You might not feel well with the higher debts upon you that too with the much higher rate of interest. Remortgage for debt consolidation will work as a lifesaver for you if you have a property that too you have already mortgage against your loan for a home. Your worry may fly in the air and you can deep breath and get relax with remortgage it to raise your funds for debt consolidation.
You can pay off all your personal as well as unsecured debts and consolidate them into a small monthly payment with the lower interest rates. But if you consider it in terms of long-term repayment then you might get the higher interest paid in total as compared to a credit card or any other unsecured loan.
You must consider both the scenarios before opting for the debt consolidation. Let’s take an example if you have a debt of amount £5K and you have to pay 4% interest for 20 consecutive years. Then you will be paying £4K as interest on the principal amount £5K whereas, in case of an unsecured loan, you will be paying 18% interest for 3 years only. You will be paying £2.7K only.
If you can repay the higher monthly amounts for the loan then the credit card is the best choice ultimately you pay less in the amount of total interest amount. But if repayment in higher monthly amount is not game of your choice then you can opt for remortgage for debt consolidation for consolidating all the debts.
One thing you must understand before remortgaging for property against debt consolidation is that you are mortgaging your home just for petty amounts of loan that too for much longer terms.