First timer :- Looking for some advice please.

AMG_3

Hi

I am a house owner with equity of £30,000. I currently have debt of £12,000. Part of my debt has arisen from buying and renovating a house with my 2 sister's. We currently have this rented out and is covering all associated bill's. In the next month I shall be receiving £20,000. I have share's to the value of £500, my only saving's.

What to do?? Do I remortgage and put the debt into my mortgage and hopefully pay it off in 1-2 year's and put the £20,000 in to some sort of saving's plan. Or do I pay of my debt's with the £20,000 and put the reminder into a saving's plan. At the moment I'd say I'm living beyond my mean's with the extra money coming from credit card's.

Please any help you be greatly received.
Thanks,
AMG

jonesMUFCforever

A lot will depend on circumstances beyond your control!

If you are confident that you could make more gains than you are charged in interest then go for the re mortgage. However I have doubts that you or anyone could do this.

IMO therefore I would pay off all my debt out of the £20k and reinvest the rest.

Not sure what you mean by ''At the moment I'd say I'm living beyond my mean's with the extra money coming from credit card's.'' In simple terms if you have more money going out of your account each month than comes in then eventually you will run out of money!

Eric