Feeling Low, don't know what to do

Deepindebt_3

Just letting a few thoughts come out of my head at the moment. I am feeling quite depressed as I am not sure what to do for the best. I am about £15000 in debt and have tried as hard as I can to keep it all on 0% or low life of balance credit cards. All debt is on credit cards, no loans. The mortgage we have is at 6.75% and I know I must remortgage to get a better rate, but part of me wants to consolidate all this debt and just have one mortgage payment. But the other part of me want's to keep the debt and try to pay it off, but I cannot see an end to it. The part of me that want's to keep the debt doesn't want to see the equity in our house go down even further. But the part of me that want's to add the debt to the mortgage is fed up of moving debt and having different payments to make each month, this is getting me down. Maybe a loan to cover all the debts would be a better idea.
I hope all this makes sense.

I am due to visit the bank on Thursday to discuss remortgaging, but am just not sure how to approach this.

Any ideas would be extremely welcome.
x

southernscouser

Deepindebt wrote:

part of me wants to consolidate all this debt and just have one mortgage payment. But the other part of me want's to keep the debt and try to pay it off

I know this is obvious but by consolidating you are only disguising the debt. It's still there and still needs to be paid off! And by securing it to your home you have many more risks involved with it!

Is it that you are struggling with the payments or just don't like lots of different bills each month?

If the latter then direct debits are the way to go and it will be the financially savvy way to pay it. By securing the debts to your mortgage you will end up paying an absolute fortune and you will pay higher interest that a low life of balance card!

I personally wouldn't give another thought to consolidating but thats just my opinion.

sophiesmum_2

I agree with ss, you would be mad to move unsecured debt on low interest to being secured on your home. Not only would you pay much more interest in the long term but you risk losing your home if ever you couldn't meet payments.
Set up dd's for minimum payments on all the debts and then work on paying extra off the highest interest one.
Why not post a soa(see southern scousers sticky at top of page) and see how folks can help.

Good luck
sophiesmum

bank_of_slate

Hi deep,
As others have said, to pay this amount over a mortgage period, even one with a low interest rate would mean paying back huge amounts of interest.
To calculate an approx amount check out https://www.whatsthecost.com snowball calculator
...Linda xx

MSE_Martin

Hi Deep

Have you thought of shifting the cards to life of balance cards (see balance transfer article) while this will increase the rate a little - it will make it more easy to manage as you'll be able to keep one low rate. It is also a lower rate than the mortgage, unsecured (not linked to your home) and you can pay it off quicker if things go well.

Then follow the SS plan of direct debits knowing you can keep them structured.

Best of luck - you're in good hands here. Don't be too down

Martin

dinkylou

Deepindebt,

Please, please, please don't consolidate. This won't really help you and as the others have said, may lead to things getting worse, not better.

Have you posted an SOA on here recently for help and advice? We may be able to see ways to help you cut back etc and then you can snowball your payments to get rid of the debt faster.

Don't let this get you down, there's always help and support on here but consolidation isn't the way to go.

x

Ps It's nice to see you on the board Martin, looks like you're taking your new nerd duties seriously!!

southernscouser

MSE_Martin wrote:

Hi Deep

Have you thought of shifting the cards to life of balance cards (see balance transfer article) while this will increase the rate a little - it will make it more easy to manage as you'll be able to keep one low rate. It is also a lower rate than the mortgage, unsecured (not linked to your home) and you can pay it off quicker if things go well.

Then follow the SS plan of direct debits knowing you can keep them structured.

Best of luck - you're in good hands here. Don't be too down

Martin

Nice to see you earning your title!

Deepindebt_3

Thanks all and thanks Martin for your quick replies. I am managing with the payments , it is just the changing cards when the 0% ends and making sure I am not late with any payments. I tend to make payments using the internet, but as SS said, I will look into setting up direct debits. I haven't had any late payments yet, but the way I am feeling about it all, it is only a matter of time.

Martin I will definitely look into a life of balance, best way for me to go I think. Too many other things going on in my life to keep remembering to transfer all the time.

dinkylou I will get all my info together and post a soa as soon as pos. Probably be tomorrow now.

Starting to feel better already :beer:

Deepindebt_3

Thanks for bearing with me, I have finally got all my figures together

Monthly Incomings:

My salary - £600
Partners salary - £1330
Benefits - £208

Total - £2,138

Monthly Outgoings:

Mortgage/Rent - £836
Council Tax - £82
Gas - £20
Electric - £25
TV License - £10.99
Sky £36
Phone - £13.99
Broadband - £9.99
Food - £220
Car Insurance - £37.5 (two cars)
Petrol - £70
Life Insurance £34.30
contact lenses £8
Water £33.49
House ins £15.79
Childcare £146 (Does cost more in school holidays, about £112 per week)

Total: £1599.05

Halifax CC – Balance £10,318 (limit £14,000) APR 6.95% life of balance, payment £206 per month

Mint CC – Balance £470 APR 0% til July 2007 (Limit £500) Payment £10 per month

MBNA CC - Balance £1977 now gone from 0% to 14.1% (Limit £2000) Payment £45 per month

Morgan Stanley - Balance £3056 3.99% life of balance (Limit £3300) Payment £62 per month

Total on debt £15821 payment £323 per month.

So currently left with £215.95 per month. My husband also has good opportunities for overtime, not every week, so do not want to rely on that. Plus I know that the fixed mortgage I am looking into will get mortgage payments down to £750 per month, so a good saving there.

I have looked into how long this will take to pay and it is about 5 years. I have looked into a loan over 5 years with the Alliance and Leicester and the payments will be about £306 per month and it will all be in one place, which means we can concentrate on saving and reducing mortgage etc. All the credit cards will then be destroyed so we cannot use them anymore.

What do you think about the loan idea and are there any savings you think we can make?

moxie_2

Have you looked at the Sky offer for phone and broadband? It would be cheaper than paying for it all individually. If that's no good because you are tied into contracts, ring Sky and threaten to leave. They usually offer you a deal, like half price for x months. Or you could actually leave, you usually get to keep the box which contains the freeview channels. Worth a try.

Deepindebt_3

I haven't had a look at the sky offer for phone and broadband, is it good? I am not tied into any contracts, have been with them for years