Unsustainable debt and long term relationship breakdown. Any advice welcome.

RAS

This may seem a bit random but Martin bleats about it all the time.

You are 38 years old, self employed with no pension?

There is something called a LISA, which can only be used for buying a house or towards a pension. The Government tops your saving up by a percentage.

Right now you are in no position to make real pension contributions.

But LISAs can only be opened by those under 40 years old. You don't have to make regular contributions.

So open a LISA with a fiver now and you will have an additional option to save efficiently in the future.

Just do it, it's only a fiver.

SpireCaptain

RAS said:

This may seem a bit random but Martin bleats about it all the time.

You are 38 years old, self employed with no pension?

There is something called a LISA, which can only be used for buying a house or towards a pension. The Government tops your saving up by a percentage.

Right now you are in no position to make real pension contributions.

But LISAs can only be opened by those under 40 years old. You don't have to make regular contributions.

So open a LISA with a fiver now and you will have an additional option to save efficiently in the future.

Just do it, it's only a fiver.

Fantastic reminder, thank you so much. I'd read about these a good few years ago but kept putting it off. Started help to save account but couldn't afford £50 a month after 1st bonus was paid out. But yes, I'll open that tomorrow. Thanks again.

Kicking myself now for always opting out of workplace pensions 2007-2017 when I was employed.

The 1st mortgage advisor I used in 2012 with Barclays suggested the 2 x BTL I bought with inheritance from an Aunty and kind of went in blindly  thinking they'd be pension fund. Until the tenant trashed it and I fell into so much debt. I'm not cut out for hard-nosed Landlording.

A trust that matured at 25 years old from my Grandparents was the £55k deposit for the 1st house that led to the current house. 

Found the Deed of Trust. £75,000 for partner. £55,000 for myself and any equity split 50:50

RAS

If you were married, all assets and debts would be shared equally. You need to look at the refurbishment fund next.

As to refurbishment , I'm astounded at how many people rip out recently installed kitchen and bathrooms. Legally, and mortgage purposes, it needs a sink and a cooker.

Your needs might be different. Maybe a second hand kitchen, giving a bit of a lift without spending a fortune? Depending on how much you can do with mates?

SpireCaptain

RAS said:

If you were married, all assets and debts would be shared equally. You need to look at the refurbishment fund next.

As to refurbishment , I'm astounded at how many people rip out recently installed kitchen and bathrooms. Legally, and mortgage purposes, it needs a sink and a cooker.

Your needs might be different. Maybe a second hand kitchen, giving a bit of a lift without spending a fortune? Depending on how much you can do with mates?

We had plans drawn up and with COVID prices being so low it would've been ideal 5 years ago. It's been the biggest sticking point and the final straw for the camels back. And now everything has tripled in price. 

We've had a leak from the bathroom since 2020 that I fixed but the kitchen ceiling has a huge damp split in it. The units are from the 1980s from a 90 year old lady that had lived in since the house was built in the 1960s. (we bought a standalone cooker off Facebook and still using it). The virgin media installer saw the electric switches and extractor and asked if he could have ethem for his vintage collection, that was 3 years ago and they're still in situ. We've struggled to get tradespeople to actually follow up on their promises of quotes etc. 

Every Christmas my partner swears she can't be expected to cook in this hell hole.


I see what you mean about kitchen being ripped out straight away. The best bet maybe a cheap and cheerful Howdens bought on my account and I know someone who does jobs on a weekend to fit and  replaster. Plans of a separate utility etc can be left to the new owners. New windows and doors are a must though as they are all black with mould where the cold blows through the seals etc. 

SpireCaptain

Just had the email saying my Tesco statement is available to view. 

Just as I expected and feared, next month's minimum payment is £387. £237 more than I paid this month. It will come out on the same day as my MBNA of £270 so will put me over the overdraft by £7. 

My van hasn't been into the garage yet, taking it in this afternoon for the slave cylinder and clutch replacement tomorrow. What I thought could be £24 fix looks like £3-400. And without the van I've not earnt anything this week. 

The accountant has asked for everything ready for the tax return to be filed. That's £140 plus tax to pay (hopefully I can pay HMRC over time like I did a couple of years ago). 

And finally the 2 youngest children have a school residential to pay for by the end of the month £166 X2. I can pay that on credit card but the van clutch is cash only from somewhere I need to find. Halifax or Barclays overdraft. 

I'm a month or so away from the Tesco payment crippling me. 

I can try and shift £8000 to MBNA but only 5% lower Apr but it might prompt a 0% deal from Tesco in a couple of months to flip it back.....

RAS

Go for anything you can in the short-term to reduce your costs, but do check the fees on balance transfers.

And ask school if you can pay in stages?

SpireCaptain

RAS said:

Go for anything you can in the short-term to reduce your costs, but do check the fees on balance transfers.

And ask school if you can pay in stages?

Thank you. I'll see what school say about anymore leeway. Unfortunately no discount for 2nd sibling in the same year but free school meals recipients get £50 discount from the trip funded by the school.

I may move the 0% NewDay to MBNA and then I'll have nearly £5400 that can be moved tesco on 6 months 0% as NewDay have sent an offer. 

I can also take 6 months bounce back loan repayment to save £90 but I was saving that for later in the year when other cards revert to standard APR. Although won't really make a difference to £1600 repayments.

A question about moving the mortgage and energy DDs. Is it best to move to the account I've never had direct transfers from Barclays to or would the Halifax be ok? 

I'm just thinking I will have to transfer money from Barclays business account to pay the mortgage. Until all myself customers use the new starling business account my income will be still going into Barclays. They'll have the details of the Halifax account already but not starling. 

Probably overthinking it with the reinstatement if direct debits or chasing payments once I decide to start the DMP. 

SpireCaptain

Still milking things around in my head and yesterday I spent an hour reading people's experience on DROs. My current debt is above the limit to allow a DRO. If however I could receive a gift from family that takes me under the £50k limit, 2 questions -

- how many months would I have to wait for a DRO to be allowed after paying off some creditors? Or would it be best to spread across all creditors equally so that I can start a DRO asap as I have shown now preferential treatment?

- would a DRO be more suitable in my situation than a DMP for my debt levels and income levels?

When we separate and the house is sold I'll have deposit back for renting and perhaps in 6 years I'll be able to get a mortgage again 

ManyWays

You cant have a DRO if you own a house. 

SpireCaptain

ManyWays said:

You cant have a DRO if you own a house. 

Oh I see, I can't believe I've missed that in all the threads I've been reading. Thank you for clarifying.