House equity is large - but unsecured debts

[Deleted User]

Outstanding mortgage is £130K but house is worth £230K. We were lucky to buy at the right time and lucky to have a really good tracker mortgage.

Outstanding credit cards debts are just under £20K. All of them on low rate (max 6.9%). Every month we;re paying a bit more than the minimum payments and paying around £550 a month off (interest is around £100 a month).

Our income is around £3100 net, so, in theory we're ok paying this amount off.

It does worry me a bit and obviously, its not ideal, but should I be a little less concerned because of the equity in our property?

DGJsaver

Not really sure what your asking ?

The equity only really helps if your planning to sell......but you sound like your managing well in any event , and 6.9 LOB seems OK

Dont go securing a loan on your house to pay the unsecured debt off for christs sake

RAS

DGJsaver wrote: »

Dont go securing a loan on your house to pay the unsecured debt off for christs sake

Please, please pretty please.

WASHER

Hello again paul, I seen to remember a thread recently started by you, asking how much debt is a reasonable amount of debt.

Can I suggest you post an SOA (incomings and outgoings) and we will see if we can reduce your outgoings.

This is obviously bothering you and we want to help, but we need info to do that.

Having equity in your home is only great if you want to sell and downsize in order to repay your debts, otherwise it doesn't matter whether you have £100K of equity or £10K of equity, you still have debts which are costing you £100 per month in interest.

DGJsaver

Lol , exactly RAS

[Deleted User]

WASHER wrote: »

Hello again paul, I seen to remember a thread recently started by you, asking how much debt is a reasonable amount of debt.

Can I suggest you post an SOA (incomings and outgoings) and we will see if we can reduce your outgoings.

This is obviously bothering you and we want to help, but we need info to do that.

Having equity in your home is only great if you want to sell and downsize in order to repay your debts, otherwise it doesn't matter whether you have £100K of equity or £10K of equity, you still have debts which are costing you £100 per month in interest.

You';ve got a good memory. Yeah. I'll do a SOA.

It does bother me but not my wife whch is why I ask