My debt plan

asandwhen

Ok I am recently married and have moved in with my partner - We were both in debt before we met £10,000 for me and £15,000 for my partner so total of £25,000 - I have a plan to pay it off -

We have moved into a rented property due to the fact that my flat (studio) is just too small - I own this flat and am currently renting it out - I purchased this property from the council a few years ago for £37,000 and the flat is now worth £90,000.

Our income - £30,000 myself (around 1850 per month after deductions)
£20,000 Mrs asandwhen (around £1250 per month)
£370 per month from the flat.

We pay £500 per month off debts and can afford this without any problems. we do now live within our means the only reason debts have stayed at this amount is because we have been paying for the wedding (all paid for in overtime and debt did not grow)

We now want to purchase our own property together but want to pay the debts off first - Now im thinking of selling the flat making £50,000 from it after fee's ect - I can pay off the 25k and put the other 25k down as a 10% deposit for a house - what do you guys think?

youngandreckless

Sounds like a good plan to me. This way you'll start afresh with no debts and as long as you're disciplined to not get into debt again, you have a really good start. Some of the others that are more experienced may know of any pitfalls / a better way, but to me this seems like good common sense! Good Luck

skintchick

Do bear in mind you will lose the rental money when working out your new budget, but yes, it sounds like the best plan to me.

asandwhen

ok flats on the market - fingers crossed

kathfisch

Good luck, let us know how you get on!

brummiebabe

Good luck asandwhen - hopefully it'll sell quickly!!:j

JAMIEDODGER

sound like the best idea to me....giving you a fresh start sounds wonderful, best of luck xx

surfcat

Personally I would have kept the flat as an investment property and upped your debt repayment. On a combined income of 50K you can easily afford more than £500pm on the debt. (I sometimes manage that on 12K).