Advice on selling in the current climate

[saffyronron]

I have a thread going at the moment about credit card debt. I'd like to extend my request for advice about whether or not to sell my property. I'm really struggling financially as a result of my huge mortgage and personal loan. It uses up just over half my salary. By the time all my other bills go out, electricity etc, I'm left with next to nothing to survive. I have a decent job (although who knows for how long) and earn half decent money but feel really restricted in my life due to my mortgage. I've checked house prices and I'll definitely make a huge loss but will end up better off if i rent. I just don't know what to do. I feel really sad too that I've struggled so long to put a roof over mine and my DS head and of course it's an investment for his future too. To sell now would be heartbreaking but do I forego this for a better lifestyle now? I don't know. I'd really value some advice.

I know how you feel. You look at your payslip each month and think 'I should be living a fantastic lifestyle on this much and not scrimping'. But my view is if you don't absolutely have to sell, keep hold of your home.

Someone gave me the advice many years ago that even if you end up eating cold beans out of the tin and sitting round a candle, keep paying the mortgage... you may struggle to start with but you will never regret it. If you end up still owing the mortgage company after you've sold you are responsible for the outstanding amount, plus you'd be paying out rent because you still need somewhere to live at the end of the day. You may not end up with the 'better lifestyle' that you imagine.

I've answered your other thread about how to make what you have go further. I know things seem bleak now but IME, if you can cling on to what you've got, things will get easier over time.

Right - well first of all -have you analysed your spending to see why you have so little if you are making decent money. Could you downsize (ie buy a smaller house).

Your problem is if you go into rented you will find it VERY difficult to get another mortgage with cc debts and also you'd have to find a huge deposit.

Have you actually tried credit counselling?

My sympathies, there are a lot of people in the same situation these days sadly :(

Thanks Chil. I guess I know this. I don't have an extravagant lifestyle by any means. I'm really concerned that I may lose my joy (NHS management). We just had an announcement (late Friday night) that the delayering process has been decided and will commence in 2 months. To add to this we have also been given notice as a service so it's a double whammy really. I've always been really proud of how I manage myself in life and what I've achieved but it's hard work at the moment. I'd love to be able to afford a holiday. I shouldn't complain, I know this, I'm much better off than lots of people. I really feel for those single mothers who will struggle now with changes in housing benefits. I think you're right - things will improve. Who know's I might meet the man of my dreams today!!! ah, my knight in shining armour - i won't hold my breath.

meant job or course - not joy!

Do you have a spare room in your house? For several years I rented out my spare room to a lodger... a few hundred extra a month (and it's not taxable under the rent a room scheme) can make a big difference to your finances.

Other things I've done down the years to save/make money include being guardian to an overseas student at school in the UK, selling lots of stuff on E-Bay and buying a cheapo tent from Tesco and giving camping holidays a try :)

Stay optimistic. You can't prevent 'bad luck' but you can make the best of what you've got. Count your blessings etc.

Don't do anything until at least you know about your job.

You might regret making a decision now and find that you don't lose it.

I agree also with Chil1234, see what you can sell.

Do you have a nice car that you could exchange for a smaller cheaper model.

I know a holiday would be good, but your own home is better.

thanks all. I have a tiny 2 bed flat, so can't have a lodger or downsize. Yes, I do have a decent (old) car, I could sell it and buy a cheaper one but it's really reliable and I don't know if it will be the best option. It does cost a lot at service and if it needs parts, well, I'm up shit creek without a paddle (as they say). Maybe I should sell it. I could definitely use the extra money to pay off my credit card. Oh, but i love my little car.

Do you have any generous relatives that you could borrow the CC money from? You'd still have to pay them back but probably not at an APR of 18%.

No, I wouldn't ask. I'll just have to be super frugal for the next few months and pay it off. I've just done a Parkers valuation for my car and I'm gobsmacked that it's valued at a really low price. I paid 5k for it and they valued it at under 3k - I've only had it just over a year and it has really low mileage. I may try to sell it and go for a cheaper car. It's not the end of the world and there's plenty of decent lower priced cars out there.