Should I sell to clear debts?

Debtslayer

You need to post an SOA.
Personally I think you could get oug of this debt given time, but only an SOA will show us where you can make cutbacks.
I think you are looking at selling your house and releasing the equity as the easy option? Because you don't like the house anyway
But as others have said I think you really need to think about this carefully before stepping off the property ladder.
Will you really save if you live with parents of will you think: great, we've got all this spare cash now and can go out , go on holiday etc etc. so enc up spending your money and then never being able to get back on the property ladder.
If you do sell you'll have sellers fees to pay, then when you buy again you'll have all those fees to pay as well as quite a good deposit to find.
I think if it was me I'd cut back now and get the debts paid off and then once they're paid I'd look to move house if I still wasn't happy where I live now. But it may be the debts that are making you feel the way you do about the house? Do you feel the house has made you get into debt?

Little_Miss_Sunshine

This is my personal view and I'm sorry if it sounds a bit harsh. I've never sold a house to pay off debts - im very attached to my house! - but I have had consolidation loans x3!!!! And too many balance transfers to shake a stick at! All quick fixes and non addressed the problem - spending. By all means sell your house but I'm not sure it will be the fix you maybe think it is.
House prices are rising quite fast again - it's something to consider.
Is this a LBM or a quick fix - only you know that

fatbelly

Impossible to advise without the detail of a SOA

theoretica

If you sell your house and buy again you are going to pay a lot to the estate agents, conveyancing fees, removals, stamp duty...

TheDebtinator

Could you downsize to release equity? I think you'd quickly find yourselves living to your means and then eating into the money left over from the sale of your house.

jayss

Agree with theoretica between mortgage redemption fee, a new application fee, solicitors, removals and estate agents you could end up spending as much as you pay off. Especially if you need storage.

Muhren

Like others have said it is going to cost you a lot in fees to both sell and then purchase another property. The last thing I would do was sell the house, it would be the last resort.

I have no idea what it would be like moving back in with my parents with a wife and young child (I moved back home by myself and rented my house out). If you are going to do this I would rent your place out, I don't get the logic of it not feeling like your house once it has been rented out, surely it is no different to having someone live it it before you bought it in the first place?

Post a SOA and we will be able to advise where you can cut back.

AnotherJoe

Jump off the house price merry-go-round and you lose out on any rise between selling and buying again (which may in any case outstrip your ability to save), then add in costs to sell and costs to buy, it's very unlikely to be a paying proposition.

Post a SOA, it may be you are spending money you dont need to (or shouldn't) that will help you reduce your debt. For example, would there be any entries under presents, holidays, eating out on there?

ReadingTim

Before you make a decision on selling the current place you really need to address why you're £20k in debt because catalogue accounts, Christmas/birthday presents and a wedding suggest you're basically living a lifestyle you can't afford. Why do you want to move? Is there a genuine need, or do you just fancy buying something else shiny and new?!?

So while selling your current house will help you out in the short term, until you start living within your means, you'll just dig yourself another hole of debt and the cycle will repeat itself all over again. And if house prices don't rise very much, or even fall, you'll have less equity for another bailout.

lynz68

I think you're seeing selling your house as the easy option to pay off your debts. However unless you address the reasons why you spent the money in the first place you could well end up back in the same situation without a home of your own. Nobody made you run up catalogue and credit card debt especially for Christmas .

What happens if you have another child are you going to struggle on maternity pay again? How does your husband feel about the prospect of living with the in-laws?

As others have said without posting a SOA it's quite difficult to give advice.