Move house, not debt
It has been said that moving home can leave you in as much debt as bereavement and divorce.
In the UK, if a home owner wishes to sell a property with four bedrooms or more, they must purchase a Home Information Pack, which costs £400.
A solicitor is one debt that cannot be escaped and will charge over £1000 to deal with the legal aspects of buying and selling your home.
And that's just two examples of how moving house can start debt problems. Many people in serious debt look at selling their house for a smaller, more modest house in a 'cheaper' area in order to steer themselves away from having to undergo a more serious debt solution. But with so many costs involved the profit margin in moving to cheaper housing disappears, indebted families are still in risk of an IVA, debt management, or other debt solution despite trying to do 'the right thing'.
So how can we stop ourselves from falling into debt when we want to sell our home?
Estate agents soak up a large proportion of our costs in commission which can vary from 1.5% of the sale price of your home, excluding VAT. If you are selling through more than one estate agent, you can expect fees to rise even more. If an estate agent offers to provide a free HIP, check that you are not actually paying for this in hefty commission charges.
You can save a lot of money in estate agent fees by cutting them out completely. It will involve a lot more time and effort on your part but the amount you will save will be worth it in the end. Start by advertising on the internet as there are many websites where you can sale your home free of charge or for a nominal fee. You could even place an ad in your local newspaper or in shop windows.
Finally, remember to tell all creditors your new address or you could be charged for late payments and fall into debt before you even settle into your new home.
