Remortgaging can be a good way to consolidate high interest debt and make your monthly payments more manageable. There are several things you should consider to determine whether it's financially sound for you to remortgage to pay off debts.
Potential Savings
Remortgaging can save you money in the long term if your other debts are carrying excessive fees or high interest rates.
Impact to Credit Score
Remortgaging can give your credit score a boost by reducing the number of debts you have outstanding.
Manageability
Remortgaging simplifies your monthly payments so you have fewer bills to worry about each month.
Potential Costs
There are fees associated with remortgaging which could make it costly if you do not plan to stay in your home over the long term.
Potential Dangers
Remortgaging will not solve your debt problem unless you are committed to not incurring any new debt in the future. You don't want to end up with a higher mortgage plus a new mountain of consumer debt.
0 comments:
Post a Comment