Always found mortgage payment of approx 1400pm difficult, I have been on maternity leave since Sep 09 and am now on sick leave which is half pay at approx €1000pm.

This will continue for 6 months after which I will have to go on a social payment if I am stil unable to return to work.

We had major car problems between both cars over the past 18months and had to pay out excessive amounts for repairs that we could not afford but we had to have cars (we have two children and work opposite shifts) we have now (through a loan from a family member) bought a new car which we are repaying €200pm for – so at least we know where we stand month to month for that.

I have a VISA bill of appprox 500 since about 2 years ago, gas outstanding at 1100 and electricity outstanding at 400, arrears of mortgage are just under 8k. I have managed to pay the past 3 months mortgage each month when it is due (paying an extra €70) but I do not know how long I can do this for on half pay. I have contacted my lender who commended the payments each month and gave me the following options:

Interest only for 24mths, which reduces the payment by slightly under 300pm – but at the end of this period, the mortgage payment will be in the region of 4k pm

Capitalisation – making the mortgage go from 1340 to 1416 pm until our fixed term is up in Aug 2012 – then it will be somewhat less (rates being good at the time) – I don't think I can make payments of 1416 each month?

I am trying not to give unnecissary info here, hope the above is ok.

I need to know should I go through the likes of MABS and see if I can have any debt cleared, interest frozen etc, or can MABS make the lender extend my mortgage period?

Or are any of the consolidation loans I have seen advertised, suitable for me? I cannot keep up my mortgage payments as they are, never mind pay more – but there must be another way other thatn handing back the keys?

Laura