A remortgage for debt consolidation can be a useful way of reducing your monthly outgoings and providing peace of mind if you have a number of different debts, such as store and credit cards, hire purchase or personal loans. Drawing on the capital in your home can also raise extra cash for other expenses as well
If you have equity in your home, Ocean Mortgages could help consolidate your existing debts into one manageable monthly repayment, by remortgaging with one of Ocean debt consolidation remortgages you could reduce your monthly outgoings and make your finances easier to manage.
If you're thinking about getting a debt consolidation remortgage then it's wise to consider all the options. There are many scenarios were debt consolidation remortgages might be worth consideration.
If you numerous credit cards at high interest rates, debt consolidation remortgages could be a way to reduce the amount you are repaying to credit card companies each month. A debt consolidation remortgage could also help you manage other high interest debt such as store cards, personal loans or other high rate lending agreements. In these circumstances a debt consolidation remortgage might be an option worth considering and could help make your debts more manageable.
If you have also got a finance deal for your new car, have borrowed for home improvements and are always using your overdraft, then these are all additional signs that you could benefit from a debt consolidation remortgage.
Debt consolidation remortgages can be an effective way to decrease the amount you are spending on debt repayment each month. Consolidating your debts by remortgaging means that you will have a single debt payment to make - to your mortgage company and make your finances easier
Benefits of debt consolidation remortgages include:
- Reducing monthly repayments and making your outgoings more manageable
- releasing extra cash for other purposes
- A structure repayment schedule and financial peace of mind
- Potentially saving money with a better interest rate
Draw backs of debt consolidation remortgages
One thing to bear in mind when seeking a bad debt consolidation remortgage is that your home is serving as security for the mortgage. That means it is at risk if you do not keep to the agreed repayment schedule. This is one reason why it is wise to seek professional advice and make sure that your debt consolidation plan is one that you can live with.
There is good news, though. If you do manage to stick to the plan for consolidating and repaying your debts, one day you will be debt free and your credit rating will be better than ever. That's an excellent reason to consider a bad debt consolidation remortgage.
When considering a remortgage for debt consolidation, it is important to remember that the debt will then be secured on your home. You need to be sure you can afford the repayments, and take time to find the right deal for you. When you enquire for a remortgage with Ocean a fully qualified mortgage adviser will look at your personal circumstances and find a remortgage deal that best suits your circumstances.
When you consolidate your existing credit cards, & store cards you are often able to carry on spending, it is important to try not to fall into this trap otherwise you may need to refinance again later and you may find it more difficult. Racking up more debt on credit cards negates the purpose of getting a debt consolidation remortgage.
A debt consolidation remortgage may result in a longer term than your current arrangements, and may result in you repaying more over the term of the mortgage plan
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