Single Mum, Losing her Home

Scott,

I’m scared. I’m 35 years old and have recently separated from my husband. I will get to keep the house (valued at $1.4 million, with $640k debt) plus $60k in savings, and I have $40k in super. My monthly income is $4,200, including child support for my 10-year-old son. Currently I work three days a week, but I may need to stretch it to four days to deal with the bills now that I am a single mum. I would like your advice on how to pay off my home loan and have a reasonable quality of life.

Rachel

Hi Rachel,

It’s totally natural to want to stay in the family home for your son’s sake -- he must have been through a lot. However, on your income you can’t afford it. Even if you did work an extra day per week.

You must have been through a lot as well. You need to look after yourself and your son, and the best way you can do that is to sell your home, rent somewhere for 12 months, then buy something you can afford -- no more than $900k.

Scott