It can be worrying when you are struggling with your rent or your mortgage. At Debt Advice we not only try and help people with their debt problems, but we also offer advice on how to try and get the most out of your money, assets and income, including tips and hints on minimising outgoings and lowering your debts.
See our helpful hints and tips below on how to budget and get the most from your rent or mortgage. We will be updating this area of the website, so check back soon for more updates.
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If you are a homeowner with equity in your property and you are currently struggling with your debts, you may be able to release equity to pay towards the debt if you are eligible for a remortgage. This can be a good way of borrowing money and re-organising your finances as mortgage rates are generally lower than expensive unsecured debt. You do need to be wary if thinking of doing this as you need to be clear that you wont be paying more money in the long term with issues such as mortgage rate rises and interest. If you are thinking about a remortgage the best thing to do is have detailed discussions with a financial advisors or your lender to see what all options are and if they are beneficial.
Switching your mortgage to interest only can be a good temporary solution if you need to free up some monthly disposable income in the short term. Like remortgaging it will reduce your monthly outgoings, because you are not paying off the capital of the property. Maybe your curent mortgage payments are too high or you might need to free up money to pay off your debts and finances . If you are thinking about switching your mortgage to interest-only, talk to your lender or a financial advisor and explain to them your reasons for doing so. They will be able to identify if it is a good idea for your circumstances.
Getting a Lodger can be a great way of helping with your monthly outgoings. If your mortgage is too high or you have unmanageable debts. this is one of the most successful ways to gain an extra few hundred pounds per month and quickly too. You have complete control over how long it is for. With a full time lodger, you can earn up to £4,250 per year tax-free.
At present, it is a renters market and renting can be quite expensive. If you are renting a house and have a spare room in it, perhaps you should look into house sharing with another individual. You may need to discuss this with your landlord but you could cut your monthly rent in half, leaving you with money to pay off debts and pay bills. If you are a renter and your lease is expiring soon, perhaps you could be the person to look into house-sharing in another house. It may be an upheaval at first, but could again end up saving you a lot of money, even as a temporary fixture.