What to do?!

SpursFan71

Hi all,

I am new here so apologise if this is posted in the wrong section!

OK, I'm basically roughly 28K in debt which is just over my annual salary.

I've pretty much come to the end of the line trying to pay back my debts so have currently been looking into contacting the Step Change debt charity in order to proceed with a DMP or an IV solution.

Also, we will have to go back on the rental market as we need a larger house as we currently live in a 2 bed house with 2 children sharing 1 bedroom.

The only light I have at the end of this tunnel is that I have about 25K equity in my house which should be ready to sell in a few months time once we have finished the decorating and making good etc.

I'm just wondering what you think the best course of action would be as I am struggling now but will have some cash to pay off some of the debts once the house has sold.

Thanks in advance

asparagus1968

morning, and welcome


ideas:
1. find out exactly, not basically, roughly how much you owe, who to ,interest rates, minimum payments

2. fill out SOA, link here for you
http://www.stoozing.com/calculator/soa.php

3. selling up and renting may solve all your problems ,as you want a bigger property anyway.
sell house, pay off all debt, fresh start renting ,and getting some savings together.
do you really need a bigger house? or need it right now? once you have done the SOA the people on here will help you see where to re-budget, you may be able to just set about paying off money via a debt charity, and save a bit towards a bigger house to buy in the near future?

so, do steps one and two and go from there good luck

FinanciallyUnsavvy

Hi there,

Hopefully other people will have better advice for you, but it seems to me that the best thing to do will be to sink the majority of the profit from the sale of your house into your debts. Keep around £2,000 aside in a savings account as your emergency fund, and plunder the remaining £23k into paying off the majority of your debts. That will leave only 5k remaining, that you can pay off easily over the course of a year or so.

Good luck x

BillJones

SpursFan71 wrote: »

Also, we will have to go back on the rental market as we need a larger house as we currently live in a 2 bed house with 2 children sharing 1 bedroom.

I know that you are just starting your journey here, and will take some time separating out "wants" from "needs", but the above does jump out as the former, not the latter.

SpursFan71

BillJones wrote: »

I know that you are just starting your journey here, and will take some time separating out "wants" from "needs", but the above does jump out as the former, not the latter.

Hi Bill,

I understand the point you are making but I have an 8 year old boy and 5 year old girl sharing so it's becoming a little tricky.