Turning over a new leaf:Remortgage with debt consoidation

inzimam

Hi everyone, I’m hoping for some sage advice

Edited to remove information as I've been told it might be too identifiable

Thanks all for the advice. This thread can be closed

ani*fan

Hi there

I'm not sure why no-one else has replied to you yet but I'm a bit intrigued so I'll go first.

First things first. Consolidation is almost always a bad idea and here's why. You have a spending problem; you have consistently spent more than you earn over a long period of time and you now have £64,000 of debt. You make £50,000 a year, a lot of money by anyone's standards. You cannot learn to change your ways overnight. It's a long, slow, painful process and if you consolidate you will learn nothing. Seriously.

Secondly, you are planning to take £15k of interest free debt and incorporate it into your mortgage. Which is not interest free. This makes absolutely no sense whatsoever and will cost you much more than it is doing now. Which is nothing.

Thirdly, you have £159,000 of equity in your home. Where did this come from? Have you paid your mortgage for a long time? I don't get the feeling you saved a massive deposit. Did someone gift you the cash? How close to retirement are you? What is your long term financial plan? Your plans sounds as if you are flying by the seat of your pants, if you know what I mean, with no thought about the future, or a plan, or anything.

I'd say fix this the old fashioned way. Do a proper soa, cut back as much as you can and then overpay the debt, starting with the high interest CCs. Save up for your wedding. It's entirely possible.

Anyway, just some thoughts to get your thread going. Best of luck with it all.

HairyHandofDartmoor

I agree 100% with ani*fan.

Do not consolidate for the reasons already stated. Why turn unsecured debt into secured debt and risk losing your home? It makes no sense.

You would be much better off living frugally and paying off your debt as quickly as possible, which should be possible on your income.

Good luck with it all .

enthusiasticsaver

I am sorry to post negatively but you are not turning over a new leaf if you consolidate and borrow to pay off existing debts and pay for a wedding you obviously cannot afford.

You are escalating already badly managed finances into a situation where if you lose your job you may lose your house too. There are several reasons why consolidation is bad. You are already overspending hence the £44k debt and consolidating does nothing to remedy it. There is every reason to think that you may well be back here with a much bigger mortgage in a few years time and another £40k odd of debt having continued to live beyond your means. A small point is that you are not paying off debt by consolidating, just moving it.

Now to the positives. You have an excellent LTV on your mortgage and a good salary. With a properly managed budget and keeping to a wedding you can afford you can repay the debt without risking your home.

enthusiasticsaver

£1450 disposable income after bills, mortgage, credit cards and car loan is paid is really high. Where is that going?