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Debt consolidation/remortgage/SOA

Cazmeena
Cazmeena Posts: 23 Forumite
Fourth Anniversary 10 Posts
edited 11 January 2022 at 7:13PM in Debt-free wannabe
Hi… I would love some advice please? I have a headache trying to figure out the best way.  I will try keep it brief.  
As a couple we are paying off debts this is credit cards and 3 loans urgh ! I thought it would be great idea to borrow on our house and pay it all off once and for all.   We have equity in house. I wanted to borrow on the house. It gives us enough to pay debts and extend our house which will make our house worth more in long run.   Is this a good idea or bad idea? Or would you just concentrate on credit card debts first ?hope it was ok to put figures in this post.  Thanks in advance.
Credit cards are not 0 per cent because I didn’t want to use the credit score in case we went for the remortgage. Happy to give figures but wasn’t sure if it was allowed.  Thank you 
«13456

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    edited 6 January 2022 at 1:05PM
    Generally a terrible idea to turn your unsecured debt into secured. 

    Post an SOA for advice on tacking the debts, but you should be focusing on the highest rate first.

    You don't 'use the credit score' for anything, so don't let that stop you paying off your debts faster. Don't pay interest on your credit cards if you don't need to. See if you're eligible for any BT offers as a starter.
  • Cazmeena
    Cazmeena Posts: 23 Forumite
    Fourth Anniversary 10 Posts
    Thank you for reply. 
  • Naomim
    Naomim Posts: 3,117 Forumite
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    We actively encourage people to post figures as it gives us a clear picture of where you are and enables us to give more detailed advice.  If you can complete an SOA Statement of Affairs its would be useful. A link is on the pinned posts at the top of this board.

    As zx81 says, turning unsecured debt into secured debt on your home isn't a good idea. Nor is paying interest IF you can get balance transfers.  Have a look for MSE eligibility calculator and see if there is any chance there are some you are likely to be eligible for. 

    Your "credit score" is a myth, what lenders are looking for is a good record of keeping up payments and not over borrowing. Lenders all have their own criteria.

    Good luck 👍
    Credit Cards NOV 2019 £33,220.42 Sept 2023 £19,951.00 Tilly Tidy 20223/COLOR] Sept £43.71 Here's my diary: A Ditherer's Diary Again
  • Cazmeena
    Cazmeena Posts: 23 Forumite
    Fourth Anniversary 10 Posts
    Thank you … I can’t seem locate the pinned document for SOA . please can you help ? 
  • Misslayed
    Misslayed Posts: 15,326 Senior Ambassador
    Tenth Anniversary 10,000 Posts Homepage Hero Name Dropper
    I’m a Senior Forum Ambassador and I support the Forum Team on the Competition Time, Site Feedback and Marriage, Relationships and Families 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 Money Saving Expert.
  • poppy10_2
    poppy10_2 Posts: 6,588 Forumite
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    Cazmeena said:
    Thank you … I can’t seem locate the pinned document for SOA . please can you help ? 

    https://www.stoozing.com/soa.php

    poppy10
  • Cazmeena
    Cazmeena Posts: 23 Forumite
    Fourth Anniversary 10 Posts
    Thank you really appreciate all of this :)
  • resolve the key problem which is why you are in debt, why spending more than you earn.
    Dont consolidate
    Don't extend debt by extending 
    pay off highest interest rate debt first followed by next etc (maintaining min on others)
    Stop wasting your money
    get joint agreement to plan
    Debt is a symptom, solve the problem.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Cazmeena said:
    It gives us enough to pay debts and extend our house 
    The reason that debt consolidation more often or not fails is that the borrower doesn't address the underlying cause. Borrowing more to pay later simply makes future difficulties worse. 
  • Suseka97
    Suseka97 Posts: 1,570 Forumite
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    Take advice from someone who has 'been there' and 'done that'... simply DON'T.

    I have no idea of your level of debt or why you're in this position, but the last thing you want to do is turn unsecured debt into secured debt against your home.  

    Follow the advice to post an SOA or just look at ways to trim your outgoings so you can tackle those debts, unless you are unable to pay the minimums and keep your head above water.  If that's the case then there are ways to resolve it, but consolidating debts is not the way forward.
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