£5'000 debt how to get rid of it?

diane70

HI
I am married with two kids and we have got ourselfs into £5'000 debt (credit cards, no interest though) , we have a mortgage of £37'000 (20years) and was wondering if we should get a loan or re-mortgage? ( house worth about £95,000) we don't know where to start and what re-mortgage actually means. we are at a fixed rate on out mortgage till 09 cant go over 6. something etc.

we don't know anything about all this so I hope someone can help ASAP

Thnaks
Diane

immoral_angeluk

If your 5k debt is unsecured and all at 0% I would personally look at budgeting to pay it off quicker rather than turning an unsecured debt into secured by remortgaging. Have a look at southern scouser's first time posters thread about SOA's to give you an idea where you can cut down

Burlesque_Babe

Hi there - as immoral_angel says if this is all at 0%, then with lots of budgeting and looking at your outgoings, this could be paid off without incurring unnecessary interest by adding to your mortgage or as a loan.

If you pop up a Statement of Affairs, that will be a good starting point.

If you have any bank or credit card charges, look to start claiming them back as well.

TAG

Have to say I agree with immoral_angeluk. She's given you some good advice.

diane70

HI Thanks all, I would pay it all back but we want to go to my brothers wedding in cyprus next year and need to start saving asap, unfortunatley all the money coming in is for the credit cards so not much left to save for wedding and days out for kids etc.

we have two credit cards which have o% one till oct and one till april next year, also we need stuff doing on the house and theres just not enough coming in to pay all (cards, house,kids,wedding etc)
how does remortgaging work or would we be better of with a loan?

Thnaks for your help
Diane

immoral_angeluk

diane70 wrote: »

HI Thanks all, I would pay it all back but we want to go to my brothers wedding in cyprus next year and need to start saving asap, unfortunatley all the money coming in is for the credit cards so not much left to save for wedding and days out for kids etc.

we have two credit cards which have o% one till oct and one till april next year, also we need stuff doing on the house and theres just not enough coming in to pay all (cards, house,kids,wedding etc)
how does remortgaging work or would we be better of with a loan?

Thnaks for your help
Diane

Honestly it may look bleak now but I guarantee you can tweak you budgetting so that you can cut your outgoings and have more money to play with.... please before you look at remortgaging or loans do a full SOA and post it up here as we'll be able to tell you ways to cut down your outgoings...

oops_a_daisy

diane70 wrote: »

HI Thanks all, I would pay it all back but we want to go to my brothers wedding in cyprus next year and need to start saving asap, unfortunatley all the money coming in is for the credit cards so not much left to save for wedding and days out for kids etc.

we have two credit cards which have o% one till oct and one till april next year, also we need stuff doing on the house and theres just not enough coming in to pay all (cards, house,kids,wedding etc)
how does remortgaging work or would we be better of with a loan?

Thnaks for your help
Diane

Hi Diane and welcome to DFW.

You will probably not get many people on here that would suggest that you take out interest bearing debt to pay off 0%debt ( ie increase your mortgage or take out a loan ). If you were to re mortgage you would get penalty fees to re mortgage and would in effect be putting interest free debt onto interest paying debt secured on your home. You would still have monthly payments to make to a loan or increased mortgage payments but it would take a lot longer to pay off and cost you a lot more.
Is there any way you can make some cut backs by getting cheaper providers of essential items ? if you put your statement of affairs on here you will get some good advice on what to do. Is there any way you can earn more money ? are the home improvements essential ?
There is always some good easy ways to cut back without missing out and you really will get all the help you need here.
Your debt doesnt seem too high so Im sure there are different ways to get you to save enough to go to Cyprus