Selling my flat to pay off debts.

tirednurse_2

I have decided to sell my flat in order to pay off my debts. I have debts of £25,000. I have a DMP with CCCS and can only aford £5 per month to each creditor. It will take me more than forty years to pay them off at this rate.
I am a nurse and unable to find a permanent job. My DMP started a year ago and my creditors all accepted the £5 per month.
I know that they will not accept this indefinitely and feel that Charging Orders will commence soon,
If I am successful in selling my flat I should have around £75,000 after paying off my mortgage. I have been reluctant to sell up until now because I was hoping things would change in the NHS and that I would get a job. Also, I live in the London area and rent around here is very high.
Have any of you sold your property and rented to get rid of debt. Do you feel that it is the right thing to do?
I cannot bear the weight of being unable to pay off my debts any longer.
Also, does anybody know that if I end up with Charging Orders will it affect the sale of my flat?
I think the people on this forum are lovely and have helped people like myself
keep going when things look really black.

Thank you all.

lynzpower

Yep I did! and very happy I was too with it.

I live in London, I dont think the rents are *that high* you can haggle and shop around and no landlord wants voids, you can get good deals.

We went from a mortgage of 1300( after my fixed rate ended nad my place was on the market) to a rent of 755. We had a 2 bed flat with garden before in E3, we now have a 2 bed house with garden in E11 - the most gorgous location still close to tube/ facilities etc.

I sold my place with housenetwork as well so that only cost me 500 quid plus quidco cashback ( if it ever comes :rolleyes: )

Whats the reason for not being able to find perm work, is it damned budgeting issues in the NHS perchance? Or is it that you are very specialised in what you do?

lynzpower

Ps coming out with a profit of 75k is bloody excellent! I came out with 37 and it was like all my Xmas' had come at once!

BAILIFFCHASER

tirednurse wrote: »

I have decided to sell my flat in order to pay off my debts. I have debts of £25,000. I have a DMP with CCCS and can only aford £5 per month to each creditor. It will take me more than forty years to pay them off at this rate.
I am a nurse and unable to find a permanent job. My DMP started a year ago and my creditors all accepted the £5 per month.
I know that they will not accept this indefinitely and feel that Charging Orders will commence soon,
If I am successful in selling my flat I should have around £75,000 after paying off my mortgage. I have been reluctant to sell up until now because I was hoping things would change in the NHS and that I would get a job. Also, I live in the London area and rent around here is very high.
Have any of you sold your property and rented to get rid of debt. Do you feel that it is the right thing to do?
I cannot bear the weight of being unable to pay off my debts any longer.
Also, does anybody know that if I end up with Charging Orders will it affect the sale of my flat?
I think the people on this forum are lovely and have helped people like myself
keep going when things look really black.

Thank you all.

have you sent a cca off to your creditor/s ?

lotto-dreamer

tirednurse wrote: »

Do you feel that it is the right thing to do?...

I am trying to make exactly the same decision as well (and ditto about the people here)

Lynzpower has been an inspiration! Thank you Lynz:D (maybe you could post the link to your thread on here?)

One of the biggest things holding me back, now I've finally got over the emotional attachment to my home, is that I work with conveyancing on a daily basis and the whole process can be really frustrating - you need to take a deep breath and expect various hold-ups and hassles - but things should work out in the end!

lynzpower

Lotto - which thread was it ( I had loads :rolleyes:)

I think its all about the attitude. Me personally, I thought it was fantastic to sget rid of the liability ( rising mortgage costs) and come out with a profit of 37k that lets face it, I hadnt earned, I didnt do anything for- it just happened.

much better that than end up being repossessed!

I cleanedf and redecorated my place and sold on day 2! What a result. Yes its intrinsically frustrating, but at the end of the day, Im a freee bird now, we can live where we want, I bought some new clothes! and I have 30 odd K in the bank making money for me day in day out, if I need it its there.

We are saving over 700 a month now we dont nd to pay for maintainence, buildings insurance, life cover etc When Im back earning to full capacity I aim to be putting this much away every month ( lets face it we would have had to pay it if wed stayed there!) and we will one day do something super super exciting with the money!

And Im gagging to go on a tropical holiday. It will probably cost about 1500 for the 2 of us, but Im too tight at the mo to spend it just prefer to see my interest racking up LOL

You have 2 choices in this life i think, wave the white flag and shout surrender, or embrace your changes! Look for the positives! You are in a fantastic posityion, and even when Im having a bad day i can just log into my savings account and have a little grin to myself

Toto

I also sold up to pay debt, around the same time as lyn, we were partners in house sale hell for a time there. For me it was the best financial decision I have ever made I think, I went from paying over £2000 per month in interest, to £0 that's right nothing at all. My mortgage was a crippling interest only, which was costing me £1250 per month, add to that all of the loan and credit card interest. Now I pay £780 a month rent, don't have to hire one of the storage units for our business (saving £380 a month). Once all of my debt was paid I had just under £5,000 left over. We had a holiday to florida (ok, a working trip, but a holiday too) and I now have £10,000 savings.

I know this is a tough decision and not one which can be made lightly. It isn't right for everyone. But if you do the numbers and can't find a real reason not to do it I would seriously think about it. Debt free is great.

lessonlearned

Our house has just gone on the market. Had our first viewer this evening - didn't seem too keen but we will just have to hang in there. Someone will come along eventually.

We've no alternative but to sell - we just can't continue - about £36k worth of debts and husband now long term sick and unable to work for the time being.

We should clear about £100K (ish) so will have about £70K left after debts etc.

Will rent for a while and then perhaps buy a small terraced house or an apartment with a much smaller mortgage - about £30K on an interest only (our Endowment guarantees that amount - about 6 years to go). £100K or so should get something here, although it will probably have to be a "doer upper". I don't mind that though - I'm quite handy.:cool:

Yes, it's a bit of a wrench but to be honest I can't wait to get rid of the stress and pressure in trying to meet mortgage and credit card payments.

I don't think the stress helps my husband's condition and I am hoping that getting rid of the debts and the huge mortgage will improve our quality of life.

Our house is lovely and we've been happy here but it has to go. I can always do up our next one and make it just as lovely - it'll just be a bit smaller that's all.

My advice is go for it - good luck.

southern_chick

i love this site, people always give such good positive advice, i agree with all that everyone has said, especially about paying off everything and then sometime in the not too distant future looking to buy a smaller more manageable property, what ever you decide to do tirednurse good luck and keep coming back here for good advice

SC XX

lotto-dreamer

lynzpower wrote: »

Lotto - which thread was it ( I had loads :rolleyes:)

You're quite right -you did have more than a few threads -but 'selling my flat the DFW way' - was when you'd made the decision and how you went about it at the beginning (in fact it was your thread that prompted me to finally stop lurking on MSE, sign up and plunge in with my first trembling post!!)

I'm still dithering but my finances are getting shakier by the minute -Time to make that decision - I know just how Tirednurse feels!

doitmyself

I think Lynz talks as much sense as anyone around these boards, I certainly don't disagree with what she says.
The house price bonanza has provided wealth for the some home buyers beyond their imaginations and, as Lynz also rightly said, she (anyone in the same situation) did nothing to earn it.
It's almost foolish not to cash it in, esp as it can provide an instant fix for those calls, letters and sleepless nights caused by some other creditors.

On the other hand OP you are effectively prioritising a credit card(s) over your home!
The instant fix, in your head or written in a couple of paragraphs on a forum like this isn't actually so easy when it comes to the practicality of selling up, where you go next and how much all of that costs etc, and I really wouldn't be in such a rush to do it...