mortgage advance to clear debts

skintchick

I think you'll find your water will be more than a tenner a month.

You really need to do a proper budget with everything in it, otherwise we can't help you. :wall:

And I have just taken in a lodger because I have had to in order to afford to live. Keep it as an option in your mind - remember, strangers are only friends you haven't met yet.

slimjim

skintchick wrote:

I think you'll find your water will be more than a tenner a month.

You really need to do a proper budget with everything in it, otherwise we can't help you. :wall:

And I have just taken in a lodger because I have had to in order to afford to live. Keep it as an option in your mind - remember, strangers are only friends you haven't met yet.

I filled in the info on uswitch and was quoted £120 per year. This is the first time i've lived on my own so I don't know what bills/household items cost. Either way the budget shows that my outgoings are gonna be higher than incomings so it's a case of try to earn extra money or find a way of restructuring my current debt. I really wouldn't want a lodger living in the house no matter how much easier it made things. If/when i ask my girlfriend to move in that'll ease the burden. but i want her to move in for the right reason, not to make me financially better off!

bonnie_2

you havent included buildings and contents insurance,tv licence, car tax,my water on a meter is £42 a month.what happens if something goes wrong in the winter like central heating, burst pipes etc. my gas and electric come to £100 a month.your going to find it a real struggle i think.

slimjim

bonnie wrote:

you havent included buildings and contents insurance,tv licence, car tax,my water on a meter is £42 a month.what happens if something goes wrong in the winter like central heating, burst pipes etc. my gas and electric come to £100 a month.your going to find it a real struggle i think.

After speaking to friends about their household bills I know my water/electric/gas won't be anywhere near the figures you mention. When things like car tax are due i'll just have to work a few more hours to pay for them. I realise it's gonna be a struggle which is why i posted! But i see friends do it on less money that what i earn

skintchick

Someone once said to me: "If you fail to prepare, prepare to fail."

You asked us for help, and we are giving you the benefit of our experience, but if you want to assume it will all be OK, then go ahead.


And are you sure your friends aren't just getting into debt???

Debt_Free_Chick

slimjim wrote:

When things like car tax are due i'll just have to work a few more hours to pay for them.

There's no guarantee that the hours will be available when you need them. The point of a monthly budget is that put money aside, each month, for bills that you know you will have to pay in the future.

You could buy Post Office Savings Stamp each month, for one-twelfth of your car tax. After 12 months you'll have enough to pay your car tax in full

My immediate concern, though, is that you currently do not have enough income to pay your bills

monkeylugs

slimjim wrote:

Incomings: £1300 approx

Outgoings:

Mortgage £350
Rent (shared ownership): £166
Cahoot Flexible Loan: £130
Morgan Stanley CC: £95 min payment
Barclaycard CC: £30 min payment
Car Loan: £176 (due to finish Apr '06)
Council tax: £62
Gas and Electric: £30
Car insurance: £50
Petrol: £120
Gym: £25

Total: £1234

This doesn't include contents insurance and annuals like MOT etc. Nor any socialising, haircuts, clothing....

Essential items for the house are sofa, fridge freezer. A lodger really isn't an option. I may end up asking my girlfriend to move in a few months down the line.

Hello there Jim,

Just want to point out - read my last thread about borrowing extra against the house to pay debts off. I'm back to where I started a year ago!

1. Your budget looks scary. Much scarier than mine! I've been stumbling from month to month with no contingency plans, then you find yourself two weeks before pay-day with no money left!

2. Have you actually spoken to the Gas & electricity company? U-Switch can be a bunch of lying gits LOL! Unless you have your actual consumption details they can sometimes be inaccurate. For example, when I moved here I had two separate utility suppliers. Gas wanted £40 and Electricity wanted £30. U-Switch told me if I switched to Sweb I could save £120 per year. Woo-hoo, I thought, so I signed up with them, and when it came to setting up direct debits they wanted £40 for the gas and £30 for electricity! Anyway I said no, and set up for £35 gas and £25 electricity, but I tell you, I still owe money on my bill even though the last one was in Summer! I don't like the fact but I am going to have to up my payments when my year is up for review at the end of October! So - PHONE SOMEONE and tell them how many radiators there are, whether you will use a tumble dryer etc and then they will tell you how much they want!

3. I have heard that a water meter is a better option for properties with less occupants but I have no idea how much it will be.

4. Your car loan only has another six months to run, then it will be £176 you are better off.

5. Have you shopped around for car insurance?

Xbigman

I live very cheaply on slightly less than your take home before overtime and I have nearly £500 of free income available to me. But between your rent and loan repayments you have £600 of expenditure I don't have, on top of which you spend £93 a month more on petrol than I do.
Bills wise. I only have a shower so I can't take a bath if I wanted too and my metered water bills are 10.50 PM. Gas and electric are 29.15 PM but I watch the meter readings like a hawk, do all my cooking on E7 once a week and freeze, make my own cakes, etc.
I think your problem will be not so much financial as lifestyle. Having had a good free income with few commitments and run up debts, you now have a lot of commitments and debts already built up that need clearing. You can do it but you need to totally change your way of life. If you can pick up overtime then do so and pump every spare penny into clearing your credit cards. On the minimum payments they will take forever to pay otherwise.

Looking at the future. Do you plan to buy the rest of the house at some point? If so you need a plan. Say clear debts in 5 years then save for 2 years then revamp mortgage. Work out what sort of financial position that puts you in.

Lastly. With only part ownership and general debts above equity you are unlikely to get a good deal on any sort of consolidation. Forget that option.
Regards




X

nelly_2

I want to know why you are putting yourself in this precarious situation at all?

Whats the point?

Dont buy a house yet.... your obviously not ready and even less prepared.

Wait a year and either pay off your debts or save a bigger deposit or both.

From what I have read so far you will only get into more and more debt, and equity in houses is NOT increasing at the moment neither.

meanmachine_2

I would have suggested renting for a year, just so you can get an idea of how much everything costs.

To buy a property when you have so much debt already is simply barking.

Having said that, yes eventually you can roll your debts into the mortgage - provided you have some equity, but I suspect you have none right now and could be in neg eq in the near future.

Sounds like tinned beans for you old son! Never mind. A year of frugality can be a good thing.