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Housing & debt advice

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Singlemum2704
Singlemum2704 Posts: 12 Forumite
10 Posts First Anniversary Name Dropper
in Debt-free wannabe
Hi everyone. 

I had previously posted this in housing advice forum and it was suggested that I post here also to get some advice. 
I have already messaged step change and I am awaiting a response. But I would appreciate your help. 

I’m hoping maybe to get some opinions on what people would do in my situation. 
So I am a single parent on UC, I currently own my home through a shared ownership scheme. 
I have a large loan that I’m trying to pay off also. 
I am struggling to make ends meet each month and while I would love to stay in my apartment I am starting to think the best thing to do would be to sell, use the money I would make on the sale to pay off my debt and get housing help through UC so that I can reduce my monthly outgoings and then hopefully I’ll be able to save over the next few years with the view to buy again when I am in a better position. 
I am worried if I try and stay here for as long as possible that I am just going to end up building more debt and putting myself and my daughter in a worse position. 

What would you do in my situation? Would you sell or is there another solution that I haven’t thought of?

I would really appreciate any advice that anyone is able to give me because I am really struggling right now 
«13

Comments

  • elsien
    elsien Posts: 35,972 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Whether through stepchange or on here, the first thing to do is to complete a statement of affairs, detailing all your incomings, outgoings and debts. That will give people an idea as to which debt solution might be best for you.
    The other thing is to have a clear idea of when/how the debts have arisen because that can also affect things moving forwards - there's little point in clearing a debt if you then continue to overspend and run up more.
    That's not a judgement, it's just the experience of people on here who've consolidated then ended up back at square one. 
    So to get any meaningful help we do need to see some figures - if you're not sure, go back through bank statements/credit cards/receipts so you can see where the money has been going up till now. There's a link on here somewhere but I can never find it, so will let someone else post it for you. 
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
  • Singlemum2704
    Singlemum2704 Posts: 12 Forumite
    10 Posts First Anniversary Name Dropper
    elsien said:
    Whether through stepchange or on here, the first thing to do is to complete a statement of affairs, detailing all your incomings, outgoings and debts. That will give people an idea as to which debt solution might be best for you.
    The other thing is to have a clear idea of when/how the debts have arisen because that can also affect things moving forwards - there's little point in clearing a debt if you then continue to overspend and run up more.
    That's not a judgement, it's just the experience of people on here who've consolidated then ended up back at square one. 
    So to get any meaningful help we do need to see some figures - if you're not sure, go back through bank statements/credit cards/receipts so you can see where the money has been going up till now. There's a link on here somewhere but I can never find it, so will let someone else post it for you. 
    Where do I get an SOA so I can complete it?

    im keen to do whatever I can before I take the most drastic option
  • elsien
    elsien Posts: 35,972 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 27 September 2021 at 2:14PM
    Here you go.
    I believe that somewhere on it there is a way to format it for MSE so it's easier to read. 
    SOA Calculator (stoozing.com)
    No-one gets it completely right first time, so if you have to guess at spends do that as a starting point then you can amend as the figures get a bit clearer.. 
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
  • tacpot12
    tacpot12 Posts: 9,246 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper
    Hi. I'm sorry you are struggling, but I think the best thing for you and your daughter is to stay inthe property you are in. The housing market is very overheated at the moment; you will probably find yorself worse off renting as rents have gone up so much recently.

    If your property has three bedrooms (unlikely I know, but I thought I should mention it) you should consider renting one of the rooms out.  You can receive rent of upto £7,500 per year tax free. They are often workers who want to rent a room for four nights a week and who will spend the remaining nights at their own home. 

    As you have identified, the most important thing is that you don't get yourself into more debt. If you find you need to buy anything other than food, see if you can get it cheaper on eBay, Gumtree or Facecook Marketplace. Ask friends and family if they have the item you need spare. If you can't avoid going into futher debt, then selling probably is necessary, but don't expect it to make you better off. 
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • Singlemum2704
    Singlemum2704 Posts: 12 Forumite
    10 Posts First Anniversary Name Dropper
    [font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

    Household Information[/b]
    Number of adults in household........... 1
    Number of children in household......... 1
    Number of cars owned.................... 1[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 688.96
    Partners monthly income after tax....... 0
    Benefits................................ 982
    Other income............................ 0[b]
    Total monthly income.................... 1670.96[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 141.2
    Secured/HP loan repayments.............. 0
    Rent.................................... 112.15
    Management charge (leasehold property).. 44.84
    Council tax............................. 61.91
    Electricity............................. 20
    Gas..................................... 20
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 34.54
    TV Licence.............................. 13.37
    Satellite/Cable TV...................... 0
    Internet Services....................... 46.16
    Groceries etc. ......................... 200
    Clothing................................ 20
    Petrol/diesel........................... 40
    Road tax................................ 0
    Car Insurance........................... 45.79
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 494
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 10
    Contents insurance...................... 0
    Life assurance ......................... 11.83
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 15
    Haircuts................................ 0
    Entertainment........................... 20
    Holiday................................. 0
    Emergency fund.......................... 0[b]
    Total monthly expenses.................. 1370.79[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 114950
    Shares and bonds........................ 0
    Car(s).................................. 4000
    Other assets............................ 0[b]
    Total Assets............................ 118950[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 37466.2..(141.2)....1.66[b]
    Total secured & HP debts...... 37466.2...-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Personal loan..................18904.2...381.4.....8.7[b]
    Total unsecured debts..........18904.2...381.4.....-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 1,670.96
    Expenses (including HP & secured debts). 1,370.79
    Available for debt repayments........... 300.17
    Monthly UNsecured debt repayments....... 381.4[b]
    Amount short for making debt repayments. -81.23[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 118,950
    Total HP & Secured debt................. -37,466.2
    Total Unsecured debt.................... -18,904.2[b]
    Net Assets.............................. 62,579.6[/b]

    [i]Created using the SOA calculator at www.stoozing.com. 
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
  • EssexHebridean
    EssexHebridean Posts: 24,424 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Yes - the SOA calculators we link to here have a "format for MSE" option within them - then  it's a simple copy and paste into here. It's worth taking some time to get all your current financial paperwork in one place before completing too as you need to make sure it as closely as possible reflects how things are "right now" - there's no benefit to filling it in reflecting how you think you "should" be doing things - only by actually putting down your spends as they are now does it do its job.

    Pop it into this thread and we can take a look - you'll be amazed how often we can find savings that you wouldn't even have thought of!

    Absolutely do not rush into doing anything about selling your home, though - it's extremely rare that paying off debt by selling the roof over your head is a good idea, and remember that you could run into issues with being rehoused if you are viewed as having made yourself homeless, too.  Not trying to scare you, but it is something you need to be aware of.
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
    Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
    £100k barrier broken 1/4/25
    SOA CALCULATOR (for DFW newbies): SOA Calculator
    she/her
  • elsien
    elsien Posts: 35,972 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    @calcotti and @fatbelly, any thoughts? 
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
  • EssexHebridean
    EssexHebridean Posts: 24,424 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic

    Singlemum2704 said:
    [font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

    Household Information[/b]
    Number of adults in household........... 1
    Number of children in household......... 1
    Number of cars owned.................... 1[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 688.96
    Partners monthly income after tax....... 0
    Benefits................................ 982 Assume you have checked this is everything you are entitled to?
    Other income............................ 0 Any way of adding anything here - even things like online surveys can add a few pennies to the monthly pot.[b]
    Total monthly income.................... 1670.96[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 141.2
    Secured/HP loan repayments.............. 0
    Rent.................................... 112.15
    Management charge (leasehold property).. 44.84
    Council tax............................. 61.91 Are you paying this over 12 months or 10? If 12, get it changed to 12 equal instalments to help with budgeting
    Electricity............................. 20
    Gas..................................... 20
    Oil..................................... 0
    Water rates............................. 0 No water rates? Does this indicate you are in Scotland and so it's in with your council tax?
    Telephone (land line)................... 0
    Mobile phone............................ 34.54 You should be able to do a lot better than that once any contract period is up.
    TV Licence.............................. 13.37
    Satellite/Cable TV...................... 0
    Internet Services....................... 46.16 Ouchy - this is steep - why so much? 
    Groceries etc. ......................... 200 I'm guessing you can shave a little off here - I can feed two adults on less than that, and could make it a lot less if needed. have a look at the old style boards for some great meal planning information.
    Clothing................................ 20 This needs to be trimmed to "essentials only" for the tie being - and for younger children eBay clothing bundles/charity shops are a great bet.
    Petrol/diesel........................... 40
    Road tax................................ 0
    Car Insurance........................... 45.79
    Car maintenance (including MOT)......... 20 make sure you definitely set this aside every month
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 494 
    Other child related expenses............ 0 
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 10
    Contents insurance...................... 0 Assume that you have this but it's a single payment and included with buildings cover above?
    Life assurance ......................... 11.83
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 15 Again - make sure you set this aside - your lack of cash assets makes me think that may not have been happening?
    Haircuts................................ 0 Nothing at all for either of you? 
    Entertainment........................... 20
    Holiday................................. 0
    Emergency fund.......................... 0 You need to start building something here, especially as a car & home owner. I appreciate it's tricky though when things are tight.[b]
    Total monthly expenses.................. 1370.79[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 114950
    Shares and bonds........................ 0
    Car(s).................................. 4000
    Other assets............................ 0[b]
    Total Assets............................ 118950[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 37466.2..(141.2)....1.66[b]
    Total secured & HP debts...... 37466.2...-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Personal loan..................18904.2...381.4.....8.7[b]
    Total unsecured debts..........18904.2...381.4.....-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 1,670.96
    Expenses (including HP & secured debts). 1,370.79
    Available for debt repayments........... 300.17
    Monthly UNsecured debt repayments....... 381.4[b]
    Amount short for making debt repayments. -81.23[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 118,950
    Total HP & Secured debt................. -37,466.2
    Total Unsecured debt.................... -18,904.2[b]
    Net Assets.............................. 62,579.6[/b]

    [i]Created using the SOA calculator at www.stoozing.com. 
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
    There are a few small savings there but as I've no doubt you're all too well aware that big lump going to childcare each month is causing you the biggest issues. Do you claim any assistance you can get around that, and have you checked to make sure you're getting the absolute maximum you can? 

    Is there any prospect of you being able to increase your income or would that simply mean your benefits would reduce by the same amount, leaving you no better off? As mentioned, things like surveys etc can make a bit of a difference - could at least mean you could use survey money for things like clothing or even to put towards building an EF. Another thing to think about although only a short term fix is whether you have anything you can sell? Even things like outgrown childrens clothes can go on eBay and might pay towards the next lot of replacements needed. 

    Is the car an absolute need? If not then that would free up a decent chunk of cash each month, BUT of course there will be an increase in other travel costs alongside, I assume. 
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
    Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
    £100k barrier broken 1/4/25
    SOA CALCULATOR (for DFW newbies): SOA Calculator
    she/her
  • Singlemum2704
    Singlemum2704 Posts: 12 Forumite
    10 Posts First Anniversary Name Dropper
    EssexHebridean said:

    Singlemum2704 said:
    [font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

    Household Information[/b]
    Number of adults in household........... 1
    Number of children in household......... 1
    Number of cars owned.................... 1[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 688.96
    Partners monthly income after tax....... 0
    Benefits................................ 982 Assume you have checked this is everything you are entitled to?
    Other income............................ 0 Any way of adding anything here - even things like online surveys can add a few pennies to the monthly pot.[b]
    Total monthly income.................... 1670.96[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 141.2
    Secured/HP loan repayments.............. 0
    Rent.................................... 112.15
    Management charge (leasehold property).. 44.84
    Council tax............................. 61.91 Are you paying this over 12 months or 10? If 12, get it changed to 12 equal instalments to help with budgeting
    Electricity............................. 20
    Gas..................................... 20
    Oil..................................... 0
    Water rates............................. 0 No water rates? Does this indicate you are in Scotland and so it's in with your council tax?
    Telephone (land line)................... 0
    Mobile phone............................ 34.54 You should be able to do a lot better than that once any contract period is up.
    TV Licence.............................. 13.37
    Satellite/Cable TV...................... 0
    Internet Services....................... 46.16 Ouchy - this is steep - why so much? 
    Groceries etc. ......................... 200 I'm guessing you can shave a little off here - I can feed two adults on less than that, and could make it a lot less if needed. have a look at the old style boards for some great meal planning information.
    Clothing................................ 20 This needs to be trimmed to "essentials only" for the tie being - and for younger children eBay clothing bundles/charity shops are a great bet.
    Petrol/diesel........................... 40
    Road tax................................ 0
    Car Insurance........................... 45.79
    Car maintenance (including MOT)......... 20 make sure you definitely set this aside every month
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 494 
    Other child related expenses............ 0 
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 10
    Contents insurance...................... 0 Assume that you have this but it's a single payment and included with buildings cover above?
    Life assurance ......................... 11.83
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 15 Again - make sure you set this aside - your lack of cash assets makes me think that may not have been happening?
    Haircuts................................ 0 Nothing at all for either of you? 
    Entertainment........................... 20
    Holiday................................. 0
    Emergency fund.......................... 0 You need to start building something here, especially as a car & home owner. I appreciate it's tricky though when things are tight.[b]
    Total monthly expenses.................. 1370.79[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 114950
    Shares and bonds........................ 0
    Car(s).................................. 4000
    Other assets............................ 0[b]
    Total Assets............................ 118950[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 37466.2..(141.2)....1.66[b]
    Total secured & HP debts...... 37466.2...-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Personal loan..................18904.2...381.4.....8.7[b]
    Total unsecured debts..........18904.2...381.4.....-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 1,670.96
    Expenses (including HP & secured debts). 1,370.79
    Available for debt repayments........... 300.17
    Monthly UNsecured debt repayments....... 381.4[b]
    Amount short for making debt repayments. -81.23[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 118,950
    Total HP & Secured debt................. -37,466.2
    Total Unsecured debt.................... -18,904.2[b]
    Net Assets.............................. 62,579.6[/b]

    [i]Created using the SOA calculator at www.stoozing.com. 
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
    There are a few small savings there but as I've no doubt you're all too well aware that big lump going to childcare each month is causing you the biggest issues. Do you claim any assistance you can get around that, and have you checked to make sure you're getting the absolute maximum you can? 

    Is there any prospect of you being able to increase your income or would that simply mean your benefits would reduce by the same amount, leaving you no better off? As mentioned, things like surveys etc can make a bit of a difference - could at least mean you could use survey money for things like clothing or even to put towards building an EF. Another thing to think about although only a short term fix is whether you have anything you can sell? Even things like outgrown childrens clothes can go on eBay and might pay towards the next lot of replacements needed. 

    Is the car an absolute need? If not then that would free up a decent chunk of cash each month, BUT of course there will be an increase in other travel costs alongside, I assume. 
    Thank you for replying. Tbh I have tried to reduce costs as much as I can already. I’ve changed my phone, broadband etc to the lowest tariff that I need. 
    I get 85% of my childcare costs back through UC but I already have her in the cheapest nursery that had availability. 
    If I were to increase my hours at work I would lose 63p for every £1 earned and I would need to increase my childcare which would be counterproductive. 

    Unfortunately I need my car, there would be no way for me to get her to nursery & to get to work without it as I work a few miles away from where I live. 

    I try to buy things like nappies & wipes in bulk when they’re on offer and I buy her clothes from sales as well. 

    I’m at a bit of a loss as to what else I can do. 
    I spoke to a mortgage advisor about finding a cheaper place to live but with my loan I can’t get a new mortgage, even though it would be cheaper than what I am paying out now. 

    I obviously don’t want to have to sell as I know I’m better off staying in a home that I own instead of a rented property but I just don’t know what else to do at this point and I can’t keep relying on my parents getting bits & pieces for me when I can’t afford it
  • MalMonroe
    MalMonroe Posts: 5,783 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Photogenic
    Hi

    elsien has already mentioned Stepchange - contact details here - https://www.stepchange.org/

    and you have now completed a Statement of Account, so you really could do worse than contact Stepchange. I do recommend them as they helped me with my financial problems and they are very knowledgeable and non-judgemental.

    There may be some good solution for you that they can suggest. The phone call is free and so are their services. 

    You'd have nothing whatsoever to lose by contacting them, as I say you have your prepared SOA now and they will be able to go through it with you. They really do know what they are doing. 

    Good luck! 
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
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