Getting rid of my debt and planning to start saving


Hi, I have a home loan(for the past three years) and a car loan(since Dec 2018). I need to pay every month for our home and every week for the car. The amounts are affordable as I have a constant income.
Unfortunately, I am unable to save anything as I’m spending on this continually! I’m very much disappointed with this!
Last day I went to the agency from where I got help for my home loan, they suggested me a scheme of debt consolidation through the mortgage. So that instead of paying everywhere, I can reduce my number of credits. I felt this is a good idea because they assured to lower my monthly payment by unlocking up to 70-80% of the value of my home. I thought it is better to have experts advise in this. I can explain my current financial status, please let me know if I can choose this scheme or not!
i)I already have a small number of bad credits. Like I’ve debt across 3 cards with moderately high interest that I need to remove at the earliest.
ii)I don’t have any financial back up other than my home.
iii) I have a steady monthly income.
I hope you can help me to pick the best decision and to be out of debt soon.


I dont really see what you would gain by doing that. Work really hard to start paying off some of the credit cards. If you can pay even one off then it will free up more money fo put towards your other debt. I wouldn’t touch your home, assuming you have a traditional mortgage


The first step is just to pay off the credit cards. Focus on saving as much as possible each week and month and put all that money towards the credit cards. Then start building up an emergency fund (if you don’t already have one).

A drastic measure could be to sell the car and buy a cheaper, used one for $1,000. Again, drastic.

To me, it doesn’t seem like you need a debt consolidation, though I am not an expert in that field. I think you would benefit from some really diligent saving and budgeting.


Sure dude. I’d love to do anything to pay off at least one of my card debt. I don’t even place those cards on my wallet, just to obstruct using them. Also, I always ensure to trim my expenses. But I’m afraid to prioritize my card debt over the mortgage and vehicle payments(highest interest rate). Now any tips for me at this point??

  1. Remortgage the house for a lower interest car?
  2. Get rid of the car?

Sorry can’t be more helpful. Borrowing more money to pay off credit cards just doesn’t seem to make sense to me


Agree with the comments above. Pay off your credit card first. As for debt consolidation, it may be too dangerous for your credit score. Have a look at this detailed article


Definitely work to pay off the high interest rate credit cards first as others have suggested. You’ll also need to stick to a budget and plan on not making any unnecessary purchases. If you want work to pay down the credit card debt and control your spending, you should be able to get back on track. Good luck! :slight_smile:


It has been a while! I’m sorry I couldn’t get in touch with this! I was stuck with work.
I’m extremely happy to see all of your kind responses!
Thanks a lot for your concern.
Ps: I sold out my car and got a cheaper one worth $800 (Ford 2008 model, hopefully for six months! after that I will get a better one.)