I'm about to loose all I have

[piggypooh]

I am in debt. I have been for many years and i am responsible for the majority of it. 12 Months ago, I declared myself insolvent and an insolvency practitioner has set up an IVA Trust deed (for non scottish readers, this is an alternative to bankruptcy where creditors are negotiated using a trained lawyer who then takes a monthly payment CONSIDERABLY lower than the origanl re-payments)

 

Anyway

 

This last 12 months, I tired to help my debt problems

I joined Herbalife to earn an income

I set up an e-bay business selling watches.

I took out a 12 month mortgage re-payment holiday to ease things for a while

 

So how are things now ?

 

My herbalife business has failed, 0 customers

My e-bay business failed, I LOST £300 in paypal feels, VAT and e-bay fees

 

My Gas/Electricty supplier hs just put my bill up from £44 to £170 !!!

This is the final nail in my coffin

 

Whilst I accept that my debts are my own doings, I also believe that my whole life is jinxed and I am destined to fail in all that I do. Nobady wants to help me

 

Two weeks ago, I had to phone in SICK at work, to take the day off to go to the savings bank to withdraw my last £30 just to put petrol in the car for the week so I coulf GET to work.

 

In April, I will start to pay my mortgage again, and with this NEW utilities bill, the figures just don't add up.

 

ohhhh, I owe my sister £2500

 

Just thought I'd share this with you

 

have a great 2007, i'll be lucky if I see 2008

[Suesser Tod]

have a great 2007, i'll be lucky if I see 2008

 

Why? Do they take flesh as a payment now?

[daredevil]

hang in there dude, and of course you will see 2008... there will be light at the end of the tunnel.. apply for some jobs and try to keep focus.. don't let the negative aspects draw u down even thought it seems impossible

[piggypooh]

I already have a full time job paying £35,000 a year. my debts are SOOO severe, even my salary won't cover them soon. Mortgage, Secured Loan, IVA, Car finance etc etc

 

There are no jobs that will pay more than that unless I get a promotion in my current job.

[daredevil]

I already have a full time job paying £35,000 a year. my debts are SOOO severe, even my salary won't cover them soon. Mortgage, Secured Loan, IVA, Car finance etc etc

 

There are no jobs that will pay more than that unless I get a promotion in my current job.

 

You will manage... are there some costs in your life you can cut down on? or are you living on the edge?

[annie24]

I think you need to talk to a credit counselor of sorts. whatever the equivalent is over there. I think you need to get a second job, not an ebay or herbalife or whatever thing, a second job that will for sure pull in money. like McDonald's, a clothing store, a grocery store, whatever. Don't feel like it beneath you, now isn't the time to keep up appearances.

 

You can get yourself out of this, but you're going to have to work hard, and scrape your pennies wherever you can.

[Suesser Tod]

I already have a full time job paying £35,000 a year. my debts are SOOO severe, even my salary won't cover them soon. Mortgage, Secured Loan, IVA, Car finance etc etc

 

There are no jobs that will pay more than that unless I get a promotion in my current job.

 

What about selling your place and renting something? Also, I'm quite sure you can get a used car instead of that new car.

 

 

You know that you don't make the money to afford all that stuff, why do you try so desperately to hold on to that?

 

Get that weight off your back, then get on your feet, and later on you'll be able to properly afford it.

[annie24]

yeah, it may be worth it at this point to sell your house, clear your debts and start again.

[piggypooh]

I have put an add in for renting a room - no replies.

 

I'm investigating dowgrading my car, this will free up some cash but its a drop in the ocean.

 

My employment contract forbids all employees to seek additional employment, so id need to find some discrete "cash in hand" work at weekends.

 

I've already canceled all non essential payments and policies, stopped seeing my friends and never go out anymore. I live the life of a recluse cos I can't afford to go anywhere

[lonely_me]

Everyone's already given you most of the advice I can think of in regards to your financial situation. Credit counseling, reducing expenses, etc. will help get you out of this mess, however, what concerned me was...

 

I've already canceled all non essential payments and policies, stopped seeing my friends and never go out anymore. I live the life of a recluse cos I can't afford to go anywhere

 

Enjoying life isn't about money. There are plenty of things you can do for free that will bring you enjoyment, which will allow you to tackle your money worries with a more positive attitude. Don't let the debt keep you from enjoying your life. Find free/inexpensive things to do that will keep you feeling balanced and whole so that you have the mental and emotional tools you'll need to work on getting out of debt. Take daily walks, have potlucks with friends instead of going out, rent movies instead of going to the theater. You do need to get out of debt, but don't neglect yourself while your in the process of doing so.

[charley]

I feel for you.

 

The advice about seeing a credit-debt councelor and taking any job you can get, even Mickey D sounds like good advice.

 

Your comment "I'll be lucky if I see 2008" troubles me. You'll outlive this problem and your future will get eventually better, if you keep trying. Don't kill your self. Nothing is worth that. Certainly not debts. Hang in there.

 

I'm sorry I have no additional or more specific advice. I'm not familiar with Scottish law or credit. I do wish you the best. -Charley

[piggypooh]

I feel for you.

 

The advice about seeing a credit-debt councelor and taking any job you can get, even Mickey D sounds like good advice.

 

I would if I could but my employer FORBIDS any kind of additional work. I am a schoolteacher and get paid a fixed salary so there is no concept of overtime or putting in extra shifts. The bottom line is that if I don't do something soon, I will run out of money to even buy petrol to GET to work. Thats why I can't even GO anywhere, every drop of petrol in my car is needed to go and to my place of work. If I take 15 mile trips to meet my friends, thats one 15 mile trip's worth of fuel that I will have used. And if that's used up BEFORE pay day, i'll not be able to get to work.

[DaDancingPsych]

If there's one hard lesson to learn in life it's that no one will help you, but yourself! Don't expect others to come along and scrap you off the bottom, you've got to do that for yourself.

 

I hear a lot of excuses. I can't get a second job, because my current employer won't let me. I put an ad up for renting a room, but no replies. My eBay business failed. Ect. There's no problem that isn't fixable, but that doesn't mean that the first solution is the right answer.

 

It's time to consider a new job. Hopefully one that will pay more, but certainly one that will allow you outside employment. (BTW, I don't know the laws here or there, but I'm aware of certain laws that prevent employers for putting such restrictions on their employees. May be something to look into.)

 

Renting out a room is a great idea, but one ad isn't going to cut it. Sometimes 20 doesn't. Consider your audience and really think through who would want to rent a room. (Most of the time, it's students and young professionals.) And consider your network of friends, family, and coworkers... someone typically knows someone else who has what you need (a renter).

 

It seems to me that you do a go job at taking that first step to fix a problem, but something gets in your way and you stop. Keep working through the problem and finding a new solution for it.

 

Finally, you won't get help, unless you ask for it! See what services are available for you!

 

Good luck! We are all pulling for you!!!

[piggypooh]

If there's one hard lesson to learn in life it's that no one will help you, but yourself! Don't expect others to come along and scrap you off the bottom, you've got to do that for yourself.

QUOTE]

 

Your right

 

and you know what ? I've been a schoolteacher too long and have gotten so used to helping others (staff and pupils) that I forget how cruel the world really is. People these days are in it for themselves, particularly Herbalife distributers who only wanna help if your gonna make them a few bucks, and I need to realise that.

[charley]

No one will give you money, but people do help in other ways when they can. For example, we are trying to give advice. So while the above post is correct in that no one will give you money, it is wrong about no one helping. We are trying to help right here in this thread. So don't get to cynical, yet be realistic. I have my cynical moments as everyone has seen, but only moments. I don't live that way and no one should. I'm a moody guy, but that's another way of saying that I'm only in a bad or cynical mood sometimes. Mostly I'm upbeat and you need to stay upbeat to keep your head up, but also be realistic as in post above that no one is going to hand you money. Maybe we can help you work out a plan. It's then up to you to implement the plan. So let's suck it up and work out a plan now.

 

=============

 

I originally did not get more involved in this thread because I'm in the USA. You are in UK. So I figured my USA credit and financial knowledge would not apply in UK. However, I now realize most of it does. So let me make a better effort to help you.

 

What USA citizens might not realize is that gasoline in Europe is GodAwful expensive way more than USA. Am I right? I think so. Hence your fuel concerns.

 

OK, if I ask a question already answered, please excuse me, but answer it here anyway.

 

=============

 

What year is your car? Model, make, mileage? Are you making a car payment?

 

How far do you live from where you work?

 

How much equity do you have in your home? What is value of your home? How long have you owned it? How is your credit at this time?

 

What debts and expenses do you have? Amounts?

 

What is your income?

 

Can you take a Saturday job somewhere without your employer finding out? If your employer did find out, what would happen? Just a warning the first time probably? I'd take the chance.

 

Please provide an organized list of answers.

 

FYI - I'm taking your word that you aren't allowed to work another job. In USA they can't make that restriction (that I'm aware of). So screw their restriction. Let's work around that and get a Saturday job anyway. A real job with a paycheck. Not a scam job where you lose money and time like before.

[Dako]

Some US employers have employees agree to not seek outside work, just as you might sign nondisclosure, security or patent/copyright waivers.

 

From what Brits have told me, it's a tough life there. In the US Herbalife, Amway and other multilevel marketers have a bad reputation. I'm sorry you got into that. I would proceed to find work as charley suggests, doing anything to bring in some cash and also to give you some emotional momentum.

You have to increase income while also trimming expenses like heating, transportation and other means. If you could use public transport and cancel your car insurance, you won't have registration, MOTs, or repair expenses, on top of petrol and maintenance. Working it out on paper may show a benefit to what ever inconvenience it would bring.

 

A speadsheet program that tracks every pound gives you a constant picture, but you must know all this, right?

 

I understand feeling the pinch, and have sold furniture and tools to pay bills when work was scarce.

[charley]

Donald Trump said a quote that applies to everyone. "It's not how much you make or spend that matters. It's is the difference."

 

It's that philosophy that I have in mind with what plan I'd like to help you form. I asked for the list of information because I need that to fit the plan to you. I think I can help you.

 

Dako's advice is along the general lines of what I'm about here. However, I want details from you so I can give you a more detailed plan.

 

You can pull out of this, but you'll have to form a realistic plan and then have the perseverance to carry it out. I'd like to help you form that plan. You can do it.

[charley]

Remember when Donald Trump got into trouble? He sold his mega yacht and a lot of other things, tightened his belt, and endeavered to spend less and make more income. He recovered.

 

Your problems are on a smaller scale, but the same things apply.

 

My father is a multi-millionare real estate developer, yet he's had many hard times along the way. I can remember paying the house payment with my substantial lawn mowing money when I was a kid in high school. I made $1,000 a month mowing lawns plus $60 a month from paper route in the mid 80s. Adjusted for inflation, in today's money, that's like I was making $2,100 a month working part time. Imagine how my dad felt having to ask his kid to pay the house payment. He couldn't have felt good. I paid the $700 a month house payment and helped buy the food. Then I still had about $250 a month for myself. However, I had to buy my own clothes, shoes, lunches at school, and other things. My mom paid all other bills with her school teacher's salary, plus she chipped away at the bills from my father's failed real estate brokerage business. We couldn't afford to go to doctor much, or dentist. Luckily we'd had good dental before that. Mind you this was a large and expensive house we lived in because my dad bought it before interest rates went up to 18% and the real estate market cr@pped out. So I was making the house payment on a 3,500 square foot house with a view of Columbia River when I was 15, 16, and 17 years old. That's darn near a mansion. The lawn was several acres too (in town). Actually it took up 1/2 a large city block by my estimation - half the frontage and half the depth. My dad couldn't sell it because homes weren't selling due to VERY high interest rates combined with BAD economy. Of course it was in lawn mowing season 6 months of the year when I could help. In fall and winter, there were no lawns to mow and a paper route pay sucks. So we didn't have enough food sometimes. Seriously. I know suffering from way back.

 

My dad later recovered, paid off his debts, and over 15 years time went on to become wealthier than he ever had been before he went bust the first time. However, during the middle of that 15 years things looked tight for him temperarily. So he sold his very large home BEFORE things got desperate and he and my mom moved into one of his apartment buildings he owns in a small 2 bedroom apartment. This is a guy who's wealthy (despite a temperary money pinch due to assets tied up in apt buildings). So he moves into one of his own apts. From a 3,500 sq ft home to a small apt. Never a complaint out of him or my mom. This allowed him to prevent a serious cash flow problem. He then went on to financially grow ever larger for many years since. He could easily afford another large home and any brand-model of new car, but he prefers to just stay in that small apt and drive his 15 year old Chevy van. He was always good at making money. What he's learned in old age is that saving money is also good. That's true when you have lots of money. It's even more true when you don't. FYI - saving money is tax free while making it is taxed.

 

He taught me many things, including real estate investment, sales, financial management, and especially how to recover. I also have formal education in business administration and real estate investment. The best stuff is what I learned from my dad and several of his competitors in the real estate development world who I worked for. Those guys took me under their wing, which was quite generous, especially since I was their competitor's son. I was a licensed professional real estate and investment councelor in my 20s. Then a designer of real estate investment software in my 30s.

 

I've also had to recover from my own personal financial disasters. Having a crushed neck one time, broken neck another, plus assorted other injuries, knee, back, fingers, hand, ankles, feet, etc. I was once told by a doctor that I'd never walk again. However, years later I relearned to walk again and very well to. Not even a limp. The exception being if I get an infection and have to quit arthritis meds - like the last two months (limping like crazy), but that's getting better now. I not only had to recover physically, but also mentally and financially. I went from under a mountain of medical bills and other debts to out of debt and good credit again and financially slightly ahead of the game. How? I sold the software company I started (still young company at the time) in exchange for the buyer paying off all my debts plus some cash for me. That company now sells real estate investment software internationally and I continue to manage it for the owner who I sold it too. I should be a millionare right now. Instead, I'm slightly financially ahead. I feel darn fortunate too. I have a job for life at good programmers pay rate. I still intend to be wealthy some day. However, I have regular monthly medical costs of $2,000 which means I have to struggle to get ahead. Imagine having a whole in your pocket and losing $2K every month even before you begin to deal with the normal expenses that everyone else has. When sick like recently, it's going to be several hundred dollars more than $2k medical costs and I didn't work the last two months, much. Ouch. Yet in long-term I am slowly getting ahead and I even have substantial money invested that is growing at a good rate, soon to be better rate. I feel darn fortunate too. I'm doing reasonably well in spite of all my problems. The last two months was an unpleasant exception and a setback because I couldn't work (sick) most of that time, and I suffered. However, I'm now making a strong comeback. Give me a another week and I'll have the tiger by the tail instead of it having me by the tail.

 

Maybe I can help you with some good planning and you can recover. Maybe not, since it's late in the game. In any case, you have your health. Be thankful for that. It's more than some of us have. You can start over if necessary. There's more to life than possessions and money, as long as you have an adequate place to live, adequate food, and your health.

 

You might recover. Nearly anything is possible if you persevere and apply good management. That starts with a good plan. My greatest concern is that we get at it before your home is foreclosed by bank because that would be a severe financial blow. So let's try and avoid that by getting to work on solutions and implementing them fast. Please answer my questions in prior post ASAP.

[charley]

Just in case anyone is wondering, I did not make the above post to sound self promoting. I made it to make two very valid points.

 

1) I do know what I'm talking about.

 

2) We all have financial problems occasionally, and other problems. To survive we must make choices and carry them out, even though they may be unpleasant or painful. It's far less painful to solve your money problem than to lose your home. However, if you do lose your home, you still have your health and can start over. So this isn't life and death. It's just unpleasantness. Let's keep that in perspective.

 

Do you think my dad and mom wanted to move out of a large home into a small apartment? Of course they didn't want to, but they did what was necessary. People thought my dad was going down the tube when they saw him move into a small apartment. He told them he did it because it's in same city as his business, only a block away and more convenient, plus he doesn't have to worry about yardwork. All true, but the real reason he did it was to prevent going down tube, and it worked. A hard decision I'm sure, but he did it soon enough. I don't think he minds driving an older car. He's sort of into the whole miser mindset now. Now (years later) he can afford whatever he wants, but he likes being a miser now.

 

Do you think I wanted to sell my software company to my fathers real estate competitor? Hell no, but it was the right thing to do and it's been working out very well for me and for the guy who bought it.

 

My physical therapy used to, and sometimes still does, hurt like hell. Yet I do it anyway because it's necessary.

 

Your problems might be solved in time to save your house, but you're going to have to make some hard decisions and carry through with them SOON. Time is of the essense because your home is experiencing negative amortization. You are getting in deeper all the time. The interest is compounding and thereforeeee interest is growing at an exponential rate because you are not making payments. Speed is a key element to any solution for you. You cannot afford to procrastinate any longer. You must get a plan into action.

 

I know you don't want to part with your car, but will have to. Public transportation works. A bicycle works well, if weather not to bad and distance not to far. Also, living close to work is a huge time and money saver. How close do you live to work?

 

Your home is a good investment. So it'd be ideal if you can keep it. However, if you can't keep it, then it's financially much better to sell it than to lose it to the bank or to back property taxes. The bank or government would sell the home for only enough to get what its owed, not for enough for you to get your equity out of it. If you sell it, you can sell it for enough to pay bank, property taxes, and still get your equity out of it. So it's crucial that you avoid bank forclosure to save your equity.

 

Your car is not a necessity, not an investment, and it's a money drain. Starting point is to sell the car. Then let's also think about other things you can do to save money and make more money. Screw their not working a 2nd job policy. You can have a Saturday job and they won't find out, probably. There's more to talk about, but first you need to answer my questions in prior post.

[charley]

I think your home can still be saved, and with it your financial well being.

 

However, that hope hinges on you making some hard decisions to do what's needed, and making a plan and putting it into action SOON.

 

If you want to avoid drowning, then start swimming NOW. I'll help you if you'll help yourself.

[piggypooh]

Here is answer to questions :

 

 

 

 

What year is your car? Model, make, mileage? Are you making a car payment? 2004 Seat Ibiza 20,000 miles on the clock. Payment of £155 per month to Hire Purchase Company

How far do you live from where you work? 14 Miles

 

How much equity do you have in your home? What is value of your home? How long have you owned it? How is your credit at this time? Home is worth £90,000, Mortgage Balance is £65,000 secured loan balance is £40,000. Equity does NOT YET COVER loan values

What debts and expenses do you have? Amounts? £200 per month to Insolvency Attourney (until Feb 2009) £85 per month to Debt management, £480 secured loan, £450 Mortgage, £155 car loan. Utilities Bill has ROCKETED up to £100 per month (despite turning down boiler temp and using energy saving bulbs)

 

 

What is your income? £1950 TAKE HOME pay each month

 

Can you take a Saturday job somewhere without your employer finding out? If your employer did find out, what would happen? High TAXATION rates for second Job

Breach of Contract invovling governors. Best job would be "cash in hand" work but that is hard to find these days cos of litigation, contracts etc etc.)

 

Just a warning the first time probably? I'd take the chance.

 

 

 

 

 

Well

 

Today I was driving to work, as I normally do. Snow began to fall, my car then rolled liked a sledge at a junction, crashing into three other vehicles.

 

I have a £250 excess to pay on my insurance policy.

 

With all my other problems did this HAVE to happen ???

 

I feel like my entrire life is jinxxed cos no matter HOW much I save, or HOW much extra I earn, I will ALWAYS loose it. Before you accuse me of being cynical or moody then consider these facts....

 

In October, I earned £100 doing a job for a person. One week later, I had to pay £100 exess insurance claim - 100 earned 100 pound lost

 

In June, I earned £250 on a training course. In July, I missed a train to London and had to FLY down by getting a last minute flight costing £250

 

£250 earned, £250 lost

 

At Xmas time I got £250 worth of spending money as gifts. Today I have accident and will neet to PAY £250 in excess.

 

Once is unfortunate

Twice is really bad luck

 

for three times ??

three times I get some money and then loose the EXAT amount ??

 

Is that co-incidence ????

 

How am I supposed to feel when life treats me this way ???

 

I am now scared to even ATTEMPT to earn extra money cos I am conviced I will just loose it.

 

Is this a trial ?

When will it end ?

 

I am loosing money due to circumstances out of my control and its just not fun anymore.

 

If I was spend spend spend then yeah id be able to wake up and STOP sepnding but i'm not. All I buy is food and petrol (Supermarket value brands)

 

I feel like i'm being punished and being played with by some... force I can't control

 

does that sound weird ??????

[piggypooh]

Just to show that I am not as inept as some might suggst, here are some of the "results" of my reasearch. I'm not sitting doing nothing about this

 

Option 1 - Downsising my House...

 

In Scotland, house prices have rocketed and continue to do so. Selling this house will NOT be enough to pay off the mortgage AND secured loan AND legal fees. It MAY be able to pay them off in a year's time in which case, I will re-mortgage.

Also, because of increased house prices, getting a house NOW for less than £65,000 (my current mortgage) is going to be impossible. Even 1 bedroom flats sell for £70 to £80 thousand. So, not excuse, not a reason, just simple maths that don't add up.

 

Option 2 - Downgrading car

 

This IS a viable option BUT i would STILL have to pay the HP payments so it wouldn't reduce these monthly payments.

An older car would have servicing and MOT costs. my current car is on a free service plan which is saving money. Pound for pound, my current car costs are the same as my very 1st car the ONLY advantage to downgrading will be greater fuel economy but this will be offset by servicing and maintenance costs.

My journey to and from work involevs a lot of rural country roads, in sometimes adverse weather conditions. I'm sure the journey will be wondeful on a 135cc motorbike, but we don't all have motorbike licences. If you want to swap your polo for my Seat then your welcome. I don't care what car I drive I don't care what colour it is. As as said, I need a RELAIABLE car thats going to get me to and from work 6 days a week. LOW maintenace, LOW servicing was a decision I made TWO years ago, after experiencing YEARS of garage bills, falling exhaust pipes, MOT failures etc etc. Having a newer car has offset that cost.

 

3 Renting a room

 

I have posted an add in many sites now offering my spare room for rent. Just waiitng for responses......

[charley]

Hey, I never said you were inept man. I don't think badly of you. I just wanted to shock you into action by presenting the facts and solutions, and the time pressure demanding immediate action.

 

For starters, your driving a 2004 car. I have money issues all the time due to ongoing medical expenses, yet my finances are under control. One reason is that I drive a 1996 car. My dad is wealthy and he drives a 1994 car. You have been living beyond your means plain and simple and it's time to stop.

 

I see some good in what all you've said. You're focusing on the bad, and overlooking the good.

 

For one example, the time you earned an extra L100 and then had an expense where you later lost it. If you hadn't earned that extra L100, then you'd still have had that expense and then you'd have been -L100 in the hole. Look how lucky you were to have made the extra hundred before that debt came along.

 

Your car wreck: man are you lucky. You didn't even get a broken bone or serious injury out of it. I got a broken neck. I thought I was lucky because I wasn't dead or paralyzed. Look how much luckier you are than me. You are lucky. Also, you aren't incuring huge medical bills and ongoing health issues. You still have your health.

 

Your luck is very good compared to some of us. It's your attitude that is weak, but that is fixable like most things. So buck up.

 

As for your attorney and debt councelor bills, that is why my father believes and taught me that self help is best for debts and credit repair because the last thing a debtor needs is more bills from an attorney, debt manager, or credit repair expert. You can see the truth of that now, can't you? However, no use crying over spilt milk.

 

OK. I can plainly see your situation is a little different than I earlier thought because you have no home equity. So your solution is different than I earlier thought since you have no equity in your home.

 

I would have said to sell your car immediately, but it's cracked up now. So maybe you can't sell it, or maybe it's no longer worth enough money. Will your insurance repair it? If the insurance will restore it, then you'll still have to sell it.

 

You realize that the root of your financial problems was buying a new or newer car don't you? That plus living 15 miles from work.

 

Since you have no equity in your home, sell it if you can, if not then inform the banks, lenders, that you cannot afford to keep it and let them have it back. You have no equity to lose anyway.

 

You move into a smaller apartment close to where you work. Living close to where you work is the single biggest time and money saver known to mankind. It also makes carwrecks less likely. I live 8minutes from work. I used to live about 2 minutes from work at one time, like neighbors with the place and my car insurance gave me a good discount because of it. However, if you live close, you don't even need a car at all. If you did have a car, it should be an older model.

 

I assume you won't want to follow the above advice and make those hard decsions. However, your home is in negative amortization due to not making payments. So the bank will soon decide for you and you'll have to end up moving closer to work whether you want to or not. It'd be less painful to do it willingly before the bank takes your home.

 

As for all the other little details of your finances: There's no point discussing them until these larger issues are solved either by you willingly, or the bank forcing the reality on you.

 

I do wish you best of luck. However, we make our own luck for the most part. So I wish you'd start making some luck by your attitude and actions. I'm not trying to put you down, or be disrespectful. I care about you. That's why I spent my time on you.

[charley]

FYI - if housing costs are skyrocketing, then maybe you do have equity since that's based on current value of home minus the balance owing on loan(s).

 

You'd have to find out the current value of your home, in which case, keeping it might still make sense. Current value is the price that home would sell for today. If housing prices are skyrocketing, then maybe you have substantial equity and just don't realize it. So maybe you have had some luck right there, but you can't benefit from it if you lose the home.

 

===========

 

Cars: can the USA be that much different than Scotland? I don't think so. Insurance on a newer car is 2 to 3 times as much as for an older car in USA. That's because for an older car, insurance is for liability, medical, and underinsured motorist. For a newer car it's for those things plus car repair up to nearly the value of the car. Insurance on older cars is thereforeeee vastly less money on an older car.

 

My older car is very reliable and my extra maintenance costs are far less than the extra insurance and car payment of a newer far.

 

So with all due respect, you'll never convince me that a newer car is a good investment. It's just not so.

 

However, I still wish you all the best possible luck and hope you'll make some of your own luck.

[piggypooh]

OK

 

One or two interesting points to which I will respond

 

(1) You seem to have an issue about me driving a two year old car ???? why ???

 

As I already explained, I chose a newer car because (1) The MONTHLY PAYMENTS WERE THE SAME AS MY PREVIOUS CAR and (2) With the car, I got a FREE SERVICE PLAN FOR THREE YEARS so it costs nothing to keep the car in good condition.

 

If I were to drive a 1996 car then Id have to consider the following :

 

(1) Expensive servicing to keep it on the road

(2) Anual roadworthy test (essential by law for all cars over three years old)

(3) Constant mechanical breakdown and failure

 

I have been a motorist in Scotland for the past 17 years and know full well how long cars last and what "age" they begin to rot and fall apart.

 

In Scotland, it RAINS it SNOWS there is ICE and the council put down SALT and GRIT which corrode cars. There are a a few cars of 11 -12 years on the road BUT MAINTAINING THEM IS VERY EXPENSIVE.

 

My vechicle budget has been the same for the last 12 years, monthly payments of £155 plus anual insurance and road tax costs. BUYING MY CAR TWO YEARS AGO DID NOT CHANGE THAT SO IT IS NOT A HUGE CHANGE THAT PUT ME IN DEBT

 

(2) My Location and traveling to work

 

Although I live 14 miles from my place of work, I live in an area that has some of the LOWEST house prices in the country. Indeed, my house is a cheap ex council house in an average area. No driveway, no off street parking, no front garden, just a modest concrete "block" with two bedrooms and living room and kitchen. My place of work is in a Prime tourist spot and houses in that area are MUCH more expensive than where I am. choosing to live here means I get more "house" for my money. Moving closer to my place of work would cost me a LOT more than i'd save in fuel costs.

 

(3) Medical bills.

In UK we have a health service so medical bills don't apply. Thats one of the advantages of living in UK. i could have broken every bone in my body today and it would have cost me nothing to be taken away in an ambulance and treated in hospital.

 

The other side of the coin is that with injuries, we can claim benefits from them and receive compensation.

 

(4) Selling my car.

That would give me a cash lump sum which could pay of about 80% of the finance deal (car is worth less that what I still owe) and leave me with no means of transport. Public transport will get me around town, but the only public transport that goes direct to my place of work is the school bus, which is fully booked by pupils and costs a fair bit as well because of the 28 mile round trip. These only run during term time, of course, which make attandance at inservice days and vacations times rather difficult. (us teachers do work during vacations). Having no car will certainly free up income on an anual basis. As I also do "odd Jobs" for people (for money), id loose all means of transporting myself and my tools and equipment. In those cases, my car is also a workhorse.

 

 

I appreciate that there are people who have more "bad luck" than me but that's not the point i'm trying to make here.

 

The point I'm trying to make is that I am making an effort to sort things. I am TRYING to earn money, save here and there to make ends meet.

 

You have to admit that it seems strange that every singe time I earn some exra money, it ends up being taklen from me......three times on a row is too much of a co-incidence and will it happen again ???

 

What kind of effect does this have on me ? It makes me believe that I'm being tested. It makes me feel like i'm a failure cos I try try try but always get knocked back down. I know that if I won £1000 on the lottery, SOMETHING would happen to make me loose it. I know that cos the way the world is for me MAKES be believe that. It happens all the time, so I believe it will happen again. It errodes my confidence, my self belief that I can earn money and the problem is I GET USED IT cos it happens so offeten, i accept it as normal. Its like ppl who are angry all there lives and then don't know how to be happy anymore and get used to being angry it becomes normal for them. I'm like this with money. I'm so used to loosing any extra I earn (through unforeseen curcumstances) that i accept it as the norm. Was I upset when I lost £250 today ??? no, cos I'm so used to these things happening, its like it second nature to me. I don't know how to make money or work to get moeny any more. This is how MY life and MY circumstances have made me feel.