debt consolidation

celticsprite · 31 August 2004 at 6:49PM

hi,

b/f needs extra cash as he is useless at money and is paying a fortune out on cards and loans. have turned him into a bit of a card tart, but really he needs more than this, about £20k to clear off his debts

has a 3 yr capped rate with northern rock, he is 2 yrs in. fancies remortgaging to clear his debt, but I imagine he is tied to the northern rock for the next year at least(?)

he phoned and they are willing to increase his mortgage without another survey, or even someone checking the house, as the reckon house prices have risen.

so, my question is... if the building soc are willing to increase the amount he owes, would you think that they are going to do so at a reasonable rate?

is it worth shopping around?is it possible? maybe for a homeowner loan? the money should help reduce his monthly costs as it should pay off his debt. however, how does he curtail his spending?

I'm sick of being the "voice of reason" and trying to wake him up to the reality of his situation! he had over £100 charges applied to bank account recently, cause he didnt keep an eye on it. (he had money in one of his other accounts ~ another thing, how many current bank accounts does a person need?)

hoping someone can help!

thanks in advance

cs

ps, sorry duplicated this in both mortgage and debt boards as it covers both, and maybe people who can help won't read both!

Spendless · 31 August 2004 at 7:16PM

If you're b/f is as bad with his money as you say,is it a good idea to re-mortgage? If he then doesn't change his ways his house is at risk if he doesn't keep up the repayments on it. Wouldn't he be better off going somewhere like CAB where they can advise him?
Sorry I can't be of any more help.