Advice Needed - in a mess

All,

Badly need some advice re my current financial situation, I've got myself in a mess and need direction as to best way to get out & move forward in best manner possible, pls see a breakdown of my debts:

Mortgage 1200
Top up 25 K -120 PM
Car loan 10 K 3 yrs left - 320pm
Personal loan 10K 2.5yrs left - 385pm
Other loan 4 k 3 yrs left - 130pm
CC1 - 6.5K
CC2 - 6K
CC3 - 5K

I don't really want to go into how I got in this mess in the first place as it's too depressing at this point, what I will say it's a combination of things and I've learnt some hard lessons & am determine to get out of this mess. I've been thinking of combining all my loans and cc's into one loan of approx 45K, but am not sure if banks will provide such a large loan. I keep telling myself that this mess will be nearly over in 3 yrs as my loans will be complete then freeing up 800 euro per month. The CC's are really worrying me and hence this posting as I find myself dipping in each month and taking out my payments, thus getting nowhere in trying to get balance down.. I've believe I've a good credit rating which has helped get me in this mess ! & have never missed a loan or mortgage pymt. I was also thinking of completley re-mortaging with a new provider and starting a fresh with a morgage of approx 340-350 K.. if a provider would be willing ! IF anyone out there has any worthwhile suggestions, pls advice many thanks...

See the many long and detailed "dealing with debt/financial problems" threads that have been posted in the past and also the budgeting/debt management/etc. resources linked in the key topics threads at the top of this forum.

Remortgaging is an option (or you could look at another top up with your current lender), but if you do go down this route I would strongly recommend that you split your mortgage so that you repay your loans over the remaining term. If you look at the figures and feel you may still be struggling with repayments it may be advisable to go a little longer - say 5 years but you shouldn't go the same term as your new mortgage (or existing one if you decide to top up). You will pay a lot more in interest and you will be repaying car loans, personal loans etc for years to come.

Posting details of your monthly budget (i.e. what each of the debts is costing you, any other outgoings, your incomings - net income etc.) might help people to comment.

I've a good job earning 60K per year, come out with 3200 each month after pension, VHI & travel deductions. Loans & morgage repayments are 2155 pm, cc's generally 300 and utilty bills appor 200 pm, so doesn't leave much room from 3200 each month..

How much is your existing mortgage for and roughly how much would your house be valued at?

Sorry, thought I mentioned this - I have 260,000 K left on motgage over 28 yrs and it is currently valued at approx 435 - 450 K. I pay 1200 each month on this. tks

Get N bet R said:

Sorry, thought I mentioned this - I have 260,000 K left on motgage over 28 yrs and it is currently valued at approx 435 - 450 K. I pay 1200 each month on this. tks

Click to expand...

Does the €260K (I sincerely hope it's not 260,000K ) include the top-up figure of €25K?

If it does, then you need an additional €42K to clear the outstanding Loans + CC's. This would come to a total of just over €300K.

Where do you get your fresh mortgage requirement of €340K-€350K.

That's a lot of extra K's.

Have you topped-up with your current mortgage provider or else-where?

Have you thought of approaching MABS?

Remortgaging would be one way out, as long as you approached it in a disciplined fashion, particularly trying to clear the short-term, highest interest debt over a shorter period than the Mortgage.

Also, cut up and dispose of the CC's.

i would contact mabs if i were you. mabs should be able to work with you as well as your creditors and help you resolve the situation in time. they are very good from what i have been told.

Please log on to the mabs website www.mabs.ie. It will give you advice on how to address the problem and the telephone numbers of all offices if you feel you need to talk to an advisor.

ClareG