Adding credit card debt to mortgage

chelseablue

Thrugelmir wrote: »

That's how many people's financial issues start. Living beyond their means. Adding unsecured debt to the mortgage to make repayments affordable. Which works fine until one of the 3 D's hit. Divorce (relationship breakdown), Distress (finanacial) or Death.

We have £9,000 in our easy access savings account plus £6,000 in a stocks & shares ISA so its very tempting to clear the cards.

But it would take about 2 years at least to get back to that level of savings, plus we'd have nothing for an emergency.

If I do the 50/50 approach on a good month I could save £700 a month and pay £700 off the debt.
Husbands bonus in February and mine in March would go straight to the cards, so in 12 months could clear it all

Paul_DNAP

Clearing it all in a year is an excellent plan.


One adjustment I'd make is that you may as well put it all (even the bonus) into a dedicated savings account (e.g. the 1.3% saver at Marcus) and then only transfer it into the cards about a month before the 0% deals end and gain a little bonus of interest on them.


I would also offer the idea of making sure you have enough to clear the cards at that time, even if that means making a dent in the other savings, as that will save you transfer fees if you can get another 0% deal or interest if you can't.

chelseablue

Paul_DNAP wrote: »

Clearing it all in a year is an excellent plan.


One adjustment I'd make is that you may as well put it all (even the bonus) into a dedicated savings account (e.g. the 1.3% saver at Marcus) and then only transfer it into the cards about a month before the 0% deals end and gain a little bonus of interest on them.


I would also offer the idea of making sure you have enough to clear the cards at that time, even if that means making a dent in the other savings, as that will save you transfer fees if you can get another 0% deal or interest if you can't.

Thank you

I'm very tempted today to use some of the £9k savings to pay off one of the 2 cards

£3,843 would pay off the Lloyds card (would then close the account)

Then would have just the Virgin card to clear

foxy-stoat

chelseablue wrote: »

But it would take about 2 years at least to get back to that level of savings, plus we'd have nothing for an emergency.

You would have the newly cleared credit card incase of emergency that you couldnt afford otherwise.

chelseablue

foxy-stoat wrote: »

You would have the newly cleared credit card incase of emergency that you couldnt afford otherwise.

Even with the balances today, I still have £24,000 of available credit.