heretohelp
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save 1020 euro
What is the amount of the car loan?We owe 27000 euro on the credit union loan , 5 years left
7300 on the bank loan 3 years left
the car loan is newly purchased, 483 euro over 5 years
Is this an accurate summary of your debts?
What is the amount of the car loan?
What are the rates charged on the various loans and are any of them fixed?
Saving while carrying unsecured and probably high cost debt rarely makes sense.
Not sure of the rates
So that probably means fixed rate breakage penalties if you decide to reduce or clear the loans early?but there all fixed on each loan
One possibility for reducing your debt costs could be to remortgage for the amount outstanding on the loans (and maybe even to cover some of the wedding costs) but scheduled over c. 5 years rather than a full mortgage term of 20+ years. Of course you would need to carefully crunch the numbers to assess the viability and possible cost savings involved. And make sure not to fall into the trap of racking up debt and then rolling it onto the mortgage. On that point you might also want to review matters to understand the spending patterns which lead to you racking up this debt and maybe putting in place budgets/plans to avoid this in future and to live more within/below your means rather than on credit.We own our house.
And a wholly owned asset presumably worth a few hundred grand?Yes, you have a lot of debt but you seem to be organised enough to cope with it at the minute. In addition, whilst you have around €50-€60k in debt, you do have €20k in savings.
You should at least consider it and crunch the numbers as it is one possibility of reducing your debt costs. I don't really understand why some people post here looking for advice and then dismiss out of hand what may be perfectly reasonable options which others suggest! I'm not saying that a (re)mortgage necessarily is the solution to all of your problems but seeing that you are a year's net income in debt and looking at spending even more on a wedding it's certainly one option which should be investigated. Along with any others mentioned here...I wouldnt really be into getting another mortgage.
The 3k in bank "sitting there" should be used to reduce your dearest debt. It strikes me that your popst here is a bit too late as you have recently borrowed heavily to buy a car adn it alos appears that you borrowed recently from CU.
Im not dismissing the advice, i take it all on board, but with only recently clearing a mortgage it seems like a big step to take .You should at least consider it and crunch the numbers as it is one possibility of reducing your debt costs. I don't really understand why some people post here looking for advice and then dismiss out of hand what may be perfectly reasonable options which others suggest! I'm not saying that a (re)mortgage necessarily is the solution to all of your problems but seeing that you are a year's net income in debt and looking at spending even more on a wedding it's certainly one option which should be investigated. Along with any others mentioned here...
Yes - but you should at least investigate the option and crunch the numbers. It could be one way to save money - e.g. if you can convert existing higher cost unsecured debt into lower cost secured mortgage debt over a similar term and the expenses involved (e.g. early fixed rate breakage penalties on the unsecured loans, other charges, legal fees, mortgage protection life assurance etc.) don't negate any potential savings.Im not dismissing the advice, i take it all on board, but with only recently clearing a mortgage it seems like a big step to take .
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