Get out of Debt and Find Income?

Dear members, my name is Parry. I'm new here and up late worrying about my future. I recently broke up with my long time partner and since 7 months I have been struggling to find work. I'm nearly 55 and I have had a real struggle to find a job as the industry I was in has changed a lot and losing my last job 3 years ago I have just been doing whatever wok I can but in last 6-7 months it has got difficult to find anything..

I have had a few part time jobs and I have been doing anything from washing cars to helping with business planning. but it is not steady and I have been making less than what one would get on centrelink. i do not want to go on centrelink as I have avoided it but it's getting quite bad. No one seems interested in hiring me at my age now and once they know my age I noticed their interest declines rapidly when I inquire about jobs.

So now my life is falling apart, lost my girlfriend and income and most of my friends moved on when they realise my life is going backwards. I have not been able to socialise, just can't afford it anymore. I only have a decade and a half of working life left doing hands on things, maybe a bit more but I know it would be impossible to find a job at 60, its extremely hard now.

So I;m thinking about how I could get into my own business or progress instead of going backwards? I do not have much left besides a property which I'm glad to have that at least. I had to sell my car a few months ago to cover mortgage payments and petty much everything else I own. I have had 2 x 3 month payment holidays in the last year and the bank has been very understanding. I have not made any late payments that were not agreed on. I do have a lot of bills stacking up though. I have about 15k in bills now.

My property if I sold it would give me about $100,000 in my bank if I sold it and paid my bills. I do not have much in super either and I would not apply for an early release as it's just not enough plus I would have to pay over 20% of it back in tax. I'm not sure about capital gains tax as I have made little income in recent times and I have lived in the property now for nearly 1.5 years but did rent it out prior to that for 5 years.

I was thinking today when walking home from the supermarket how I could get out of this hole I'm in. I was thinking maybe I could talk to my bank and get some equity to buy a small business that has a solid income history. I would need 100k to buy an ideal business but I know the bank would not lend me that, so I would like to ask the experts here if they think a bank would give me money towards a business, something like 30k to 50k?

I so not have a savings history obviously for the last few years and my bank account will have a struggling history over the last few years so its not impressive with no current cash or savings.

But if I have my equity from my asset, would it be enough to make a bank release money for me to buy a business if I can show them the business has a good income and history?

I have not decided what type of business I would go for but as I have done so many different hands on jobs plus worked in retail, gardening, maintenance, hospitality, business planning, and more then I think I can come up with something. Plus I can write good business plans as I studied in that area. I also have marketing skills.

I look forward to some advice and thoughts from experts here.

I have little other options, selling my property would be a last resort and if I do that it would be hard for me to get another one in the future so I would rather hang onto it and hope to get a loan from the property instead. I would actually like to buy a couple of investment properties in the next few years as well if I can turn my fortunes around.

If you do not think I could get a loan then if you have any other ideas i would enjoy the feedback.

thanks Parry

 

Hi Parry,
Welcome to the forum, and thanks for sharing your story.

My thoughts?
1. Seriously consider accepting any Centrelink money you can. Your situation is not great and you should really take it, you've had some repayment holidays, your bills are piling up and that's not good for the creditors, the bank or for you. 3 years is a long time to be struggling, and I wonder how much more slack the bank will give you before forcing a sale at the rate you are going. Sorry it may be a rude shock, but I think it had to be said.

2. If you see opportunities where borrowing 30-50k will buy you a solid business, consider it. But also rather than borrow money to formally buy a business, consider getting onto airtasker and see what local jobs you can pick up there. Painting, cleaning, garden maintenance, hospitality, doing small jobs for people.... you could viably set up a proper business by doing these odd jobs for people and you get repeat business and word of mouth referrals. Trust me on this. Especially tasks like cleaning, handyman and garden maintenance.... I know a couple who do work on airtasker and are picking up more and more regular work. It helps that she cleans houses and he does handyman/garden maintenance. One stop shop for property maintenance. She is lovely to work with and very trustworthy (airtasker review system shows the feedback of past interactions). The rise of services like Airbnb and Airtasker means side income can become a serious money stream.

3. Consider making your home presentable and rent out rooms on Airbnb. 3 reasons off the top of my head:
A. You end up with a presentable home.
B. Money coming in!
C. Meet interesting people.

4. Keep being positive and keep applying for roles. Perhaps try to understand what roles are more open and friendly to older persons?

5. Perhaps get a cheap newish car and drive Uber. Note you are supposed to register for GST if you do this.

 

Good luck dude.

Some other guy had an almost identical story to yours.
Since you are new the the forum it can't be you, so maybe try and message him to see how he went about it - Over 50 & Now About to Lose Everything

 

Re: CGT. Important questions.
1. Did you live in it before you rented it out and can you confirm you rented it out for 5 years? 6 years is the maximum before the CGT exemption possibility expires.
2. How much did you buy it for and what is it worth now?

 

Sorry to hear about the bad situation, you sound like your a lovely guy down on your luck.

I tend to be a bit of a straight shooter so excuse me if anything comes across as harsh.
I think however the idea of starting your own business is a very bad one! You don't just make money because you have a business, on the contrary you usually lose it, particularly in the fast few years. To sell the one asset you have to move the money into a very high risk investment like a business is not something I would be encouraging.

The reality here is that no bank at the moment is going to lend to you, particularly your bank who knows about your situation.

For you it needs to all be about simple ways to achieve an income stream.
Obviously a PAYG job is your best option but as you have noted this has not been simple.

Can I ask though, are you setting the bar too high on this one? The reality of your situation really should be that any job is a job, regardless if it even falls outside of what you have done your entire life. I would be contacting every recruitment company I know and submitting my resume and ensuring you follow-up.

Failing that, their are 3 almost sure ways to begin generating income again.
1 - As @Gockie has suggested, the potentially most simple as renting an available room in your house. Apart from putting up with a new roommate this is the most simple form of passive income. You also do not know, a good roommate could really help cheer you up and give you some of that social interaction you said you have been missing.

2 - Do you have a half decent car? If so sign up to Uber and start driving. If you want specific advice hit up @Taku Ekanayake who has storied written about his Uber journey.

3 - When not driving Uber use that same car to get you around to other jobs on AirTasker. Heck if you even have a lawn mower you can start generating income again.

Your goal needs to be income and then paying off those bills. You do not want a default or two to appear on your credit report because then the chances of the banks assisting you in the future are even less should you again find stable employment.

And you need to swallow that pride and go to Centrelink. I totally understand and respect where you are coming from BUT Centrelink is their for this purpose! Your not a 20 year old dloe bludger who simply doesn't want to work and is doing everything deceiving they can to rob the system. You need help and are entitled to that help.

 

Some really great advice here

I would also agree with OP, don't start a business

All the best.

 

Welcome to the site ,there has been very good post like the link above on several posts on over 55's Men who hit life's wall ,but the first item is stop worrying about your future.
Maybe buy yourself a simple whiteboard and make a list of every problem area ,i meet people in campsites while camping in the bush most have nothing the same age as you only the car or tent and the next sit down money payment ..

 

Sorry to say but you have no chance of getting a loan from a banking institution.

 

Hi Parry, Well done on asking for help, there's lots of people here to support you. Nothing worse than financial worries keeping you up at night.

I agree with the posters above, also I wonder if selling your house and purchasing a permanant unit at a nearby caravan park might give you some relief until you're back on your feet. Might also give you social interaction

 

@pjames sorry to hear the situation you have found yourself in.

as @albanga mentioned Uber is an option. If you have a clean driving record, no criminal history and a four door car that is no older than 10 yrs old you can start making money literally in a couple days after you process your application. If your car is banged up, you can do Uber EATS (doesn't matter what car you have)

if you don't have a car, maybe consider Deliveroo or Foodora. If you don't have a bike or not fit to ride a bike for few hours…

get on to Airtasker. You said you are pretty good with your hands. there is so many odd jobs on there that you can offer your service to and start making money tomorrow.

the share economy has created unbelievable opportunities for people to start making money without having to get a formal job and it doesn't discriminate against age. there's a lot of options for you and you are far from finished. never give up mate you will pull through.

 

Personally I would recommend casual work e.g. factory/night fill etc. You will definitely be employable in those roles and age will not be a barrier. At the same time as everyone else has said, rent out your spare rooms, put some handyman ads on Gumtree and do odd jobs where you can. Declutter and sell your old things you don use on gumtree.
It all adds up.

 

For me, and speaking completely honestly, uni students have a huge advantage over the older person as a night filler.
1. Heaps of energy to work late at night, strong and fitter bodies to do some heavy work, nimble and agile hands and bodies.
2. Intelligence and common sense generally speaking. Obviously older people can have this too, but if you hire the people smart enough to go to uni then they usually are ok.
3. Cheaper wages.

But if you are existing staff or the store is desperate, they may hire older workers.

I worked in retail from age 15 to 26, the store would primarily hire juniors as casuals. The store would only hire older people as casuals when we did the store refit - the store was desperate. The older workers would work forever like 10 years or longer in the store though, whereas uni students tended to do a few years then leave.

Ps. Christmas music suxxxx after listening to it for many weeks for 11 Christmases....

 

You are not Robinson Crusoe, just so you know your not alone.


Where are you located ?

 

hi all, I had a late day traveling so have not had time to look at all the replies, thanks very much for your time and thoughts. I did see the post about riding bicycles to deliver food. that sounds like a great idea as unfortunately I do not have a car right now for uber. I did hear you can hire a car for uber and it still can payoff as you can buy your own once you do it for awhile.

I love cycling but I'm only worried about riding in the dark as it can be dangerous even if I had lights. When I ride a bike I would normally ride on cycle-ways and carefully on grass verges, wide paths etc but avoided roads as much as I could as so many cyclists get killed on the road. It would be much more dangerous at night. A scooter might be a better idea for night and use the bike in the day? I will look into what it costs to hire a scooter or small motorcycle but I do not have a motorcycle license but I'm an advanced rider as did a lot of enduro riding. I was planning to get my motorbike license, I did get it when a teen but lost it in my 20's for just over limit breath test. But I have a clean record since for all driving.

I will read all the posts and ideas when I get time tomorrow (Tuesday) thanks.

 

Personally, I think you should just stick with the day job, and not worry about a business. A lot of businesses fail in the first year, so you would be in an even worse financial position.
Also, if you are 55, and relying of having "studied" good business plan writing, nor have any real idea of what business you want, then your own business is not for you. I would not be putting your only remaining asset (the property) at risk even more, with a gamble on some business venture.
Not sure of your personal circumstances before, but effectively a net $100,000 financial position at 55yrs (after maybe 35yrs working), is not good (lets be honest). Skill up on something relevant and current (some course), and knuckle down with a PAYG job for the next 10yrs.
What industry were you in. Are the skills not transferable to other industries.

Can you rent out the property again, and rent somewhere cheaper, or get some housemate to help with the bills.

["I have done so many different hands on jobs plus worked in retail, gardening, maintenance," . Given their TV ads, with some background is retail, gardening, maintenance, have you tried Bunnings for work?. The old guys there are valued for their knowledge and experience.

 

I'm going to go against the grain and send you to Centrelink now. Why? Not for the fortnightly benefits BUT for their training programmes and work placements and subsidies that they will give an employer to hire you. You will be pretty attractive then!!

I don't agree with what @Gockie said at all. I find older people have a greater work ethic and will turn up to work like clock word. Under 21s are cheaper to employ in award wages roles which is why supermarkets etc do like them as they are age award rates but over 21 everyone costs the same and older people in my opinion and experience have better customer service, better work ethic and are more methodical and better at time management and planning.

 

Speaking completely honestly, that is one of the most ignorant posts I've ever read on PC or Somersoft.

Do you even know an old person? Many, many people >55 year olds can have "strong bodies to do some heavy work, nimble and have agile hands and bodies." Because you haven't ventured out of your own backyard and seen first hand what goes on in mining, agriculture and other heavy industries, does not mean these people don't exist. They exist everywhere in all walks of life.

Did you think that 'older people' may have gone to Uni or other tertiary experience in their lifetime? Or would a lifetime of experience count for nothing? Going to Uni does not equal intelligence. Farmers, tradies and many allied industries are full of intelligent people.

What would the heaviest thing a night filler lift? a 12-15kg box? Off a pallet onto the floor then pull each individual item out? Wow, massive amount of intelligence and physical strength required to do that job. Almost any human from 10-100 years old could do that.

pinkboy

 

Centrelink! This is exactly what it is for. Go in there, get some training, get some support and off you go.

When used properly Centrelink is a fantastic service. All they want to do is help get you back on your feet.

You are not alone and help is at hand. All the other stuff mentioned here is Gold too.

All storms pass. You have the right attitude and you'll be ok.

Good luck!

 

I'm not saying I support necessarily support the hiring older or younger, but that's what I saw when I worked in retail, and it seemed the store generally employed uni students as nightfillers. There are plently of positions where older people have an advantage, but specifically night filling, it generally wouldn't be better to be older.

 

Really sad to hear about your situation Parry but don't despair.

I second Airtasker as well. If you can build up a reputation and good reviews (and you can fairly quickly after 3-4 successful jobs), I think you may be surprised how much you can make.

I'd suggest finding a niche of larger handyman jobs you can do that people would normally have to find a tradie for.

And you sound like someone with a breadth of skills so decide which talents you want to exploit and go forth. My 2 cents is focus on 1 or 2 things max. Just get on Airtasker...now.

One last thing. I know of this painter on Airtasker who's constantly busy judging by the number of jobs he's done. I even spoke to him on the phone (for a job I didn't decide to proceed with for other reasons). Anyway, he charges per day at a rate of $300-400 a day or something for the labour excluding materials and paint (owner normally provides) - keeps things nice and simple. He'll just rock up first thing in morning and work the day as fast as he can. Perhaps you can start something similar - quote at a ridiculously cheap rate to start (you're bound to get bites), then slowly increase your charge out rate once you have a good track record/word gets out there.