Debt Management Plan vs Remortgag - Advice Needed

NJP01

Hello Newbie here.

I have £22k of debt.

I have been making (at least) the minimum repayments each month. However and obviously, with interest, the balances never seem to go down much if at all.

I have been in touch with Payplan and they have advised either a debt management plan on remortgaging or a secured loan.

For me, remorgtgaging would be the best option. My house is worth approx £175k and we have a mortgage of £64k.

My husband disagrees and thinks a debt management plan would be the best option as he thinks it will be cheaper. I am loathe though as it will affect my credit rating.

Advice on the pros and cons on both options would be welcome.

quantic

A friend of mine was in a very similar situation to what you currently are in, she did exactly what you are planning and remortgaged for 28k, paid back the debt, then did the same again, 22k this time, now she's 45 with practically a 100% mortgage again and guess what? She's run up those CC's and her OD again...

Personally I'd advise against remortgaging for this purpose, same goes for loans really. I think your husband is on the right lines with the debt management plan, if you can afford to do that.

Best of luck!