borrowing more on mortgage

mrs_b112

MatthewAinsworth wrote: »

Be aware that unless you make mortgage overpayments, you'll be paying this debt more slowly than if you just keep shifting between 0% cards, and if you're paying interest, even at a low rate, that long period of time can compound it into more

0% balance transfer cards best, if not then remortgage but overpay/ invest after building an emergency fund

If we went for it our plan would be to over pay the mortgage, which would still potentially be cheaper than our current repayments.

mrs_b112

Thrugelmir wrote: »

If you seriously want to make inroads into your debt levels. Then pain is inevitable by changing ones lifestyle for a period of time. Nothing in this life is for free. A short period of austerity may accelerate the process. There's plenty of things to do that are free.

Don't despair either. Channel your energy into knowing that you are creating a better future for all the family.

We have been making the most of lots of days out to the park which is free as you say. I try not to get too bogged down but it's easier said than done, sometimes it feels like this debt is completely consuming! Thank you for your reply though, you have made me feel better that we are trying

sammyjammy

If you're intent on doing this then I would urge you to post on the debtfree wannabe board first, just get their advice before you do something you can't undo. Plenty of people have paid off the debt once or more and then run it up again, they aren't all idiots

Thrugelmir

mrs_b112 wrote: »

We have been making the most of lots of days out to the park which is free as you say. I try not to get too bogged down but it's easier said than done, sometimes it feels like this debt is completely consuming! Thank you for your reply though, you have made me feel better that we are trying

When I bought my first property some years ago. Interest rates almost immediately rose by 1% a month for 4 consecutive months. To budget, I had a fixed amount to spend on food and household items a week. Used to go round Sainsbury's with a calculator in my hand. Adding the trolley up as I went. Putting items back as necessary. Wasn't fun I admit. Makes you appreciate money more when you have it though.

kingstreet

Chappers27 wrote: »

nb you only just remortgaged in February??? Did you rack up the debt in 6 months? Why didnt you consolidate debts back in February??

I think you'll find a customer retention product was taken from existing lender in February and not a remortgage.

robinwales

You have given quite a few details here, but one thing seems to be missing. What is your net (after tax) household income that include pay, any tax credits, benefits, and other income? The figures you gave look OKish (the average mortgage at the moment is about £121k.) But it also depends upon your income. But at the same time UK personal debt (mortgage and unsecured) is at £1.54 trillion, a figure that I find quite staggering. http://themoneycharity.org.uk/money-statistics/

tori.k

Its never worth turning unsecured debt into secured. Have you considered a debt management plan, either self managed or with one of the free ones like step change, head over to the debt free wannabe board, they are a friendly bunch and post up a statement of affairs

ladybabe

have you thought of contacting you lender and talking about extending your term, so reducing your mortgage payment (you need to bear in mind you will pay more interest on your mortgage by doing this) but may free up more disposable income to repay debts; once budgets and lifestyle have been aligned to what you have left as if this does not happen at the same time history may repeat itself

System

I was in your shoes but I was lucky enough to get an unsecured loan to consolidate debt. Please, make anything but secured loan. Transfer balances between cards or apply for a small loans and combine with credit cards. Tesco is pretty generous for loans at the moment. I took 8500 for 5years with 3.3% only despite my poor credit rating. While £ is weak lenders willing to borrow no matter what but pleas do everything possible except secured loan. In few years time when £ will back to power it can hit very hard especially mortgage borrowing.