Remortgage to consolidate debt???

Louise4793

Hi, i am considering remortgaging my property to pay off two loans that i currently have (amount stands at just under £5k).

I live alone and think that the repayment under a remortgage would be much easier than the 3 repayments i make every month- £410 mortgage, £153 loan, £150 loan = £713 a month BEFORE everything else!) i also want to make improvements to my property such as new kitchen, bathroom and windows through out(eventually) and think the remortgage could help me pay off the loans, pay for one of the improvements and also help me save up for the other work i would like doing as its so hard to save at the moment as most of my money goes on bills.

my credit rating is not great, and i have missed a couple of the loan payments recently hence me wanting to get rid of them before things get too out of hand!

can anyone help me??? much appreciated in advance... x

Dan_Collins_2

Before you go borrowing and paying them loans off, be aware that the longer you pay that money back over the more you pay! Sometimes you have to bite the bullet to make your life easier but just make sure you think about what you are doing. You could take part of the mortgage over a shorter term to pay the debt consolidation off faster but meeting your monthly budget.

Good luck!

meme_3

Dan_Collins wrote: »

Before you go borrowing and paying them loans off, be aware that the longer you pay that money back over the more you pay! Sometimes you have to bite the bullet to make your life easier but just make sure you think about what you are doing. You could take part of the mortgage over a shorter term to pay the debt consolidation off faster but meeting your monthly budget.

Good luck!

Yes but if you don't consolidate, you could end up losing everything. This is a finely balanced dilemma.

I used to pay off 'as much as I could afford' (leaving myself with nothing in the contingency fund) because everyone said that this would reduce how much I paid in the long term. Inevitably, though, something would crop up, like needing new tyres on the car (at £70 each) which I would have to buy to get through the MOT. Result, overdraft exceeded, or credit limit exceeded, resulting in charges which just accelerated the problem. Therefore needed to consolidate every 3 years or so......

So, if you consolidate, then use the available credit you have again, the cycle repeats itself, but just gets worse!

Consolidation only works if you have the necessary self discipline. If you're just going to breathe a sigh of relief and bury your head in the sand, leave it alone! TRUST ME, CAUSES MORE PROBLEMS THAN IT IS WORTH.

IF YOU REALLY NEED TO CONSOLIDATE, JUST STOP SPENDING!!! Keeping up with the Joneses does not work - they're quite possibly up to their eyeballs in debt anyway.....

Last time I consolidated, I accepted this fact. Now happy, saving loads, and overpaying the mortgage. Nobody treats me any differently to before!!! Except that I possibly have more friends, because I'm happy to accept myself as myself, not trying to prove that I'm doing so much better than everyone else.

herbiesjp

Great post :beer:

maninthestreet

Think long and hard before converting un-secured borrowing to secured borrowing on the property you live in.

Dan_Collins_2

meme wrote: »

Yes but if you don't consolidate, you could end up losing everything. This is a finely balanced dilemma.

I used to pay off 'as much as I could afford' (leaving myself with nothing in the contingency fund) because everyone said that this would reduce how much I paid in the long term. Inevitably, though, something would crop up, like needing new tyres on the car (at £70 each) which I would have to buy to get through the MOT. Result, overdraft exceeded, or credit limit exceeded, resulting in charges which just accelerated the problem. Therefore needed to consolidate every 3 years or so......

So, if you consolidate, then use the available credit you have again, the cycle repeats itself, but just gets worse!

Consolidation only works if you have the necessary self discipline. If you're just going to breathe a sigh of relief and bury your head in the sand, leave it alone! TRUST ME, CAUSES MORE PROBLEMS THAN IT IS WORTH.

IF YOU REALLY NEED TO CONSOLIDATE, JUST STOP SPENDING!!! Keeping up with the Joneses does not work - they're quite possibly up to their eyeballs in debt anyway.....

Last time I consolidated, I accepted this fact. Now happy, saving loads, and overpaying the mortgage. Nobody treats me any differently to before!!! Except that I possibly have more friends, because I'm happy to accept myself as myself, not trying to prove that I'm doing so much better than everyone else.

I agree! If it is a case of going under forget the kitchen etc for a while and get the finances sorted!

Louise4793

thanks everyone... i did forget to mention that i have tried to speak to my loan lenders re reducing paymnets for a short while but with no response but thats a whole new thread...

will go away and have a good hard look at my spending (again!)

thanks again, much appreciated! xxx

DawnW

Why not post your SOA on the Debt Free Wanabee board? You will gets loads of supportive feedback and suggestions for how to cut back.