remortgage or not

dogsrus

hi-I am in a quandry-I need to consolidate debt, partly a hort term bank loan, where the payments are too high, plus high interest credit cards, and I have a tax bill of £8000 looming in jan 2008. (Altogther about 50k) I have a lot of equity in my property (about £60-80k) and am considering remortgaging or a secured loan to get rid of some of the debt and pay my tax bill but I am worried about securing it to my home. I have had one offer but the fees are 7% of the loan and the repayments are nearly as high as my original mortgage but the loan is for half the amount. Even if I live on beans on toast for the next year,it will not sort this out. Is remortgaging or taking out a secured loan such a bad thing-should I be paying 7% fees just because I am self employed. Can anyone offer some advice.I would be grateful.

petetidball

Remortgage/secured loan doesn't sound like a good idea. You have the same debts but more time before it's paid off so you pay more. Without knowing a lot about your situation except what's written, I'd suggest trying to get a 0% credit card (or a low life of balance transfer rate) and balance transfer the cards and loan (if possible). If you could post an SOA ( sticky at top of the first page tells you what that is) I'm sure peiople will be able to offer more help.

Snaggles

Hiya, I've got to agree I'm afraid - at the moment your debts are unsecured, and if your finances are under pressure, and the repayments on the secured loan are going to be high, you are going to be putting your home at risk (particularly when you are self employed, which tends to be, and I'm generalising here so apologies if it's not true for you, less secure).

Why don't you post your SOA (see Southern Scouser's sticky for how to do this) and we can see if we can suggest any alternatives?

Jane_gs

It doesn't sound good. im sure somebody will post an alternative solution...