My husband and I are in our early 50s and have struggled to bring up a family on low incomes resorting to re-mortgaging a few times, credit cards and loans. To cut a long story short our children are now independent but we have a lot of debt to pay back. Not including the mortgage we owe about £24000.

Our mortgage, loans and credit card payments total £1266.00 per month and our monthly take home pay is £2230.00 leaving £964 for all other living expenses, we are still overspending on average £300 per month. (we don’t go out, take holidays or buy clothes, household stuff etc)

We are wondering whether it would be best to just sell our house for which we have equity of about £58k (the mortgage still has 12 years left at £630.00 per month) and pay off all the debts and just rent somewhere to live. Or should we cut back drastically and try and see it through even though it could take about 9 years?

What worries me about taking the sell and rent route is what would happen to us at retirement when our income would drop to about half of what it is now. I don’t want to make a decision now that will make us suffer in our old age. Can we afford to be paying rent when we retire?

I would be most grateful of any advice about our situation

In many respects you are not so Bad off. Ok 1st of all gather up your total monthly spend and try to include you utilities (gas, elec, phone, and so on) food, everything!! And one by one see how you can cut back, things you already know about but not put on a spread sheet before so you can actually see where your spend is, try what ever you do don’t miss any card or mortgage payments as this will have a dire effect on your credit score/rating with the agency’s and make it difficult to obtain a re-Mortgage if that’s the route you take,
I could go on, but the best advice would be to talk to a chartable debt councillor in you local area please don’t go to an add you spotted in the local paper or on line agent without checking them out first, or speak to an Independent Financial advisor (IFA) he may make a charge/fee but you will be protected by law and the FSA, so he/she will be accountable for his/her advice
Don’t struggle seek good advice these professionals are hear to Help you
Good Luck

Very well said, Thanks for the post I really need to know this. It’s very informative and very helpful.

Thanks for sharing.

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Not at all! there are places and people you can speak to that can help you for example the citizens advice bureau or a debt advisor. There they will be able to guide / suggest what you could do to enhance your situation

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