Moving house to clear mortgage but not debts

desperate_housewife

Soundgirlrocks wrote: »

I'm not sure it is a good idea, its effectively turning unsecured debt into secured debt.

If you can downsize and pay off the mortgage then have more to chuck at the DMP then that seems sensible & and protects you against and changes in circumstances.

Many thanks....yes I hope this could work. We would want to my offers after saving up ....however we would need more than a year ( thinking about the annual assessment) so then I’m not sure how it would workout. Obviously they would see we wouldn’t have a mortgage and understably would want more monthly....then the plan of making offers would be out of the window....

Beetroot24

Soundgirlrocks wrote: »

I'm not sure it is a good idea, its effectively turning unsecured debt into secured debt.

If you can downsize and pay off the mortgage then have more to chuck at the DMP then that seems sensible & and protects you against and changes in circumstances.

No it's not turning unsecured debt into secured debt, as she already has a secured debt, and unsecured. It would be clearing the unsecured debt and potentially reducing the secured debt with whatever is left.


It was just a query in response to Chocolate_Teapot's comment that they had to pay the creditors first from any equity.