Advice please- chance to clear debt

getinmyselfoutadebt

Currentl on a dmp with about 5 grand to go. Husband has around 10k debt. We need to move house due to outgrowing current home as we now have 3 children. We have approx 40k equity. I have the chance to take a redundancy package which would give us enough to clear all the debt. Inearn around 20k and im not sure if incould get another job easily! Any advice would be much appreciated.

AnotherJoe

How would you move if you haven't got a job ? Would it be affordable on one wage ?

Sanctioned_Parts_List

Let me gaze into my crystal ball...

For you to work out which is better, you'll need to update your SOA as of today. Then produce three more hypothetical SOAs:

1. One that assumes you've only taken redundancy, staying in the same house, and using the redundancy money to pay down debt. You'll probably save some childcare costs.
2. One that assumes you don't take redundancy, but do move into a rented house in your current area (rightmove etc. for rental fees). Given that you're on a DMP and that you want to use equity to clear debt, buying another house probably isn't an option.
3. On that assumes you both move house and take redundancy.

Assume no other lifestyle changes. Whichever of these leaves the highest amount of money at the end of the month is the one you should aim for...

But bear in mind that moving house costs money - solicitor's fees (even for the seller), mortgage redemption fees, deposit on the rented house and all sorts of expenses large and small. In short: you will need access to money to get this process moving.

You should also be wary of estimates of equity - how certain are you of the value and saleability of your house?