I am in deep trouble

Prudent

Possibly some of your stress comes form having to make a lot of life changes in a short period of time. You have been divorced, no longer have your job and have lost the security and status that goes both with marriage and employment. No wonder it all feels as if it is too much.

Decide on what you want most and persue that single mindedly because a focus will help move you forward. If you want another high powered job then sorting out the properties is a priority. It will leave all your time free to concentrate on job hunting. You also cannot risk bankrptcy because it may debar you from some posts.

I agree with the others. Sell a property, clear your debts and look forward.
When you do feel down, be kind to yourself. Acknowledge its ok to feel bad. But also acknowlegde that you have a right to move on and be happy again.

Smashing

Ok, would you consider taking on a job that paid less than you liked just to get some income while you're looking for something better?

How old is your mother and how did it come to her moving into your property? Are you the only child?

One property is going to have go, or be rented out.

aHullKingstonRover

Hi,

Although its easy to say, I think some of your anxieties may result in being unemployed for about ten months or so, especially if you've previously been working in a highly demanding / time consuming job.

Everyone needs some kind of structure to their day, so maybe you could use some free time you currently have to organise a working plan to get yourself out of your unfortunate predicament?

For inspiration, take a look at this link:

http://forums.moneysavingexpert.com/showthread.html?t=242938&highlight=coxj

John did an astonishing task of turnig his debt around, seemingly using the maxim that there are 'no sacred cows' when it comes down to dealing with debt crisis. Well worth studying as a template to regaining financial control.

Somethings to consider:

For jobs, try https://www.sector1.net

Dump the mortgage and other debt insurances if they are no longer applicable to your current situation (?).

Review spending.

Think about freezing / cancelling current payments (e.g pension plan, medical insurance, pay television, charitable contributions, gym membership)

Consider selling a high value asset e.g. car / motorcycle to raise cash to pay off the loan secured against your house (?)

If you have enough free time it might also be worth listing unwanted items like CD's, DVD's, books, clothes via Ebay / Amazon to raise cash - can be time consuming work but worth the effort. Keep a ledger of all the items you sell, so you can see the progess you are making.

Finally, it seems that you must discuss things with your mum, especially if there's a likelihood that you might need to relocate to her home.


Good luck...

wheretoturn

Well, I have made a list of outgoings for the month and quite frankly, it has frightened the life out of me.

Property 1 (mum living here)

Lender Type Secured Balance Payment
Halifax Mortgage Yes 10000 129
Halifax Loan Yes 13750 146
Halifax Loan No 12500 231
Halifax Loan No 10000 147
Total 46250 653


Property 2 (I live here)

Lender Type Secured Balance Payment
Northern Rock Mortgage Yes 204000 909
Alliance Loan Yes 1000 145

Total 205000 1054


Credit Cards

Lender Balance Payment
Amex 5500 50
LUFC 8000 200
Mint 9000 220
Goldfish 9000 200

Total 31500 670


Auxillary payments

Payment
Poll Tax 87
Sky - TV 65
Life Ins 30
Son 60
TV licence 11
Food 250
Petrol 200
Gas and elec 40
Mobile phone 90
Halifax ins 10
Talk talk 21
Sat cover ins 6
Maintenance 550
Gym 40
Car Ins 42
LVBS Loan 111
Total 1431


Total Out 3808

So, just to stand still, I need a job that will give me an income of £4000 after tax. What a mess eh?

A little more on the background:

My mother lives in my second house as she could not afford to keep the house after my father passed away and I bought the house (in my name) and paid her some money. She is 70 years old.

I had been looking for work up until about 3 months ago but then decided to try and make my money by doing some buying and selling of cars. Whilst this paid something, it wasn't enough and I really needed more capital to have a larger stock to make it work properly.

I currently also have an OD of £4000 (limit of £8800) but a cheque coming in next week for £7000 and have a car being sold in a couple of weeks for £5500.

I have decided that in order to survive I must get a job that pays at least £2000 pcm. I then need to either rent out my property (2) and move in with my mother or sell my property (2) and use any equity to pay off the mortgages on the other house (1).

I have also spoken to my ex wife and will be dropping the maintenance payments to £350 from £500.

Any other advice gratefully accepted.

wheretoturn

Mrs_Sparkle wrote:

Welcome to the board- you've come to the right place. Please don't be upset- no one will judge you here, we've all been there.

Is there any way you can move into property number 2 with your mum and sell your first property? How are you dealing with the credit cards at the moment- are you keeping up with the minimum repayments?

I am now contemplating moving back with my mum. I have been paying the minimum payment and to date have not missed any.

Mrs_Sparkle wrote:

4 months money is a good start. Do you know why you haven't been successful with finding another position? It sounds to me like your confidence has taken a bit of a battering so this may be a factor but I don't know you so ignore me if I'm wrong. Would you consider taking a more modestly paid job just to get back in the employment market?

I think I have been aiming too high in my expectations. I have now lowered them considerably and over the past few days have applied for over 10 positions. The funny thing is, some some of my rejections have been due to over qualified and others under!

Mrs_Sparkle wrote:

Sorry, not much help but the important thing is you've found us and things can only get better from now on x

I feel better already due to the support shown. I think the worse part of all this is the feeling of shame and lonelyness.

wheretoturn

LookingAhead wrote:

Or could your Mum move in with you?

I thought of this too but I am not sure she would want to move from where she now lives.

wheretoturn

Toto wrote:

Hi, welcome and well done for posting. I know it all seems really desperate right now but there is nothing going on here that can't be fixed.

If it were me, I would probably sell house 1, use the equity to pay off the mortgage and secured loan on house 2, move in there for the time being. There is no reason why you can't move in but apply for jobs in another area, travel for interviews, then once you have a new job you could look at moving out and perhaps rent something locally. But certainly take advantage of the low cost living arrangement with your mum until you have a new job.

If there is anything left over I would then pay it off the highest interest bearing loan or card. I would then call and write to all of the remaining creditors and explain your situation in full, that you have been unemployed actively seeking work and struggling to maintain your repayments. Ask for their help, ask them to freeze interest and allow you to make reduced payments until you can find another job. Try to cut as much as possible off your monthly expenditure, post your SOA and we will help you with that.

There is a light at the end of the tunnel, honest.

xx

That is great advice - thank you.

sarahlouise210

You could sell your mums house with a clause that it has a sitting tenant ?? She would be able to stay in the home she knows and be able to claim housing benfit to pay the rent and you would have the cash. If it was an ex council house then the council may buy it back and let her stay in it.

wheretoturn

sarahlouise210 wrote:

You could sell your mums house with a clause that it has a sitting tenant ?? She would be able to stay in the home she knows and be able to claim housing benfit to pay the rent and you would have the cash. If it was an ex council house then the council may buy it back and let her stay in it.

Is that possible? If so, then that would be a very good arrangement as it would allow me to pay off the mortgage on that property (plus loans) and leave her with her old house.

Are there specialised companies that buy on this basis? BTW, it is an ex council house property.

lynzpower

Ok, Ive looked at your outgoings, and Im not surpised you are panicking, as you have convinced yourself that you need all this stuff. However, look at my comments, they are not intended to be harsh, just to the point

Property 1 (mum living here)

Lender Type Secured Balance Payment
Halifax Mortgage Yes 10000 129
Halifax Loan Yes 13750 146
Halifax Loan No 12500 231
Halifax Loan No 10000 147
Total 46250 653

I agree with the others, Id keep your mums house on, and sell the other one you live in as its worth more and has a bigger outgoing.

Why is your mum not paying any rent? Surely she realises that you dont have any income?

Property 2 (I live here)

Lender Type Secured Balance Payment
Northern Rock Mortgage Yes 204000 909
Alliance Loan Yes 1000 145

I agree, tihs is the one to definatley get rid off given the high outgoings on it.

Total 205000 1054


Credit Cards

Lender Balance Payment
Amex 5500 50
LUFC 8000 200
Mint 9000 220
Goldfish 9000 200 (what are the APrs on all this)

Total 31500 670


Auxillary payments

Payment
Poll Tax 87 ( dont you get Council tax benefit given you have no income?)
Sky - TV 65 (*you dont need this)
Life Ins 30 ( checked this is the cheapest, I only pay 22 and Im a smoker)
Son 60 ( why are you giving your son money when you have no income?)
TV licence 11
Food 250 ( for one person- no way, you can look to spend about 75 pcm on one person by shopping savvy- look at the old style board for inspiration)
Petrol 200 ( why so many journeys?)
Gas and elec 40
Mobile phone 90 ( you don need this, cut it right back if you must to a payg - loads of free payg sims about)
Halifax ins 10 ( whats this for?)
Talk talk 21 ( I take it this is phone & intenet)
Sat cover ins 6 ( you dont need this cancel it!)
Maintenance 550 ( what for? a child? If so call the CSA and tell them you ar enot working) Gym 40 ( cancel this you cant affford it)
Car Ins 42 ( is this the cheapest, do you really NEED your car)
LVBS Loan 111
Total 1431 ( less with my savings Ive pointed out.

Do be brutal -this is a NEED situation only.

Im sorry if you think some of my comments are harsh they are certainly not deigned to be-

really hope this helps
Lynz
x