Feeling overwhelmed

Toto

I feel overwhelmed today and I don't know what to do. Every time I think I find an answer I change my mind. I don't trust my judgment anymore and I am afraid to make any decision because I am scared it's the wrong one.

I am being hit at all angles and every day it seems there is a new problem. And worse I have to carry the burden and I don't have anyone to help me, I wish my mum were alive because I really need some help dealing with this lot.

Today I have been sorting out an error we have discovered with a VAT refund we were given at the beginning of the year. In fairness we couldn't have spotted it sooner because it relates to a huge !!!! up in a whole bunch of one of our suppliers invoices. We did a major job last year and used this supplier who in return sent us the biggest nightmare invoice system you could ever see. So in short one of our client invoices for that job didn't reconcile and we were left to deal with it. Finally we got it all dealt with after months of hard work. But today (2 weeks before our VAT return is due) we discover that we were over refunded for that job to the tune of 5k. At the time we were investing into the business from profits and personal money so we were expecting a refund. Our accountant said it was just an unfortunate turn of events.

But as I have seen the mistake I am morally obliged to point it out and repay the money right away. Only I don't have 5k laying around in the bank. And 2 weeks isn't exactly an easy timeframe either. We can scream at clients to pay invoices and somehow we will do it. We have to.

While all of this was going on (I was on the phone to the accountant) I had a knock at the door like I have never experienced in my life. At least 6 times and who ever it was hammered away like it was life or death. I was up to my eyes in figures at the time and wasn't able to just drop the conversation but after a few minutes I did go and look out of the window. To be honest I was scared of who it could be banging like that. I was almost expecting to see a road full of police cars! I am wondering if it was a debt collector or something. I will answer it next time, but I won't look forward to the conversation if that's how aggressive he is just knocking. It's horrible feeling so venerable in your own home.

So on to my home. I am getting to the point where I am seriously considering just selling the house and starting again. Remortgaging just seems like a load of interest on top of the interest I have already paid on the debt. The payment plan will take 10 years and although I am really committed to a new way of life (no overspending and living within budget) I am concerned there is still the whole debt problem there. I am in a house which frankly is too small for all of us, has a stupidly high interest only mortgage and I am struggling right now to see what the hell I am hanging on to. I am paying 1068 a month in interest on my mortgage.

If I sell the house, pay back the creditors, rent a house (for about £800 I will get a bigger house) I will then actually be debt free and able to save money to start again. I have to say that today this seems to me to be the obvious solution to my problems but as I started by saying my head is so full of everything right now I can't think straight and I can't trust my own judgment.

I know I need to end the pressure though, I can't take much more of it.

BlondeHeadOn

Hi Toto, just wanted to add a message of support. You have come to the right place if you are overwhelmed, and someone better than me will be along shortly to help you. Remember with MSE you are not alone - you don't have to make those decisions all on your own, you can get advice and ideas here.

Hugs, and don't panic!

lynzpower

toto

Some time ago, me & my OH decided that selling up and renting for a bit is the right plan for us. Its just significantly cheaper FOR US, especially when you add up all the insurances and so forth.

SOme people are very tied to thier property, wouldnt give it up till the death, and generally wil do anything to keep thier home thiers. I personally dont subscribe to this.

Like you I am on an IO. Yes, I was supposed to be putting the difference into an ISA, but I havent, and watching whats going on with the market is makig me cr*p it even more.

So we are going to sell in the Autumn we think. PLus interest rates rises are on the horizon and we wil be sqeezed even further once my fixed rate comes to an end in December.

So Id like to sell with a view to being out of here in January.

I wont be using the proceeds of the sale for anything, aside from savings, (I can pay off debt quite comfortbaly at the moment, each to thier own)towards buying somewhere else eventually, when the market corrects itself a bit. If it does. But the bank of england have pretty much said that houses wont continue to rise, adn that the interest rates will HAVE to go up.

Im on MSN if you wanted to chat about it some more.

MoaningMyrtle

Such a powerful post Toto, a lot of which I empathise with and totally understand. I often think about selling up, we too have an interest only mortgage but my OH wants to hang on to the house to the grim end.

I have a lot of low days but things are, almost impercievably graudally improving.

Hang in there whatever you decide to do, come here for loads of support and advice from the most understanding libertating board I've ever found.

Toto

You guys are my saving grace,Thank you for making me not feel like a nutcase!

It's just right now I realise there isn't going to be much more equity I can suck out of this house in the forseeable years so I feel in effect I am paying almost £1100 rent here. I did a SOA with renting and it gives me an extra £600 per month and I am debt free, that's without the second job. If I get a house with a double garage I can give up the storage unit and save a further £265 a month. It seems like a solution. Because for once in my life I could enjoy saving and I could earn interest rather than pay it out to every tom !!!!!! and harry.

Maybe in a few years we could buy again but then we might not be so tied to the London area and could move somewhere cheaper and have a smaller more sensible mortgage. Renting isn't so bad is it?

lynzpower

No, its not.

I think the main reason that people resist is is the renting is dead money argument. BUt so are IOs, arnt they?

The other thing to note is that you may want to buy again, so you may want to save a little of the proceeds in a bank account somewhere gaining interest, as you dont want to start out with no deposit all over again. But a few K should be fine really.

People bang on about this property ladder, and in all fairness its mostly rubbish, particularly if you cant afford it!! SOme people think that prices will rise & rise, I dont subscribe to that view at all, and like you said, once you have sold you can choose where to live, and it be in a cheaper area, or have outbuildings you can use, or whatever.

Sounds quite savvy to me. Getting rid of an IO is the ultimate in avoiding interest IMHO, so the ultimate in "consumer revenge"

Toto

I think my creditors at this stage see me as a bit of a lost cause so I will go for full and finals but fair ones. I will try to cut them down to what I actually owe minus all of the silly charges they add. That way if I sell I will have a few thousand to start my savings account with, I do actually have a high interest savings account which has 6p in it currently (at least one of my accounts is in credit).

I could do with re-decorating this place, some bits of repair generally getting it market worthy. I am wondering if there is anywhere that people can trade skills? I mean, we would be happy to provide the sound and lighting for someones party, wedding etc free if they would decorate my house. It's hard for me to find the spare time to do it with 3 kids and the business, our evenings and weekends are taken up with gigs (plus I suck at painting) That's got to be a good deal.

In_Search_Of_Me

Just wanted to send a big hug & hope you feel better soon..knock on the door could have been postie? Mine is a bit deaf & dont think he realises how loud he is sometimes with his banging!! And no, renting & being 600 up a month not a bad thing at all!!

BlondeHeadOn

Toto, you ask "I am wondering if there is anywhere that people can trade skills?"
Is there a LETS scheme in your area? I used to belong to a local LETS scheme, and it was great for trading skills - and I bet lots of people would be glad of the lighting and sound trade for summer wedding or parties in return for decorating etc.

Have a look here -
http://www.letslinkuk.net/

With a bit of luck there will be one in your area.

Hugs and good luck

:grouphug:

lynzpower

Toto

Also be aware that sometimes, you dont need to spend a fortune on getting your house up to scratch, buyers love a project. But if you are insistent, then just paint and buy some cheopo bits to house doctor it (and sell all your old rubbish off too to fund it) Matalan has some great homewares for next to nothing

Pobby

Toto,sounds to me you are in the same business as me,sound and light.As far as the house is concerned,IO mortgages are the same as rent only quite often higher.Imho I can`t see prices going up much further and if,as it appears,you have equity I really would go to renting.All the very best with it.By the way,how are you finding business at the moment?