Is this a good idea??

[yougotafriend]

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)

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 ?

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

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.

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.

TalkinPeace, what's your standing order method?

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

Ok thanks I'll give it a look