Is the best way to clear debt is to add it to your mortgage?

If you want to repair your credit history by repaying a loan, which has simple terms and low monthly installments, again bad credit debt consolidation loans are for you. They save you after rejection and help you regain your financial credibility, so that you can again enter the mainstream credit market.

Bad credit debt consolidation loans are of two types:

1. Secured bad credit debt consolidation loans:

These types of bad credit debt consolidation loans are secured by a collateral usually some property or a guarantor. Since, the lenders find something to bank upon in case you default on payments, the interest rates on secured bad credit debt consolidation loans are cheaper, the lending amounts are higher and the repayment period can be long.

2. Unsecured bad credit debt consolidation loans:

Persons who do not have anything to offer as the collateral or security, can take unsecured bad credit debt consolidation loans. The lenders find themselves at increasing level of risk while giving such loans. The existing bad credit situation and lack of a collateral, make them charge high interest rates and offer low loan amounts to offset the risk involved. But, a person who has a bad credit and cannot provide a collateral has little choice, but to take these high interest loans. At least by repaying these the borrower can rebuild his credit history.

Deciding which bad credit debt consolidation loan is right for you can be a daunting task. Many companies offer free debt consolidation help to those who are cash strapped. Read more from: http://www.credit-card-gallery.com/credit_card_deb...

It depends. What kills most people isn't necessarily the debt amount, but the interest associated with the debt. Generally speaking, the interest attached to home loans are lower than that of credit cards -so yes, it does make sense in those scenarios.

But to complicate matters you should look at the payment amount against how much you can afford. By adding more debt to the home you could either be increasing the mortgage payment per month or extending how long you make the payments for.

Would making a single payment per month be more affordable to you, or is making multiple payments per month more affordable? That is, if you're living hand-to-mouth now, what plan leaves more money in your bill fold at the end of the month? If you have some wiggle room then planning on long term wealth building might be a better scenario.

The thing to also be wary of are fees.

I would say sit down with a calculator and begin adding up how much money you will be spending in consolidating the debt (including the fees) against how much you pay now. Then extend how much you are you expected to pay over the next 1, 2, and 5 years under both options and see which way leaves you with the most money over the long term.

Decide which best fits your life style and long term financial goals.

Also, destroy those credit cards. Remove the temptation to use them more, as that would only exacerbate your problems.

Remember, your goal is wealth building and not convenience. Though it may not seem like it now with proper planning, patience, and penny-pinching you will be debt free and rich.

Do you really think it will take you 30 years to pay off your credit cards? If you add the credit card debt to your mortgage that is what it will take so the amount of interest you will pay will make the debt 5 times more expensive by the time its paid off. Either get another job to have more funds, sell an expensive item and get a cheaper one ie. car, or use a consilidation company like shown on TV to reduce your debt (will be blacklisted), or look for a cheap rate loan from a bank that is cheaper than the credit cards. When you make up your mind CUT UP THOSE CARDS and never use them again. There is millions in the same situation you are not alone. Citizen advice can also help but difficult to get through in a lot of areas.

I know someone who commited suicide over £15,000 pounds worth of debt it devastated her family and freinds Its only money at the end of the day.

Your payments will be lower so probably a good idea but you will pay back more over in the long run.

The priority of paying your bill is always motgage and poll tax. first incase you didn't

know.

But maybe in the future you will be able to start or improve your business. Borrow extra keep it in a high account like an Isa for emergency mortgage payments. But do not dip into this money for anything over than emergencies. the interest if you look out for a good rate the interest should not be a lot that what paying more than your This will buy you time If needed. You dont want to loose your house. Sort this out yourself rather some debt consilidation company.

Like someone said the citizens advice centre is a much better option.

Also you could consider that if you are going to end up bankrumpt it doesnt matter if you owe £20, 000 or £200,000 but do everything in your power to stop this.

Contact all lenders tell them your having trouble paying do this sooner rather than later they will lower your interest payments or maybe stop them for a short while if your still having trouble at the end of this period contact them again and the will extend the period it not in there best interest for you to go bankrupt. They will help you.

Would it be possible to rent a room? this is tax free up to £80.00 pounds a week. you could do this short term.

Could you rent your house and find somewhere cheaper to live short term.

If you pay your mortgage over a 15 year period the monthly payments are usually not a lot more compared to the amount of money you will save long term. so when you do get back on your feet look into doing this.

Also a part time office cleaning job or a small cleaning business maybe something some of these jobs are cushey some are not . My sister has an evening cleaning job she is in and out in 20 minutes 5 days a week get paid for two hours she uses the money to pay off the whole of her £40,000 mortgage payment. My brothers got a cleaning business and window cleaning and he makes a lot of money. Any little part time jobs you can find there lots of thing you can do to make cash.

Hi Jono, Iv'e done this before & it helped me put a great deal. I was paying out over £150 per month on interest alone on my 2 credit cards plus about £400 per month to the credit cards themselves.Too much money to flush down the loo! Went to my mortgage lender To ask advice about adding it to my mortgage as I was at my wits end wondering how I would pay for the following months bills. They gave me the figures and although it gets paid over a longer period of time the payments are much less & overall I will be paying just over £5,000 less over the whole payment period than I would if I struggled on with the credit card payments. Your mortgage lender will charge you much less in interest and therefore allow you to manage your finances better. They can't advise you but will be able to offer you choices which if you have any savvy at all will be able to work out the right one for you. The only thing is...... don't be tempted to start all over again with your credit cards as it would defeat the purpose completely.

It fairly takes the weight off your shoulders and lets you become human again.

Good luck whatever the decision

Vonny XX P.s. it can't hurt to get the FREE advice anyway.

adding to your mortgage is a very good idea by way of a further advance. as pointed out by someone previously tho, be careful because you home is secured on it. Your mortage lender will calculate whether you can afford to keep the payments up and this loan can be extented to the term left on your mortgage.

You may also talk to your lender about an "unsecured" personal loan (and try and make sure you get a fixed and competitive rate over the term) if you are worried about keeping up the repayments on a Further advance.

Most importantly work out a budget to HOW MUCH you can afford to repay each month and match the loan to that. Your bank/building society will help you with that.

But overall, yes talk to them as you are constantly chasing your tail with credit cards

Good luck

Be carefull with these consolidation companies, you end paying a lot more and they are making money out of you. Using some of the equity in your home is an option, property investors like myself do this but to raise a deposit on another property. In you case you would us it to pay off the cards. Done it myself in the past, mortgage interest is less than the cards.

Make sure you can easily afford the new mortgage.

Shop around for a good mortgage deal

Use your equity wisely and not all of it.

CUT UP YOUR CARDS, once paid off its tempting to use them again,.

Mortgage interest rates are usually way less than credit card rates so if you can, then do.

Then cut up your credit card and use a debit card only (laser).

Then stop spending money you don't have.

Start saving again and use chunks of that to periodically reward yourself for being so good!!

Break theold habits and start new ones. The pain of transition will be shortlived.

Absolutely not!!!!!

You can always default on credit card debt and keep your home. But once you put your house at risk as calateral and you can't make the payments you might end up in a refrigerator box.

No your any very own loan quantity presented will deduct any quantities which you have magnificent earlier being agreed. even regardless of the undeniable fact that what you may do is after six months remortgage and then use that money to pay your magnificent debts even regardless of the undeniable fact that its an prolonged term double wammy as you wind up owing greater and paying returned greater for the priviledge