......0

credit card ...................1065......25........0

Total unsecured debts..........41565.....562.......-



Monthly Budget Summary

Total monthly income.................... 1,990

Expenses (including secure debts)....... 1,887

Available for debt repayments........... 103

Monthly UNsecured debt repayments....... 562

Surplus(deficit if negative)............ -459



Personal Balance Sheet Summary

Total assets (things you own)........... 127,000

Total Secured debt...................... -106,000

Total Unsecured debt.................... -41,565

Personal net worth...................... -20,565



Created using the SOA calculator at www.makesenseofcards.com. [/tt]

I have posted a few weeks ago about selling etc... ill try to be quick!

The amount at the bottom will total to almost £35000 once we add on fees for selling and the cost to purchase the freehold on the house.

We have decided to sell to be debt free and start again, as you can see we simply have no money left at the end of each month and do not want to end up missing repayments etc.
Will be moving in with parents and paying £200 rent with our normal living expenses per month. (plus we have a 1 year old baby)

Can anyone give suggestion on two outcomes...
1) we sell for £120k plus fees etc (£35k debt left)
2)we cant sell

in both of the above ... how do we deal with creditors to lower payments or make payment agreements with a lower agreed settlement offer? (can this be done without resorting to not paying at all)???

Any ideas would be great as if we do live with parents it will only be a short term solution and not enough time to clear such a big debt.

This was the soa post i did the other day, i have had plenty of feedback and know that i can cut my gracery bill hopefully in half (ive joned the grocery challenge). im trying to earn extra form ebaying car boots etc.

There isnt any scope for overtime as o work a few hours a night once OH gets home cause we can afford child care.

I'm cancelling tv packgage but will have to keep the Internet for OH work.

Cant get rid of cars as we need them for work and there only worth a few hundred each - ins is combined and OH prem is high due to two accidents last year.

Hi, you have a few things in your soa you can cut down on, but no where near enough.


You need urgent and proffessional advice today, call the CCCS, they have a wealth of knowledge and will advise you.

Merlot.x.