We have a high household income (£200k) but for reasons I wont go into on here, we’ve found ourselves with approx £70k on a credit card. The monthly payments are high. It’s not as simple as just saving up for a few months to pay it off as our outgoings are also high.
Our mortgage is up for renewal at the end of the year. We have approx £250k equity on a £600k property.
Would it be a good idea to take the equity out of the house, pay the credit card off and then up the payment on the mortgage to ‘make up’ for the equity that we’ve taken out? I believe this would be better as the mortgage has a lower interest rate than the credit card?
Please no answers asking why we have this debt or criticising this financial situation.