Need to borrow £13,500, do I get a loan or add to mortgage?

ward.russell

Hi,

My wife and I are looking to pay off our debts of around £13,500 and were wondering if it would be cheaper to add this amount to our mortgage or if it would be better to get a loan?

Our mortgage is up for renewal in August, but the problem is we have a 100% mortgage and I am fairly sure that the value of the house has gone down!

We currently have two credit cards each and a loan of around £6000. Would it be cheaper to keep switching our cards to 0% deals instead of getting a loan?

Any help would be most appreciated!!

Russ

flea72

ward.russell wrote: »

Would it be cheaper to keep switching our cards to 0% deals instead of getting a loan?

tbh you seem to be clutching at straws already, financially, so swapping around to get cheap finance, can sometimes just make the situation worse.

you need to find out, why you need to so much credit, and try ways of decreasing it, without replacing it with more debts in the future

You should get yourself over the debt-free-wannabe board and post a statement of affairs, before you consider doing anything with your current debts.

Flea

kindofagilr

I dont think now is the right time to be wanting to pay off a loan and credit cards.

As long as you are paying at least the minimun then I would think you should just stick it out till the country is in a better state.

Robert_Sterling_3

You are driving towards the edge of a cliff.
Stop the car and turn it round.

i.e. Spend less and reduce yor debts

ward.russell

Appreciate your comments be we are just trying to consilidate our debts so that the montlhy payments are affordable. We are not trying to be debt free, just trying to manage our debts to prevent it getting worse!

Thanks

CLAPTON

ward.russell wrote: »

Appreciate your comments be we are just trying to consilidate our debts so that the montlhy payments are affordable. We are not trying to be debt free, just trying to manage our debts to prevent it getting worse!

Thanks

you need to be clear what you are trying to achieve.

there is a big difference in trying to clear your debts by the cheapest means (i.e. lowest interest rates and maximum payments )
and reducing the monthly payments even if it costs a lot more

post up the details of each debt
amount, APR, monthly payment
and how much you can afford each month in total.

flea72

ward.russell wrote: »

Appreciate your comments be we are just trying to consilidate our debts so that the montlhy payments are affordable. We are not trying to be debt free, just trying to manage our debts to prevent it getting worse!

Thanks

but having monthly payments you can afford, and trying to be debt free, go hand in hand

you have obviously overstretched yourself, so thats why you need to lower the monthly payments

being debt free, isnt just about clearing loans/cc, its about learning to manage your money, so you dont get to the situation you are in now

So you dont ever want to be debt free??? you always want to spend more than you have? Tbh, as said above, you are reaching the cliff edge, if not already teetering

Please visit the debt-free-wannabe board, they can give you ideas on how to bring down what you owe, sensibly, without the need to keep juggling your debts

Consolidating loans is nearly always the wrong route. Because unless you learn to stop overspending, ? ....?... ?.... years from now, you will be in exactly the same position, but needing to consolodate, your consolodated loans, iyswim

Flea

Stubbarama

By reducing the payment your are more than always increasing the time to clear it.

I went through years of doing it, remortagage, secured loans, credit cards the lot.

I was fortunate enough to have a lightbulb moment a few years ago, and with a lot of overtime, hard work and sacrificing, have now cleared all CC's and unsecured loans, Even the wifes.

look at it like a diet, start cutting things out but dont go over the top, dont make yourself miserable as that will be the quickest way to fall back into it.

But at the end of the day whatever is said here, only you can start to make it happen.

Good luck though. :beer:

ankor34

In order to refinance your mortgage , don't you have to have equity? If your house has been devalued then you can not get a loan against your house cause you have no equity. Doesn't have nothing to do with credit , it has everything to do with your ratios. No one should give you a loan, it would be irresponsible with the amount of debt you have and to add the orig loan amount compared to the value of your home at present. You would be stretched to the max. If you can get a loan with your ratios , congratulations on the road to default village, cause that's exactly the kind of lending that got the economy in this condition.

Obi167

I have consolidated my debts (a few times!) using loans to pay off more immediate debts, it was great relief for a while, as each time I was fluid again.... until I looked at the bigger picture, first consolidation was £4000, then it was 6.... then 9. Its a temporary solution to a permanent problem, like someone said above, you need a light bulb moment. I'm now down to my last 2 grand