Considering consolidating credit card debt into your mortgage may see like an easy way of dealing with your debt. Consider this move wisely and in detail before you decide.
Consolidating unsecured credit into your mortgage is a step not to be taken lightly. This is due to the fact that you are taking your credit card debt – debt which is unsecured. Then securing it on your home.
You also will probably know that you will end up paying back more interest because you are likely to be paying this back over a longer period of time.
However, by consolidating your debt into a mortgage you will be reducing your monthly outgoings, which could be the objective you are working towards.
Debts can have been accumulated due to home improvements that you have made to your home. In most instances having also increased the property’s value. Other times it’s just that the debt has been outstanding for several years in other areas and expenditure and it can be hard to reduce this debt.
You could consider taking out zero % credit cards and take the sensible step of looking for a new card when the zero % period ends. However, it’s not guaranteed that you can always get a transfer and it’s when that happens that home owners decide to take action. Consolidate rather than pay a double figure interest rate is often preferable and more manageable.
A debt consolidation remortgage is not something most people would want to arrange without taking advice. Speak to a Broker and you will benefit from the consumer protection which is in place and a suitable mortgage will be recommended to you, tailored to your specific needs. Note that the Broker works for you and not the Lender so will ensure you get the right outcome.
The savings some people make are hundreds per month if they are carrying large debts and some people prefer to have everything within one monthly payment too.