Stick with debt or increase mortgage?

ITnerd

Afternoon,

I have personal debts of £13k and a mortgage of £40k. Should I increase my mortgage to clear my debts?

I am 2 years into my 5 year fixed rate 25 year (4.49%) mortgage. My debts consists of £10k on a Cahoot loan (6 months into a 4 year loan at fixed rate 5.8%) and £3k on an MBNA card (0% for 9 months).

Re-mortgaging would free up more money a month, but is it a good idea?

My disposable income is around £450 per month.

Cheers,
ITnerd.

*Sparkle*_3

In short..... nope!

You'll end up paying way too much interest, plus if you havent hit your lightbulb moment you can run the risk of building up the debt again!

crystal_clear

I agree with Sparkle dont do it.
you have £450 disposable income why not put £320 p/m of it into an ISA then when you get 3K pay off mbna car in full that way you collect interest to pay of interst free card.
Also is the Cahoot flexible loan can you pay more on it or is it fixed? if flexi your ok to pay lump sums if fixed its harded. Otheres can advise you better on this than i can.
Hope its of some help