how to get out of debt?

[02gf74]

thx for replies and suggestions.

the whole situation is depressing me quite a bit - she, like myself, comes from humble beginnings, managed to get an education, a decent job, managed to buy a house car, nothing special but in terms of starting from nothing and getting something has been successful ... and all of that is now at risk. (all may be a slight eggaeration on my part)

I was looking to step in by buying of all or part of the outstanding mortgage to take a % ownership in the house but the amount is too high - the mortgage is a bad one that cannot be changed and she is unlikely to get a better deal on a mortgage due to no income.

.... but it is not all doom and gloom - the house on the market when sold will cover the debt and mortgage and leave around £ 100 k. I could chip in an amount but that money is struggling to buy a single bed flat, let alone a 2 bed - the other bed would be needed to be rented out to pay for a small mortgage she could tkae out - so maybe it is doable. In my opinion, this is the only way out - sell before the mortgage company take the house. I have no idea about the process or how quickly it happens but I would expect the company will sell the house as quickly and as cheaply as possible, as well as penalties, fees etc so she will get much less than if she preempts the situation by selling it herself.

I have arranged meeting with a financial adviser re: remortgaging but expect he will say the above.

I will arrange meeting with CAB too.

re: jobs - there is a stigma attached to applying for jobs that are below her experience/skills, it is natural that nobody would want to do a job that is "beneath them". I do not know what jobs she has applied but she has got to get something pretty soon to stay in her house.

 

[mattbrown]

Sell the house. If it will clear the debt why go through all the stress when the answer is right there. Yes you would have to start from scratch again, your health is more important than bricks and mortar.

Here is a quick goole from the CAB - http://www.adviceguide.org.uk/england/d ... _debts.htm

 

[02gf74]

^^^ thx for link, so basically as I expected.

hhmm, I think so too. she was pinning on cashing in her pension - cannot touch that for several years but was lead by some people that they can get at it that during the meantime she could get by on the 0% interest credit cards (that sooner or later sopt being 0%). 6 months on, there is no sign of any money from the pension - I am hoping that it is still there - need to check that.

Now she is pinning her hopes on getting 2 or 3 people (with 3 she intends to sleep downstairs on the couch! ) into the house but
a) the house needs a bit of work to make it attractive to renters which will take time and time is IMO is not what she has and
b) IMO there is no guarantee that anyone will take it up - the estate agents who will deal with the renting side tell her it is a goer but then they would..... and I have not done the mathematics to see if the reant will cover the outgoings.....

 

[Chopper the ex Copper]

What emergency provision did they make when the going as good? Farmer make hay when the sun shines, as my Ma was fond of telling me in between clips round threat ear. I was very resentful when she dragged me away at 18 for my first pension, insisted I was properly insured on any major expenditure (the is properly covered, not the laughable cover the lenders sell), and saved 15% of my net income - not nice when is a it on 7 grand when I joined the army.

But you know what - I'm 44 now, lives dumping on me because Woman is having to give up work, and everything's taken care of. There'll be no more New cars or holidays in NZ, but we won't starve and will be clothed decently.

While I don't wish I'll on anytime I have little sympathy for those who spunked it up the wall when the going was gravy, then find themselves inexplicably in the sheet when the brown tasty liquid train stops rolling.

 

[Alison]

:shock: oooh you are severe aren't you?

Me I've never had money to splash at any point, my husband is not terribly badly paid and we did almost buy a house, but I got scared just in case anything happened, six months later he was told they were closing down the company and he'd be made redundant, I'm so glad we never bought, we ended up over 100 miles away in North Yorkshire to get a job and almost every year he faces redundancy, only getting away with it by someone going for voluntary redundancy, I don't know how people dare risk buying in this day and age, jobs are so unstable.

Alison

 

[02gf74]

I'm with Mr Tillet on that - my family had nothing so we were brought up to go without rather than borrow.

Anyways, I would not say she lead an extravagent lifestyle but clearly did not do enough to provision for times like these. 2 bad mortgage decisions - it shocked me that after 15 years there is no reduction of the original loan!!! - and then not cutting back once jobless followed by living in what I can only describe as a dreamworld expecting money from her pension has only deepened the crises.

 

[Chopper the ex Copper]

:shock: oooh you are severe aren't you?

Yeah, because if we dont do it for ourselves our Fairy Godmother won't

 

[rosstheboss]

Have a close look at the cashing in the pension thing - they are an absolute minefield for scamming.

 

[Alison]

:shock: oooh you are severe aren't you?

Yeah, because if we dont do it for ourselves our Fairy Godmother won't

True, true

"re: jobs - there is a stigma attached to applying for jobs that are below her experience/skills, it is natural that nobody would want to do a job that is "beneath them". I do not know what jobs she has applied but she has got to get something pretty soon to stay in her house."


I think it does not matter where you were before or what your qualifications are, if you need work you go everywhere and anywhere. My hubby does a job that utilises his computing and maths degree, not fully but to some degree, but if they made him redundant he'd happily work on a factory floor, which is where he started till one of his bosses heard he had a degree and asked him to help him with some work, when the bloke got a better job Dom applied for his and got it, but he'd happily clean the streets if he had to.

Alison

 

[highlandsflyer]

If I was 30k in debt, which in the current climate I could not judge someone for being, (student loans, blah, blah, blah), I wouldn't be too sniffy about what job I would do.

Is she getting relief on the mortgage interest?