To ask you all to judge my financial situation?(66 Posts)
Can you switch to Interest only on the mortgage for a short period. Not ideal but cheaper than CC
What percentage is your mortgage to current house value? And what multiple is it to our salaries?
What interest percentage are you paying on your mortgage and are you tied in?
I'd try to take on extra work in the short term, is that possible with what you do? Any freelance opportunities to work from home in the evenings?
If not I would try to consolidate your loans, cut up the credit cards and drop a car. One of you would have to drive the other to work and collect, is that feasible?
Mortgage holiday and spend that money on cutting the debt? Presuming your mortgage interest is less than your loan interest.
Ask family to look after kids to cut your childcare bill?
Are you able to consolidate for now, just to bring the monthly repayments down?
Is your income likely to increase in the next 5 years?
Imo you're not going to get out of this without cutting your monthly debt bill, it'll just get worse, debt management or otherwise.
Hope that's not too harsh, I am not too far from your situation and my only hope is to plan ahead so that in 5 yrs time I can retrain and earn enough to be comfortable.
You need more information.
What is the average rent for houses in your area?
What's your Loan to Value on the house?
Probably speak to your mortgage lender to see if monthly repayments could be lowered for a time. Then use this extra money to pay off credit cards asap as the interest on these and any other loans will put you more out of pocket in the long term.
Any option of car sharing with colleagues to/from work some days? Have you looked on eBay for cheaper kids clothes or failing that, have a bit of a clear out & try & sell some stuff on there. Use this money towards paying off your loans/credit cards. Citizen's Advice Bureau may be able to point you in the direction of more advice for debt management but the main thing is to eliminate your existing credit card debts and then try not to let them build up again. Wish you all the best, sounds incredibly tough.
Cut credit cards up as of today. Change to interest only mortgage.
There are only two ways - increase income and/or decrease outgoings. Could one of you look at contracting work for example - day rates tend to be more generous than a salary. In terms of outgoings, be honest with where your money goes and look at ways to cut back. Shop at Aldi/Lidl, can you car share with anyone, etc etc. Make Moneysavingexpert.com your new best friend.
If you live near me, hertfordshire, and your children are under 2 I have lots of girls clothes and toys if you would like them?
evening job , couple of nights each until you can sell the house and move to one of the places where a job is, so only one of you has to travel, and you only have to run one car,
Could you rent out your house and rent out somewhere cheaper in one of the places where a job is?
Both ask for a raise.
where do the children go to school ?
Are either of your jobs transferable? Ie to get a new job in the same town as each other or one to work nights? Weekend work?
What is the term of the high interest loan? How much is on the high interest loan?
Ps look at moneysavingexpert for an I&e to fill in - you do it the other way around - put down living costs first - mortage, bills, food and necessary expenditure first (eg not sky) - then look at what you have to cover unsecured debts etc. Stop the payday loans for a start.
Can you downgrade your cars? Eg if they are worth more than a couple of thousand then sell and buy cheap runarounds.
I'm going to lurk. Our situation is v similar
Stop buying on credit for a bit. There are loads of nice good quality kids clothes out there for peanuts second hand.
I realise you aren't living an extravagant lifestyle but as someone else says, you ŵith up income or down outgoings.
Could you move home? There are obviously cost to that but it could cut your mortgage?
Do you have any hobbies or talents you could use to make extra money? Cake decorating? C
Moneysavingexpert website is amazing for guiding you through this.
Just one thing based on what you've said though - kids clothes on credit? Charity shops, nearly new sales and eBay! Don't buy new on credit!
It sounds like it would be worth getting some debt advice. Stepchange (used to be CCCS) or CAP are free, and good advice. Don't go to any debt companies - they're mostly cowboy operations.
You have my sympathy, everything has got so expensive. You must do something to make your lifestyle more sustainable.
I think a debt plan could be the way forward. Try talking to the money advice service (google it, they are really helpful).
Yes, you do sound as though you are in a mess. Sorry
You need to do something quite radical.
Firstly, you need to list all of your outgoings. Every single one. Then look at the list and see if anything is non-essential.
For instance, it stuck out to me that
"We cant afford new clothes and so the kids stuff is mainly bought on credit (I know)."
So are you saying that you buy them brand new clothes? That must stop. Ebay, charity shop, etc.
Look at whether you are a homeowner or a home^renter^. If your equity is pretty much 0%, then really you are just renting your home from the mortgage company.
The most worrying thing, the thing which tells me that you are in trouble, is that you are increasing your debt by living beyond your means. You haven't found a way to stop overspending despite being maxed out on credit cards.
Before anyone says I'm being harsh, I've been there, done that, bought the t-shirt. The route out of it is painful, but liberating.
Scooter instead of car? Fuel and insurance is much cheaper.
Look for a weekend job in the short term for one of you to try and pay down the high interest debts?
Medical trials? I'm not joking, pay quite well if you can take annual leave to do them. And some fucker has to try the drugs so that they can get licensed.
Well worth a chat to the CAB, they really helped my massively profligate mother, so I'm sure they can help you
more reasonable and less daft OP.
You can't carry on as you are so you need to accept some sort of compromise. Stop building debt, cut up the cards, avoid avoid avoid payday loans that will exacerbate the issues.
Take in a lodger? Its tax free.
If your income is £32k mortgage is a max but on a good rate and debt after mortgage is £7k how come your total bills are £1700? That seams high for a mortgage, a loan and the basic domestic stuff. Is there anything that can be cut there? I.e. mobiles, tv package etc. are you on the best tariffs for gas and electric? Can you transfer your credit card to a zero percentage for transfers?
Ebay everything that you don't need. Toys that are outgrown, things you don't really use, scraps of fabric - set aside a few hours a week to get listing.
Gold is a really good price right now. I just sold my old wedding ring, and various other scraps of gold and got a few hundred. i used Hatton Garden Metals who I found via Martin Lewis's site.
Have you had ppi on previous loans?
Could you do tutoring, gardening, take in laundry, run a summer holiday pet sitting service?
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