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running out of money

  • sluffman
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23 Mar 08 #17476 by sluffman
Topic started by sluffman
I would like some advice on what to do when you run out of money ie: mounting debt with c/cards personal loans blah blah blah.
Do you think it is an option to stop paying the mortgage an use that money to clear my debt, while I wait for the eviction notice.
does anyone know if the council still house people that are going to be evicted??
I simply cannot afford what I have an have been trying to sell the house for 5 months now without much interest because of market slowing down, I have reduced the price of house and dont realy know what to do next.
I cant get any benifits because I earn 19000 pa an need to care for my 2 teenage daughters as they live with me.

Any suggestions on how to get out of this hole I am digging Please:S ;):dry:

  • rubytuesday
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23 Mar 08 #17477 by rubytuesday
Reply from rubytuesday
Hi Sluffman

You may find this link useful www.nationaldebtline.co.uk

You would need to check with your local Council about the housing situation, and it may also be worthwhile contacting the local Housing Associations as your housing situation is precarious.

If your daughters are aged 16 or under, or in full-time education and aged 19 or under, you may well qualify for tax credits. this link will take you directly to the approriate page for further information. www.direct.gov.uk/en/MoneyTaxAndBenefits...le_PPC&cre=Money

Hope this helps a wee bit

Ruby

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23 Mar 08 #17478 by sluffman
Reply from sluffman
Thanks Ruby everything helps from this site an the good people on it

Happy easter

  • LittleMrMike
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23 Mar 08 #17481 by LittleMrMike
Reply from LittleMrMike
Sorry to hear about your problems.

The methodology of debt advice is, basically, as follows.

1. Make a complete list of your debts. Be honest, face up to the situation, no matter how bad it is.
2. Next step is to prioritise them. There are some debts which are more urgent than others, such as mortgage, rent, Council tax, water charges, anything where something nasty can happen if you don't pay.

Mortgage payments are without doubt a priority debt, and
it is not, in my opinion, a good idea to neglect priority debts in favour of those which have no priority.

3. List your income, and as part of this process, review what steps you can take to increase it. This will usually involve a benefit check as standard.

4. List your outgoings. These need to be prioritised as stated before. You need to work out what you reasonably need to live on. Always allow some reasonable sum for contingencies and having the occasional treat.

Next is to form a repayment plan. Your priority debts must, as the name implies, come first. Any surplus of income over expenditure after paying priority debts is
apportioned pro rata between your unsecured creditors.

Do not forget, one cannot get blood out of a stone. If you haven't got it, you can't pay it. I'm afraid your situation is not as uncommon as you might suppose.

In your position, sir, I would speak with the mortgage lender and bring along your budget. DO NOT JUST STOP PAYING. Worst thing you can do. AVOID REPOSSESSION IF YOU POSSIBLY CAN. Take my word for it, the costs mount up
like you would not believe.

You should be able to get a book DEALING WITH YOUR DEBTS
from a CAB. It is free and expands the advice given here in outline.

Good luck.

Mike 100468

  • sluffman
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23 Mar 08 #17482 by sluffman
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thanks Mike I have taken note of what you wrote an will take your strong words of advice, thats why i asked i knew someone would know an steer me in the right direction

  • Elizabeth
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24 Mar 08 #17508 by Elizabeth
Reply from Elizabeth
hELLO sLUFFMAN,

wHOOPS left it on CAPS lock! The advice from Mike is absolutely sound - you won't go wrong if you follow that ... I have been told that you can go to jail for now paying your council tax! So, my priorities are paying my mortgage, council tax, utility bills, keeping my car running (to get to work to earn money!), eating comes last...!

If you have a pound in your pocket, food in your tummy and a good friend - your rich!!

Hope this site helps,,, keep your chin up - things will get better, responsible attitude towards debt and you'll be fine..

  • bruno
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24 Mar 08 #17513 by bruno
Reply from bruno
Hi sluffman,
try to get an appointment with a citizens advice centre they were brilliant in my case. they will help with an income & expense form, work out what you can afford to pay, write to your creditors with offers of payment, get the interest frozen on credit cards etc.as already advised you must pay priority debts over credit cards ie mortgage, council tax. good luck. it does get better honest

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