On the brink of losing it all
Discussion
fesuvious said:
Contact mortgage company. You need to release the 20k ish to get you to 90% ltv. Ask then what deals are open to you.
You need to use that to get shot of the credit cards and the 9k.
Take the mortgage out over the maximum term you can.
That's step one.
Step two is cutting up those cards.
Step 3 is losing those daft leases and either having one lease cat and one cheap runaround or two cheaper cars. This may have to be achieved by refinancing the 10k loan into 20k.
At this point you're still up per month. However you must put money away to cover repairs etc on the cars. Be disciplined. Open an account, send it by standing order. Have the account in a separate bank or buil society.
Now, remember that cards are evil. Remind yourself.
If this has worked out you're better off each month. Priority is paying down that 20k.
So, after 12months take a 6month mortgage payment break and use it in full to take that loan down to @5k outstanding.
6ish months later it's gone.
2years from now you're @88% mortgaged based on current values but you're free of the s
t debt.
However you will have 2 old cars. So remember to look after them, if they've gone ok then that maintenance fund will be there to assist.
2years.
Great post.You need to use that to get shot of the credit cards and the 9k.
Take the mortgage out over the maximum term you can.
That's step one.
Step two is cutting up those cards.
Step 3 is losing those daft leases and either having one lease cat and one cheap runaround or two cheaper cars. This may have to be achieved by refinancing the 10k loan into 20k.
At this point you're still up per month. However you must put money away to cover repairs etc on the cars. Be disciplined. Open an account, send it by standing order. Have the account in a separate bank or buil society.
Now, remember that cards are evil. Remind yourself.
If this has worked out you're better off each month. Priority is paying down that 20k.
So, after 12months take a 6month mortgage payment break and use it in full to take that loan down to @5k outstanding.
6ish months later it's gone.
2years from now you're @88% mortgaged based on current values but you're free of the s
t debt.However you will have 2 old cars. So remember to look after them, if they've gone ok then that maintenance fund will be there to assist.
2years.
Speak with your wife, you are a team.
I’d definitely be in contact with mortgage company and try to release some money via remortgaging
Then I’d definitely use it to pay off all cards, the one with highest APR first obviously.
This should get you back on track.
Then I’d look at the cars if your stuck for a bit with them but your heads above water play the waiting game, however as soon as you can get rid buy cheap second hand cars.
Once all that is in place look at other outgoings, what food you buy from where? Etc. The daft stuff does add up.
Finally on a sub note anything you can sell towards the card debt? You the sort of guy who has nice watches etc ? If so sell sell sell and chuck into the debts.
Another note when all this is done can you downsize house wise, obviously I don’t know your area but a mortgage is for almost all people the largest debt you can have.
I’ve had a friend in a similar position, the debt was less but he earns a lot less as well. He did something similar to above And is much happier now.
I realise you are down and in that state it’s hard to motivate but once you start doing these things you will feel loads better.
Good luck 😉
Thanks fatlad.
Sadly my work is 25 miles away and is one of the most expensive areas in the UK so that's not an option.
I'll be honest, if I didn't have the ERC, my house would've been sold by now but selling my house would mean having to pay circa £350k just to get out and realistically I'd 'only' save about £700/month in debt by doing so.
My son goes to a school near by as its perfect for him and we have a disability thing for him so he has a one to one etc so CANNOT leave this area.
Even renting a 3 bed semi around here is £1200+ a month.
I think I need to look at every little thing I can cut back on tomorrow morning and go from there.
Just so I know as I don't want to have some sort of marker on my account, will my mortgage company want accounts etc to release some equity in my house to help out?
Sadly my work is 25 miles away and is one of the most expensive areas in the UK so that's not an option.
I'll be honest, if I didn't have the ERC, my house would've been sold by now but selling my house would mean having to pay circa £350k just to get out and realistically I'd 'only' save about £700/month in debt by doing so.
My son goes to a school near by as its perfect for him and we have a disability thing for him so he has a one to one etc so CANNOT leave this area.
Even renting a 3 bed semi around here is £1200+ a month.
I think I need to look at every little thing I can cut back on tomorrow morning and go from there.
Just so I know as I don't want to have some sort of marker on my account, will my mortgage company want accounts etc to release some equity in my house to help out?
If you had a business before, why is it only now you are considered self-employed for lending purposes?
Whilst people can give more general advice, on a day to day level then perhaps you can list your monthly outgoings. On a cursory glance I am surprised outgoing exceed incoming, or certainly not after a little giggle around and once the lease cars can be ditched which isn't too far down the line.
Whilst people can give more general advice, on a day to day level then perhaps you can list your monthly outgoings. On a cursory glance I am surprised outgoing exceed incoming, or certainly not after a little giggle around and once the lease cars can be ditched which isn't too far down the line.
pibby said:
Thanks fatlad.
Just so I know as I don't want to have some sort of marker on my account, will my mortgage company want accounts etc to release some equity in my house to help out?
I honestly don’t know, I doubt it for a general enquire. I’ve heard stories of people needing to give every detail to borrow more money on a mortgage and people ringing up giving no info and having money in bank bloody quick, I guess it depends on loads of things.Just so I know as I don't want to have some sort of marker on my account, will my mortgage company want accounts etc to release some equity in my house to help out?
It may be an isssue if they look at your credit rating and it’s a bit naff, bit late in the night now but hopefully someone with a financial background will see this tomorrow and be able to give some propper guidance.
Shnozz said:
If you had a business before, why is it only now you are considered self-employed for lending purposes?
Whilst people can give more general advice, on a day to day level then perhaps you can list your monthly outgoings. On a cursory glance I am surprised outgoing exceed incoming, or certainly not after a little giggle around and once the lease cars can be ditched which isn't too far down the line.
The business had been going a while and I managed to get them to see me as an employee as such where as now, the business is gone and I work for someone else in a similar but different business.Whilst people can give more general advice, on a day to day level then perhaps you can list your monthly outgoings. On a cursory glance I am surprised outgoing exceed incoming, or certainly not after a little giggle around and once the lease cars can be ditched which isn't too far down the line.
I'll post all of my outgoings tomorrow.
Debt piling up isn't nice, been there many sleepless nights. Worst thing is ignoring it and waiting for it to implode. Credit companies are pretty reasonable when you talk to them. Talk to your mortgage company and see what payment holidays they allow.
Good luck sorting it. Hope you find a solution.
Good luck sorting it. Hope you find a solution.
jonny70 said:
Have you discussed your issues with your parents or in-laws (or Siblings or wife’s siblings ) (can they help? - immediate family especially parents will naturally want to help their children even in adulthood)
Nobody knows. My family would love to help but even if they wanted to my parents aren't in a position to. My wife's family are shall we say, work shy so live on very little money and just plod along content with their own lives.
I appreciate getting help from family is a great way but sadly not an option for me.
I need to do this myself and I hope that doesn't come across like I'm ignoring everyone but why wife is a very lovely woman that even when we had money, she would still ask if it was OK to buy something for £10 so her spending is tiny and not a factor.
Thank you for all the replies so far. It genuinely does help.
I’m going to go against the grain and say DO NOT mess with the mortgage. No contact, no negotiation, nothing. Missed/reduced payments can severely screw you down the line and put you on SVR for years, or worse, current lenders could deem you as not meeting current agreement.
The loans and credit cards are what need to be reduced. Stepchange will discuss the current debt with you, incomings and outgoing and advise. It’s free advice, they’re a charity, they don’t make a penny from assisting you.
If necessary, they’ll negotiate reduced payments to cards/loans. You make a monthly payment to them and they divide what you can afford as agreed. This will impact future borrowing, but as long as your mortgage is untouched remortgaging with the same lender should be fine. You may struggle with other lenders. Your credit rating will be affected for up to 5 years, but realistically it will be if you start defaulting anyway.
Stepchange may just help you see other ways of breaking things down once incoming/outgoings is all clarified. But they should be first call before you potentially make the situation worse.
Good call on reaching out before it’s too late.
The loans and credit cards are what need to be reduced. Stepchange will discuss the current debt with you, incomings and outgoing and advise. It’s free advice, they’re a charity, they don’t make a penny from assisting you.
If necessary, they’ll negotiate reduced payments to cards/loans. You make a monthly payment to them and they divide what you can afford as agreed. This will impact future borrowing, but as long as your mortgage is untouched remortgaging with the same lender should be fine. You may struggle with other lenders. Your credit rating will be affected for up to 5 years, but realistically it will be if you start defaulting anyway.
Stepchange may just help you see other ways of breaking things down once incoming/outgoings is all clarified. But they should be first call before you potentially make the situation worse.
Good call on reaching out before it’s too late.
Edited by bristolbaron on Tuesday 6th August 07:44
pibby said:
I think I need to look at every little thing I can cut back on tomorrow morning and go from there.
Every last bean.
"Compare the market" for all household bills, utilities, phone contracts etc. Can save you a fortune if you're not in the habit of doing it regularly. Now, whenever I sign up to a new direct debit, I put a reminder in my Google calendar to compare prices when the fixed term ends.
And as much as I agree that cards CAN be the enemy, they at least show where you are spending. Cash can easily be spent and go "unaccounted for". Extra coffee here, round of drinks there etc etc.
Even things like the food you buy. Packed lunches for work.
Any chance of doing any overtime at work? Sucks to be spending any more time away from your family but would make a huge difference as you earn a decent wage.
Of course it’s going to get worse each month - you’re spending more than you earn. You need to cut back everywhere and learn how to budget.
Take a sheet of paper and write your income at the top.
Then list the expenses that are required to keep you surviving, in this order:
- food (we all gotta eat!)
- utilities, water, electric, gas (gotta keep warm/food cold etc)
- shelter (mortgage)
- car(s) do you really need 2?
Then work out what you have left. I don’t know what you pay for food or utilities but you should have around £800 left?
Forget the credit cards other than the minimum payment for now. What’s the deal with the loans? Are they to friends/family or a bank?
Drop at least one car if possible.
That should hopefully plug the whole in your sinking boat and steady things. You can then work out how to bail it out after.
What about picking up some extra work? Can you do something evenings and weekends? Uber maybe?
Do you have ANY savings?
Take a sheet of paper and write your income at the top.
Then list the expenses that are required to keep you surviving, in this order:
- food (we all gotta eat!)
- utilities, water, electric, gas (gotta keep warm/food cold etc)
- shelter (mortgage)
- car(s) do you really need 2?
Then work out what you have left. I don’t know what you pay for food or utilities but you should have around £800 left?
Forget the credit cards other than the minimum payment for now. What’s the deal with the loans? Are they to friends/family or a bank?
Drop at least one car if possible.
That should hopefully plug the whole in your sinking boat and steady things. You can then work out how to bail it out after.
What about picking up some extra work? Can you do something evenings and weekends? Uber maybe?
Do you have ANY savings?
fesuvious said:
Contact mortgage company. You need to release the 20k ish to get you to 90% ltv. Ask then what deals are open to you.
You need to use that to get shot of the credit cards and the 9k.
Take the mortgage out over the maximum term you can.
That's step one.
Step two is cutting up those cards.
Step 3 is losing those daft leases and either having one lease cat and one cheap runaround or two cheaper cars. This may have to be achieved by refinancing the 10k loan into 20k.
What he said, especially dumping the lease. Plenty of cheap reliable throw away cars around and this is piston heads, we'll probably be a lot better at helping you fix your car vs giving financial advice.You need to use that to get shot of the credit cards and the 9k.
Take the mortgage out over the maximum term you can.
That's step one.
Step two is cutting up those cards.
Step 3 is losing those daft leases and either having one lease cat and one cheap runaround or two cheaper cars. This may have to be achieved by refinancing the 10k loan into 20k.
I felt your desperation in the early 90's when I was taking home 90GBP /week in a full tome job at 17 while trying to live in London in a box room that cost me 45 GBP/Week.
If your take home is 4k / month, you'll quickly dig your way out of your situation if you're disciplined. We also tend to accumulate stuff that we buy over the years and never use. Consider unloading some of that stuff (Jewelry, watches, electronics) as it is worth something to someone.
Edited by alabbasi on Tuesday 6th August 06:04
bristolbaron said:
I’m going to go against the grain and say DO NOT mess with the mortgage. No contact, no negotiation, nothing. Missed/reduced payments can severely screw you down the line and put you on SVA for years, or worse, current lenders could deem you as not meeting current agreement.
I'd agree with that, the mortgage is priority number one.I'd speak to the loan and card people, tell them your situation and explain you're in financial hardship. That usually means a switch to a more 'understanding' team and likely a payment holiday/freeze. They will want to do an income & expenditure with you so have that done beforehand (and make sure it tells the right story). Then do all the things mentioned above about cutting expenditure etc.
You can ultimately settle unsecured debts for ten pence in the pound but it takes a long time and it'll be even longer before you get decent credit again.
pibby said:
I'm using this username as my other is connected to my work so hopefully that's OK.
Just a note to start is that this is all self inflicted and no one is to blame except myself.
I have no one to talk to about this but need to get it out and ask for some advice as the best solution to sort my life out.
Some points to note:
I take home £4k a month
My mortgage is £1,550 a month
I have 3 years left on my fixed mortgage meaning I have to pay £17k on ERC.
I owe around £14k on credit cards
£10k on a personal loan
£9k on another loan
Council tax is £315 a month
£320 a month on a lease (ends in May next year)
£235 a month on a lease (ends February 2020)
Plus the normal family household bills.
I've removed all outgoings that don't drastically affect my family.
How much is the credit card payments and loan?Just a note to start is that this is all self inflicted and no one is to blame except myself.
I have no one to talk to about this but need to get it out and ask for some advice as the best solution to sort my life out.
Some points to note:
I take home £4k a month
My mortgage is £1,550 a month
I have 3 years left on my fixed mortgage meaning I have to pay £17k on ERC.
I owe around £14k on credit cards
£10k on a personal loan
£9k on another loan
Council tax is £315 a month
£320 a month on a lease (ends in May next year)
£235 a month on a lease (ends February 2020)
Plus the normal family household bills.
I've removed all outgoings that don't drastically affect my family.
5% a month payback on £24k is £1.2k.
Mortgage £1.5k + £300 council tax = £3k essential spend per month.
Your gas/electricity/water bill combined shouldn't be more than £200/month, if it is your can cut down by turning lights off etc or swtich supplier = £800/month left spare.
You need to dump the lease cars and get a sub £1000 reliable runner, Honda Civic/Nissan Almeria/Prius etc, these cars shouldn't cost you more than £100/month to keep on the road, and do you need two cars??
So you should still be left with £500/month+ spending money.
Dump Sky if you have it, Freeview is plenty and free!! Phone contracts can be had for £10/month with 1gig of data, again enough for anyone - certainly for me. Basic broadband is about £20/month these days.
Go through your direct debits, cancel everything you don't need, any non mandatory insurance products, memberships to gyms etc.
£20 shop in Aldi gets you so much stuff compared to even Tesco, don't even think of stepping into Sainsbury's or Waitrose. When out in town park for free and walk instead of using the mutlitstory. Don't go and buy a coffee/sandwich at work, make your own sandwiches for about 10% the cost and take a jar of instant cofffe to work, hot water is free at work I presume.
When kids wants to play on those £1 1 minute rides you find every where, tell you they have to earn be able to get them to work, they want a toy, tell them the same. We only buy our daughter toys on birthday and xmas, she doesn't even look at the toy aisles any more, instead we go to the library. For a treat we pay £5 entry to council run pool, thats enough entertainment for a whole afternoon.
Even after all your family out goings are done you should still have £100-200/month, use that to overpay the most expensive loan first.
Your on a very good salary, cut down on waste and budget you can clear your debt without risking the house. Be honest with your family, tighten the belts, and be ruthless with your cost cutting. Don't take on more debt you really shouldn't need too with your income!
Edited by gangzoom on Tuesday 6th August 06:58
pibby said:
Oh I definitely don't feel like a hero. Can't even afford to take my kids on holiday when they really deserve it.
I have always been the money parent while my wife looks after the kids so yes it's about pride but also because I'm not willing to put my family through what I'm going through.
That's the first things you have to mentally overcome. No one in life 'deserve' anything, life is unfair/c@#p at times. What your kids deserve is a carrying family and a home, everything else is material junk no one needs. I have always been the money parent while my wife looks after the kids so yes it's about pride but also because I'm not willing to put my family through what I'm going through.
A holiday is just family time not in your own home.....why is that even a necessity or a good thing?? Go and take the kids to the inlaws, thats a family trip out, and very low cost.
The whole point of a marriage is team work and support. Its about everyone working together through the hard bits, if you don't share how difficult it is to earn money, and the value of budgeting how is your kids going to learn that in future??
My parents use to argue about money, and my strongest memory from childhood is been told 'No one will put food in your bowel but your self', and to this day I remind my self of that everytime I want to buy anything - Have I earned it, do I need it and can I afford it. Looking back am really glad I saw how hard earning money is as a kid, life is hard and the sooner kids learn this the better. Far from protecting them, not sharing the facts of life with them is doing the exact opposite.
Edited by gangzoom on Tuesday 6th August 06:57
gangzoom said:
How much is the credit card payments and loan?
5% a month payback on £24k is £1.2k.
Mortgage £1.5k + £300 council tax = £3k essential spend per month.
Your gas/electricity/water bill combined shouldn't be more than £200/month, if it is your can cut down by turning lights off etc or swtich supplier = £800/month left spare.
You need to dump the lease cars and get a sub £1000 reliable runner, Honda Civic/Nissan Almeria/Prius etc, these cars shouldn't cost you more than £100/month to keep on the road, and do you need two cars??
So you should still be left with £500/month+ spending money.
Dump Sky if you have it, Freeview is plenty and free!! Phone contracts can be had for £10/month with 1gig of data, again enough for anyone - certainly for me. Basic broadband is about £20/month these days.
Go through your direct debits, cancel everything you don't need, any non mandatory insurance products, memberships to gyms etc.
£20 shop in Aldi gets you so much stuff compared to even Tesco, don't even think of stepping into Sainsbury's or Waitrose. When out in town park for free and walk instead of using the mutlitstory. Don't go and buy a coffee/sandwich at work, make your own sandwiches for about 10% the cost and take a jar of instant cofffe to work, hot water is free at work I presume.
When kids wants to play on those £1 1 minute rides you find every where, tell you they have to earn be able to get them to work, they want a toy, tell them the same. We only buy our daughter toys on birthday and xmas, she doesn't even look at the toy aisles any more, instead we go to the library. For a treat we pay £5 entry to council run pool, thats enough entertainment for a whole afternoon.
Even after all your family out goings are done you should still have £100-200/month, use that to overpay the most expensive loan first.
Your on a very good salary, cut down on waste and budget you can clear your debt without risking the house. Be honest with your family, tighten the belts, and be ruthless with your cost cutting. Don't take on more debt you really shouldn't need too with your income!
That was sort of what I was getting at when I suggested OP should list his outgoing PCM. On the face of it, my cursory overview was similar to you, on a reasonable salary and without a crazy mortgage, uninhabited BTL properties, massive loans and CCs etc, it gave me the impression it would be manageable with some belt-tightening and repayments starting once the cars can be rid of and a few other expenses trimmed.5% a month payback on £24k is £1.2k.
Mortgage £1.5k + £300 council tax = £3k essential spend per month.
Your gas/electricity/water bill combined shouldn't be more than £200/month, if it is your can cut down by turning lights off etc or swtich supplier = £800/month left spare.
You need to dump the lease cars and get a sub £1000 reliable runner, Honda Civic/Nissan Almeria/Prius etc, these cars shouldn't cost you more than £100/month to keep on the road, and do you need two cars??
So you should still be left with £500/month+ spending money.
Dump Sky if you have it, Freeview is plenty and free!! Phone contracts can be had for £10/month with 1gig of data, again enough for anyone - certainly for me. Basic broadband is about £20/month these days.
Go through your direct debits, cancel everything you don't need, any non mandatory insurance products, memberships to gyms etc.
£20 shop in Aldi gets you so much stuff compared to even Tesco, don't even think of stepping into Sainsbury's or Waitrose. When out in town park for free and walk instead of using the mutlitstory. Don't go and buy a coffee/sandwich at work, make your own sandwiches for about 10% the cost and take a jar of instant cofffe to work, hot water is free at work I presume.
When kids wants to play on those £1 1 minute rides you find every where, tell you they have to earn be able to get them to work, they want a toy, tell them the same. We only buy our daughter toys on birthday and xmas, she doesn't even look at the toy aisles any more, instead we go to the library. For a treat we pay £5 entry to council run pool, thats enough entertainment for a whole afternoon.
Even after all your family out goings are done you should still have £100-200/month, use that to overpay the most expensive loan first.
Your on a very good salary, cut down on waste and budget you can clear your debt without risking the house. Be honest with your family, tighten the belts, and be ruthless with your cost cutting. Don't take on more debt you really shouldn't need too with your income!
Edited by gangzoom on Tuesday 6th August 06:58
It certainly didn't scream bankruptcy or even a fire sale on the house.
Shnozz said:
gangzoom said:
How much is the credit card payments and loan?
5% a month payback on £24k is £1.2k.
Mortgage £1.5k + £300 council tax = £3k essential spend per month.
Your gas/electricity/water bill combined shouldn't be more than £200/month, if it is your can cut down by turning lights off etc or swtich supplier = £800/month left spare.
You need to dump the lease cars and get a sub £1000 reliable runner, Honda Civic/Nissan Almeria/Prius etc, these cars shouldn't cost you more than £100/month to keep on the road, and do you need two cars??
So you should still be left with £500/month+ spending money.
Dump Sky if you have it, Freeview is plenty and free!! Phone contracts can be had for £10/month with 1gig of data, again enough for anyone - certainly for me. Basic broadband is about £20/month these days.
Go through your direct debits, cancel everything you don't need, any non mandatory insurance products, memberships to gyms etc.
£20 shop in Aldi gets you so much stuff compared to even Tesco, don't even think of stepping into Sainsbury's or Waitrose. When out in town park for free and walk instead of using the mutlitstory. Don't go and buy a coffee/sandwich at work, make your own sandwiches for about 10% the cost and take a jar of instant cofffe to work, hot water is free at work I presume.
When kids wants to play on those £1 1 minute rides you find every where, tell you they have to earn be able to get them to work, they want a toy, tell them the same. We only buy our daughter toys on birthday and xmas, she doesn't even look at the toy aisles any more, instead we go to the library. For a treat we pay £5 entry to council run pool, thats enough entertainment for a whole afternoon.
Even after all your family out goings are done you should still have £100-200/month, use that to overpay the most expensive loan first.
Your on a very good salary, cut down on waste and budget you can clear your debt without risking the house. Be honest with your family, tighten the belts, and be ruthless with your cost cutting. Don't take on more debt you really shouldn't need too with your income!
That was sort of what I was getting at when I suggested OP should list his outgoing PCM. On the face of it, my cursory overview was similar to you, on a reasonable salary and without a crazy mortgage, uninhabited BTL properties, massive loans and CCs etc, it gave me the impression it would be manageable with some belt-tightening and repayments starting once the cars can be rid of and a few other expenses trimmed.5% a month payback on £24k is £1.2k.
Mortgage £1.5k + £300 council tax = £3k essential spend per month.
Your gas/electricity/water bill combined shouldn't be more than £200/month, if it is your can cut down by turning lights off etc or swtich supplier = £800/month left spare.
You need to dump the lease cars and get a sub £1000 reliable runner, Honda Civic/Nissan Almeria/Prius etc, these cars shouldn't cost you more than £100/month to keep on the road, and do you need two cars??
So you should still be left with £500/month+ spending money.
Dump Sky if you have it, Freeview is plenty and free!! Phone contracts can be had for £10/month with 1gig of data, again enough for anyone - certainly for me. Basic broadband is about £20/month these days.
Go through your direct debits, cancel everything you don't need, any non mandatory insurance products, memberships to gyms etc.
£20 shop in Aldi gets you so much stuff compared to even Tesco, don't even think of stepping into Sainsbury's or Waitrose. When out in town park for free and walk instead of using the mutlitstory. Don't go and buy a coffee/sandwich at work, make your own sandwiches for about 10% the cost and take a jar of instant cofffe to work, hot water is free at work I presume.
When kids wants to play on those £1 1 minute rides you find every where, tell you they have to earn be able to get them to work, they want a toy, tell them the same. We only buy our daughter toys on birthday and xmas, she doesn't even look at the toy aisles any more, instead we go to the library. For a treat we pay £5 entry to council run pool, thats enough entertainment for a whole afternoon.
Even after all your family out goings are done you should still have £100-200/month, use that to overpay the most expensive loan first.
Your on a very good salary, cut down on waste and budget you can clear your debt without risking the house. Be honest with your family, tighten the belts, and be ruthless with your cost cutting. Don't take on more debt you really shouldn't need too with your income!
Edited by gangzoom on Tuesday 6th August 06:58
It certainly didn't scream bankruptcy or even a fire sale on the house.
Objectively, there are more than enough astute suggestions in this thread to help the OP find his feet financially.
The failure of his business and the associated regret for decisions made in the past could have taken their toll on the OP's mental health. That is understandable, as it would be a very stressful period. The key though now is treating the health issues so the OP can then start to explore some of both yours and the other good suggestions in this thread.
fesuvious said:
Contact mortgage company. You need to release the 20k ish to get you to 90% ltv. Ask then what deals are open to you.
You need to use that to get shot of the credit cards and the 9k.
Take the mortgage out over the maximum term you can.
That's step one.
Step two is cutting up those cards.
Step 3 is losing those daft leases and either having one lease cat and one cheap runaround or two cheaper cars. This may have to be achieved by refinancing the 10k loan into 20k.
At this point you're still up per month. However you must put money away to cover repairs etc on the cars. Be disciplined. Open an account, send it by standing order. Have the account in a separate bank or buil society.
Now, remember that cards are evil. Remind yourself.
If this has worked out you're better off each month. Priority is paying down that 20k.
So, after 12months take a 6month mortgage payment break and use it in full to take that loan down to @5k outstanding.
6ish months later it's gone.
2years from now you're @88% mortgaged based on current values but you're free of the st debt.
However you will have 2 old cars. So remember to look after them, if they've gone ok then that maintenance fund will be there to assist.
2years.
Good post.You need to use that to get shot of the credit cards and the 9k.
Take the mortgage out over the maximum term you can.
That's step one.
Step two is cutting up those cards.
Step 3 is losing those daft leases and either having one lease cat and one cheap runaround or two cheaper cars. This may have to be achieved by refinancing the 10k loan into 20k.
At this point you're still up per month. However you must put money away to cover repairs etc on the cars. Be disciplined. Open an account, send it by standing order. Have the account in a separate bank or buil society.
Now, remember that cards are evil. Remind yourself.
If this has worked out you're better off each month. Priority is paying down that 20k.
So, after 12months take a 6month mortgage payment break and use it in full to take that loan down to @5k outstanding.
6ish months later it's gone.
2years from now you're @88% mortgaged based on current values but you're free of the s
t debt.However you will have 2 old cars. So remember to look after them, if they've gone ok then that maintenance fund will be there to assist.
2years.
You need to talk to your wife about this ASAP.
You cannot cope with this on your own.
You need to heed the advice given on this thread already and seek professional help.
This isn't going away - and you are heading for a st load MORE grief.
Good Luck
You cannot cope with this on your own.
You need to heed the advice given on this thread already and seek professional help.
This isn't going away - and you are heading for a s
t load MORE grief.Good Luck
Edited by Jasey_ on Tuesday 6th August 08:11
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