downsizing to pay off debt

Larac

Slithery wrote: »

Past experience says otherwise...

Have to agree - if you keep consolidating, then you need to address the causes of the overspend. I can only talk from bitter experience here as I did consolidate and only when I ended up on the DMP, did I sort it out.

getmore4less

I think you need your finances going back a while analysing to find out where you went wrong with your plans and the various consolidations.

The first step will be getting a SOA done for the current situation and seeing if there is anything there than can be done then go back to the last consolidation and see where it went wrong between then and now.

Get it wrong again and this time you are throwing a load of money at moving costs, buying your way out of debt is the last resort in most cases.

Moving may be the right solution but not without a proper analysis

saajan_12

Read the Debt Free Wannabe forum and put together a Statement of Affairs. If you can't afford to pay it back, you may be able to get debts written off or settled cheaply. If you are or could be there in future, its important not to consolidate or let unsecured debts become secured, as that would jeopardise your home.

If its not quite so critical and you will end up paying the full balances, then consolidating to reduce interest could save you money in the long run. all depend on your SOA - monthly cash flow and assets/debts.

If you do go down the consolidate into mortgage / pay off using your property route, you may be better off remortgaging (if you can afford the new payments). Selling and buying will
a) take 3-6 months (what will you do until then)
b) increase upfront costs from a cashflow perspective (solicitors, mortgage application, removals)
c) incur costs long term, reducing your sales proceeds (stamp duty, estate agent fees)
d) Involve upheaval & stress, which you could dedicate to another job / managing debt.

todayisagreatday

If you do sell and try and downside have you considered the cost of a new mortgage? I mean, is your credit rating going to be good enough to get another mortgage? Do you have any CCJs or defaults that will impact on buying another house?

Bes of luck with your decision.

loveka

Contact Stepchange! They will help you do what's right for you.

Doozergirl

loveka wrote: »

Contact Stepchange! They will help you do what's right for you.

One can only hope they take that advice. It's been said enough and so far the OP has acted like it wasn't said.

I've seen friends do it the OP's way and it really wasn't the right choice. The lightbulb didn't go on. There's nothing to be ashamed of in asking for proper, impartial advice. Quite the opposite. We don't have all the correct answers to every question ourselves, so seeking the professional, non-judgemental advice is the right thing to do.

sussexhomeowner

Thanks all for your wonderful advice. We are still in a dilemma and so terrified of doing the wrong thing. Have been on to StepChange and their advice is dmp which will take about 4 years. Hubby is worried about scuppering our chances of ever being able to move. We also have teens, one of whom wants to pursue professional dance and needs funding through it in the not too distant future. Fully aware that turning unsecured to secured may just be a quick fix and a dangerous one at that. Sigh. Just don’t know what to do.

ashe

Think you need to decide if you can afford to fund this dance dream as it!!!8217;s putting your family at risk.

sal_III

Do you now have the income to fund the dancing career of one of your daughters? If not I would suggest you take a good hard reality check and stop wrecking your whole family future for the sake of one teen dream. Have you ever considered how your other child feels now, and/or in the future when (s)he realises the source of all this hardship?

There isn't much point in restructuring your debt now, only to keep on going on the same downward spiral of spending on what you simply can't afford.