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Latest Craze Of Putting Credit Card Debt Onto Mortgage

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Cost of piling debt on mortgage

Rosana Spero, Daily Mail

10 March 2006

LUMPING all your debt on to your mortgage to get lower repayments may sound a good idea, but it could cost thousands in extra interest over the longer term.
Figures from the Bank of England reveal that mortgage borrowing increased by £10.5bn in January - the biggest monthly jump for 18 months.
But the amount of interest charged would rocket. Instead of paying £4,510 in interest over the term of the personal loan, they would pay £19,046 interest on the mortgage. This is because they would owe the money for five times longer

No wonder the Shylocks are spending a fortune advertising how to "get rid of debt," its where all that mortgage growth has been going.

Edited by Realistbear

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If they were canny, they would put the debt on the mortgage and pay the SAME or MORE in monthly payments for their total debt as they were before. This is would whittle down the debt much faster as you'd be paying it off at far lower interest rest.

Of course, this only works if you're 100% committed to erasing debt. I know the current fashion is for spending like a loon until you go bankrupt.

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