Debt about to spiral - advice needed

in_need_of_direction

Can I ask, given how little you spend on fuel for the car, is it worth holding onto a car at all? Best of luck with the pregnancy. Take care

moz86

Just a thought, but between the mortgage and the ground rent you are getting stung, you have 100k of equity in your property.  It could be an option, might seem drastic, but have you thought about selling the property, settling your debts and renting?  

theoretica

summerlilly said:

theoretica said:

Is the £500 child maintenance for the older child?  Do you anticipate problems getting maintenance for the younger, and how much do you expect?

Once the rate setter debt is gone that will help your cash flow.

Yes this comes from my ex husband: very amicably and without delay. 

I don’t expect to get anywhere with the younger ones father - he quite literally walked out the moment I told him I was pregnant and haven’t heard or been able to reach him since (he’s blocked me on everything ) - your forgiven for thinking this is the act of a 19 year old but in fact it’s a 40 year old man. He’s a professional actor/singer who’s work is largely dependent on how well he’s doing with auditions he lost a lot to covid, and is considered self employed so I know even if I did try and get some support from him he would make it impossible and I’m not sure it’s worth the stress. 

Is going through CMS so stressful?  Might not get much, but seems worth setting in motion.

Soundgirlrocks

moz86 said:

Just a thought, but between the mortgage and the ground rent you are getting stung, you have 100k of equity in your property.  It could be an option, might seem drastic, but have you thought about selling the property, settling your debts and renting?  

Given the state of the London rental market I wouldn't recommend this personally. Right now she has a lot of security in owning her own home. 2 bed flat is probably £1300 pcm in the the OP area, and if she has £100k in the bank from selling her entitlement to benefits would be severly affected

summerlilly

Soundgirlrocks said:

moz86 said:

Just a thought, but between the mortgage and the ground rent you are getting stung, you have 100k of equity in your property.  It could be an option, might seem drastic, but have you thought about selling the property, settling your debts and renting?  

Given the state of the London rental market I wouldn't recommend this personally. Right now she has a lot of security in owning her own home. 2 bed flat is probably £1300 pcm in the the OP area, and if she has £100k in the bank from selling her entitlement to benefits would be severly affected

I wholeheartedly agree that I’m being stung, it’s awful but I only got this place via staircasing, I wouldn’t have the property, equity or savings otherwise but I also agree with soundrocksgirl- , I would simply never get on the property ladder again, I have no inheritance to come down the line and as you say renting in my area for a place of my spec (which is by no means top end) would easily be £1450+ a month, leaving me with declining savings, no assets or indeed any benefit help. 

I’m being stung in the short term but there’s no physical way I’d ever drum up £100K again, it was hard enough staircasing and paying legal fees 3 times to get to a point where I own this place outright. I’d sooner rent it and break even on the rent before selling up entirely, my finances are not at dire straits at the point where that is my best option imo. 

I’ll have to go back to work earlier than planned all else fails. 

summerlilly

In other news I have tried to set the ball in motion to sell my car, and get a cheaper run around, Send hand cars seem to be overpriced too! Saw a few today for nearer the £5k price which wouldn’t leave me with much for my efforts, and still paying off the car out of the loan?  Once the loan is paid off I’d still have a very decent car that would last 10 years, but no car. 

Getting a £4K car will be worth nothing in resale come a couple of years time(not to mention the extra costs for getting past every mot etc) 

Starting to think trying to find the £4k id have left after the crappy car downgrade might be a better start? I wonder how much I can drum up from my all jewellery? I think the rings together cost in excess of £5k alone, and are both diamond platinum- I wouldn’t expect to regain that value but something must be better than them just sitting there never to be worn again? 

stymied

Personally I would keep the reliable car and sell the rings but maybe that’s just me? How are you getting on with keeping a spending diary to find out where your spare money is ending up each month?

More importantly how are you feeling?! Any sign of the baby yet? X

fatbelly

summerlilly said:

In other news I have tried to set the ball in motion to sell my car, and get a cheaper run around, Send hand cars seem to be overpriced too! Saw a few today for nearer the £5k price which wouldn’t leave me with much for my efforts, and still paying off the car out of the loan?  Once the loan is paid off I’d still have a very decent car that would last 10 years, but no car. 

Getting a £4K car will be worth nothing in resale come a couple of years time(not to mention the extra costs for getting past every mot etc) 

You can ask the boys on the motoring board for help/advice

kimwp

Definitely sell the rings if they have no sentimental value to you.

My £1400 car bought in 2009 when it was eleven years old only got scrapped in 2017 because I didn't look after it properly (only "breakdowns" were when I left the light on all day). My then five year old £3400 honda jazz which I bought to replace it, I am expecting to have for at least ten years.

fatbelly

kimwp said:

Definitely sell the rings if they have no sentimental value to you.

My £1400 car bought in 2009 when it was eleven years old only got scrapped in 2017 because I didn't look after it properly (only "breakdowns" were when I left the light on all day). My then five year old £3400 honda jazz which I bought to replace it, I am expecting to have for at least ten years.

No reason why not.

There are 2002 Honda Jazz's still going strong with over 100k miles on them. A lot of older owners really look after them.