Escape the Debt Cycle – Selling Your House to Start Over
Wipe our Debt (Photo credit: Images_of_Money)
The current economic crisis is affecting people in every walk of life; businesses are going under, unprecedented numbers of people are being made redundant and the cost of living is ever increasing. Debt advice services claim that the number of calls they are receiving daily has trebled in the past year. Debt is one of the leading causes of anxiety and depression in the UK. With record numbers of home owners defaulting on their mortgages each month, your best bet for escaping the debt cycle might well be to sell your home and start over.
Jump Before You Are Pushed – The best way to deal with debt is to tackle it head on. If you know you can’t deal with it, or that you entrenching yourself deeper, then waiting until it reaches crisis point removes some of your options. Organisations such as National Debtline offers free impartial advice and can help you deal with debtors, but if you are a home owner, the fastest way to debt free living and peace of mind is to sell your home and release the equity, as well as simultaneously resolving the largest of your debts: your mortgage. Selling your house before you are forced into relinquishing it to the bank due to arrears puts you in the driving seat.
Speed Is Key – The longer you leave your debt problem, the worse it becomes. As debts increase and interest mounts, the sooner you can act to take control the better off you will be emotionally and financially. In the current housing market it can take months for a property to sell and wasted months mean increased debts. Websites such as www.moveanyhouse.com can remove that problem. It is possible that you would get more for your home if you waited out the property market, but the increased debt amount would potentially outweigh the benefits.
What to Do with the Money? – You need to pay off ‘priority debts’ first – that means council tax and hire purchase debts. The Citizens Advice Bureau can help you work out what are priority debts and where you can make smaller payments. You are entitled to enough money to live on, so don’t fall into the trap of leaving yourself short by trying to make payments that are too large. Getting interest frozen and a minimal payment plan in place means you can focus on improving your situation instead of worrying about letters and phone calls. Taking control of your life back from the cycle of debt is not an insurmountable problem.
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Category: Debt
