Selling the house, paying debts - feeling free

dado5

Some folk might think I'm barking mad but having exhausted many avenues and losing so much sleep I'm selling my house and paying off my debtors. Then renting it back. All done thru a rich friend who I think will pay for asking (reasonable) price and we're talking of reasonable rent.

I looked at a DMp with CCCS and whilst that looked ok I know my wifes job is finishing in 12/13 and then we're into IVA territory as we won't have that wage unless she gets another job. We will also owe a lot on tax credits to the tax man.

It sounds really harsh to say this but the long term future looks okay as both me and my wife are single kids who's parents will leave property to us. In turn we'll leave that or at least an inheritance to our kids.

I know this society of ours and esp our generation (+45) are Owner driven and not rent....however, I feel it is going to free us from our massive debts (56k on cards/loan & £70k on mort)

not sure what I'm looking for from you guys - I know I'll be lucky if this goes thru well - perhaps I'm just looking for assurance? (but then you'll ask why? - ha!). I'm sorry if this irritates some of you who may think I'm copping out by not struggling first with the DMP but I'm thinking of what is ahead....

rising_from_the_ashes

If it works for you and you've considered the long term future then that's really all that matters - owning your own house isn't the "be all and end all".

One thing though - as it is a big step and not one to be undertaken lightly - please make sure you've addressed the reasons for the debts.

£56k is a fair bit to have built up (no judgement, honest) and there must be reasons for it happening. If you're going down the route of selling the house to clear these .... ensure these reasons are addressed first so you don't find yourself in a similar position in the future.

dado5

thankyou and yes you are right.....but we are over the 'bad' days of keeping up with the jones whilst raising young children....we've done the budget planning stuff and not used cards for many years.....these are old debts which we used in the '0% balance transfer game' which have now caught up with us....

Appreciate you weren't being judgemental

rising_from_the_ashes

Speaking from experience ... I did it to clear my debts the first time but didn't do anything about my spending and - guess what happened a couple of years down the line ... back to exactly where I was the first time.

BlushingRose

Also, one small thing that although you have a rich friend, at the end of the day that friend will be your landlord - are you sure your friendship will cope with that? Are you perhaps getting a water-tight contract sorted out to say that they can't chuck you out in the future?

McKneff

Advice - 9 words

Sell it

Pay off your debts

Rent

Happy days

ilovecheese

We did this in 2007. Sold our house paid off the mortage and the secured loan :eek:

Finished paying our last un-secured loan in November last year, so we are totally debt free and we have savings :j. We did learn our lesson, and we will never take on debt again.

Firewalker

This is not a bad option given that you have developed the habits to not get in debt ever again. Clearing all this by selling your house is an unique opportunity to start building a more secure future.

Firewalker