Equity to clear debts

roojam

Hi all,

just a quick bit of advise or to get peoples opinions on a dilemma I'm going through.

I have had debt troubles, and coming out the other end (by other end I mean clearing a large chuck and being in a position to start paying significantly more than just the minimum payment on things). I need to move house and have enough equity to put down 20% deposit and clear the remaining debts in one hit.

is this a good idea, or should I sit tight and clear the rest of the debts? I need to move next spring/summer so will only be able to clear around half the debt by then at the most.

I'm happy to go with a slightly higher rate no the mortgage for 2 years whilst my credit score clears up, then go with lower rate.

Thrugelmir

Continuing to pay down and reduce your debts. Will improve the view lenders of you. Minimum payments to credit cards are now flagged on CRA files. This is a clear indication of stretched personal finances.