£40,000 debt at upto 16.9% - worried sick Newbie!

phil999_2

for me i had to think long and hard think about my situation and only after understanding it was my fault and my mess but not helped my the way we both lived and that i needed to change the whole way both me and my partner lived our lives. And thanks to this site we have started that process but it is a long and hard process to go through but hopefully will be worth it in the end.

katoe

In an ideal world, of course you should not put your consumer debt onto your mortgage. But looking at your situation, I think it is the best resort to clear your debt.

At the rate your going,40K credit card debt, would amount to £800-£1000 per month on minimum payments alone and who knows when you'll clear this up just by paying the minimum payment. And 800 -1000 is very heavy monthly on your outgoings.

If you put it in your mortgage, the monthly would just be an increase of 184 pounds a month(5.5% APR) as opposed to £1000 a month. Although this is an interest only mortgage, I guess, what you need to think now is your cash flow monthly. Then, like what I said, when you have saved up, try bringing down your mortgage little by little, thus paying off your cc debt as part of your mortgage.

The thing is, everyone says, do not put it in your mortgage, but no one has actually adviced on how you will pay for this 40K debt.

Apple_2

katoe wrote:

The thing is, everyone says, do not put it in your mortgage, but no one has actually adviced on how you will pay for this 40K debt.

I understand what you are saying maths-wise but ............. the OP doesn't need to pay for the 40K debt - it's her boyfriend's not hers. He should be on here asking that question.

Thefunkygibbons

I would sort your side out, including the £5k if necessary

However, do not consolidate into the mortgage

You would be better letting him default, that could be the wake up call needed to change the behaviour

Harsh, but sometimes a stiff wake up call is needed

katoe

You could not make him default as you are financially connected. If he defaults, it might have an adverse reaction on your credit file.

southernscouser

Just wanted to throw my pennys worth in to the hat!

The problem with remortgaging is you are then turning unsecured debt into secured debt. If ever you had trouble paying the increased mortgage you risk losing your home.

Also, you (well your OH) have transferred debt to your mortgage once before and then run the debt up again! If you remortgage again now what is to stop him doing it again. Eventually you won't be able to remortgage, have huge debts and will be under real threat of losing your home!

The only way to sort this out is for your OH to sort himself out. You can do all the right things financially but if he doesn't realise he has a problem it is pointless as it will just give him license to run up the debt again.

I personally would threaten him. Tell him unless he sorts himself out and realises he is living beyond his means then he risks losing you, let alone his house!

Show him this thread. Make him realise how much this affecting you. Until you get through to him there isn't alot you can do! I know this might contradict what other people have said but you are in a vicious circle by remortgaging! Unless you break that circle, ie his spending habits, you will keep going round and round until you hit financial ruin!

I don't mean for this to sound harsh and all doom and gloom so I apologise if it does!

Take a look at this thread and post back the information asked for. And make your OH see how this is affecting you. If he loves you he won't want to hurt you and will sort himself out!