PLEASE LOOK ...remortgaging to pay off debts... good idea or bad?

mountainofdebt

It might be worth having a look at your mortgage deal to see if you can remortgage (for the present amount outstanding though!) to see if you can lower the repayments. Use any saved money to throw at the more expensive debt.

If you really don't want to get rid of SKY then monitor the channels you watch. Then work out if you can reduce your Sky costs by ditching the unwatched channels.

Reduce the mobile phone bill .......£60 a month - ouch that hurts!

Make a shopping list and stick to it - supermarkets just love us to make those impluse buys!

kuohu

Remortgaging does not "pay off" your debts.. it just moves them. And no, I would not do this unless there's no other option.

I agree with all the others who say that there's a lot of scope for cutting back on your outgoings. If you do follow the advice given and start budgeting your spending (and stop being tempted by new TV's or a dining table) then things are sure to get better. I'd advise trying this for 6 months and *then* deciding whether to remortgage or not.

Best wishes and good luck.

jpwhittle

thebaddeleys wrote:

Hi,

We have a repayment mortgage of £158000 at the moment and our house is worth £185000. We have £25000 of debt in various different loans all with an average of 7% apr. At the moment if my husband doesn;t earn any commision at work we end up being £400 short every month which is eating into our overdraft that is nearly at its limit. so we need to do something fast as we are going further and further into debt every month. should we remortgage and release the equity in our home to pay off the £25000 as is we add it onto the mortgage it will only cost us £142 a month whereas at the moment it costs us £600 plus which we can't afford. I don;t currently work as i;m at home with our one year old son. We do get all the tax credits etc that we are entitled to. should we move house to pay off debts and use the equity that way or remortgage, are there any other options? we need your help and fast! thanks.


House hold bills

Mortgage- 975.4
Mortgage Life cover- 24.38
House insurance- 30.35
TV licence- 10.59
Child maintenance- 270
Council Tax- 119
Talk Talk- 20
Tiscali- 15
Gas / Electric- 43
United Utilities- 39.68

Extra items

HFC (Dinning Table) 0%- 23.17
David Llyod gym- 55 give up the gym pass as said before its not essential
Sky- 36 did you know telewest ntl do a package for your telephone cable and broadband for £30 a month? im going on it in 5months when i move
Blackhorse (TV) 0%- 43.77
Sofa (Blackhorse)- 50
Car (blackhorse)- 205

Tesco car insurance- 42 double check your paying the lowest by using moneysupermarket.com

Loans

Abbey Loan (9.6%)- 163.13 can you get these to combined at a lower rate
Tesco loan (7.3%)- 252.09 possibly?
O2- 60 is this monthly? go payg

Food- 200
Gold HSBC card- 35


Totals Outgoing-2627
Total income- 2891.24

the figures above may be slighty out as they are off an old post i've done before but from my numbers above them you get the idea!

please help us with any advice many many thanks x

hope this helps a litle im no expert though so someone might have other ideas?

FabDee

Hi

I just wanted to say don't remortgage we did in March and intended to pay off 2 bigs debts with the extra money from remortgage, but same old story we didn't and spent the money on other things, rubbish as I couldn't tell you what we did with it to be honest. Anyway, we now have to pay the big remortgage back and the monthly payments on the debts we should have paid off. We are now starting a new year with things in better order, apart from these storms which has taken about 3 big tiles off the roof and smashed into next doors car and dented the door that it will now need a new door on there car. Oh well got to claim on buildings insurance if I can, and pay excess.

Happy New Year.