Is this really a good time to sell a home?

EdInvestor

Another useful tip:

How to snowball your debts

lotto-dreamer

You have all been so incredibly kind and helpful - I desperately regret now that I was hesistant about stating my true situation on the DFW thread. It might have made all the difference if I'd done it earlier.

When I first made use of CCCS website 'debt remedy' online questionnaire,the recommendation was to increase my income or sell my home. The first was tricky, the second (once I'd got over the emotional side of it) to sell the house, seemed the only other way out.

Milly, to answer your questions -

Yes, I entered the Natwest loan repayment of £317 as both secured and unsecured in error. It is an unsecured loan.

Last week I actually did a further 'debt remedy' and it did suggest a DMP might be possible.

Yes, I am sure my son could sell some music equipment. Good idea.

I do let my creditors know if I am going to pay a bit later than the due date but don't give real reason why. They don't know I am on the brink (but must suspect it). I must be one of Natwest's favourite customers - I even have the advantage gold account - and I don't go on holidays or any of the perks that it really offers. However, I have assumed it made my overdraft cheaper so have kept it.


EdInvestor, you make a great deal of sense -

A lot of what you have said, and the way you've put it has made a huge impact on how I am beginning to view things now. Wish I'd read them a few years ago!

I will have a look at the pension website (thanks for that). Unfortunately, I haven't always worked. I had a thirteen year break. One of my biggest problems now is my age -with the time left from the perspective of either paying off a mortgage or a DMP etc.

I couldn't consider not including my sons in any accommodation arrangements at the moment. It probably looks ridiculous, as they are basically adults - but various circumstances make this difficult for now. However, they will leave eventually (won't they :eek: ). I could happily see myself in a downsized situation in future - but can't do it now.

I would love to shift to 0% interest credit cards, that is an idea I've looked at - but one look at my income to debt ratio any potential lender would shun me. Nevertheless, these offers do still come through the post, I had an MBNA offer through my door yesterday and a Barclaycard one last week (both shredded and binned). I doubt I'd be eligible but it would have made things easier - I did see that.

Snowballing is something looked at briefly on MSE but didn't quite understand it at the time - I shall go and have a good look at it again. Thanks for the link.

Space Rider - thank you too, for your helpful comments. I am so impressed with what you've achieved. Your children are very lucky.


Sammy Girl - I also very much appreciate your words of support. Thank you. (Pleased to hear you are better, I'm still coughing away but don't feel as sick as I did over the weekend).


I'm off to read up again on snowballing.

A big thank you to all of you.
xx

lotto-dreamer

Just looking at the snowball link - no wonder I found it hard to understand previously - there was no real explanation just a 'snowball calculator' link. This is actually a full article which explains the whole concept. Wish I'd seen this before. Thanks EdInvestor

fc123

Hi LD..I just read through your thread and really think a lot of the advice could work...esp Ed investor (she knows what she is talking about;) )

The sons; we have a 21yr old, reasonably hard working when he has to...but if he doesn't have to do anything, well, he's just happy to coast along.

He's at uni but if we provided funds for the vacations so that he could do more 'interesting, fun things', he wouldn't work at any P/Time job. Those jobs are really good life experience for them and impt on thier CV's

He has had a wake up call from us....when uni finishes, no more student loans etc he's on his own financially....totally.
Of course he can live with us but the BT 'phone is blocked to mobiles, there's family chores that he is expected to muck in on etc.


The bit that stands out to me is the cost of rent v mortgage....keeping the house is the most sensible long term as will always be cheaper than rent.
Short term, selling solves the problem...but another problem could crop up longer term if all the equity gets spent on the extra rental costs...slowly bit by bit.


We had a stack of card debt and couldn't transfer to 0% as had the odd missed payments...I copied a letter from www.fool.co.uk (there must be similar on this site) and had all the interest frozen and the monthly payments set at an amount we could afford. It took a couple of months.
CCCS can do the same thing on your behalf I believe....but check on here 1st.
MBNA only did it for 1 year but have just agreed to 0% again.

This was 3 years ago and soon, they will all be gone.

This site is great for all the trimming back and not feeling bad about it.

Every £ saved is a £ off the debt. When it is that amount you feel it will never end...but it does one day.

Our debt was business related and gigantic.

The other thing is to be dead honest about what you actually spend. I + OH shoved EVERY receipt in a jar for 2 months...then divvied it up to get ACTUAL spend...all the little things really add up, even bus fares when a walk would have been ok instead.

We have teen daughter and she moans about not getting stuff...but if it isn't in the jar, then...well, it isn't there to spend. It is good for her as she saves her allowance and is more careful with it...sometimes.

Son who isn't sure what to do?? Get anything...and then he can keep deciding whilst contributing something to the household.

Hope that helps a bit.;)

neverdespairgirl

lotto-dreamer wrote: »

I am an idiot. I could have done things so differently. EdInvestors words are haunting me - I have really messed things up for my sons as well.

There is no point worrying about what is passed.

I don't think for a second you've messed anything up for your sons. You've given them a loving, supportive home and mother. You've helped educate them through tertiary level. You care and are concerned about them. That's not messing!

EdInvestor

It's always very embarrassing for a parent to have to admit to children that she's not an all-invincible goddess who's always right and can cope with every problem, of course. :D

But again your timing is pretty good. After all, you can't be blamed for the collapse of the world banking system and the housing market, followed by a nasty recession, can you? I mean, even Gordon Brown refuses to take the blame.

The whole world is in this together. Everyone has to play their part in saving money in these austere times, from really cool people like the Obama family to teenagers like your youngest.

Now what special talents and ideas can young men like your sons bring to the saving money/dealing with debt party?

Selling surplus stuff on Ebay comes to mind for a start.

lotto-dreamer

EdInvestor wrote: »

It's always very embarrassing for a parent to have to admit to children that she's not an all-invincible goddess who's always right and can cope with every problem, of course. :D

But again your timing is pretty good. After all, you can't be blamed for the collapse of the world banking system and the housing market, followed by a nasty recession, can you? I mean, even Gordon Brown refuses to take the blame.

The whole world is in this together. Everyone has to play their part in saving money in these austere times, from really cool people like the Obama family to teenagers like your youngest.

Now what special talents and ideas can young men like your sons bring to the saving money/dealing with debt party?

Selling surplus stuff on Ebay comes to mind for a start.

EdInvestor - you've been wonderful with your help and advice on here.

As for the collapse of everything financial....it wasn't me, honest at least I don't think it was, was it? It is horrible to admit to not being able to handle one's own finances - but if entire countries, not to mention banks, are having problems, I have sort of timed it well I suppose .

Sons have lots of stuff to sell on eBay and Amazon to help with the finances. So, yes, some persuasion in that direction should be relatively painless. Just need to stress urgency for action.

I am also going to see my bank tomorrow - am deciding how to tackle it - but it probably is in their 'interest' -excuse the pun- to keep me as a borrower rather than a saver (at the moment) but to make it affordable so I can pay it all back. I was horrified when I realised I was paying 21% on the Natwest CC. It sort of crept up at that rate without me noticing.

In any event - there is a family conference arranged at Chez Lotto tonight. It is time to get it out in the open. Now that I've opened up on here, it's made it easier because you've all helped so much. Whatever the final outcome, I'm so grateful to everyone, trying to cope alone in my own private hell was the very worst way to tackle it all.

lotto-dreamer

fc123 wrote: »

.....
..................Hope that helps a bit.;)

You certainly have helped with some great advice fc123

- btw how does one block the BT phone to mobiles?

I wish I'd known this could be done. I had a dreadfully high bill some months ago and it was all mobile numbers (younger son). I did react a bit hysterically - so he got the message and it's not so bad now but that seems like a very good idea.

Sammy_Girl

Good luck with the family conference Lotto. I'm sure that they'll come up with some great ideas

Also, good luck with the bank. Hold your head up high when you walk in. You are not the first person that they will have seen with financial difficulties, and you won't be the last.

But keep us posted please

space_rider

lotto-dreamer wrote: »

You certainly have helped with some great advice fc123

- btw how does one block the BT phone to mobiles?

I would think you just have to ring BT and they`ll do it.


I wish I'd known this could be done. I had a dreadfully high bill some months ago and it was all mobile numbers (younger son). I did react a bit hysterically - so he got the message and it's not so bad now but that seems like a very good idea.

Hope you manage to get those boys to understand. I used to pay my 3rd daughters mobile phone bill and if she went over the £15 she had to pay. One month she went over and I used her monthly pocket money to pay it. A friend of mine`s son went over his mobile phone bill by over £100. He took him to the building society and made him take that money out of his savings account. Needless to say he didn`t do it again. Sometimes you have to apply tough love.