Consolidate debt ??

[Ron J]

Have an option to top up current mortgage by 150k to consolidate loans. Mortgage balance currently is 430k approx. Short term loans at 150k costing 1500 per mth. with 9 yrs left to clear them. Top up of 150k over remaining term of mortgage (21 yrs) will be approx 750 - 800 per mth.

Trying to decide on best way forward. Any insights welcome.

 

[allthedoyles]

In my opinion , it is a necessary evil , - It will free up €750 p/m

As long as your mortgage provider is willing to take on the short-term loans of € 150k

Looks like it ain't going to get any easier for the next few years , and if it does , you can always increase payments to reduce loan term .

 

[househunter!]

you should consolidate to get the cheaper interest rate but keep paying the 1500 pm if you can afford it. you'll pay more interest over the 21 yrs then the 9 .

and cut uo ur credit cards and dont take out any more short term debt . 150k short term debt is crazy

 

[Ron J]

Thanks for the replies. The short term is for a home loan via the C/union for work to main residence. Reckon that while it will mean paying it off over 21 yrs rather than 9 but will free up some funds monthly. Take the point re paying more per month.

Thanks again.