Selling up to pay off debts?

Red_Spider

Leanne8t3 wrote: »

Thank you everyone for replying.
I understand that we haven't been good at managing money and we need to address that. Having just consolidated everything and lowered the mortgage rates and utilities we'll be saving £500 a month so that means we no longer will need to use the credit card. 10k of our 22k debts were for the garage to bedroom conversion too so it's not all just overspend.
We can get by at the moment, we're not about to fall into arrears anywhere.
Maybe I've been getting carried away watching homes under the hammer??! Lol
I'll write down all the scenarios and get a couple more valuations

They never seem to account for labour costs much on that program...

Person_one

Leanne8t3 wrote: »

Thank you everyone for replying.
I understand that we haven't been good at managing money and we need to address that. Having just consolidated everything and lowered the mortgage rates and utilities we'll be saving £500 a month so that means we no longer will need to use the credit card. 10k of our 22k debts were for the garage to bedroom conversion too so it's not all just overspend.
We can get by at the moment, we're not about to fall into arrears anywhere.
Maybe I've been getting carried away watching homes under the hammer??! Lol
I'll write down all the scenarios and get a couple more valuations

That show has a lot to answer for!

I keep waiting for the screen wipe to magically transform my house, it doesn't show all the graft in-between and the numbers in your bank balance dropping rapidly!

Just be careful before making any big decisions. At the moment you have a comfortable home and you can afford to service your debts, so this isn't an emergency, you have time to think.

Hopefully the DFW guys can have a look at your SOA/budget and help you to free up some cash.

penguingirl

I can only imagine what a nightmare it would be having 6 people in a 3 bed home whilst trying to do an extension (mess everywhere) with a chance you could run out of money halfway through.

I'd stick where you are, but spend the rest of your fixed term trying to cut all your costs as much as possible, as you've done with some of your bills already. As others have said you likely have a exit fee on your fixed term mortgage so I would put aside the idea of selling for the next 20 months. Try and consolidate some of your debt and start paying off the most expensive ones. In 20 months time you can see if you've made progress or are able to remortgage to clear some of the debt (an option if you really have gained equity)

I agree with all the other suggestions to go to the debt free board

AnotherJoe

pimento wrote: »

That sounds like a lot for just interest.

Well there's also the risk element. Presumably its not secured at all on the house.

Leanne8t3

Person_one wrote: »

That show has a lot to answer for!

I keep waiting for the screen wipe to magically transform my house, it doesn't show all the graft in-between and the numbers in your bank balance dropping rapidly!

Just be careful before making any big decisions. At the moment you have a comfortable home and you can afford to service your debts, so this isn't an emergency, you have time to think.

Hopefully the DFW guys can have a look at your SOA/budget and help you to free up some cash.

It isn't realistic. One couple added a 2 story extension adding a bedroom, bathroom and kitchen and renovated the whole house, double glazing and rendering to the whole house for £60k
I don't believe that for a second!! They had people in yo do it aswell and helped out so it wasn't like they did it all themselves

Caroline_a

I know very few people who have had an extension built that has stayed within their original budget. You get a quote from a builder, but that doesn't include any fittings or fixtures - so if you need light fittings, curtains, flooring.... the costs start to mount up.

We had an extension done around 6 years ago. The original quote was £35k (for a double width single storey). There was an issue with the roof which meant that we needed special tiles and special windows. The cost ended up (as there were also one or two other issues) nearer £50k with all fittings, flooring, etc.

Extensions are often a great deal more expensive than moving!

Jagraf

Op, I would love to give you the wisdom of my experience with money.

In my opinion, you are thinking holidays and memories when really all, and I mean all, you should be thinking about is how to repay that debt in order to build a life where you can create memories freely (mentally and financially).

I have taken soooooo much equity out over my 30 ish years of house owning, in order to pay for memories, holidays etc and toss in a divorce (not expecting you to do the same and hope you will always be happy x) I have started again at age 47, but I am debt free with some savings.

In my opinion, taking equity is not a quick fix, its not really real money unless you are very organised and very financially savvy (hence I'm now married to an accountant - who has been dragged through with me and made it better lol).

I am proud that I have now finally learned my lesson (and a bit gloaty about it). But it's been an utter nightmare.

Think very carefully. End of lecture

Red_Spider

Leanne8t3 wrote: »

It isn't realistic. One couple added a 2 story extension adding a bedroom, bathroom and kitchen and renovated the whole house, double glazing and rendering to the whole house for £60k
I don't believe that for a second!! They had people in yo do it aswell and helped out so it wasn't like they did it all themselves

You should be accounting for your own labour time, as well as other peoples'.
Because that it obviously time you could be at work, earning whatever you can earn...

Leanne8t3

Red_Spider wrote: »

You should be accounting for your own labour time, as well as other peoples'.
Because that it obviously time you could be at work, earning whatever you can earn...

I struggle to work around the kids and my youngest isn't at school til September so we're not used to a wage from me anyway.

Leanne8t3

Red_Spider wrote: »

You should be accounting for your own labour time, as well as other peoples'.
Because that it obviously time you could be at work, earning whatever you can earn...

I struggle to work around the kids and my youngest isn't at school til September so we're not used to a wage from me anyway.