Is There No Hope? Consolidation Re-mortgage

UpTheCreekWithoutAPaddle

£13k of the total CC debt is actually my wife's.

Thrugelmir

UpTheCreekWithoutAPaddle wrote: »

Hi Thrugelmir and thanks for the comments.

I understand what you are saying, but deep in my heart I feel I would rather struggle with the DMP than sell up. It would break my heart to sell the house and goodness knows what it would do to my wife and kids.


Slowly beginning to loose hope really.

Thanks again,

Kind regards

Paul

You need to keep matters in perspective. As you are in a far better position than many who end up in with considerable debt. At least you have a way out of your predicament. All that's required is for you to show leadership to your family and have a light bulb moment. No one can tell you what to do but yourself.

Thrugelmir

UpTheCreekWithoutAPaddle wrote: »

£13k of the total CC debt is actually my wife's.

Then a serious discussion over a bottle of wine would seem a good start.

Tackle the problems head on.

pjcox2005

I don't know, I'm just thinking out loud, but actually how important is protecting your credit rating?

For example, I wouldn't expect that you'll be looking for further loan, credit card finance as you'll be trying to clear the debt.

To remortgage maybe slightly harder (can a broker give an estimate as to how much?) but you've got good equity and it will be easier to ensure mortgage payments are made if your debts are under control.

Perhaps worth speaking to CAB, as DMP may allow you to freeze interest with lenders (so lower than adding mortgage interest) and establish a sensible plan and support to tackle the debt.

Thought I'd raise the question as no point being worried about your credit rating if in reality it isn't any good (e.g. due to level of credit) already.

UpTheCreekWithoutAPaddle

Thanksnfornthe input, I appreciate it.

I can see where you are coming from with this, after all, no I don't intend in any way to use credit cards etc if I can get out of this hole so in some respects the credit rating is not an issue. But of course there is the fear of needing a better mortgage deal sometime which would fail.

I have completed the Stepchange system and got a recommendation of a DMP, but it does say 11 years to clear the debt which is rather daunting considering my age! Mind you, I did allow for absolutely everything I could before I arrived at the surplus.

Thank you for your thoughts again, it is really helping me being able to "talk" to folks about this.

Kind regards

Paul.

pjcox2005 wrote: »

I don't know, I'm just thinking out loud, but actually how important is protecting your credit rating?

For example, I wouldn't expect that you'll be looking for further loan, credit card finance as you'll be trying to clear the debt.

To remortgage maybe slightly harder (can a broker give an estimate as to how much?) but you've got good equity and it will be easier to ensure mortgage payments are made if your debts are under control.

Perhaps worth speaking to CAB, as DMP may allow you to freeze interest with lenders (so lower than adding mortgage interest) and establish a sensible plan and support to tackle the debt.

Thought I'd raise the question as no point being worried about your credit rating if in reality it isn't any good (e.g. due to level of credit) already.

Thrugelmir

UpTheCreekWithoutAPaddle wrote: »

But of course there is the fear of needing a better mortgage deal sometime which would fail.

What's your current mortgage product and who is the lender?

UpTheCreekWithoutAPaddle

I am currently with.....wait for it.......Santander!! I have a 2 year track + fix at 3.39 if my memory serves me correct.

Regards

Paul

Thrugelmir wrote: »

What's your current mortgage product and who is the lender?

somethingcorporate

I'd second or third the option of selling, clearing debt and starting again.

You'll still need to consider how you are going to clear a £200k mortgage over the next 12 years or so.

I have 30 years to go and clearing that sized mortgage feels like an uphill battle to me!

getmore4less

UNless you understand and tackle the problem(overspending) consolidation won't help much.
You need to identify (for yourself)
How long has the debt been building?
How much was the overpsend in each year.
What was the overspend on identify and cut out.

Another way to look at it is, if these spends were priority and worth gettng into debt you have been borrowing to pay the mortgage.

What about increasing income get the wife out to work.

Thrugelmir

UpTheCreekWithoutAPaddle wrote: »

I am currently with.....wait for it.......Santander!! I have a 2 year track + fix at 3.39 if my memory serves me correct.

Forget the hype they are no different to other lenders. At the moment they are extremely pro-active. Expect other lenders to follow suit as time passes.

Then your options are limited. Santander are unlikely to offer you an attractive deal.