Paying everything off

shaaarn

After a long haul, Im nearing complation of a remortgage which will give me a lump sum in order to pay off my debts.

I have three credit card debts (12K, 11K and 8.5K) along with a Northern Rock mortgage and unsecured loan (27K).

I would love to pay everything off but it looks like my remortgage will cover enough for the northern rock mortgage, unsecured loan and the two main credit cards.

I have heard that its possible to haggle with credit card companies in order to pay less than you fully owe, does anyone have experience of this?

Can this also be done with loan companies such as Northern Rock?

Many thanks in advance

HairyHandofDartmoor

There a couple of disadvantages to what you have done.

Firstly you have converted unsecured debt to secured debt, which means if you can't keep up the repayments your home could be at risk.

Secondly, there is a risk that you could spend on the credit cards once they are empty and then be in even more debt.

I know you may think that you won't do the second thing but lots of us on here have done it and so we know how easy it is to slip into over time.

So my advice is to cut up and cancel the credit cards once they are empty, and then draw up a detailed budget for yourself ,and keep a daily spending diary to make sure that you don't get into any more debt.

MissKJ

I would also recommend joining the mortgage free wannabes as soon as your debts are cleared. Even if you only aim to pay off your mortgage in the same time as your original mortgage, hence not extending the term, this will have huge advantages in saving interest. It will keep your budget focused and offset the disadvantages of putting these short term debts onto a long term debt. Don't stop what you are already doing, in other words.

Me_Myself_2

Be careful paying the NR loan, as you may end up paying all the interest anyway!!

Uptomyeyesindebt

Yep, we did this. Extended our mortgage, paid off all our debts, heaved a sigh of relief and spent a load more!!

Listen to Hairy, he knows what he is on about!! Cut up the cards and budget, budget budget.