Advice or Suggestions appreciated

mike_L

Hi Folks.

Thought I’d ask for advice before I decide what to do. Maybe someone can suggest something I’ve not thought of.

I’m four months into a ‘Payplan’ DMP paying back £24k to three creditors (credit cards) at £152 per month. I’m almost 55, single with no wife or kids to worry about, but the DMP runs beyond retirement. I know compared to some this is not a big debt but with other factors included I’m struggling.

I have a flat worth £110-113k with a £90k mortgage which if I sold would more or less pay off the debts. The mortgage is £925 per month and runs up until retirement.

I’ve let out my flat for the past 19 months while renting a room. The income from my flat pays for my rented room but still leaves me to find £400 of the monthly mortgage. I save over £150 a month in bills, council tax, etc, by letting out the flat.

I’m a carpenter and earned good money once but it’s unlikely I’ll do so again, I’m too old for the heavy well paid site work, and jobs are tight now anyway. It’ll be lower paid lighter work from now on. I’m only getting bits of work at present and the flat is empty after the last tenant moved out.

In short, even if I were to find permanent work and a new tenant for my flat tomorrow it would still be a big struggle to keep up all the mortgage, rent, and DMP payments. There would be no let up right up to and beyond retirement. At present with only bits of work and no tenant in my flat it’ll only be a couple of months before it starts to crash down with me being unable to pay the mortgage.

Though it really hurts the only solution I can see is to sell my flat. I’d be free of the debts and released from the pressure which really gets to me. The relief from owing no-one anything would be huge. The alternative is one long non-stop struggle all the way to beyond retirement. And this assumes I always have a job and a tenant in my flat.

I’m not looking for sympathy by the way; my situation is no ones fault but mine. You’ll also realise that this is something that hasn’t happened over the last few months, it’s been coming for a few years now.

Any one got any amazing suggestions? Thanks.

dancingfairy

Hi. I don't have any major suggestions but have you discussed your worries with Payplan at all?
Maybe post an SOA up and see if people have any suggestions?
The only other thing I can think of is to keep a spending diary and see if there are any holes you can plug.
Maybe look into bankruptcy?
Sorry I can't be more help.
Best of luck with it all
df

savingholmes

I would start by talking to payplan. also check whether in the current downturn your flat is worth as much as you think it is as potentially it could have dropped by the amount of your equity.

If you post your full statement of affairs on here we may be able to offer more tailored feedback...

mike_L

Thanks.

I'm aware that my flat may have dropped in value recently, and no there aren't any areas in which I can save more money and live any kind of worthwhile life, at least not for the next 12-15 years anyway!

The savings I could make won't make any significant difference to the position I'm afraid.