Mortgage Counsellor coming tonight - Should I be worried?

[LadyOfTheFlowers]

Will feel strange handing bank statements/payslips/bills over to him, telling him how much debt we have besides the mortgage.
He seems a nice guy but still feel nervous like he will be trying to 'catch me out' or something.
Am a bit worried as we probably could have made all the payments, if I had cut back even more on food.
I don't want to lose our house, even though it's too small, but I don't want to come up with a plan so we can scrape through, paying for a house that is 2/3 bedrooms too small either.
I feel like I am trapped. I can't afford to sell up, but don't want to struggle on either. Suppose it won't look too good if I tell him that either though.

Don't tell me I'm the only one who has this done?
Am so nervous!! ;(

How far behind are you?

Do you have any equity in the house?

What is the best that could happen from this meeting?

Good luck, btw.

Is your financial situation likely to improve in the future? Ie is there a chance of better pay etc?

If so, is it a good idea to hang on to the house, work on paying off debts and keeping mortgage going until you can either afford to extend the house and create space or move and find more space.

A third option would be to consider renting out your house and renting a larger house to get more space.

Don't be nervous. It is cheaper for the mortgage company to help you to keep your home than to repossess or force a sale.

Can you look at going onto interest only payments for 12 months to improve your debt situation? That way you could free up more income to pay off the mortgage at the end of the twelve months.

Well, it was fine.
Thanks for the replies - I did manage to come back and read them before he got here.
He basically said similar to what you guys have said - go interest only, but more time, save the money to move with then rent somewhere bigger.
He was not supposed to say 'what he would do' in our situation but I said we are a bit green behind the ears - give me a clue!

Thanks all.