Our Business at rock bottom need financial advice

moises9485 · #1 (**permalink**) 04-05-2007, 09:39 AM

My husband and myself are self-employed but our business has hit rock bottom. We do have a mortgage on the house plus 2 secured loans on it, the mortgage lender is OK with us but the secured loans are dreadful with us.
We have got into arrears now with the house, we have come to an agreement with them all but we are know paying over the odds what we cant afford, my husband is 61 and I am 59 we also have debts of about

dmmm · #2 (**permalink**) 07-27-2007, 12:11 AM

im not a professinal in finacial matters but couldnt help noticing that youd had lots of views & no replys so i would say

The mortgage is the cheapest loan youll ever get hold off so has you house gone up in value enough to increase the mortgage on it ,if yes can you borrow on that - but it all depends how much you need to tied you over & take the immediate pressure off .

With that money pay off the loans ASAP (however check theres no early penalty payments that out way paying them all off) & keep some cash in your account to make up for the extra payments that youll now have on your mortgage - that should hopefully buy you some time so you can think clearly about getting your business back on track & being profitable then you can see some light at the end of the tunnel - even if the tunnel is 12-18months long

if you dont do this in 12-18 months -which will be here before you no it - youll still be in debt,possibly face losing your home & bad outlook for the remaing years.

Youv obviosly worked hard in your time to own your own business & house so see it through & youll be alright.

Thats being opptimistic

now lets be pesimmistic (as im a reaslist as well)

You lose your business & you have to sell your house - youll then have to tuck the proceeds (in a low risk investment )away to ensure that when you start renting youll have enough money to pay for the next 10-15 years

Good Luck & always remeber this - wether you stress or wether you dont the outcome will ALWAYS be the same ,so dont stress & youll find the outcome is ALWAYS better - speaking form experinace & just to confirm im not a professinal money advisor so final descion is yours

brian · #3 (**permalink**) 07-27-2007, 09:40 PM

Quote:

Originally Posted by moises9485

My husband and myself are self-employed but our business has hit rock bottom. We do have a mortgage on the house plus 2 secured loans on it, the mortgage lender is OK with us but the secured loans are dreadful with us.
We have got into arrears now with the house, we have come to an agreement with them all but we are know paying over the odds what we cant afford, my husband is 61 and I am 59 we also have debts of about

Sorry to hear about that - do you have an accountant who can make recommendations to you? I should think it's possible that something could be done to help reduce your tax bill, freeing up cash for spend.

I know that when I was self-employed I paid a heck of a lot more tax than since I became a limited company - though the caveat is that the limited company income is no longer counted as personal income, so that can squeeze your credit rating, though if you're already paying off debt it may make it easier.

2c.