cards to mortgage

[Deleted User]

please someone ,maybe with a bit more sense than me tell me what to do.
have a mortgage fo £60000 on a house valued at £100000.
problem bit-debts= £22000 on various cards+loan.
these debts add up to some very high payments each month,i was thinking of remortgaging and putting these debts on to the mortgage,sounds daft i know but i currently have a flexible mortgage,this would really reduce my monthly outgoings and even making overpayments to pay it off quicker,would be about £400 pounds better of each month,,,,to live.
really torn on what to do have about six cards and one loan hanging over me,and its stressing me out.
any help much appreciated,thanks.

IWantToBeFree_2

If the loans are front loaded with interest & you end up putting them on the mortgage then you will be paying interest on the interest & it will add up to a huge amount over the course of the mortgage.

Whilst it may seem like a good idea & give you more money a month to play with, you will end up paying back far far more than you would normally & the debts will be then secured on your home & if anything goes wrong, then you could even end up losing the house if you cannot meet the extra repayments.

I'd never recommend consolidation, because in most cases, people consolidate & then just run up the debts again, I did it myself, and a poll on here showed that people consolidated more than once before they had their LBM.

You should post a SOA on here & see if people can help you out in cutting back on other things so you have more free cash each month before heading straight into consolidation.

[Deleted User]

hi thanks for the quick reply,thought about the interest but was thinking i could overpay a set amount each month and that way i would have some control on my cash,the payments just now are all over the place.also been living on a shoestring for a while now and havent increased on the debt(they gave me very high limits but havent used them in yonks)determined not to get any more debt just need a bit of control,for my sanity.
is this really the worst idea ,thinking if i keep going this way i might end up missing a payment here or there and never being able to get a decent rate again.
and that would be a whole new problem ever i ever wanted to move or whatever.

IWantToBeFree_2

The first time I consolidated was because I had cards all over the place & missed a few payments so thought it would be far better to get a loan and just have one payment coming out. But I just ran up the cards all over again, and now, once again, I have cards all over the place & have to really keep a track of statement/payment dates etc, I would never consolidate again though because I really do believe that its not the right answer & doesn't solve problems.

Is there no way that you can move any of your CC balances onto 0% cards so that you aren't paying loads of interest, could give you 12 months to have a crack at getting the balances down rather than consolidating them.

I think the biggest issue here is turning unsecured debts into secured ones, and most people would tell you never to do that.

[Deleted User]

i did think of that but if you owe on credit cards cant they just take your house anyway.

Bismarck

I'm not saying it would be pleasant but I can't see that they could repossess you for unsecured debt and it would cost them to bankrupt you - especially if you don't have one creditor with a large reason to go for you.

OK, I believe there could be CCJs and charging orders but the CCs would not go down as priority debts unless you secured them to your property. And you wouldn't want to do that....cash is king...make sure you pay the mortgage, council tax and utilities...the rest can join the queue if it gets nasty. Getting another mortgage after defaults wouldn't be fun but being homeless would be worse...

tigtag02

obanite wrote: »

i did think of that but if you owe on credit cards cant they just take your house anyway.

Not if they are unsecured borrowings no ~ they can place a charge on your house as a last resort but afaik cannot force you to sell.

Its never advisable to change unsecured debt to secured debt.

IWantToBeFree_2

Missed CC & loan payments will damage your credit rating, missed mortgage payments could end up in you losing your house. I would seriously look at all the other options available to you. Is it possible to put up your SOA, it would help people give you more tailored advice with regards to the situation you've found yourself in.

[Deleted User]

thanks to everyone who replyed to this thread.(helped me a lot)thanks again.:T