Do I remortgage or not to rid me of debt ?

studentmum_3

I am hopefully starting uni this sept and have 4500 pounds on interest free loans at minute. I live week to week on tax credits thank god they exist and generally go overdrawn by about 200 pounds each month . I am due to give up work and I have this debt which is worrying me ! I can try and pay off as best i can over next few years but I have 2 kchildren and am on my own , so its going to be hard. I have the opportunity to remortgage in may and consolidate my debts but I just dont know if I am doing the right thing !! I dont know what to do ?? Help - have not done a budget yet as am too scared .

mountainofdebt

NO NO NO NO

Do not consolidate under any circumstances - because I can almost guarantee that you will soon run up the debt again and be in an even bigger hole than the one you think you are in now.

How do you plan on financing your time at uni ? Are you planning on working during your time at uni?

You really need to post your budget on here - all your income and outgoings and so that we can a) stop you going overdrawn each month and b) work out a way of reducing your debt so that it is as low as possible for September.

Welcome to MSE by the way!

forsya

Hi Student mum

Good on you for going to Uni with 2 kids too! Can I ask why you are stopping working soon if you are not startiing Uni until Sept??

Also, will you be able to get by without working whilst at Uni? Can Uni give you any support?

I would try and get that debt paid off rather than remortgaging, but I do not have a mortgage, but others will be along to give advice to you.

If you could keep working for a bit and pay off the debt, I think that would be best.

lynzpower

Just to add, in my opinion moutainofdebt has it spot on!

If you post your SOA here, there will, IM sure we can get you into a better situation.

disco_diva_3

NO, mountainofdebt is right on this one im afraid

please dont even consider doing this, i only say because i've done it three times already, and each times raked the debts straight back up :eek:

If the loans are interest free, why would you need to consider put them on the martgage and paying interest?