Oh My God, Amex Just Killed Me

dennyp_3

Hi,

true stop focusing on the house sale, if you brought a new house you would be in the same situation perhaps without lodgers as well unless they are moving with you.

You are paying £80 a month for a mortgage!? that is nothing compared to what people pay in rent!

Try and go for a loan to pay off these debts you should be able to get a secured loan easily or a remortgage, do not go bacnkrupt or go for an IVA as you will lose the house which is effectively over £100k!

I don't post here often but this needed to be said!

awaytogoyet

Rob, I admire your creative thinking and determination. I subscribe to the view that we often have to take a few risks to move forward. Arguably also, a big debt/problem requires a 'big' solution and some thinking 'outside the box'.
However, our 'input' must justify the 'outcome'. In this case, I just wonder if maybe you have become fixated on the solution/outcome and are disproportionately channelling all your resources and energy, with all the associated risks and stress, into the 'input'.
5- 10 years ago, I would have agreed with you totally about the value of 'presentation' in house sellling. It was during that period that the 'House Doctor' programme, books etc. really thrived. However, things have changed & just about the coolest thing you can do now is buy a heap of s*** & renovate it. If you watch most of todays TV programmes - they all dedicated to making a fast buck out of property renovation/refurbishment. Every man and his dog is now doing it, with the result that demand for properties in need of 'doing up', way exceeds supply. If you go to your local Auction House next time they have a property sale, you'll see properties like this go for way above their expected price and true value. I know a couple of guys that were doing renovations years ago, long before it became trendy, and have now given up on it, as the prices for this type of property are crazy.
They now buy new properties 'off plan'.
What Estate Agents do now is assess the value of the house in its finished A1 state, assess how much money it will take to get it so & simply deduct the 2nd from the 1st - there is rarely now a financial benefit for doing all the work.
So, I guess what I'm saying is that taking into account all the ducking and diving, time, energy, stress and risks you're taking to get the money to refurb, it may very well not be worth it at all! I'd get it valued, maybe even consider the merits of Auction with a good reserve, get the dosh, pay off your debts and start again with a smaller property you can buy outright (& sleep at night!).
Looking to the future, I can appreciate you amy not be optimistic about getting a job or, understandably, even want to work for someone else. Have you thought about having your own small business? If you channelled all your time, efforts, energy and thinking into this course of action, I'm sure you could come up with a successful venture that would keep you debt-free and bring you fulfillment and happiness.
All the best.

Robflh

Hi saffronflowers
I presume you have not read Post 42 Paragraph 15, which addresses points raised by katepnlo. It says that I had an endowment mortgage and that I now have a NEW repayment mortgage, which was taken out on my birthday 08/07/2005.

I receive mortgage relief payments on the new mortgage and the mortgage relief department has told me that I would get the relief payments if I, effectively, moved that mortgage from my current home to my new home.

Sorry I should have said look at the bottom of post 34. Post 33 was someone else asking the same question.

If anyone would genuinely like to know what I have learned, so that they to will be able to do the same, post the question and I will answer it.

Hi misspoppy
Please read my reply to harpiegirl, also in post 34, read from paragraph 14 in post 40 and form paragraph seven in post 42. You should then see that I have had my LBM.

As for the need to save money for my payments, see my reply to GettingThingsDone , which is also in post 34.

Hi Storm
I think I have already answered one or two of the points you have raised, mortgage relief, council tax, and making my payments.

Martin's budget planner is new to me, can you put a link to it in a post. I do have a spreadsheet that shows exactly what I pay out each month, excluding sundries. It is something I have done for years.

I also know people that have had problems selling their home and at the end of the day, there is very little anyone can do about it but what I can do is to make sure the house is immaculate and finding someone to buy it will not be one of the problems.

I mentioned the £25K and £28K because I keep getting told not to go further into debt and to explain that it does not matter which one it is I will be able to cover that debt when the house is sold.

Hi Yant1
Unfortunately, what your friend had done with the equity in their home is exactly what far too many people did with their credit cards. That is the reason I had my limit reduced and why many, many other people are having theirs reduced.

My safety net has been on fire for over twelve years and in that time I have become an expert with a fire extinguisher. However, I am glad you do not know where I live otherwise you would be throwing petrol on it.

Hi angela6834
I have said several times before that, I do not wish to do this or that because it will have an adverse affect on my credit rating. This in turn will affect my ability to reach my ultimate goal of having a nest egg for when I retire.

At the end of the day I have to sell my home to pay off the current debt, so there is no way to get out of the stress I will be under from selling the house.

As I have said before, I carefully considered the increased stress of renovating the house against the constant stress of having a large debt that will only get bigger. I decided to have an increase in stress for a short time and get a large reduction in stress for a long time.

There have been times when it has got to me a little bit and I have had days were I sleep all day or have very early nights because I have been so very tied mentally. However, I am on the last lap.

Next time, I will already have one under my belt and because of everything I have learnt this time, the next one will or could be that little bit easier. I also get a great deal of satisfaction from standing back and looking at my achievements.

True it is a lot of hard work but it is for a day here and a day there and I can stop anytime I need to. If I had a job and I kept ringing in and taking time off sick or going home early, I would not have a job for very long.

This maybe the most stupid thing you have ever heard but every day I walk a little bit further along the path to recovery. Sometimes that means walking up a steep slop and sometimes a strong wind will push me backwards. As long as overall I am walking forwards, I will eventually reach the end of the path. A bit more stress, just means it will take longer to get to the end of the path.

GettingThingsDone

Hi Rob,

I don't think you've got 'stress' - it sounds more like depression (or something along those lines). I can't remember if you'd told us this already, but are you under treatment for this? If not, get down to your GP and have a chat.

If you're a budding property developer/bedsit landlord, then stress and change is a way of life - that's not a problem in itself; some kinds of stress can be brilliant and can give you a real buzz (just watch Martin on TV!)

Maybe you're not cut out for it?

Re: Coving etc - if I buy your house, then I will a) reduce the offer price b) rip the coving off as soon as the purchase is done. I hate coving. Don't bother until you've had your place valued and/or had people round to view.

Anyway, you're doing the right thing in getting your property valued.

My advice - sell your house, pay off your debts, buy a smaller house outright, post your SOA. Relax and stop overanalysing everything. Your life isn't over yet - work out what you like doing and that suits your temperament. Earn some money doing it, and you'll be debt-free, own your own house and have cash coming in - how many of us are striving for that combination!

What I think many of us on here are trying to say is - stop looking down at your feet, look up and see that you can win this one...

gtd

Robflh

I am supposed to me doing my paperwork for the charity that I am a volunteer driver for but your post was such a surprise to me that I have had to stop and answer it.

I sufferer from depression, which is brought on by stress. They are two sides of the same coin. I have suffered from depression all my adult life and have been on and off medication for it, currently on. I am that good at managing it, that my doctor allows me to decide when to increase or decrease my medication.

GettingThingsDone wrote: »

Your life isn't over yet - work out what you like doing and that suits your temperament. Earn some money doing it, and you'll be debt-free, own your own house and have cash coming in - how many of us are striving for that combination!

I get one hell of a buzz from doing up my home, it suits my temperament and I could make money doing it, not that I would but that I could. It could even lead to other things, as people know I can do things for my home and ask me to do things for their home.

As for looking at my feet too much, I must be writing this wrong but I have never taken my eyes off my goal and I will get to my goal. It is just a question of getting round the obstacle Amex has put in my way.

I do not mind people checking to see if I have thought of this or thought of that, they are just trying to make sure I do not fall into a hole that I have not seen.

The only thing that does gets me down, is other people telling me that I do not have a hope in hell of reaching my goal.:mad:

Anyhow, I have got to get my paperwork done. So if I do not post for a couple of days you will know why.

GettingThingsDone

Hi Rob - good on ya!

As for looking at my feet too much, I must be writing this wrong but I have never taken my eyes off my goal and I will get to my goal. It is just a question of getting round the obstacle Amex has put in my way.

As you know, you'll get there! When I got my first green Amex over 12 years ago, I was warned never to trust Amex - always treat them with a mix of fear and distain!

There are no magic bullets - as you know, basically, you are £3K short now of where you need to be. Or are you?

I think that is all we are trying to say is you can brainstorm your way out of this and sometimes lateral thinking will take you in directions you didn't want to go down originally, but as we all know, there is more than one way to skin a cat (not sure why we'd want to literally do that?!)

gtd

GeorgeUK

Hi Rob

Just going to throw another few pence into the mix

I've seen it mentioned a few times here, but noy actually from you (i don't think)
There have been a few suggestions about getting your house valued - some say so that you can get on with selling it, but as you seem reluctant to do that, i would suggest getting it done now so that you can see 3 important factors:
Current price - incase it really is worth your while selling in the current market
Projected Price - make sure that an expert will confirm what you have assumed from watching those programs. Not saying you are wrong, i really hope getting the work done and finished will make you a few extra grand, but i would want some comfirmation
Condition - The valuer should be able to tell you the current market, what your property is worth, but also anything else that he sees as a benefit or may hinder either the sale or price of the property. Not saying you've got dry rot or anything, but if he can point out any small things that are pretty easy to fix before a buyer gets the house valued, then it is all the better for you.

Either way, knowing how much the property could sell for (not sure how up-to-date sale prices on that link i supplied and similar are) may allow you to see something in the current market that you could put an offer in for, or alert you that you may need to alter your plans if valued below your expectations.

Good luck with this. Let us know how you get on. Hopefully you're nearing the finish line and going to do it in style

changkra

Robflh wrote: »

Hi All

Firstly, my meeting has been rescheduled for Saturday. :wall:

Hi changkra
You need to read the last part of post 33. You also have to remember that having them costs money, a bigger gas and electric bill for starters. Some of that money is paying for their part of the cable TV and some of mine.

Each time I need to get a replacement lodger I have to put an advert in the local papers and that is not cheap. Then there are all the times that they leave owing me rent money.

After they have left, you go to put on your headphones only to find they are missing. When the last one left, so did my digital camera.

How much of that money do I claim as sufferance pay for all the stress that they cause me?

Thank you for your reply, i totally understand your post and the need for the money, and the stress. It isn't something i would like to have to do, having strangers in my home, and putting my peace of mind at risk. It takes a brave person to rent out a room in their house. On the benefits side of things my only concern was that if benefits didn't know, which they do, and found out it would be another debt to pay back and you seem to have enough problems going on around you without the stress from this area as well.

sorry your appointment was changed but good luck with Saturday and I hope you manage to get what your asking for.

Robflh

Hi Russ66 Hi dennyp
I have come back from the bank and the amount of equity anyone has in their home is irrelevant. All the bank is interested in is what you have coming in and what you have going out and on that bases I am not able to get a re mortgage to consolidate the debt or a loan secured against the house. The loan would have to be £5,000 and not the £2,000 I was asking for, as that is the minimum loan that anyone can have. So now, I need to make an appointment with a financial advisor

In my original plan, a balance transfer to my bank account would give me the money I needed to make the extra CC payments each month, which my SOA says I do not have the money for. Unfortunately, you cannot ask for a £3,000 loan and use a £1,000 of it to make the payments until the house is sold.

Hi climbgirl
I think I answered several of the points you have raised when I answered Storm .

Let me just say once again to everyone. I have got to sell the house to get rid of the debt. There are no ifs, buts, or maybes about it, the house will be sold.

The question is, do I sell it now or sell it when it is finished. Selling it when it is finished would be the best option and the best price but because of the loss of funds that may not be possible.

Therefore, the first thing to do is to try and find an alternative source of funding. Only if this proves to be impossible, will I sell the house before it has been completed.

Short term I am able to make my CC payments each month but I will not be able to do this long term.

Hi awaytogoyet
You are quite right the property market has been inundated with people that think they can make money by giving up their jobs and becoming property developers. A lot of them get it horribly wrong.

True property developers will never buy a property that has a for sale sign, they will have bought it long before then. As they say, it is not what you know but who you know.

Another programme to watch is Property Ladder hosted by Sarah Beeny. For those that do not know, each show follows one or two budding property developers, who for some reason think they know how to do it better then someone that has been doing it successfully for years.

Most of the time, they only make a profit because house prices have gone up and not because of what they have done. Something like 40 to 60% of the profit that has been made will go to the taxman.

However, I am not looking to be a property developer. I am looking for the right property to buy that is in need of some TLC. As it is MY home, I will not have to pay tax and I will not have to make a large profit just to end up with a big enough profit to enable me to fund my life style.

I am only doing it so that every couple of years I can put a lump sum away for my retirement. That may only be £15,000 and no property developer will take on such a project, if it means only going making a £15,000 profit before tax.

I am always on the look out for employment opportunities, which do not evolve me working for someone else.

I used to go to a gym three times a week to try to loose some weight and get fitter. I would go first thing in the morning. A couple of times I tried to go in the evening but there was so many people trying to go in the evening that the gym was turning people away.

When I lost my job, I remembered how busy the gym was in the evenings and how busy it was in the mornings, around the time I left. If there was that much of a demand for gyms, I could start my own one. Unfortunately, that is not cheap to do and I was unable to get the funding I needed.

For the first few years, I watched Discovery Home and Leisure, which is now called Real Time. They had two programmes called This Old House and The New Yankee Workshop. Both of them are excellent American programs and I thought it was about time we had an English version of them. This was before we had property programs on terrestrial TV. I contacted numerous production companies but I could not find one that would work with me.

Hi GeorgeUK
I have answered this question several times before but let me try it this way. As it is the house has been valued at £160,000 and it has been valued at £180,000 when it is finished.

I bought the house fourteen years ago and had a full structural survey before I bought it. The house has no major defects, the only thing that did come up was inadequate airflow in the loft, and the roof now has vent tiles.

I have got a bit lost as to whose questions I have and have not answered. If I have missed anyone, then please post again.

Chia

It seems pretty obvious to me!

1. Sell your house.

2. RENT a property. Novel idea, I know, but it has been done!

3. Get a job, even if part-time. You seem to have a lot of energy/motivation for posting on internet forums and renovating your home. I find it highly unlikely that you are unable to work at all. And before you claim that I have no idea what it's like, I do - I've suffered from various branches of the anxiety/depression family tree for most of my life and am currently on medication. Can it be very stressful holding down a job and succeeding in it? Yes. Is it impossible? No. As long as I CAN work, society owes me no upkeep expenses, and the same applies to you.

Sorry if this seems pretty harsh. I'm not hatin', I just think you need some tough love. I hope you can make things work whosever plan you follow.