Debt Consolidation Remortgage
Debt Consolidation Remortgage | Mortgage Advice in York
Unsecured credit and consolidation are not things to be taken lightly. It is advised that you liaise with a Mortgage Advisor and review all possible options before proceeding with the process.
Is Consolidating Debt a Bad thing?
When looking at the bigger picture you will usually pay back more by integrating unused credit into your mortgage. Although, your monthly payments will most likely be lower and this is the main aim for most people.
It is important to realise that you are also taking the risk of securing debt against your home. If payments are not kept upto speed, then you’re putting yourself in the situation where your home will be repossessed. It is not the same scenario as just missing payments on loans or credit cards.
Why do people run up large credit card bills?
For many years, obtaining credit has sometimes been too easy as it is much faster for people to borrow money than save up. But it is a tough situation because whilst some people have invested home improvements which will be raising the value of their property, the debt which they have obtained will be still accumulating interest. Not everyone is able to qualify for zero percent credit card transfers.
What are the other options?
Before consolidating credit it is wise to do a budget planner to help you see where your money is going each month. There may be some luxuries which can benefit you in the long run if you put aside for a while, such as takeaways and expensive coffees.
A personal loan could possibly be an answer to consolidate your credit. A loan will at least have a set end date unlike credit cards and due to a personal loan typically being taken out over a shorter period would mean that you pay back less interest.
Family members would also be worth speaking to as an alternative option. This can be an embarrassing predicament for someone to reach out and ask for help with financial issues but is often one of the easier options.
If these options have already been utilised that a debt consolidation mortgage may be the right way to go with it being a way for you to reduce your monthly payments if you are struggling to save.