Stressed about money and don't know what to do - help needed!

haircut100_2

My finances are in dire straights and I need some pearls of wisdom! I'm drowning in debt and hoped someone on here night be able to help.

I've got a personal loan (£8k) and two credits cards (£3 in total) but have a mortgage and pension so hopefully going in the right direction!

However, three months ago I moved to London and rented my flat out privately. BIG MISTAKE! I've not had one penny out of him and am threatening him with eviction. If he doesn't leave of his own accord, i'll have to boot him out through the legal system which is liley to cost another £1k (which i'd have to stick on the credit card!).

At the moment i am paying my london rent PLUS my mortage and it is killing me.

My question is really this; should i move back home into my flat (after evicting my tenant from hell!!) and pay nearly £500 commuting by train into London but be safe in the knowledge that my finances are not being controlled by someone else or stick it out in London and risk non payement again by future tenants?

Even if i put it on with an agency its not guaranteed.

I've looked into consolidating my debt to help ease the pain of going into the red every month, but I don't want to take out a homeowner loan and i feel i'm constantly consolidating and consolidating and not getting anywhere!

Help!

Cleosmum

Hi, can you look for an agent that guarentees the rent? Or rent to a family member, or friend? Have you thought about selling the flat and moving closer to London to buy? Do you still have this chaps deposit?

Dont consolidate, it just prolongs the agony. Post up a statement of affairs and we can see if we can save you any money on day to day living.

Clariman

Cleosmum wrote: »

Dont consolidate, it just prolongs the agony. Post up a statement of affairs and we can see if we can save you any money on day to day living.

Details of how to create your SOA here.

Clariman

haircut100_2

I didn't take a deposit as I thought it would be too much hassle putting it into a landlord deposit scheme - BIG mistake eh?

Good advice about consolidation!

I earn £1530 a month after tax, which is fairly good for my age (24) but have the following outgoings:

Mortgage £420
London rent £410
Pension £100
Income Protection £17
Cinema subscription £12
Mobile phone £40
Personal loan £160 (£7,500 over 5 years, only done 6 months so far)
Credit card 1 £ 50 (£1,350, interest free)
Credit card 2 £50 (£2,300, interest free)
CIPD membership £10 (needed for career)
CIPD course fee £100 (finishes in two months)
Living costs £200

Total £1569 (my income is only £1530!)

If i was to move back home and commute into London I'd be looking at £460 train fare plus council tax (£75), and utilities (£40) a month.

Writing this down scares me!

Cleosmum

Please tell me you and he signed a tenancy agreement.....

Gemmzie

Can you break down "living costs". Use the link in the post above yours by Clariman for your SOA.

It's scary but it's better to be prepared and work things out using the real figures if you can

Cleosmum

haircut100 wrote: »

Living costs £200

Can you give us a breakdown of your livings expenses, how much on food, utilities, travel etc etc?

haircut100_2

Yes, he DID sign a tenancy agreement so if i have to evict, he WILL be liable (i've had the agreement checked by a high court enforcement agency). Thank God I did that!

I suppose i could spend less on 'living expenses'! I spend around £100 a month on supermarket food, £25 on clothes and £75 on going out. The going out money would be greatly reduced if i moved back to the flat compared to living in London!

haircut100_2

Utlities and travel already accounted for as travel comes out of my wages before i get them and utilites are included with London rent. Obviously if i moved back home to my flat, we'd be talking £40 in utilities, £75 in council tax and £466 in train fare!

bobby-boy_2

Hi I looked quickly at your figures and by moving home you would save 410 on rent and maybe 75 on going out but have to pay 466 travel + 75 council tax + 40 utilities so you would save minus 106 pounds! Get the tenant out or to pay the rent plus arrears then look at selling maybe but the figures you provide don't make moving home look viable.

haircut100_2

No point going back to the flat if I'm going to be worse off financially! Unsure about selling in this market as not 100% sure i'll get what i put in. I might try to see about putting it on with a letting agency that guarantees rent - but i'm not sure any of them do this anymore? Fingers crossed he will be gone by Saturday. If not i'll have to stump up £1k that i don't have to formally evict him, which will be bad for my purse strings but great for my credit card provider!