Talk

Advanced search

Mumsnet has not checked the qualifications of anyone posting here. Free legal advice is available from a Citizen's Advice Bureau, and the Law Society can supply a list of local solicitors.

Is this a good idea??

(10 Posts)
yougotafriend Mon 17-Nov-14 15:49:28

I have just seperated from my husband and am worried about finances - I have credit card debt and a loan all of which I am keeping up with for repayments.

However, to bring my monthly cost right down now, I am considering consolidating all debts into 1 loan over (say) 10 yrs safe in the knowledge that in approx 2 yrs time I will get �100k+ from my share of the equity of our house and can pay it off.

Is this a wise move or stupid as my loan will be finished in May 2015 and credit card paid of in 3 yrs (but only if I can manage the repayments at the same level as I'm currently paying)

Pensionerpeep Mon 17-Nov-14 16:16:30

Message withdrawn at poster's request.

Pensionerpeep Mon 17-Nov-14 16:20:12

Message withdrawn at poster's request.

LIZS Mon 17-Nov-14 16:22:26

Borrowing to pay off debt is rarely cost effective. Are you doing more than paying interest on the cc balance , is it going up ? Can you call StepChange or MA for advice ? Why would it take 2 years to realise the equity ?

annielostit Mon 17-Nov-14 16:40:50

Can you manage until may paying as you are.?
It would be easier then to add the loan payment to the credit card.
Is the credit card on a low rate, or can you transfer to 0%?
If you can reduce all your expense for 6 months there's only 2.5 years on the card then.
Don't consolidate if you can cope in the short term. I wouldn't.
Good luck. X

yougotafriend Mon 17-Nov-14 16:56:35

Credit Card is on 0% until May 2015 - I pay more than the minimum, it is going down which is how I calculated it will take me 3yrs to pay off at this rate (switching to another 0% when this deal ends)

The loan is until May 2016 (sorry).

I haven't approached any provider yet as I'm still at the "mulling over my options" stage. Maybe as my circumstances have changed I should make an appointment to speak to my bank and get their take on it all.

My H has stayed in the family home with 2 DS, the youngest will go to uni in Sept 2016 so I wouldn't push for a sale before then, although he may decide it's not working and sell sooner. I'm renting atm. This course of action was discussed with a solicitor who advised that as we're not planning an immediate divorce it makes sense for the house to stay in joint name.

TalkinPeace Mon 17-Nov-14 20:27:29

Please do not.
If you whump your debts using my standing order method you'll end up paying much less interest over a much shorter time.

yougotafriend Mon 17-Nov-14 21:18:50

TalkinPeace, what's your standing order method?

TalkinPeace Mon 17-Nov-14 21:35:32

Have a look at the spreadsheets thread on this board - linked from the top of the main debt thread

basically you cancel the direct debit
and set up a standing order for last month's payment rounded up to the nearest fiver
its as simple as that
debt clears a lot faster than you'd think smile

yougotafriend Mon 17-Nov-14 22:50:33

Ok thanks I'll give it a look smile

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now