Selling house to clear credit cards?

enthusiasticsaver

Shcjap82 wrote: »

Hi, so we've managed to rack up around £18,000 of credit card debt between two cards (£10k on a 0% card). We have £22k equity in our property and have an offer on it to sell, considering renting for 2 years and clearing the cards. Any advice on this please. Although rent is around £200 a month more than our mortgage so it seems a bit of a catch 22 situation? Thank you

You have £18k of debt so presumably you are overspending on living costs unless you have purchased assets with them? £10k is on 0% so making a plan to budget better and repay them is doable depending on your income and outgoings.

If you sell then by the time you have paid moving expenses, deposit on rental place etc etc and cleared the cards you will have 0 left and have extra outgoings with no security/assets. I would strongly urge you to think again and not do this.

Go on to the DFW board and post an SOA. Cancel the credit cards, set up a spending diary and budget to live within your means.