Debt consolidation using a mortgage combines all your secured debt (your current mortgage and other secured loans) and unsecured debt (such as personal loans and credit card debt) into one loan, which is secured against your home.
Debt consolidation using a mortgage - the risks
Sometimes people with debt problems choose debt consolidation using a mortgage or secured loan in an attempt to make their debts easier to manage and to lower the amount of interest they will pay.
However, it is not advisable to swap unsecured debt, such as credit card debt, for secured debt because your home will be at risk if you miss payments to a secured debt. Also, if you have already missed payments to your debts, your credit rating may well have suffered and you might end up having to pay more interest on a mortgage with less favourable terms.
Get professional advice first
Do not consider debt consolidation using a mortgage, or any other debt solution, without getting professional debt counselling first.
You can get free, confidential and impartial debt advice from us. We are a respected, registered debt help charity and our online service, CCCS Debt Remedy, will identify the most suitable debt solution for your circumstances.