Debt consolidation

Friday, November 2, 2007

Many people nowadays have debts on credit cards, loans and overdrafts.

Consolidating these debts into your mortgage can reduce your monthly outgoings and make life more manageable.

This in theory sounds like a wise move but there are some serious considerations you must think about, before you undertake a debt consolidation remortgage.

The method of a debt consolidation remortgage is to pay off all your loans and credit cards by borrowing more on your property. You release equity tied up in your property to clear all your debts.

The credit cards and loans that you are consolidating tend to have higher interest rates than your mortgage and hence the amount you pay each month is reduced. You will have fees to pay when remortgaging but these can be added to your loan.

However you should not rush in to something like this before weighing up all your options. You should only borrow if you can secure a competitive rate and there is a genuine monthly saving for you. Remember that the implications of consolidating unsecured debts into the mortgage is that you may end up repaying a higher amount in the long term.

Before making a decision you could contact the Citizens advice Bureau to discuss your debt problems. They have numerous experts on hand to advise you on how to handle your debts.

Once you have looked at your options you could speak to Solution Mortgages to see if we can help you. If you have adverse credit and numerous mounting debts we can provide you with information on debt consolidation remortgages which you may feel will benefit you.

Either call 0845 123 1260 or apply on-line at http://www.solution-mortgages.co.uk/