Debt consolidation

royg1978

I am looking to find a new mortgage lender. My financial adviser has come up with an idea of combining existing debt for my credit card and a personal loan into my new mortgage. This way I get a much cheaper interest rate than my loan and credit card are at. Just thought I would post something to see what peoples thoughts are?

TadleyBaggie

Bad idea. Firstly turning unsecured debt into secured debt is not a great idea. Secondly the interest rate may be low but you will be paying over a much longer period and so may end up paying as much or more interest in the end.

foxy-stoat

Drawing equity out of your home addresses one issue of your debt, but doesn't address the reasons why or how you got there in the first place.


Do make sure you cancel your cards/loans and budget properly going forward - or reduce your spending, sell stuff, over pay the highest interest cards and do the PPI reclaim thing and 0% shuffle first, before risking your home to clear unsecured debt.

Thrugelmir

What was the purpose of the loan that you took out?