What a Right Pickle!

PollyOnAMission

I'm only up to page five of this thread so apologies if anyone has already mentioned this point:

I assume, as you're so keen to keep your twins at private school now, that you'd also like them to attend a private secondary school. Unless you seriously consider selling your house and downsizing, if you keep sending them to private school now it doesn't look like you'd easily be able to afford private secondary school, or even primary school in the later years. It's almost a choice of private school now, unable to afford it later, or state school now then able to afford private school later. I guess it depends if you prioritise their primary or secondary education being private, because at the moment it doesn't seem like you'll easily be able to afford both. Unless you sell up and downsize, of course, but only you know if that would be worth it.

It's a tricky situation because you obviously love your twins very much and want the absolute best for them. I really hope you can work something out.

PollyOnAMission

Ah OK, so there were some major changes after page 5!
Blimey.

OP, have you sat down and worked out exactly how much you could save by implementing your intended cutbacks on luxuries? With your wife's cut in earnings, does this leave enough for your debt payments, essential living costs and school fees?

If not, what do you practically suggest you could do, if you can't face changing your kids' school or selling you house? Would you use more of the money from your gift to keep your head above water?

Bravehearted_2

meer53 wrote: »

What a stupid comment !

Do you really think that anyone would be jealous of the OP ? Gifted cash or not ?

I feel sorry for both of them, trying to keep up a facade whilst slipping further and further into the financial abyss which is facing them.

80k worth of debt, refusal to even consider cutting back on their most expensive outgoing, school fees, now considering losing one salary ? Regardless of this "gift" the OP has to be the biggest ostrich in the world.

Until he gets his head out from up his backside, there's only one way this situation will go. And it's not up.

You clearly aren't very bright or can't read. Please point to where I inferred that the OP is in an enviable position? Infact, I declared the exact opposite - and mentioned how silly it is that a previous poster was jealous of this. Or did you miss that bit too?

You may want to read and understand before raging on the keyboard like a moron next time round.

worried48

Obviously a gift of this size must be from someone very close, presumably family (unless the OP happens to be friendly with a lottery winner). OP, have you considered simply asking the gifter if s/he would be willing for you to spend the money paying off your debts instead? That way the debts are gone and the interest is not crippling you, and then you can start putting money aside regularly for the renovation.

racing_blue

Your wife's unearned income of £17k PA is interesting- can you capitalise this in any way? If so you could rearrange your balance sheet & solve the immediate problem.

You are paying between 9 and 10% interest on your borrowings of £491k

You could be paying less than 3% (if a 5 year fixed rate mortgage was your only liability), saving over £30k per year on the same amount of borrowing?

racing_blue

PS. does your wife have a sister? :cool:

SpagBol

To be fair to the OP, we have racked up similar proportions of debt...we have children in the state system but live in a reasonably expensive part of our area to be at a school we like. Might be perceived as a bit snobby or living beyond our means but there we are...and we made our decision when our income was double what it is now. We could move to a cheaper area and house but I would do anything to prevent that...it's not much different to the OP's point of view. We could even realistically do that and stay in the same school, but I still would want to stay near their friends and go to the local school.

Once your children are happy and settled somewhere it is the last thing you want to do to move them.

OP I would use all the gift to pay off the debt and then save up from the massive increase in your spare money generated from having no debt. As you can see from my sig, our income halved when my DH was made redundant in 2009, we spent 3 years with our heads in the sand before we realised things were this bad and had racked up nearly £60k of debt. I would REALLY recommend reducing your debt and mortgage whilst you have secure incomes, then start renovations and reducing hours at work. That's what we are doing now and it feels GOOD

Good luck

[Deleted User]

There's a difference between your situation, and the OP's.

The OP is spending £21,600 pa, on school fees.

LannieDuck

OP, I'm looking forward to seeing your revised SoA. So much has changed that I don't think there's much point commenting again until you've done that.

kazwookie

Ok so the wife has or is about to give up her job, = loss £££

all the interest rates seem to be at 18% is this correct??

Kids still in the private school at £££ per year.

Lets just hope the OP's job doesn't get made redundant! or the whole thing is going to come crashing down around him.

The ££ gift is very large (IMO) are there any implications regarding this ie tax, or IT

I wish you well but I fear for you big time.......