Credit Card V Mortgage

M_Wootton_2

I have credit card debts £14k which are from 5 different card companies the minimum payment are £360 per month which i am struggling to pay, but have not yet defaulted on any payments, conversley i have a 68k mortgage on the variable rate and i am only paying £419 per month with 17 years left.

One option for me would to be to borrow the 14k add it to my mortgage and that would only cost me an extra 80 per month on my mortgage, is this a wise move or are there any other things i should be looking at, i have done the swithching cards but that does not work for me as not one card company will accept the whole 14k so i have to split them up, please help.

Kavanne

Although mortgage can reduce your payments greatly, you will pay more in interest because you are paying it over 17 years. Use martin's credit card tool to work out how long your CCs will take to pay if you continue as you are. http://www.moneysavingexpert.com/cards/minimum-repayments-credit-card#calc

You need to work out the total repayable for both methods and go with the one that is cheaper overall.

Would your mortgage lender offer you the opportunity to overpay on your new mortgage? So you could clear the debt quicker? You will save yourself loads if you overpay.

M_Wootton_2

Kevanne

Thank you for the reply, I am not sure if my mortgage lender will let me overpay, one thing i did not mention in my first post is that my mother is selling her house and part of the proceeds from the sale of the house are to divided between myself and my 3 siblings each one of us recieving 17.5k each, if i was to add on to the mortgage i was going to pay it back on my mortgage (which is up for renewal in December 2009)

_Andy_

Have you checked with your mortgage provider if the further borrowing will be allowed to be on the variable rate?