consolidation of debt

S

scotialand

Guest
Folks
1st timer so you may have heard this story before.
I'm looking for some advice on where to go to consolidate all my current payments every month.At the moment my debt is €35,000 broken down as such:
€12,000- Car
€5,100- Credit card
€14,300- Bank loan
€4,100- Credit union loan.
I am a homeowner and my mortgage is €713 per month.
I'm looking for a loan to pay all this off, and was wondering the best way to go about it.
I was going down the road of re mortgage and adding the money to the home as it has increased in value by €70,000 in the last two years,my mortgage is €150,000.But have heard that it's not the best way to go as i would be paying a lot in interest,at the moment just really confused and would like to know what the hell to do!!!!
thanks
 
Bank of Scotland offer a [broken link removed] Tracker, which allows you to switch your current Mortgage, and also Consolidate outstanding Loans.

Their rates for this are discounted for two years from their Standard Tracker rate by 0.55%, Currently 3.20% rolling to 3.75%, after 2 years.

(AFAIK they still pay €1000 towards Legal costs, plus €127 for Valuation)

I would advise paying the short-term loans over a much shorter period than the Mortgage Term, as you would be paying exorbitant interest over the longer period.

However, you also want to arrange your finances so that you won't have to resort to short-term borrowing again, so be realistic about the term and monthly figure you can afford. Sometimes the extra interest is unavoidable, so a little bit of leeway is advised.

Also, cut up the card(s) and close that CC account.

Treat this as a once-off opportunity to get on the straight and narrow, and promise yourself and those that love you never to stray again.
 
Good advice from irishpancake. There is nothing wrong with remortgaging/topping up to consolidate short term loans as long as you do not end up repaying them over the same term as your original mortgage, and you have the opportunity to avail of lower home loan rates. The key is not to extend the term of the loans you are consolidating by any longer than you need to to comfortably afford to repay them (factoring in interest rate increases).
 
Nothing wrong per se, though it will cost you more in interest over the longer term and it will not solve the root causes which got you into such debt in the first place.
 
tis an awful lot of debt for an average earner , can you afford to pay €1200 a month (minimum) off that new mortgage by the way ???

have you cut up the credit card ??
 
2Pack said:
tis an awful lot of debt for an average earner , can you afford to pay €1200 a month (minimum) off that new mortgage by the way ???
Click to expand...

Assuming the op is making the monthly repayments on all their existing loans, an extra 500 on their mortgage would actually be less than they are currntly paying out each month.
 
thank you to everyone who posted a reply.
I have been in touch with my mortgage lender and i am sorting everything out as we speak.
it is a lot of debt i know , but i can assure you when i get this sorted NEVER again will it happen,i have had too many sleepless nights to go through this again.
thanks again
scotia
 
For a person on an average salary thats WELL over a years salary worth of random debt on top of the mortgage . How many credit cards do you have ??

Shockin :(
 
Have had a response from UB today saying that they are unable to help.
They have regulations that say a single person must have at least €1600!!!! of disposable income to qualify!!!
I asked for a top up loan of €35000 to pay off everything
Mortgage is 150,000,bringing the total to 185000,house worth 225000.
monthly payment would be €966 total(mortagage + loan top up)
I earn €2400 a month,this would leave €1434.
Still no-go
Who on an average salary has this type of cash as disposable??
I know i have no one to blame for this situation but me ,but this is just crazy to me.
My rant over
 
your repayments should be about 906€ per month - take 60€ off that as FTB (if you are) mortgage interest relief - now you pay 846 approx. this is based on EBS current rates.

this would leave you with at least 350€ per week - what's the problem? you can easily manage on that.

don't ditch the credit card - just reduce the limit to about 250€ - and stick to it!

you're making it seem much more difficult than it really is...;)
 
you really should try the switch trick, as in leave UB and move your mortgage to another institution, such as BoSI or AIB, who both offer decent discounted trackers for 2 and 1 years respectively.

i would do this as a matter of policy, if UB don't relent, and regardless of whether you get the full amount of the top-up or not.

See then if UB are willing to offer terms.

Have you gone to any of the mortgage brokers, such as REA, or Primafinance.

They seem to be able to negotiate better deals, at no cost to you, and just might be able to swing it for you.

BTW, is the monthly earnings figure (€2400) nett or gross (it must be nett). What is your Gross Annual Income, and guaranteed annual bonus, just to help out with the figures.
 
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