Debt advice - is consolidation good/bad idea, or even possible?

Naomim

@Bettycheese sorry blance transfer.

I know where you are coming from with renovations and costs spiralling. Same happened to us 😥

Bettycheese

@Naomim ah thank you, I see what you mean.  I have considered that as I have a cedit card that I don't use that has nothing on it with a credit limit of £12k, but as I already have £10k debt on my own credit card (albeit mine is interest free for now), I do feel that would put a disproportionate amount of risk on me individually, as well as considering my cedit score etc. 

Retireinten

I've never actually applied for a secured loan outside of a mortgage so not sure of the exact process, but if you're confident you definitely won't build up more debt after consolidation, the next step would be to see if you can actually get a secured loan at a sensible interest rate - you've said you're at max LTV on your mortgage so not sure how easy it would be to raise the money via this method.

But personally I wouldn't move unsecured debt to secured - if you find yourself in a position where you can't pay you risk losing your house after all.  Where as unsecured debt... well, they can't have what you don't have, can they?

The other consideration is overall cost.  It may be cheaper now and the interest rate lower overall but a longer term loan could cost you more in the long run.   I would want to take the option that costs me the least in interest overall... and that isn't necessarily the option with the lowest interest rate! 

Naomim

Bettycheese said:

@Naomim ah thank you, I see what you mean.  I have considered that as I have a cedit card that I don't use that has nothing on it with a credit limit of £12k, but as I already have £10k debt on my own credit card (albeit mine is interest free for now), I do feel that would put a disproportionate amount of risk on me individually, as well as considering my cedit score etc. 

Very true. Just exploring the options 🙂

Are you meeting minimum payments now or overpaying any?

Coffeekup

You should go through the last 3-6 months of bank statements for both of you. Tap the numbers in to a Statement of affairs (SOA). As someone else said be honest with it. Then post it here in MSE format. You'll get good advice then and not have to pay for it.
You said you already posted on another forum, I'm guessing same good advice was given already, but you never got the answer you wanted to hear. 

sammyjammy

Please please don't pay anyone for advice!

runforlife

Coffeekup said:

You should go through the last 3-6 months of bank statements for both of you. Tap the numbers in to a Statement of affairs (SOA). As someone else said be honest with it. Then post it here in MSE format. You'll get good advice then and not have to pay for it.
You said you already posted on another forum, I'm guessing same good advice was given already, but you never got the answer you wanted to hear. 

I find the advice from regulars on here with SOAs to be spot on. You don't have to follow it but it'll perhaps open your mind to alternatives. 

TheAble

Post an SOA before you do anything. You may be able to optimize your earnings and expenditure such that you don't need to go down this route. With the exception of your mortgage, the general rule is to never secure debts on your property. Better to make lifestyle adjustments to clear the debts as soon as possible, thus minimising interest without putting your home at risk.

Bettycheese

Coffeekup said:

You should go through the last 3-6 months of bank statements for both of you. Tap the numbers in to a Statement of affairs (SOA). As someone else said be honest with it. Then post it here in MSE format. You'll get good advice then and not have to pay for it.
You said you already posted on another forum, I'm guessing same good advice was given already, but you never got the answer you wanted to hear. 

@Coffeekup thanks. It wasn't that I didn't like the advice; I had used a different board and they directed me to this one as more appropriate.

Bettycheese

Coffeekup said:

You should go through the last 3-6 months of bank statements for both of you. Tap the numbers in to a Statement of affairs (SOA). As someone else said be honest with it. Then post it here in MSE format. You'll get good advice then and not have to pay for it.
You said you already posted on another forum, I'm guessing same good advice was given already, but you never got the answer you wanted to hear. 

@Coffeekup thanks. I have seen that this is an option on here, but I'm not sure it would be too helpful for us right now as the last 6 months have been highly unusual as my partner hasn't worked since September, but is now starting their own business which should start trading in the next 3/4 weeks.