Time running out ! Where do I start

wilky371

I ran a business for 3 years as a sole trader, i.e. business debts are my/familes debt.
In sept 06 I decided to finish this & go back to employment, which I am now happy in with a salary enough to live/feed.

My situation is this.
The old business owes about 7k in total, the biggest bill being about 2k to one supplier.
Personally I have about 5k on CC's & they are at there limit.

I have a wife & 3 kids to support.

I can guarentee that the 7k owed is going to be called in very soon, but I dont know where to start.

I'd like to be debt free within 2 years max.

I have a mortgage for 172k, my house is worth about 235k, but obviously as I have only been in there for just over a year, I dont want to sacrifice it.

Any help appreciated.

jitsuguy

It might be first to do an SOA (Statement of Affairs) see thread below:
http://forums.moneysavingexpert.com/showthread.html?t=107280

7k is not too much. But if you've got a good credit rating it might be worth moving the debts to cards at 0% interest, see here:
http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1107182516,76509,

I don't think you will have to sacrifice your house, but might be worth remortgaging and clearing your debts that way. But ONLY if you can trust yourself to cut up the credit cards and not get into debt again.

Jitsuguy