Her biggest problem now is interest rates, on both sides of things, she’s got a huge credit card balance and average APRs are ~30%, taking a conservative 25% as she alleges some of it is interest free then she needs to pay £9.3k just in interest to maintain the £37k balance. She needs to pay another £9.3k to clear 1/4th of the capital ahead of her re mortgage. She’s already cited concerns re affordability, and banks really have clamped down there’s pretty much no chance she’ll be able to wing it especially with such a huge amount owed out and as a single applicant (sadly).
Also she won’t know this as I suspect a lot of her salary stuff is bullshit/dream talk, but once you lose your personal savings allowance you’re better off just maxing out your annual ISA allowance and then overpaying your mortgage, because then you can call upon that as a mortgage holiday if needed so it’s cash equivalent without incurring a tax liability on the interest (and not a mortgage holiday like hers that just piles up debt for you in the future).
I hope she has a friend or family member (I also feel sorry for her that her parents seem tit cos same lol) who can sit her down and do some calculations on a spreadsheet and just say look, let’s keep you and the kids in this house by any means necessary let’s do everything we can to chuck £1.6k pcm at this and get you out this tit before the remortgage. Rather than watching her share barely existent to do lists on Instagram.
She’s more likely to end up (temporarily!) homeless having to take a rental in a random Medway town than a millionaire because she sticks her head in the sand!
Even if she is forced to sell she is in a far better position than lots of other single mothers who also live in London , she can actually choose somewhere to rent with the equity she has . Not ideal but its an option for her.
The whole point of posting the article link was to show how her debt and income story varies and why its easy to doubt what she has said.
That article mentions 30K of debt, the debt reveal was higher, did she miraculously pay off say 8k. The income would have been drawn when she had the new role, I can only presume that £3.5k was after tax rather than before but the way its written implies thats what she earns
She mentioned her debt pre the trip to Sri Lanka which was a month off , that debt should have grown as she would still have outgoings
The article mentions she makes an extra £300 a month by selling on vinted and doing surveys, none of the online surveys pay more than a few quid, as for vinted she has had to spend money to have what she sells in the first place. She says she is in debt again due to taking out loans, Amex isnt a loan, nor would be the balance transfer/ credit purchase type cards.
She has mentioned ISAs before but why would you go high risk, i have no idea what high risk John Lewis means but guess she opened the initial ISA whilst working there.
The pension fund of £15k over 18 months (River Island?) and comment she puts in 3 to 10 % with them matching feels very low esp as the stock market has grown and most pensions only let you change contributions on a very limited basis.
Its a shame the journalist hadnt researched her and questioned what she said