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I have debts spread across several credit cards, some which have run out of their 'interest free' offers. I am due to re-moretgage in December, would it be sensible for me to try and take out more money on my mortgage to pay off these debts, or would I be better consolidating them into a low interest loan and paying them back as one monthly sum?
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0Hi,
If you are remortgaging you could try having a look at the Fool [url]remortgage calculator|http://www.fool.co.uk/mortgages/mortgage-calculator/remortgage-calculator.aspx to see how much your payments will change by.
You could also [url]speak to one of our mortgage advisors|https://www.fool.co.uk/mortgages/enquiry/mortgageenquiry10a.aspx? for fee free advice about the whole of the mortgage market.
Posted on 25 September 2008 |
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414Do not consider remortgaging until you have looked at the alternatives! Many people in debt think this is a good solution only to find that it ends up being a disaster.
A larger mortgage will mean that you have a higher loan-to-value ration which may well mean that you are paying a higher interest rate on the whole of your mortgage.
These Q&As are not a suitable means for discussing debt problems. I suggest that you should post on TMF's Dealing With Debt board here: http://boards.fool.co.uk/Messages.asp?mid=11238633&bid=50079 to find out what your best options are now.
Posted on 26 September 2008 | Love 0 loves
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0The answer to this question very much depends on the details of your situation -- so I agree that discussing this on the [xurl]Dealing With Debt discussion board| http://boards.fool.co.uk/Messages.asp?bid=50079[/xurl]might be a good idea.
If your debts run to a few K my thought would be that a lifetime balance transfer might work for you, if you can get one. This will mean transferring your debts to a credit card with a low rate of interest, which will stay low for the entire time it takes you to pay off your debt.
In this scenario you will avoid the annoyance of your 0% deals running out -- and a low-rate credit card is generally a cheaper option than a personal loan at the moment.
But, if you were to do this, you would need to ensure that you structured repayments to the credit card in a regular way to make sure your debts did diminish. You'd also need to be disciplined enough to get rid of all your old cards, and avoid spending on your balance transfer card at all costs. Otherwise, you'll find yourself hit by [xurl]negative payment hierarchy|http://www.fool.co.uk/news/your-money/credit-cards/2007/10/11/296-credit-cards-use-this-trick.aspx?terms=negative+payment+hierarchy[/xurl].
As I say, this is one option worth considering -- but make sure you do the right thing for you by investigating lots of different options using Fool articles and our discussion boards.
Best of luck!
Posted on 26 September 2008 | Love 0 loves
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