Divorced Mom- Sell investment property to pay off debt, or keep for early retirement/ kids?

[RedOnion]

Just to add another option in, the bank (KBC) is willing to let me hold onto the 170k that's still on the tracker +1.25%, offer me a 'new business rate of 2.1% on anything extra (instead of 4.5%)

For a buy to let? Are you sure?

 

[Itchy]

I bought a small 2 bed family home, with need to extend and add another bedroom in a couple of years when children older.

The kids are 9 and 12, you will need to extend sooner than you think. You need cash.

The car loan is 18k, what car to you drive? Can you downsize and realise 10/12k? Then with 5k savings and 2.5k from stopping the AVC you could clear the car loan.

 

[Melard]

Noted! OK thanks a mill for all the fab advise everyone!

 

[Laughahalla]

I would sell the car and buy a used car for a couple of grand and pay off the credit union loan. New car is vanity when you have so much debt.

This would enable you to keep the rental.

You don't have an income problem you have a spending problem.

 

[Brendan Burgess]

You don't have an income problem you have a spending problem.

Hi Laughalla

That was my suspicion as well, but don't forget
1) She had a big bill for her divorce
2) She is paying big lumps of capital off her home loan
3) She is paying even bigger lumps of capital off her investment mortgage

So she is running up expensive debt in the Credit Union to clear cheap debt, her mortgage.

Brendan

 

[Melard]

I would sell the car and buy a used car for a couple of grand and pay off the credit union loan. New car is vanity when you have so much debt.

This would enable you to keep the rental.

You don't have an income problem you have a spending problem.

Yes I sold the previous family car after divorce last year and bought a cheap car, paid off debt to family who had helped me buy house. I will have my old 5k car paid off by September.

 

[ClubMan]

Different CUs charge different rates and have different loan products.

Yes I sold the previous family car after divorce last year and bought a cheap car, paid off debt to family who had helped me buy house. I will have my old 5k car paid off by September.

I don't understand.
How come you have a €18k car loan with the CU so?

 

[Melard]

Because a family.member who leant me money for the deposit on my house needed the money back- I sold the car and paid them back, so the car loan is still outstanding. However, it's at a lower rate than if I'd borrowed money to pay family member back.

 

[ClubMan]

Because a family.member who leant me money for the deposit on my house needed the money back- I sold the car and paid them back, so the car loan is still outstanding. However, it's at a lower rate than if I'd borrowed money to pay family member back.

Ok, thanks. I understand now.