We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Should I get a mortgage to clear my credit cards?

Hi. I've a large amount of money on credit cards (about 50k), but I don't have a mortgage. Should I take a mortgage to clear the cards? The difference in monthly payments should be huge. I know I'd be moving from unsecured to secured debt but I really can't see any other downside. Thoughts please. Thanks.

Comments

  • beecher2
    beecher2 Posts: 3,677 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    I take it you own your own house which is mortgage free, and you have an income to support a mortgage of 50k?

    I'd advise posting on the Debt Free Wannabee forums for help - you can post a Statement of Affairs and get help in tackling your debt.
  • No. See CCCS about a debt plan. Having no roof over your head is worse than a damaged credit history.

    You need to address the source of the debt. Not create wiggle room to add to it.
    Act in haste, repent at leisure.

    dunstonh wrote:
    Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Should I get a mortgage to clear my credit cards?

    Can I get a mortgage may be a better phrase.

    Ideally you need to tackle the root cause of the problem. So a visit to the DFW board is the best place to start.
  • churchrat
    churchrat Posts: 1,015 Forumite
    The problem would be, even if you could get a mortgage, not spending again on the credit cards. So many people "consolidate" their loans, saying I will never do that again, only to find themselves in an even worse position than before.

    If you can afford to pay the cards then pay them as much as you can as quickly as you can. It is cheaper in the long run.
    LBM-2003ish
    Owed £61k and £60ish mortgage
    2010 owe £00.00 and £20K mortgage:D
    2011 £9000 mortgage
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.6K Banking & Borrowing
  • 254.4K Reduce Debt & Boost Income
  • 455.5K Spending & Discounts
  • 247.5K Work, Benefits & Business
  • 604.3K Mortgages, Homes & Bills
  • 178.5K Life & Family
  • 261.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.