Credit Card Debts

Posted on 4 February 2011 by Leena Singh


I have a 100% mortgage with the Northen Rock. I purchased the property 3 years ago for £92,000. I also borrowed an additional £17,000 alongside the mortgage as an unsecured loan to renovate the property. The total value of the mortgage is therefore £109,000. My credit card debts are manageable for the moment however these are increasing and I want to take action sooner than later to try and get these under control. I have ceased all spending on them and cut up my cards but ideally I am looking to consolidate my debits to make them more manageable. Is there anyway I am able to consider a remortgage? Northern Rock have already advised that they can not offer this as an option. Is it worth exploring this with other lenders or will this just be a waste of time?

Leena,

I regret that there are no Lenders at the moment who will consider a remortgage for you.

You have taken the first positive steps towards managing your debts and I recommend that you speak to your local Citizens Advice Bureau. They will be able look at your current situation and help formulate a realistic weekly budget, help you negotiate payment arrangements with your credit card companies if necessary and look at whether or not you would be better off consolidating the debts into one unsecured loan.

Good luck.

Peter

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