Serious financial question?

Question

Can anybody tell me how to raise some extra cash? This is not avaricious, but due to personal circumstances I am this far <---> from bankruptcy. I already have 2 jobs, but have now been hammered by a tax bill and have no spare cash to pay it.

Current debt stands at £50,000 including 2 mortgages and the tax bill. I have done everything I should have - worked from the age of 17 and since 1999 (my divorce) been workign 80 hours a week.

Any ideas would be greatly appereciated.

Thanks.

Oh - forgot to mention £50,000 doesn't sound a lot with 2 mortgages, but the CSA takes a massive chunk of my cash - my deductions are around £700 per month which leaves me a massive shortfall in paying my bills.

Sorry - 2 mortgages not because I have 2 houses, but because my ex wife was entitled to the house (bizarre piece of legislation!) As she had never worked, she was not able to to take on the mortgage - so I had to in effect buy it off her again. Hence 2 mortgages. The original one and one for the diffience in value at the time of the divorce.

Answer 1

If I was you I would just apply for bankruptcy. Other than that consolidate your bills to one monthly payment, off one of those adverts.

I feel really sorry for you. You can't pay what you haven't got, and putting yourself in an early grave shouldn't be an option.

I hope you can sort it out.

Look at the websites below

http://www.insolvency-advice.co.uk/

http://www.www-bankruptcy.co.uk/free-bankruptcy.htm

I heard an advert today, that can freeze the interest on your debts and loads of other stuff.

Try Debt Matters

http://www.debtmatters.co.uk/?engine=overture!5757&keyword=debt+matter

Answer 2

I'm guessing the two mortgages are on one house not two. Too simple to just say sell one house. Have you looked at the option of refinancing your house. I don't know what time of mortgage you have but if it's a standard fixed rate then you might be able to do a little bit by refinancing into some type of a 3 or 5 year arm type of loan product. Much lower rates for the first 3 to 5 years but the rate goes way up after the initial 3 to 5 years. But be careful with that because if you don't think you will be in better shape in 3 to 5 years then that may just move the stress to later down the road. Plus to get the mortgage at no large cost you would have to accept a higher interest payment.

There is no quick easy solution and if it looks like there is it will probably cost you more than it will save.

One thing you can do is talk to your creditors. Let them know that you are having difficulty and that you want to pay your bill. Often they will work with you to find someway to structure the payment to help you meet the payment rather than going into bankruptcy. If you go into bankruptcy they get little to nothing. If they work with you to find some way for you to pay your bill in the long run they win out and are able to help you out.

Best of Luck

Answer 3

First problem is not to raise extra cash but to cut what you are spending, have a look at the website below, some great advice there.

Do you have a spare room you can rent out?

Any promotion going at work?

slow down a bit though, 80 hours a week is too much for anyone.

Speak to your mortgage lenders about your current situation, you may be able to take a short payment break or extend the loan period thus reducing the payments.

Speak to the tax people about spreading the cost over a period of time.

Answer 4

About the only thing I can really see which you might be doing wrong is the two mortgages. That sounds quite a strange situation, and you might be better with just one. Getting rid of one might be expensive though, as it will cost you to make an overpayment to pay it off. There are various TV adverts about consolidating your loans, to pay off less per month, but be warned that they have much longer periods of paying, and will end up costing you more overall. If you have no other option you may need to go for it though.

The best thing to do in the short term is to talk to your creditors (i.e. the mortgage providers and I'm assuming Inland Revenue). You won't be the first person to not be able to pay a bill, and if you talk to them about your financial problem, they should help you find a way to pay it back (i.e. smaller instalments for a longer time or something). You really need to talk to them though, as you can't earn any more cash, so all you can do is spend less per month (and unless you lead an extravagant lifestyle, the only way to cut down your outgoings is to pay off less debt per month).

Good luck mate.

Answer 5

There is no quick fix. Trust me. Been there, tried them all. If you are already working 2 jobs, I don't see much time available in your life to raise extra cash. I am sure you have already eliminated as much excess spending as possible. Bankruptcy may be the best bet for you. All depends on your personal situation. I did go through bankruptcy. It was actually the best thing. Relieved a tremendous amount of stress and eliminated most of the debt. New laws passed in the US since I went through it make the process much more difficult and the ability to simply flush all debt is gone. As for the tax bill, that cannot be eliminated.

Answer 6

I'd suggest you contact the citizens advice bureau. Their services are free and they have lots of experience dealing with people in similar situations. It is possible that you may be able to get a reduced amount taken out by the CSA. Also, it may be possible that you may be able to reschedule your mortgage repayments. Whatever you do, don't take out any further borrowings or pay anyone to give you any advice until you have spoken with the citizens advice bureau or the other charity debt companies that do not charge for instance, national debt line or consumer credit counselling service.

I wish you all the best.

Answer 7

The best advice is from Mary Hunt; she has a website and has written a few books. Devore into it with all your heart. There is a yearly fee to be a member of the site, but I have a web address where you can get six monthes for free.
DebtProofLiving.com/DPL6Free
She will tell you how to turn your life around and how to do this in years as compared to an eternity. Start at DPL Boot Camp, it is a choice on the left hand side. After you read everything and you still have questions you can e-mail her. Her advice is very real b/c she was at one time where we all have been. In dept to our eveballs.

Answer 8

I feel for you. Myself and my partner are both paying off debts that we 'inherited' from our ex partners, and he also struggles to pay the ridiculous amount that the CSA take from him each month. You are already doing two jobs, so the only thing I can think of it to approach the Inland Revenue and ask them if they would allow you to pay your tax bill in instalments. The Citizens Advice Bureau will also be able to point you in the right direction with regards to talking to someone about managing and perhaps reducing your debts if that is what you need to do. I wish you the very best.

Answer 9

Speak to an insolvency practitioner. It sounds like you should consider an IVA/bankruptcy. The new rules are a lot better for the debtor than the old rules.

Give yourself a fresh start - it is not an easy route to take, but you have ben travelling a long hard road already.

Best of luck.

Answer 10

The govt always gets theirs first. Never forget that, so you're tax bill will be paid.

You could consolidate your loans, sell your house - I assume you have two mortgages on one property - and move into a cheap apartment.

You could find another line of work. Whatever you're getting paid, at 80 hrs a week, isn't cutting it.

File for BK, if you have to - but be prepared to suffer for it for a long long time.