Is this actually a valid option ?

nodebtplease

I have debts that approach 75% of my equity probably closer to 100% if I take every penny into account. I have a very high income.

The debts I am calculating are costing me between £1000 and £1800 per month in interest alone. I am torn between chipping away at these cards/loans etc; until all paid off or I had the following idea...

Sell house, use equity to pay off all debts and rent until I can get back to same position of equity that I am currently in, I estimate that my outgoings are between £4k and £6k/month incl mortgage and I could save this easily during the rental time.

My question is has anyone done this and with housing market as it currently is, is it worth it ?

Thanks in advance for all you help.

justruth

My first piece of advice would be to post a full SOA from http://www.makingsenseofcards.com/soacalc.html (please click the mse format button) from that all the very experienced people on here will be able to identify areas where is it possible to make some savings.

Secondly with regard to the house and the equity, there is a board specifically for that but I would suggest that whatever you think your house is worth, you may struggle to find a buyer, as even the best buyers are struggling to get mortgages at the moment. There are other options but without a bit more information it would be difficult to say which might suit you.

The last thing is how did you get into debt in the first place? If it is a gradual thing then perhaps that is something that needs addressing first as until you control that you will end up in trouble again.

Congratulations on taking your first steps towards taking back control.

Usury_up_and_wear_it_out

Sell the house, trouser the cash and negotiate a full and final settlement with your creditors. Go for it !!

Pee

I don't see any problem with that.

Of course, when you sell there will be legal fees estate agents fees etc and when you buy there will be surveyors fees, legal fees, maybe stamp duty... etc etc

I don't know what house prices are going to do in the next couple of years. I suppose you ought to bear that in mind.

Do you like your place, or is it time for a chance anyway?

GeorgeUK

Have you tried to see if you can get any 0% interest creditcards?
This may allow you to pay less interest and therefore clear the debts quicker.