Mortgage and debt

Huntinglodge04

We have 100000 equity in our house but owe a lot on credit cards as I have been raising a family until 2 years ago. What would be the best way of clearing the debt off using the equity in the house?? Our mortgage company seem reluctant to help

foxy-stoat

Best way would be to sell the house and buy a cheaper one, use the "equity" to clear your debt and start again.

clairebeth

Could you not pay off the debt without selling? Where would you live? Rent? Would renting cost more than your current mortgage? Perhaps have a look at the debt free wannabe board and go from there before you sell the roof over your head.

spadoosh

Putting credit card debt on to your mortgage is normally a very expensive way of doing things.

Same advice as above (foxy stoat).

clairebeth

Sorry, I was assuming you were planning on selling to release equity. Definitely go to the DFW board. Putting credit card debt over a 25 year term would be unwise. Most important thing is that you address the reasons you got into debt and that you are no longer using credit.

poppy10_2

Huntinglodge04 wrote: »

We have 100000 equity in our house but owe a lot on credit cards as I have been raising a family until 2 years ago. What would be the best way of clearing the debt off using the equity in the house??

You won't be clearing any debt.
You will just be transferring unsecured debt, to debt that is secured on the roof over your heads, and increasing the term to 25 years. Generally a very bad idea.
You will inevitably run up further credit card debts and end up in the same position again in a couple of years
Go to the Debt Free Wannabe boards and address your overspending,