Unusual situation? Need HELP!

harrinder

Hi
My wife and I are in debt, an are getting to the point where although we can make the repayments we really need to stop the debts spiralling.

We currently owe approx. 24k on 2 credit cards, 14k in loans and are paying huge interest on the cards (egg and alliance&Leicester.)

We have lots of assets (15k car all paid for, flat in London £330k and house £350-360k) so the situation may be unusual, but this debt is seriously harming my health!

Can anyone advise us what to do? Selling either property is unfortunately not an option

Thanks in advance

Harrinder

fast_track

Why is selling not an option?

biglad

i think you need to post an SOA, (see the sticky about them). Not sure how companies will see it if you have that much assets, can you not re mortgage one??? are these properties your source of income??

someone will help more but i think you need to give more info

atypicalblonde

Hello!!! Others will give you great advice, I just want to say hi, welcome and well done for posting !!! all the best

harrinder

Selling isn't an option because I have tennants in one of the houses and we are in the other.
I really dont want to sell.

biglad

well surely the best solution would be to give the tennants theyre notice, (something that happens in life and must be in a contract of certain agreement terms about giving notice) and then all your problems are sorted.

if this has been your main income then you could always get a place for around 200k, rent that out and have no debts

HazelEyes_3

Welcome
Have you worked out a budget that will tell you whether or not you can live on your income without increasing your debts even more?

Emmzi

Harrinder, a few questions
- how did you get into debt?
-what are you prepared to GIVE UP to get out of it? Maybe not a house - but a 5k car, for example, goes from A to B about as well as a 15k car, given we have a speed limit...
- have you done a spending diary to see where your cash goes?

Welshlassie

harrinder wrote:

Selling isn't an option because I have tennants in one of the houses and we are in the other.
I really dont want to sell.

You are able to sell properties with tenants insitu - sell them as an investment property.

The other option is to take some of the equity out of these houses to pay off the debts and then work on paying off the mortgages through overpayments. The interest rates are lower and you can cut back if you are tight one month as there are overpayment and therefore not compulsory payments.

If you post a Statement of Affairs we would have a better idea of your commitments and be to advise better as to where you could cut back and pay the debts off quicker if taking money out of the houses really isn't an option.

Dr.Shoe_2

The problem is is that tenented properties sell at a large discount.

lynzpower

not always Dr Shoe Ive seen some round here selling at market rate