An update and advice needed

Debt147

Hi All

Some of your may remember that I posted on here a few months ago regarding a debt of over £20k that I had got myself into, mainly through online gambling. I was keeping the debt a secret from my fiance which some of you thought was a bad idea but I genuinely did think I could spare him the stress and get things sorted on my own.

Anyway, I managed to get myself into even more debt through basically trying to pay minimum amounts off the c cards and being charged ridiculous interest and I felt I was suffocating, was really affecting my life, not just the debt but also the lie I felt I'd been leading keeping it from my other half.

So... I decided to take the bull by the horns so to speak, I decided enough was enough and I had to face up to this and have a 100% LBM if I was ever going to move on so I have now told my fiance who after initial upset/anger wants to help and support me.

A friend put my in touch with an independant financial adviser who has suggested that we swap our mortgage and go with Halifax who will give us an unsecured loan on top of the mortgage to clear the debt, I'll be paying this off over the life of the mortgage (except I intend to make overpayments where possible to shorten the life, I have been informed I can do this without penalty). So what I want to know is if people have had experience of doing this and whether you guys think I am doing the right thing? Obviously it means my debts are being transferred into joint names with my fiance but he is happy for this to happen.

I would like to point out that I am no longer gambling and have no desire whatsoever to do that ever again (the thought makes me feel physically sick actually)

mrsspendalot

the general advice is never to consolidate debt - but I guess it depends on the figures, etc.

well done on 'coming clean' about your debt - that must have been a weight off your shoulders?

did you previously post a SoA to see if people on here could make you any savings? if not, that might be a good idea now before you consolidate.

Debt147

Thanks for the quick response

I didn't post a complete SOA so will get to work on this and post it on tonight and will post this on.

What I owe is quite horrific, it's spread over so many different things and obviously currently paying a lot of interest, basically pretty much all my wages are currently going on paying the mortgage, bills and my debt, can't carry on the way I'm going.

I did look into a DMP through CCCS but I think this consolidation option would suit my circumstances better

rayday2

If you have learnt your lesson consolidation in your case could work.

I am glad you told your partner relationships where you don't share things good or bad can lead to problems. Well done!

nickelodeon

A lot of people on here have tried consolidation and found that it didn't work as they just increased their debt again.
For it to work you have to be very disciplined, obviously you have stopped the gambling, but you need to get rid of all your credit cards, get a budget and stick to it.
Have you had a look at the snowball calculator to compare how long it will take to pay and the interest you will be charged by adding it to your mortgage compared with carrying on as you are?

HairyHandofDartmoor

I agree with Nickelodean, consolitation can be dangerous unless you are very disciplined. Without using wishful thinking do you really think that you have you spending under control? Congrats on kicking the gambling habit, that is a fantastic achievement. Can you now be as disciplined with the rest of your spending? What is the APR on your loan and the interest rate on the new mortgage? Is the loan completely seperate from the mortgage as you say it is unsecured and what is the period of the loan?Well done on coming clean to your fiancee, that was definitely the right thing to do.

twinklie

Congratulations on coming clean and facing up to your problems. The best of luck to you.

mon1o

hiya! We consolidated our debt and we were not disciplined so ended up in a sorry state of debt again except this time we had the cc's and a consolidation loan to pay off too which is taking a long time.

I would never consolidate ever again in my life but for you if you can stay strong and keep away from the cc's and the gambling it could work. Good luck!

Monica x