Probably the most common way people manage their debts is by consolidation into their mortgage.
Buying a property these days is no easy affair. For first time buyers it is even harder as they rarely have any equity to put down as a deposit and the quicker they save for a deposit the faster house prices rise. Whilst It is very difficult for first time buyers it is equally important for them to get on the property ladder. Renting a property is normally just as expensive as a mortgage if not more and it is simply money down the drain for the tenants with all the profits going to the owner of the property.
Some mortgage companies will offer special schemes involving cash back deals or other incentive deals for first time buyers. However it is advisable if you do decide to enter into a mortgage arrangement that is not a standard repayment to get independent advice to ensure there are no hidden costs along the way.
An example of this would be if you were buying a new house and the builder or seller were offering carpets, washing machines, cookers etc whilst this may sound a very good offer and attractive to first time buyers you would be better off asking the vendor for further money deducted from the house and not taking the offer of the included goods as you will be paying for them over twenty five years together with interest if they are included as part of the house sale.
Once you are on the property market your house will increase in value and the equity in it will be yours and more importantly you will be able to use this equity to consolidate any outstanding debts you may have incurred along the way.
It is true to say that there is no guarantee your property will increase in value just like any investment there are risks to consider. That said investing in property is probably one of the most secure ways to ensure a return on your cash as at the end of the day and whilst the market may fluctuate from time to time, people will always need somewhere to live and therefore ultimately your property will increase in value.
Once you have a foothold on the property ladder and have owned your property for say a couple of years you should have built up some equity together with some debts incurred in buying new bits for your home.
In order to realise the equity you do not need to necessarily sell the property. You could simply approach your mortgage company for an increase on your borrowing to either consolidate any outstanding debts or for any building improvements you may wish to make to your home.