How easy is to change mortgage to a smaller house to free up cash to pay debt

PennyLessons

Advise please...

I currently have a scary amount of personal debt and have agreements in place to pay off the money I owe. However this will take 10 plus years at the current rate. I live in a three bed house and was considering moving to a much smaller property to release some of the cash to clear the debt.

How easy will it be to move my mortgage to a new property if my credit rating is bad?

My current mortgage is paid and up to date.

lynzpower

hi there- you made it over

Are you on a DMP? If so who with?

And I take it you are thinking of selling up to clear your DMP?

We usually recommend doing an SOA to see if theres anything that you could cut back on, to free up extra money ot chuck at the debts.

Lynz
x

PennyLessons

I have arranged repayment plans with each of my creditors and if I moved I would have enough money to repay the outstanding amounts. Figures below - thanks for your time


Current Debt

BarclayCard £6,421.00
J Lewis £5,000.00
AbbeyCard £4,303.00
Sainsburys Gold Card £4,250.00
Egg Card £3,846.00
Marks and Spencers £2,000.00
HoF £1,726.00
Next £1,328.00
sofa £1,294.58
Debs £906.00
Egg Loan £6,949.00
Lloyds Loan £830.00
Black Horse £11,000.00
Total £49,853.58

Income - £2090 per month

Outgoings:

Secured Loan 355.00
Mortgage 850.00
Council Tax - inc extra to cover arrears 168.00
Loan - Sofa 60.00
Abbey CC 40.00
Loan - Egg 50.00
Egg CC 25.00
Debenhams 10.00
John Lewis 25.00
Barclaycard 25.00
HoF 15.00
Sainsbury CC 25.00
Home Phone 21.00
Next 10.00
Water 22.00
gas & electric & water 100.00
housekeeping 200.00
Petrol for Work 50

Total 2051.00