# Should I give up and sell the house????



## Ward (2 Jun 2009)

Age:   41 
   Spouse’s/Partner's age: Single

   Annual gross income from employment or profession: 33,300
   Annual gross income of spouse: 0

   Type of employment: e.g. Civil Servant,  self-employed Employed

In general are you:
(a) spending more than you earn, or/ YES
(b) saving?

   Rough estimate of value of home  250,000
   Amount outstanding on your mortgage: 235,000
*What interest rate    are you paying? *Variable/ Mortage & Life Insurance & Mortgage Protection is 945pm

   Other borrowings – car loans/personal loans etc  12,000 CU Loan, 3,000 Shares (Pay 75pw)

   Do you pay off your full credit card balance each month?   No
   If not, what is the balance on your credit card? 2,200

   Savings and investments: none

   Do you have a pension scheme? none

   Do you own any investment or other property? 

   Ages of children: 7

   Life insurance: Yes, included in mortgage

I'm not sure where to getin but I'm in such a financial mess. (I can't seem to get rid of the underline sorry!)
Briefly, I'm  a single mum to a 7yr old.  I have always worked from day one and never had to rely on OPF etc.  I was in a well paid job (45,000) until October of last year.  This job made me eligible to apply for aff. housing and I've been blessed to get a beautiful 2 bed house.  We moved in last October.
I had been renting for 9 years previous to that and NEVER missed a rent payment.  I have currently missed 2 mortgage payments.
I have spoken to the Building Society and explained that I had to take a large chunk in salary late last year but got another full time permanent job, on a smaller salary.  They agreed to allow me pay 1200 pm therby putting 250pm off my arrears.  This has worked fine for the past 2 months.

My childcare is 480pm.  I receive maintenance of 75pw which pays my CU loan directly.

My net salary is 2440 pm.  I pay out 1680pm in mortgage & childcare which leaves me with 760 pm.  I pay 100 off gas/esb and credit card pm.  This leaves me with 460pm.  My trainfare to work is 48pm.  This leaves me with 412pm to buy shopping & phone credit, which I am finding almost impossible.

I am behind in all my bills, once again I got paid last week and have about 150 left to last me for the month....I don't see the point in working but keep trying to convince myself that I'm doing this for my son (his dad has no contact) and that in the future, I'll be glad I did it.  It's a constant struggle...But today (once again) I'm begining to think I should pack it all in....I now have to book my son into summer camps over the holidays because I only have 20 days a/l left which has to last until christmas.  I don't have the money to pay for the camps and I'm not sure what I'm going to do..
Has anyone any advice please???????  Thanks for reading


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## Ward (2 Jun 2009)

I should have added that should I sell the house I would have to go back renting and onto opfa...I don't have family etc that I could move in with temporarily so it would be a case of 'giving up' and going on opfa and rent allowance whilst the house sat on the market and the obvious clawback situation got even bigger and bigger...it's such a mess..

In hindsight, I probably shouldn't have gone ahead with the purchasing of the house last year because I knew my higher salaried job was coming to an end.  But I couldn't let it pass me by..I'd been renting for 9 years and calculated that I'd spent almost €100,000 to my landlord.....


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## so-crates (2 Jun 2009)

You do seem to be in a hard place. Can I ask, why do you need to rent to go onto one-parent family allowance? I didn't know that it was tied to that. I do think it would be worth your while talking to your community welfare officer, you may be entitled to some assistance in your current impasse and they will be able to point you in the direction of it. For your train fare, I am guessing you are already availing of the taxsaver scheme? If not defintely talk to your employer and see if that can be set up, it will mean a slightly cheaper ticket. How much are the summer camps likely to cost? At the moment you are overpaying on your mortgage, when do you envisage that will finish? That will free up some more income at that point, not before summer though I guess but it does mean that you will have some breathing room in a definite period of time.
Giving up the affordable housing might be an expensive option so I would suggest you try and look at ways to manage where you are first.


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## Ward (2 Jun 2009)

Thank you for your reply.

Tbh, I think even if I tried to sell, it wouldn't be successful - there are already 3 houses on the market since Oct and not one has even had a viewing (people lost jobs).

No I don't have to go on opf to rent but I imagine my morgage provider wouldn't be happy with me if I applied for mortgage interest supplement from my CWO?  When I rang to make arrangements for my arrears, the lady said that the first year of my mortgage should really be 'debt-free', as in no arrears. She wasn't very impressed with me at all...so the thoughts that I'd have to tackle them again doens't sit well with me.  Anyway, I'm not sure that they'd allow me change my mortgage to interest only after only 9 months, would they????

There's also a backlog for mortgage interest relief which would mean if I gave up my job, my morgage would go into further arrears...
I really need to earn more money but don't know how...I work long hours as it it and am not home till 7pm most evenings...so the option of an evening job are out the door..I'm so fed up.


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## Scotsgirl (2 Jun 2009)

Would you be able to move your daughter into your room and rent her room out? I know it's probably the last thing you want to do, but just until you are back on your feet again.  Or do what I did when things were tight, and cleaned houses at the weekend. I am a single parent as well so my son just had to come with me. He just watched tv.  I also babysat for other families during the week.  I know it sounds a lot of top of a full time job, but if you're struggling, it's an option.  

I did all these things on top of a full time job - I don't know how, looking back now.  

It's a great sense of achievement when bills are being paid.  Makes it all worthwhile.  

Hope things work out for you.


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## Ward (2 Jun 2009)

I had actually thought of renting the room out but it;s quite a small open-plan house so there's no private space at all.  The other bedroom is quite small (box room) and if I'm honest, I find it difficult enough to spend quality time with my child in the evenings so the thoughts of having someone else in the house would have me even more stressed.  I know it sounds like an excuse but it's the truth.

I don't think I could work in the evenings either and I'm often in bed by 9 (exhausted!)..my current job is very mentally challenging to say the least...and there are few people employing babysitters or cleaners around my way anyhow.  Thanks for your post though.


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## Scotsgirl (2 Jun 2009)

I also have a reasonably small open plan house, and I rented out the smallest room. It has a fitted wardrobe (which was a great advantage) and I got tv cabling into the room and a small tv (good renting point with small room), as I was hoping we wouldn't be crowded together in the living room every night.  It was terrible at times as some of our tenants were very strange/irritating, but that could have been me, more than them.  I was used to being on my own.  The only thing I kept telling myself was that it was paying for my son's education.  If you don't think you could do it, that's fine.  Don't rule out doing the odd jobs though as people always need babysitters/cleaners, even if it's just occasionally. I found it was handy petrol money.

I honestly know how tiring it is, as I used to work 12 hours a day minimum and sometimes weekends as well.  I think it was pure adrenelin that kept me going.  It doesn't last forever and you will see light at the end of the tunnel.

One other thing, how long left on your 3,000 loan?  At €75 per week off that, it should be paid soon enough.  That should be some help?

Can you downsize your car?


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## Ward (2 Jun 2009)

the loan is 12,000....I have 3,000 in shares...(unfortunately!!)

I suppose I could downsize - its only an 02 and in good nick but is anyone buying cars these days?  I wouldn't mind if I could sell that and get a banger - I need it to get my child to school and for me to get to trainstation so I couldn't be without a car..but I wouldn't mind driving a banger if I got a few bob that could clear a few bills and give me a headstart where I could pay a weekly amount into each bill..


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## Mpsox (2 Jun 2009)

Firstly you have a short term issue here until your mortgage arrears have got up, by my reckoning that should take around 6 months or so. Once you get past this you will be in a marginally better place. Once you do get past this, I'd recommend that you open a savings account and even if you are only putting €20-€30 a month away it will mount up steadily, give you some rainy day funds and psychologically you'll feel better knowing you are saving

Secondly you should check to see if you are getting your full tax free allowance, eg are you claiming for medical expenses/refuse charges etc

Thirdly have you switched from the ESB to Bord Gais for your electricity, it's around 10% cheaper

I would be worried about renting out a room given that you have a child, you would need to be very careful who you get in

You should also keep a spending diary and take a long hard look at what you are spending money on. I assume in all of this by the way you have factored in childrens allowance.

Lastly, and I accept that their may be sound reasons why your childs father has no access, however he still has a responsibility to his child, can he pay more?


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## Ward (2 Jun 2009)

My first port of call in this was contacting his father who told me his hours had been reduced and his job was under threat and that he was finding it difficult to meet the current amount (75pw).  I'm tempted to go back to court with this, but am terrified that amount will be cut.

Yes I agree about renting a room with my child.  It's just not an option.  Tbh, I'd be anxious/nervous most of the time and it wouldn't be an any good for my current health!!

I haven't switched from esb yet...do you have to have a clear bill with esb first?  Because that bill isn't clear...

I do hope to save even 20pm but I just never seem to have a penny.  I don't smoke, hardly drink (one bottle of wine that lasts me a week) and shop in lidl/aldi etc.

I think Ihaven't cut my cloth to suit my measure as my mother would have said...still tend to spend money on silly things for my son (the odd comic or silly toy) when I know I don't have it and that that €5 could be going off my gas bill....


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## so-crates (2 Jun 2009)

It may be worth giving Bord Gais Electricity a call to see if there is a requirement to clear your existing bill first. They haven't specified any such restriction.

I think you are beating yourself up a little bit too much here. Most people will tell you that the first year of the mortgage is usually the one that they find their finances most skewed in, you can't save, you seem to be paying money out hand over fist, and there are a few surprises that you mightn't have accounted for (even with a full deposit saved and money set aside in savings to buy furnishings I still found myself for several months in my overdraft because my spend was so out of whack and I missed an electricity bill - though I caught that one up very quickly). You have had a set-back with the arrears and the change of job and you are rectifying it - whether it was the right time to take on a mortgage is moot at this stage, just stick to your plan so that you can clear this hurdle. As Mpsox points out this is a temporary overpayment in a few months time you will have a few hundred more euro to play with since you won't have to continue overpaying. It might be an idea to enlist your sons help in this, incentivise him with the promise of a little treat that the two of you can do when you have cleared the arrears (or however you want to phrase it) if he gives up his favourite comic until then (it is a small sacrifice and won't change the picture much but he may feel much more mature and responsible if he chooses to give it up for a time to help you). Book yourself off that day now so you can look forward to it as well.

You may not want to do this but have you considered approaching the CU to extend the loan enough to either clear the credit card (high cost debt) or to cover the cost of the summer camps (pressing requirement)? It wouldn't be the most ideal but if you cleared the credit card, then you aren't paying exhorbitant interest on the 2200 and if you paid the summer camp it would at least remove that worry for you. 

I know you are cutting back as far as you can but if you don't have a budget made out and don't use a spending diary, you may be missing opportunities to not spend money. Using a diary tends to focus the mind rather sharply and encourages cutting out the silly things, using a budget puts payments in a timeframe and forces justification of expenditure patterns. It is simply easier to not spend money if you have thought about it beforehand in a structured way.


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