At my wits end

suchislife

I need help !!

Basically both hubby and me had a nice business but due to health issues it all went t*ts up and now we both employed with a rther smaller (although healthy) wage, but the problem is the mortgage has tripled (was on a v.v.low rate) and have a secured loan aswell, we have been on reduced payment with both mortgage and loan but they now both want the full monthly amounts, which we can stretch to but not with the cc payments. I have been worrying myself sick here, can't sleep keep arguing with hubby who burys his head, feel sick all the time thinking that we are gonna lose everything, our house has been on the market for almost a year and have had a few offers and acceptances but they have all pulled out due to not being able to sell their own houses - i now accept that the house won't sell at the moment, we have lowered price etc but still nothing.
do i just walk away, or wait for the repo to start, bury my head like hubby and hope it will all go way or do what i have done and taken stock of the situation - If i do a DMP (maybe myself) with the cc's etc then i think i can just get by - i have done a SOA with my own comments added - please add further.

Monthly income after tax................ 1500
Partners monthly income after tax....... 1729
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3229

Monthly Expense Details
Mortgage................................ 1687
Secured loan repayments................. 590
Rent.................................... 0
Management charge (leasehold flat)...... 0
Council tax............................. 151
Electricity............................. 55
Gas..................................... 0
Oil..................................... 40
Water rates............................. 20
Telephone (land line)................... 27.5 combine with sky & internet
Mobile phone............................ 65 2 phones - both needed for work
TV Licence.............................. 11
Satellite/Cable TV...................... 55 combine with phone & internet
Internet Services....................... 29.99 combine package £36 ??
Groceries etc. ......................... 100 will be trimmed down
Clothing................................ 10
Petrol/diesel........................... 180 2 vehicles - both needed sorry
Road tax................................ 20
Car Insurance........................... 71 again 2 vehicles
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10.66
Pet insurance/vet bills................. 20
Buildings insurance..................... 28
Contents insurance...................... 0
Life assurance ......................... 100
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 0
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 3306.15

Assets
Cash.................................... 0
House value (Gross)..................... 375000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 379000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 286000...(1687).....0
Secured Debt.................. 50000....(590)......0
Total secured debts........... 336000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
lloyds cc......................13700.....275.......0
lloyds mc......................1900......38........0
capital one cc.................3900......115.......0
car h/p........................5000......137.......0 am going to sell car
argos..........................1900......25........0
halifax cc.....................2100......40........0
morgan staney cc...............840.......17........0
Total unsecured debts..........29340.....647.......-

Monthly Budget Summary
Total monthly income.................... 3,229
Expenses (including secured debts)....... 3,306.15
Available for debt repayments........... -77.15
Monthly UNsecured debt repayments....... 647
Surplus(deficit if negative)............ -724.15

The car on HP is gonna be sold as i have an old bought & paid for jeep, it needs mot etc but insurance is gonna be cheaper.

What do you think ??

Riq

A jeep? Surely something more fuel economic would be advisable or have I misunderstood?

suchislife

The jeep is already bought & paid for, is about 12 yrs old, i wouldn't get anything for it if i tried to sell it and i have no money to buy another car.
A second car is needed but at the moment our second car is a warrior so the jeep will be cheaper to run, £15 a week fuel does it.

Riq

Oh right, fair play, just wondering.

As you were...

GeorgeUK

Looks like a DMP is the best option for you right now. I would have suggested a mortgage holiday, but not sure that is an option from what you have said. Are the cards on 0% or do you not have the APR's? Not sure you'd be able to get a 0% BT card, but it may be worth trying.

Just make sure you pay the secured and council bills first. Those are the most important.

Edit: If you are paying the council tax over 10 months, can you ask to pay it over 12?

judy2357

Think you should look at reducing phone, internet cable satellite sky etc as it appears you are paying twice for phone and internet. Perhaps you could cancel satellite and cable as you already have the phone and internet and Cable and Satellite is not essential. Internet services - could they be cancelled too?

GeorgeUK

Also - is there anything you could ebay? You'd be surprised what sells there. Even old copies of Essentials magazine is selling for around the cover price.

suchislife

I am loolking to get a combined package with sky, i think they do phone/internet/tv for £36, just need to talk to them, but am looking to see if there is anything else aswell.

judy2357

Also the secured loan payments what are these for?

suchislife

the secured loan was taken out when we still had the business, so the payments weren't a problem then. It was to consolidate, pay off a loan we needed to start the business, pay for the van etc. but we were ill advised and stupid to believe it but we secured it against the house.

RAS

You need to pay the mortgage and priority bills, cut the excess expenditure and then talk to one of the debt charities about a DMP to reduce the monthly cost of your unsecured payments.

Also think e-bay, car boot sale and amazon and look at up your income. Some of it might just be getting freebies that make life more fun but even £10 per month could make a difference to the debt free date.

suchislife wrote: »

do i just walk away, or wait for the repo to start, bury my head like hubby and hope it will all go way or do what i have done and taken stock of the situation -

You are way off that if you can keep calm

If i do a DMP (maybe myself) with the cc's etc then i think i can just get by - i have done a SOA with my own comments added - please add further.

Monthly income after tax................ 1500
Partners monthly income after tax....... 1729
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3229

Monthly Expense Details
Mortgage................................ 1687
Secured loan repayments................. 590
Rent.................................... 0
Management charge (leasehold flat)...... 0
Council tax............................. 151
Electricity............................. 55 - go round and turn off everything except the fridage and freezer. keep it off unless you are using it
Gas..................................... 0
Oil..................................... 40
Water rates............................. 20
Telephone (land line)................... 27.5 combine with internet - yes
Mobile phone............................ 65 2 phones - both needed for work - look seriuously at your usage and if you need these for work, then work should pay the costs
TV Licence.............................. 11
Satellite/Cable TV...................... 55 combine with phone & internet - cancel this and use freeview. You simply cannot afford it

Internet Services....................... 29.99 combine package £36 ??
Groceries etc. ......................... 100 will be trimmed down (no)
Clothing................................ 10
Petrol/diesel........................... 180 2 vehicles - both needed sorry - how much mleage are you doing? Should this be reclaimed from work?
Road tax................................ 20 is this enough?
Car Insurance........................... 71 again 2 vehicles - check and see if you can get it cheaper, them swap via www.quidco.com
Car maintenance (including MOT)......... 10 - is this enough?
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10.66
Pet insurance/vet bills................. 20
Buildings insurance..................... 28
Contents insurance...................... 0
Life assurance ......................... 100 - this is massive, can you reduce it - check and swap cvia www.quidco.com
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 0
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 3306.15

Assets
Cash.................................... 0
House value (Gross)..................... 375000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 379000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 286000...(1687).....0
Secured Debt.................. 50000....(590)......0
Total secured debts........... 336000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
lloyds cc......................13700.....275.......0
lloyds mc......................1900......38........0
capital one cc.................3900......115.......0
car h/p........................5000......137.......0 am going to sell car
argos..........................1900......25........0
halifax cc.....................2100......40........0
morgan staney cc...............840.......17........0
Total unsecured debts..........29340.....647.......-

We need to know the APRS on these cards and loans. Paying them off in the right order makes a difference.

Monthly Budget Summary
Total monthly income.................... 3,229
Expenses (including secured debts)....... 3,306.15
Available for debt repayments........... -77.15
Monthly UNsecured debt repayments....... 647
Surplus(deficit if negative)............ -724.15

The car on HP is gonna be sold as i have an old bought & paid for jeep, it needs mot etc but insurance is gonna be cheaper.

What sort of mileage does a jeep do/ 15mph? Check this out before you go any further.