advice please

broxi_2

hi my name is gordon and im new to the forum.
i have been in debt for nearly 2 years now and our debts are a whopping £42,730.14 well thats whats left to pay, we pay £224 a month to payplan and they pay our creditors for us wich is a god send because they have been brilliant!!

but it has got to the stage now where we dont want to be paying all this money owed until Oct 2020 we would like to get our house re-mortgaged to pay the debt off.

so does anyone have any suggestions as to what our best bet would be? im gratefull for your replies.
gordon.

deemy2004

You will have to do the sums i.e. find out what are the costs of ending the agreement with payplan (if any), and the interest rate thats being charged / annual charges etc.

What interest rate are you likely to get on your remortgage since your credit history is likely to bad.

I'd start with payplan first, then approach mortgage company, discuss what your plannign on doign and what they are likely to offer if you decide to go ahead, if the difference between the two is big i.e. overall amount of money saved by switching without a change in the monthlies then it may be worthwhile.

ffs

If you are successful in converting your DMP with Payplan in to a remortgage this will probably increase your costs. Payplan has probably succeeded in freezing some of your interest, whereas your mortgage will not be interest free. If your remortgage is to be paid off before 2020 then your new monthly payments will be more than your current mortgage plus DMP, so why not increase your DMP to pay the £42k earlier than 2020 instead?