To Sell or Not To Sell That Is The Question

mysterio1727

Hi All

Im after a bit of useful advice please.

In short: we have a private buyer (a friend) who would like to buy our home - so no estate agent fees.

Our home will be sold for £180k.

We have just over 45k debt.
Our redemption figure on our mortgage is 115k.

If we sold our home, cleared all our 45k debt (and obviously paid the solicitor for selling our home) we think we would have about 18k left for a deposit on a new home.
We will rent for a few months first, close to the childrens school and wait for a house to come up for sale (they do a lot as I have been watching) in the meantime we can save up and add to our deposit fund for a house.

HOWEVER - will we ever be able to get back onto the property ladder again if we save up 20k and look to buy a house for £160k?!? Our credit history is not bad at all, we have 2 dependants.

All our debt is credit card debt - which I know is bad debt.
We have decided against a debt management scheme. We pay a total of £750 for credit card bills per month.

Open to much needed useful advice

Many thanks;)

ognum

First question, why have you got so much debt and what will stop it happening again?

Do you see yourself happily living in rented accomodation, how much is rent around you, is it more or less than your mortgage?

Are you doing this because it is the only way you can pay off your debts or because you want to do it?

45K of credit card debt is enormous, if you really needed all the stuff you have bought with your CC how do you foresee not having this debt again.

bristol_pilot

I wouldn't rent with a family unless I had no choice.

Rents are high and there is little security of tenure.

What you would have paid out in rent could be paid towards those CC bills.

House prices have started going up again (depends on area).

In your position I would stay put, cut back on spending and continue to make a sustained effort to pay off those cards.