Is this a lot of debt for a singleton?

Suzkin

Hi All,

My mortgage is now approx £16k, but with the building work, I'll have a charge on the land registry for approx. £30k as well (I'm hoping the final figure wont be any more...). Being 43 years old next year, and all alone (i.e. absolutely single) and with no job at the moment....is say, £50k a lot of debt for one person?

Sorry for asking, but I'm losing perspective and I'm needing to get my head finally around reality... - also, Martin says that mortgage IS debt, and I have always considered it as such.

What do you think?

bargainbetty

Hi there,

To some people, a few grand is a lot, to others, a £300k mortgage seems normal! Who knows what figure constitutes 'too much'. Think of it this way:

1. Do you have enough money to pay your bills?
2. Do you have enough money to service your debt (not just the interest, actually reduce the debt monthly)?

If the answers are yes, then work on the principle you are OK. If not, then I'd be a bit more worried. Do you have any work on the horizon? I'm looking for work too, and it's not a great market out there.

JoolzS

A mortgage maybe a considered a debt to some people, but so is rent (albeit rent is simply a monthly debt paid in advance!). If you can afford your mortgage payments then don't worry about it being a debt. You have to live somewhere and housing demands a payment, whether that is rent or a mortgage. Personally I don't consider my mortgage to be a debt because it would cost me nearly the same amount to rent the property I currently live in (should be a bit cheaper but a couple of remortgages over short terms have changed that) as it does to pay the mortgage.

I would think that a £50K debt is a bit of a burden for one person, but if you can afford to pay your bills then don't worry too much.

Julie

Suzkin

Thank you both.

JoolzS - yes, it would feel like a burden, especially at my age. Also, it would be the highest debt I've ever had...

Suzkin

I've just calculated that - providing I can find a job by the time I'm 43 yrs - I would need to pay approx. £200 pcm until I reach retirement at 65 yrs, to pay off the whole £50k....

JoolzS

I think it's a shame you think it's a burden - you are only one year older than me. If you aren't working due to simple unemployment and not disability then you have a lot of working years ahead of you (which may seem good or bad right now). My DH is older than you and he supports me (which is a huge burden because I like to spend a little too much ) and he also has to pay our bills.

Don't feel bad about debt, especially when most of that debt is simply your home. You have to live somewhere. I hope you like your home.

I don't know if this is good or bad advice, but take a look at some of the posts on the Debt-free Wannabe boards - there are lots of people there with far more debt than yourself, with absolutely no good reason for that debt (no offence intended to anyone on the DFW boards, but it is true for some posters). You have a good reason for the debt - your home, and everyone needs a home.

Julie

(I am just sure I've offended someone in this post. I apologise in advance and would like to point out that it was unintentional. I wanted to word a couple of things better, but it's late and, well, it's late).

Suzkin

Thanks, JoolzS. I do love my house very much, and I've lived very frugally over the years. I suppose my anxiety is that I've so wanted to be mortgage free, but it looks like that won't happen now. At the time I got the mortgage for this property, the house next door was also up for sale shortly after, and there was a very small window when I may have been able to purchase that one instead. If I had, then I would not be needing to pay for £30k building work...

Right now I feel worried about employment prospects not only due to the credit crunch etc., but that I've been struggling to find work where I live for several years now...

I do try to live within my means, but as many people can appreciate, it can be a struggle now and again..

Thank you for re-focussing me back!

10past6

Suzkin wrote: »

I do try to live within my means, but as many people can appreciate, it can be a struggle now and again..

Have you considered doing some voluntary work?

It will get you out / meet new people / show willing to assit on any CV / and there is always someone, who knows someone, who knows someone re employment.

Suzkin

Yes - I've done that before. And may need to do this yet again at some point.

I had a temp (part-time) job in central London very recently (I LOVE London), but had to give it up as the commuting (combined with some of the more physical aspects of the job) were exhausting me. I couldn't rent etc., due to the building work needed on the house, on which I have a mortgage etc.

10past6

Suzkin wrote: »

Yes - I've done that before. And may need to do this yet again at some point.

It was just a thought, sometimes it's difficult to see the wood for the trees (no offence)

Suzkin

Yes, 10past6, you're absolutely right! Thanks for the suggestion. And this is how I am feeling at the moment...I left about 3 weeks ago and need to 're-group' before becoming proactive etc. yet again.