Re-Mortgaging

Sometimes the best way of dealing with your debt is by taking out another loan. John and Heather both worked for the same company. Both were made redundant, which caused John no end of worry. Heather found a job relatively quickly but John went from one job interview to another.

The lack of income caused them to rely more and more on credit cards to pay for household bills. John was out of work for nearly two years before he finally found a job. Both were finding it more and more difficult to pay their minimum monthly credit card bills and they started to miss a couple of payments.

John then decided to work out exactly what their financial position was using the Statement of Affairs. From that he worked out how much a month he was paying to credit card companies, how much he was paying for his mortgage and how much he needed for house hold bills. He calculated that his total debts were £20,000.

After considering all their options John decided to re-mortgage his house to pay off all his credit cards. His monthly repayment fell from just over £650 to £350 which they both found more manageable.