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want to be debt free...

(3 Posts)
motherto4 Thu 18-Apr-13 18:59:41

Could do with some advice please.
DH jointly bought a commercial property with his cousin for business purposes. Bought for 105k and invested about 20k each in developing the property. My brother remortgaged his house to lend us the money! Business didn't take off at all. Tried to sell property but nobody willing to buy and we really don't want to make a loss. (Already lost a year's income trying to run business). Found someone to rent property at £200 plus per week plus 5k goodwill. This covers the mortgage that brother took out and paid off some money we owed people.The lease is for 6 years.
We also have 100k mortgage on our house to pay over 30 years we're living in. We're very hard working but our salaries are very small. Everything combined the debts seem never ending and no way out! Although we are managing at the moment I feel stressed just thinking about the debts.
I know there's no magic wand to make it disappear but is there any advice or even reassurance out there?

amicissimma Sat 20-Apr-13 18:34:50

People in your position are the beneficiaries of Quantitative Easing. Basically the Bank of England is putting money into the economy so that each £ is worth less than it was, say, last year. You will be aware that things are 'getting more expensive' ie your money buys you less.

The good news for people (and governments!) with debt is that the debt is 'worth less', is is smaller, too. The bad news is that you can't buy what you could last year, unless your income goes up.

It happens slowly over time, anyway. Someone with a 25-year-old mortgage will find it seems small in comparison with when they took it out. If you can just hold on, live frugally, and weather the current recession, you may find yourself with less debt than it feels like now and a useful commercial property if when things improve.

motherto4 Mon 22-Apr-13 22:41:54

I've never thought of it that way. Thanks for the reassurance. Good to know there's possibly light at the end of the tunnel.

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