DESPERATE for advice...

DIBBer_2

Hello, first post and would welcome some opinions please.

Currently we have managable debt but no quality of life.

Between me and my husband, various credit cards and an un-secured loan (2 years left to pay) we owe £48,500.

Our mortgage is £90k and our house (in the current market) is worth £150k (getting valuation tomorrow to confirm)

Which option would you go for?

1. To carry on and struggle through to keep on the property ladder?

2. Sell the house, be COMPLETELY debt free, RENT for LESS than we were paying on a mortgage allowing us to save £500+ a MONTH, save up for a deposit and in a few years try and get back on the property ladder.

We are both 40. I am self employed and whilst my business is fine, we are unable to secure a £50K consolodation loan.

We have also looked into each getting a personla loan for half of the debt - however having spoken to National debt helpline they say to consolodate un-secured loans INTO a secured loan is NOT the way to go. They did recommend a debt management plan BUT for me to do this I have to supply details of my business - and, whilst i am self employed - its also a partnership and thats simply a no no as this is MY 'mess'.

Would option 2 be so bad? To be DEBT free, wipe the slate clean and start over?

Thoughts would be welcomed please x

Merlot

Can I suggest you post an SOA (incomings and outgoings) and we will see what we can do for you.

£48,000 is not a huge amount of debt especially if you are both working full-time, now is not the right time to sell and rents are going to increase further and further as demand will outstrip supply if the "credit crunch" continues.

You will get loads of advice once you have posted your SOA, include your debts/APR etc etc.

Merlot.x.

DIBBer_2

Merlot wrote: »

Can I suggest you post an SOA (incomings and outgoings) and we will see what we can do for you.

£48,000 is not a huge amount of debt especially if you are both working full-time, now is not the right time to sell and rents are going to increase further and further as demand will outstrip supply if the "credit crunch" continues.

You will get loads of advice once you have posted your SOA, include your debts/APR etc etc.

Merlot.x.

Thank you. Where might I find some kind of guide to do this? Am sorry new to this and what should and shouldnt be done and the terms for things... SOA?

Merlot

http://www.makesenseofcards.com/soacalc.html

Heres a link for you, sorry I meant to come back and post it.

LilacPixie

I would say discount the concolodation loan all together. Consolodation debts is really just adding to them.

As merlot says an SOA (statement of affairs) is a good place to start. At the moment even if your house is worth 150k then you may struggle to get that. many lenders are shying away from lending more than 75-80% so buyers of your home would realistically need a 25-30k deposit at the very least and quite frankly very few people have that so not much is moving.

I think you should look at your spending and pinpoint where you are wasting money, stop the wastage and put some towards debt payments and the rest on improving your quality of life.

28jess79

Hi

I am new to this so please bear with me. I need more advice than anyone else but have to tell you this. My brother and his wife have parted they did so last summer but didnt get there house on the market till Sep/Oct time. It was originally on for £375k due to this credit crunch no-one can get a morgage its now down for £300k. He is so desperate he will end up letting it go for way less. He owes 210 on it and they have about 20k worth of debt between them. Now they will have about 70k left less fees etc. No one is even looking at it now. My friend works in lettings rentals are all rising. People are renting doing runners etc. There is much less available because no one wants to give up what they have. JUST IN CASE. Stay on the property ladder, keep your equity and ride out the housing slump. Put your SOA on here you will get loads of fab advice. Keep paying it all off all the time you are up to date your doing well. I can only pay somethings sometimes and the mess you wouldnt believe. You might find your house is worth a lot less than you thought and its only worth what someone else will pay. Its paper money not your.
Good luck with everything hope it works out. We all have dark days and think of a quick fix but dont loose your home.
xxx