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Releasing equity to pay debt
Mclark2007
Posts: 1 Newbie
Hi,
I have abt 20% equity on my mortgage and looking for advice- should I release this £ to pay off credit cards( I have 4) as my interest free period is coming up and I don’t seek to be able to get one for the same value?
Thanks
M x
I have abt 20% equity on my mortgage and looking for advice- should I release this £ to pay off credit cards( I have 4) as my interest free period is coming up and I don’t seek to be able to get one for the same value?
Thanks
M x
0
Comments
-
Hi,
Short answer is it’s never a good idea to make non priority debt in to a priority one.
If the cards are unaffordable, then look into some kind of debt management instead, Stepchange website a good starting point.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Hiya.
If you are still spending on the cards then I would say don't do it as you will end up adding the debt to your mortgage and then just running cards up again and then have two lots of debt to pay off.
Is there a reason you didn't pay the cards off during the interest free period? Do you think you may have spending habits or budgeting problems which need to be addressed? If so, address these first to see if you can pay the cards off without wasting equity or risking your home.
DC xLBM-November 2019 - Total Debt £28,000/PAID!0
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