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Home » Services » Mortgage Services » Debt Consolidation Mortgages » Debt Consolidation Case Study

Debt Consolidation Case Study

Ciarán Power

Last Updated: February 2nd, 2024 at 6:34 pm

Table Of Contents

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Meet Emma

Emma, a secondary school teacher from Leeds, faced the common challenge of managing multiple debts alongside her mortgage. With credit card debts at high interest rates and a car loan, her monthly outgoings were overwhelming.

Financial Overview

Her mortgage stood at £130,000 with an interest rate of 3.5%, and her additional debts included credit card balances of £15,000 at 19% and a car loan of £8,000. The disparity between the interest rates was significantly impacting her monthly budget.

Seeking a Solution

Emma contacted Green Mortgages for guidance. Our advisors conducted a thorough financial review, providing her with a detailed breakdown of how debt consolidation could lower her monthly payments and reduce her long-term interest costs. We explained the debt consolidation process, aligning it with our comprehensive mortgage approach. This included assessing her current financial status, discussing potential savings, and outlining the new loan structure.

Financial Impact

By consolidating her debts, Emma's monthly payments were reduced, providing immediate financial relief and simplifying her budget management. The consolidation would result in a total interest saving of approximately £4,200 over five years. Encouraged by our transparent and detailed advice, Emma decided to proceed with debt consolidation. This decision was driven by the desire for a more manageable financial situation and the potential long-term savings.

Positive Outcome

Post-consolidation, Emma experienced a significant reduction in financial stress. She expressed gratitude for the clarity and support provided by Green Mortgages, noting how the process helped her regain control of her finances. Emma's journey highlights the importance of personalised financial advice and the impact of well-considered debt consolidation. Her story is a testament to the power of expert guidance in navigating complex financial decisions.

Explore Your Options with Green Mortgages

Inspired by Emma's story? Discover how debt consolidation might benefit you. Contact Green Mortgages at 01244 955 399 or fill out our online form for tailored advice.

Meet James

James, a 30-year-old software developer from Manchester, sought advice on managing his £10,400 credit card debt. With a steady income and a mortgage balance of £123,000 at a 3.5% interest rate with 15 years remaining, James was contemplating debt consolidation.

Initial Consultation

After reaching out to Green Mortgages, James was guided through a comprehensive financial evaluation. Our team reviewed his mortgage and debt details, providing a clear analysis of how debt consolidation might impact his financial situation.

Insights and Analysis

Our analysis revealed that while consolidating his credit card debt into his mortgage would slightly lower his monthly payments, the long-term cost would not be beneficial. This was mainly due to the extension of the debt term and the resulting increase in total interest payments over time.

James' Decision

Guided by our transparent advice, James decided against debt consolidation. He realised that the short-term relief of lower monthly payments did not justify the long-term financial implications.

Resulting Strategy

Instead, James opted for an aggressive repayment plan for his credit card debt. By focusing on higher payments in the short term, he aimed to clear his high-interest debt more quickly without impacting his mortgage structure.

James' Reflection on the Experience

James appreciated the honest and detailed consultation provided by Green Mortgages, which allowed him to make an informed decision that aligned with his long-term financial goals. He felt empowered and more confident in his financial decision-making.

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