What would you do.....

mikee31

Family of 4, 2 adults 2 children living in a 2 bedroom house which is now becoming too small as the children get older.

In about £50k of debt, due to numerous things including redundancy and unemployment, and paying back £300 per month via an arrangement with debtors.

Given the debt, and no doubt shockingly bad credit rating, to move house the chances would presumably be slim to none. Now, I could sell the house we live in, which has about £50k of equity, which would pay off the debt and although we could rent, my mortgage is currently £500 per month, whilst suitable properties in our area would charge £1,000 per month.

With the figures stated above nothing seems to jumping out as a solution. Increasing salary or working additional hours is not possible and we have cut back on just about everything using the information from this site.

Does anyone have any advice?

stqueen

If I was in your situation (based on the limited info you have given) I would sell up, clear the debts and start afresh.

Could you move slightly out of the area you are currently in to get a cheaper place (to rent)?

CH27

Hi

If you post your full SOA people will be able to advise you:)

Soph86_2

I assume that if you're paying £300 to your creditors each month then even with this gone, you wouldn't be able to afford an increase of £500 on mortgage/rent. I agree posting an SOA so people can offer opinions and help.

climbgirl

Well if you're paying £500 on the mortgage and the rent will jump to £1000, doesn't seem terribly logical to me to sell up - especially if your lenders are happy with the payments you're making. Also, if you have a bad credit rating you may find it harder to rent somewhere, most landlords will run a credit check these days.

Post a full SOA - a list of all your outgoings and all your debts (including interest rates and APRs) and well will be able to advise further.

Silvafox

Edited - due to me not knowing all the info before commenting.

mikee31

Silvafox - Check the reply on the other thread also! :mad:

Thanks to others for their helpful responses.

Silvafox

mikee31 wrote: »

Silvafox - Check the reply on the other thread also! :mad:

Thanks to others for their helpful responses.

Edited - I have just seen your other reply - apologies as it appears your grandparents are funding the trip.