Debt Consolidation Mortgage - A Option of Debt Repayment

Online, July 24, 2012 (Newswire.com) - Debt consolidation mortgage is a financial option of debt repayment in which you can borrow more amounts to pay other existing debts. If you borrow mortgage loan to consolidate your debts then you will be left with single loan and financial obligation. However charges can be more if you consolidate loans in middle of existing mortgages.

Debt consolidation ( Visit http://www.debtconsolidation247.co.uk/ for details ) with mortgages can make payments easier. But it is necessary to make payments effectively during mortgage period to complete the plan successfully. For illustration, if you have mortgage of £ 1, 30,000 and £6000 unpaid debts that you want to consolidate then you can borrow £6000 on account of mortgage and you can use this amount to pay existing debts.

If you will not consolidate the loans then it may take five years to clear your debts with payments of £1200 every year along with interest rate for same. In case of consolidating the loans you can clear these payments in 25 years with making payments of just £240 in a year plus interest rate on the top of mortgage.

Interest rate on consolidation loans with mortgage will be lower too as in this type of loans, less risk is involved. You will make single payments each month for all existing debts.

However, debt consolidation mortgages ( Visit http://www.debtconsolidation247.co.uk/debt_management_plan.html for details ) also involve some risk and you must be very careful while choosing this repayment option. Your home will be as risk in case of non repayment of the amount. Your home will be at risk of repossession. If you borrow additional amount against mortgage then it will count against deposit. Lower deposit will led to higher interest rate. However, if house value get decreases then it will become difficult for you to get amount against it in future.

If you have unpaid debts then it is better for you to review all available solutions before selecting any. Select a solution that is most efficient to make repayments according to your financial situation.