Help for a nervous newbie

fgtr13

Bestthingsinlifearefree wrote:

Hi Sachanut,

Is it possible to sell the 2nd property and get the 40 - 45K equity / profit and throw this at your debts (tackling the higher interset rate ones first).

This would wipe out virtually all the debts and then if you live with in your means / cut back with your income you could quickly clear the remainder of the debts and begin saving again (and please,please cut all those credit cards up / reduce the spending limits..never take another loan out again etc etc)


Would that be the solution or am I missing some thing ?


Good Luck.

Best things in life are free

Can we presume that you have no debts / CCs etc B.... ???????

Easy and harsh advice ...... but not entirely realistic !!!! (In my opinion!!).

And not very supportive either !!!!

Let those in the financial 'know' give Sachanut (and me!!) some reasonable guidance please !!!???!!!

:mad:

BWZN93

fgtr13 wrote:

Can we presume that you have no debts / CCs etc B.... ???????

Easy and harsh advice ...... but not entirely realistic !!!! (In my opinion!!).

And not very supportive either !!!!

Let those in the financial 'know' give Sachanut (and me!!) some reasonable guidance please !!!???!!!

:mad:

I dont think the advice given was entirely unrealistic, and nowhere was the post unsupportive. In the OP's case, there is property with money in it that could clear some debts. To me, there isnt much point in having plenty of equity in property when a mountain of debts threatens to topple it all. Even Martin has said there is no point in savings if you have debts, clearing them should be a priority for most people. I do admire the OP for wanting to clear the debts without selling the second property, however, if the debts are becoming unmanageable and you are paying a lot of interest - selling the house to pay the debts will cut out the interest, leaving more free money to buy additional properties later.

Jo xx

fgtr13

(and please,please cut all those credit cards up / reduce the spending limits..never take another loan out again etc etc)

The above is what I considered to be harsh and unrealistic - maybe it's just me - but my 'lightbulb' has only recently come on and before I can get onto any significant path or plan to get out of where I am .... I need cards etc to shuffle APRs (a priority !!) ..... and also to put food on the table !!!

In the short term - I need mine ..... but hopefully I can soon start to get rid of them .... but only 1 at a time !!!

I totally agree with the perspectives on Sachanut's equity situation.

Sorry if I've misinterpreted or offended anyone !!!!!!!!!!

novice_money_saver_2

from reading other threads on MSE, it appears that Egg are very helpful and reasonable if you talk to them about problem debts. They might agree to transfer your CC balances into your loan at the lower interest rate?

Do a search of the threads and find the postings about Egg - hope this helps!

sashanut

Thanks very much NMS - I will certainly give it a try. Haven't phoned Egg yet but will do so today to see what they can offer me. Am feeling a bit deflated because I have been turned down for an increase on Barclaycard yesterday - only in order to move some of the higher debts on to there though - not to spend any more! They say try again in 3 months, I could do with something a bit sooner..

cheers

Sashanut