Re-mortgage Advice

jools10

I am currently trying to sort out finances and reduce monthly outgoings.

Am married with two children. Current unsecured debts of £17,000. Debts arose mainly from property improvements coupled with maternity leave. Wife now working part time.

Value of house £200,000 and current mortgage £70,000. Annual salary £39,000.

I know everyone seems to be against consolidating but at the stage we are at at the moment, it seems the best option.

Would you anyone else consider increasing mortgage to restructure finances. Our mortage is relatively low compared to value of house.

Currently on a tracker rate with Halifax which comes to an end within the next month or so. Looking to increase mortgage and fix the rate until 2013. Repayments would be less than we were paying six months ago on our current mortgage.

mummytofour

Dont do it, its never a good idea to change unsecured debt into secured.

fatbelly

I wouldn't do it either. I've seen too many casualties from going down that route.

But we can't give focused advice without a statement of affairs

Bismarck

with a salary like yours and comparatively low mortgage payments, a few changes and realignments on your part will enable you to knock those debts down sooner rather than later without the added risk of securing them.

JoolzS

Complete the statement of affairs (link posted a couple of posts above this one) and you'll probably realise that you can pay off your debts without consolidation.

However, if you do need to consolidate then it sounds as though you are in a good place - but only if you absolutely know that you will never, ever run up that sort of debt again.

It took me three trys to "absolutely know" and all of those were for far less than £17K - if you aren't sure then don't consolidate. I was bailed out of around £600 debt by my mum when I was about 18. I sort of bailed myself out of debt when I was in my late 30s by remortgaging. I'm now in my early 40s and still get into debt but I tend to have an escape plan. I also, very importantly, don't have children so my actions only have consequences on any adults who chose to live with me.

You have children - you have consequences.

17Kdebt + 39K income is really solveable if you listen to people on this forum and do a bit of reading.

Julie