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Mortgage holiday or sort out debt?

(16 Posts)
Halfbaked Thu 06-Apr-17 17:54:27

Hi I need some advice, I'm off on long term sickness and my pay is about to reduce by half. I'm on a good salary so I won't be entitled to any benefits.
I have approximately £600 a month going out servicing credit card and loan repayments. My mortgage is about £500.
I have cut out all unnecessary payments and will be short by £400 per month without considering food.
I hope I will only need to get by for 2 months until I can return to work and full pay. It's only me and my DD who is with me half the time.
Should I
A) take a payment holiday from the mortgage for a couple of months
B) Go to stepchange to get my debt sorted, but leave my credit score ruined
C) Put more on the credit card and deal with it later (trying to get out of this habit)
D) Something else I haven't thought of
Any help/ suggestions greatly appreciated

Damia Thu 06-Apr-17 18:35:30

Is 600 the minimum repayment? I would sort your debt out if so. Don't add to it.

QuiteLikely5 Thu 06-Apr-17 18:37:13

i would ask for a mortgage holiday

Viviennemary Thu 06-Apr-17 18:53:53

I think I'd take the mortgage break for say three months. And then next tackle your loan repayments and try and get these down when you get back to work. Don't put any more on the credit card and don't go for a payment plan and ruin your credit score. Also in the long term you could consider remortgaging. I hate credit card debt.

Snap8TheCat Thu 06-Apr-17 18:57:04

Do you have ppi on any of the cards? Look in to whether the cc payments can be paid because you're on sick pay.

EnormousTiger Thu 06-Apr-17 19:35:41

Could you go back to work when still sick and just really grit your teeth?

Halfbaked Thu 06-Apr-17 22:36:41

Hi thanks
Yes £600 is the minimum debt repayment. I've recently separated from STBXH so have had a huge change in finances and I will be able to increase this when I'm back working full time to repay debt. Some of the debt was caused by him, but it's in my name so have to deal with it.
Definitely can't go back to work I've got breast cancer and I'm about to have surgery. Wouldn't be able to get to work let alone cope with teaching.
No PPI or critical illness insurance, kicking myself about that now!
These really are my only options.
Thanks I think the mortgage break is the most sensible, just wanted some unbiased advice!

Snap8TheCat Fri 07-Apr-17 05:56:50

So sorry to hear about your breast cancer and the end of your marriage. Would he not help considering your circumstances now? It really puts things in perspective and I think any decision you make that feels right will be right.

RedSandYellowSand Fri 07-Apr-17 06:08:35

Sounds like a mortgage holiday is necessary.
But will that be enough spare cash? It reads like you need to find 400 plus food?
Might it be possible to ring one or 2 of the biggest credit card / loan people and explain what is going on, and see if they will freeze the interest for 3 months?

donajimena Fri 07-Apr-17 06:28:05

I could be wrong but I think macmillan can help with finances? By giving support
www.macmillan.org.uk/information-and-support/organising/money-worries?gclid=Cj0KEQjwzpfHBRC1iIaL78Ol-eIBEiQAdZPVKjKbLm3C1Da9UL_dVJdATxJ0qrPHOA1Me34mAKUwCuIaAuFD8P8HAQ

Halfbaked Fri 07-Apr-17 06:31:48

A financial issues are what ended the marriage, so no help from STBXH!
I've got another months full pay, plus a pretty well stocked freezer, so I'm going to try and save as much as I can to buy food.
There are a few things I could sell too to raise a bit of cash.
My friend suggested contacting my union for a hardship grant, so I'll try that too.
Right phone call to mortgage company today, to see if it is actually possible.
Thanks again

GoodStuffAnnie Fri 07-Apr-17 06:46:29

I would take the mortgage holiday.

If you are really sensible with money and are determined to get out of this I would ask for 6 months.

How much is your debt?

Have you read debt free board on money saving expert?
forums.moneysavingexpert.com/forumdisplay.php?f=76

Also the old style money saving board is great.
forums.moneysavingexpert.com/forumdisplay.php?f=33

Good luck with everything xx

jaboker Fri 07-Apr-17 07:13:29

When you call the mortgage company, double and triple check to confirm they won't be marking your credit file with a missed payment which could then result in a default. Make a note of the time/date, and the name of the person confirming this information.

wannabestressfree Fri 07-Apr-17 08:01:47

Have you applied for pip?
Could you go back very part time with a doctors note meaning your paid full time - I am in very similar circumstances and that's what I do.

BarbaraofSeville Fri 07-Apr-17 11:38:40

£600 a month for minimum debt repayment is an awful lot and may be nearly all swallowed up by interest. Whether you do it now or later, you may need advice as to whether carrying on paying it is the best solution.

Sometimes just paying the minimum will leave you paying for years and not really getting anywhere. So please look into what's actually best to do when you feel able to even if it means ruining the credit rating. If you work out a proper budget including all annual costs, it's a lot easier to live without credit anyway and a lot less stressful than having a big credit card payment hanging over you for years on end.

EnormousTiger Fri 07-Apr-17 11:45:57

Half, I'm so so sorry about the cancer. My grit your teeth and go back to work advice might be suitable for some illnesses but certainly not that one! Good luck.

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