Is this a good idea - advice welcome!

stickytoffeepudding

We've been on a DMP for 2 and a half years and were going to be debt free in about a further 4 years. We've had lots of slip ups but we've made an impressive dent in a huge debt - 90k down to 59k now. Here comes the really bad bit. Due to unfortunate and unforseeable circumstances, we've had to reduce payments by half in the last few months and we now have creditors constantly on our backs as we are failing to make their minimum payments. Cccs have been fantastic as always.
What we were wondering related to our property and mortgage. We've just come out of a fixed rate deal which had been in place for 5 years @ 4.89% - we now have 5 years overall left on the mortgage to pay and currently owe approx 28k.
Q; We have approx 180k equity in the property - is it worth remortgaging and borrowing enough to get rid of the debts once and for all and then having only the mortgage to worry about? We are paying a variety of interest rates to the creditors ranging from 0 - 19% I think.
Be honest - is this madness?

TVM !

GeorgeUK

Turning unsecured debt into secured debt?
Not something i'd jump at to be honest.

Have you reclaimed charges and checked that you weren't missold payment protection insurance?

If you were to try to add the debt on to your mortgage, i would try to make reduced settlement offers. They may accept alot less, especially if the debt is with a DCA.

notenoughcash

As above, you need to consider how much longer it will take you to pay off the debt if you secure it including the long-term cost adding interest etc but also considering how much you would save if creditors will accept a lower amount for paying them off in a lump sum.

I would think long and hard though