First Steps to Solvency

alt80

@getmore4less you going to tell me I’m renting my portfolio too because it’s I/o? Seriously mate where does it stop your definition of what’s ‘renting’ and what’s ‘owning’? Still paying for it not renting. Pay the interest to the banks to own idk. Well not for btls no intention there of paying off entirely 65ltv do me but yswim.

As for school yeah you’re probably right messed that one up a long time ago.

@warby68 I hope not. Need to get back on right track though. 

@RelievedSheff I know always the same have for a while and need to upgrade. Got to move on from this at my age really.

theoretica

alt80 said:

 selling units would be insane to buy a car so idk 

Actually to me that needs thinking about - because it highlights what you are thinking about doing - and would be by far the cleanest way of getting the money.  You have a certain net worth and need to divide it up somehow between portfolio/cars/home.  You have lived on debt so long and getting things before you have the money for them and making more trouble for your future self that you seem not to believe in the other way of doing things.  You need to face up to how many units worth of equity a car would be and which do you want more? 

alt80

@theoretica I can’t stomach that trade off. I do see what you’re saying and agree with where you’re coming from re cleanest way into an AM but already made stupid business decisions to clear my personal debts it’d be ridiculous to do that again effectively. I need to use the money to get to 75ltv not stick at 80 and pull the retained to buy a car. Likewise units=income multiples of what originally invested. It’s stupid to pull units to buy a car. 

The living on debt stuff yeah I agree can’t really think of a time when I’ve not been in debt personally as well as in business but the latter not an issue. The personal debts always been there I want them gone though can live better without them esp paying load of interest to Land Rover . 0% not bothered about really although would be nice to have a clean slate no payments for a year or something iyswim. Lockdown 1 was weird went on the repayment hols almost felt rich lol.

alt80

Is there really anyone who actually lives without any personal debt that isn’t 90? 

RelievedSheff

alt80 said:

Is there really anyone who actually lives without any personal debt that isn’t 90? 

Plenty of people. My FIL has never had any debt in his life. He is in his 60's. He always buys his houses and vehicles with cash.

SIL is the same age as me. Has never had any debt, but equally rents her house and flits from scrap car to scrap car and will probably never have any real assets. She is happy though and that is all that matters.

We are all different and we all make different life choices. Debt doesn't have to be one of them.

Grumpelstiltskin

alt80 said:

Is there really anyone who actually lives without any personal debt that isn’t 90? 

Yes me, the most I have ever borrowed in my lifetime was a mortgage of £2500 in the 1970s.

I was bought up to not buy anything I couldn't pay cash for.

downshifted

Not owed anything since we paid the mortgage off at 50

strawb_shortcake

alt80 said:

Is there really anyone who actually lives without any personal debt that isn’t 90? 

I've got a mortgage and that's it, I'm not 90 though I sometimes feel it!
When we first applied for a mortgage the bank manager thought I was thick and didn't understand what unsecured debt was, when he eventually believed me that I had no debt he said he didn't meet many like me. 

I don't think debt is necessarily a bad thing and it has it's place but its not for everyone. But you have to find a sustainable balance that works for you 

ladyholly

There are plenty of people who live without debt who are well under 90. However debt is not a problem if it is easily paid off without impacting your life and is interest free. Your debt is impacting your life and that of your family.
I bet your son is aware there are problems. School parents know they go home and talk about it, their kids overhear and tell your son your dad's a drug addict. He may not see it or hear it at home though I don't believe that but I bet his school mates have told him. Kids can be very cruel and even if by some fluke he doesn't know now he will twig eventually.
You keep talking about feeling bad about the past but don't let the past become the future. Dump your JV mate start standing up to your wife's nonsense and start again now. Cars are a big trigger for you so you need to find a way round that. Yes you need a car and I understand you like driving in a certain type of car but for a couple of years give up on it sort your finances out and things will be a lot brighter for you and your family. By the time your son is 10 you could be in clover if you stick at it. 

efes_shareholder

Most of us wouldn't be here if we had always bought things outright rather then using finance as most of us are here because those financial commitments escalated beyond control - its very easy to down the lenders will make your dreams acheiveable and enable you access to the "lifestyle" or "image" you feel you need to project ..............however they earn money out of doing this and they don't particulary care whether you are over stretching yourself , they care about getting the comms on your deal.
Please please consider your next car step very carefully and use some wisdom and really work on losing the car snobbery ..............you cannot continue to get upset with wifey about her expensive tastes if you are encouraging them when it relates to something that is "your thing". I touched based on kids clothing with you and you said you had no problem dressing your son in supermarket clothes , completely agree , its makes financial sense as they grow so quickly and why would you pay more for a badge ??
Excatly the same concept with cars , cars are very rarely an investment as they will always lose value , massively so in the first few years and will never return what you paid - its a means to get about , to transport your son and all his bits and pieces including bikes in most families - you can get some extremely nice and well powered cars withtout stepping in to the merc , BM or AMt bracket its just they don't suit what you feel she should be driving !! Have you considered looking at Golfs or Focus's I know the thought probably makes you shudder but then spending one sixth of my monthly income on my transport makes me shudder so I guess you need to sit down and have a really long think about just what you are willing to pay and why and how it impacts everything else