Three years of so many outgoings

[thisisasurvivor]

Hello all

Money saving tips would be very much appreciated

Have got so many direct debits coming out over the next three years

Building a house
Had savings but the cost went way over

Had to take out loans (I know it's not the end of the world ) just trying to figure out how to manage these over next three years

Monthly income £3300
Loans total to £2500

I have some credit cards to use to
And pay the minimum monthly payment each month (max limit in total on them is 14k)

Crazy situation I know
Just wondering if I should stay well clear of the credit cards?
Try to get another loan?? Possibly madness I know

And I realise I am very fortunate to have a new house build

I have lived in a one bed apartment with two kids for long enough so I know how lucky I am before I get trolled over that

I assume you have looked into BuildStore loans?

Thanks so much

Yes it was a no from them a long time ago

I was looking up some more loans online earlier and the fees are so so high 👎👎

Am I reading this wrong- you’re paying £2,500/month in loan payments on a monthly income of £3,300?

Does the £2.5k include your mortgage?

It sounds exceptionally tight. I can’t see how it’s doable.

Outside of loan repayments, what other outgoing do you have?

How were you able to borrow that much?

It’s often easier to earn more money than cut back. Any overpayment you can make will then reduce monthly payments and take the pressure off. Anything to sell? Any scope to up hours/bank staff/locum/freelance?

Sorry I didn't explain well

So there is no mortgage
I had savings and to build the house
Then the costs sky rocketed

Now I had to take loans

Madness I know
Utter madness

Yes exactly

I have asked for more locum stork to do each weekend

Is £2.5k the amount you owe on loans, or the monthly payment?

If the house is finished now could you convert the debt to mortgage?

Not great timing but rates usually better than other debt.

What stage is the house build? If you own the land and are out of the ground could you convert loans to mortgage?

I don’t see how you will get more loans with that income vs outgoings. Your best way will be to leverage your asset to restructure.

Have you seen a mortgage broker?

I’m in a similar position looking at paying 2 mortgages (dodgy cladding) and 2 sets of full time nursery on very normal wages for a couple of years and try as I might there just wasn’t enough fat to trim so earning more is far and a way the better option if you can. What is the interest on the credit cards and if it’s 0% when does that run out? (The days of just being able to move to another 0% card are over it seems).

How much can you earn with an extra shift once a fortnight or similar?

Monthly repayment is 2.5k a month for three years

Very good advice guys

Convert loans to mortgage
More locum work m
I own the land thankfully

Own other plots but don't want to sell them :/

May have to??

Ahh I feel your pain

Zero percent interest on c cards thankfully

The house build is now at the end

I could earn 600 a day with locum work

That would mean a year of working each weekend

And very little family time

Single parent
No support. From. Loser ex

All my fault I know just wondering how to manage it all now

Honestly just sell a plot in that case. the stress of balancing this with rising interest rates isn’t worth the long term financial gain surely?

How old are you? 3 years seems like a very short repayment window for such a high debt. Whether it’s a mortgage or another loan, could you restructure it over a longer time? Obviously if you’re 65 that might not work.

True!!!!!!

Not worth it

Yes absolutely sell a plot and do it now, the market is in for a nasty shock IMO.

You might be better off financially, eventually, if you hold it long enough, but why put yourself through all this and miss family time for it if you're already in a decent financial position?

Why do you have to work every weekend with locus work…is that on top of a full time job? £600 per day 5 days per week would bring home loads more than £3300

41

Self employed

Applied for mortgage and was told no as I had just set up my business

Had savings
The. The costs got higher and higher

So in total took quite a few loans out
Paid one year of the loans
Had to take another and now I'm like craaaaap

£2.5k per month for 3 years is £70k.

if you can convert that debt to a mortgage on the house that’s nearly finished, or to a loan secured against the other plots, you could reduce your outgoings to under £800 per month if you are OK to have a 10 year mortgage term.

If it were me I would much rather that than not see my kids at the weekend.

Ok so so helpful

Did. Not know this was an option

Good to know

I said one year of locum work to try and get rid of most loans as soon as I could

Absolutely 🙏🙏🙏

How long ago did you set up your business and when we’re you turned down for a mortgage? Also, was the mortgage on a partially built house? That would be much riskier than a finished house, plus you’ll have been self employed for longer.

I was self employed when I bought my current house (plus I was pregnant and had an unfunded maternity leave coming up!). At 41 you could take out a 20-25 year mortgage for a few hundred quid a month and take the pressure off - you can always overpay, or a 10 year mortgage and get it paid off quicker.

Id speak to a decent broker - happy to PM you mine. She’s super nice.