Using a New Mortgage to Pay Off Credit Card
How to Use a New Mortgage to Pay Off your Credit Card balance:
When you’ve got credit card debt and you’re a home owner the temptation can be to remortgage or take out a second mortgage or secured loan and release equity from the property to consolidate all the debt into on easy affordable payment.
One of the reasons the payments will be more affordable is that the secured loan and almost certainly the mortgage is likely to be on a far lower interest rate. The possible reduction in the monthly payments will probable by substantial.
The benefits of lower monthly payments are likely to be further enhanced because the secured loan or remortgage is probable going to be taken over a longer defined timescale. However the downside of this could be that you pay far more interest over the long term.
So careful consideration should be made before taking this debt consolidation step especially as you would be turning previously unsecured credit card debt in to debt secured on you property.
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