How to free up more cash?

Brendan Burgess

Founder
Messages
44,909
Then both make a committment to live like hermits for 12 months. Seriously. Step back from any type of discretionary spending - magazines, DVDs you name it (easier said then done with young kids). Put all the changes in place during this time and emerge in a years time in better shape.

There really is no need for this at all. You are both 24. You should be enjoying life with your young child. I am not suggesting reckless living, but don't become hermits. Oversaving is as bad as overspending.

Brendan
 

Kendr

Registered User
Messages
85
Unless, of course, like the OP said, she's trying to find extra cash from somewhere?
If she's no longer trying to free up extra cash, then heck....as you were.
 

ailbhe

Registered User
Messages
481
Thanks for all the worthwhile advice. I was just trying to reassure myself that our best option is remortgaging. We quite liked the idea of paying off the mortgage at 42 but that will have to wait! So first and foremost we lose the credit cards, then remortgage and put the large loan (which was for finishing the house) in with the mortgage. This will free up about 700p.m. plus a payrise for me(hopefully) and a reduction in childcare costs. This should enable us to build up a small nest egg for security.
Thanks again for all the advice. It's good to know we're not doing too badly because it doesn't always feel like that!

And Brendan thanks for the politically correct adjustment ;o)
 

ClubMan

Registered User
Messages
44,339
You might consider a Registry Office marriage for the tax and general benefits. He will pay less tax. You will be protected if anything happens to him - no CAT on the house for example.
Getting married solely or mainly for the tax benefits seems like a bit of a drastic step!
 

Brendan Burgess

Founder
Messages
44,909
I agree that you should not get married for these reasons. But if you are planning to get married anyway, it's worth bringing it forward to save so much money when financial things are tight.

brendan
 
I

irishlinks

Guest
You mention that you have an interest only mortgage - so how were you planning to pay it off "when you were 42" - you would still owe the original amount?
When you remortgage - will you be getting a repayment mortgage ?
 

ailbhe

Registered User
Messages
481
You mention that you have an interest only mortgage - so how were you planning to pay it off "when you were 42" - you would still owe the original amount?
When you remortgage - will you be getting a repayment mortgage ?

The 19 years we would have been paying it off was factoring in the 3 years (maximum) we would be paying interest only. It is the maximum length of time you can pay interest only with IIB. When we remortgage we intend repaying interest and capital from the outset. We originally went with interest only as the house was a builders finish and we needed money to finish it. We had intended to be repaying the capital by now but the rising interest rates put paid to that.
 

SidTheDweeb

Registered User
Messages
99
The 19 years we would have been paying it off was factoring in the 3 years (maximum) we would be paying interest only. It is the maximum length of time you can pay interest only with IIB. When we remortgage we intend repaying interest and capital from the outset. We originally went with interest only as the house was a builders finish and we needed money to finish it. We had intended to be repaying the capital by now but the rising interest rates put paid to that.

At the end of the day you haven't touched the capital yet so there is no point even mentioning the mortgage term - you should factor in the large increase in payments when/if you do start paying back to capital. And I doubt very much it will be over 19 years :)

Ultimately though you seem to be in pretty good shape. I would agree with the advice above to not live like hermits and just try to weather the tough times. Best of luck
 

ailbhe

Registered User
Messages
481
Hi all.
Just a quick update. We're going for the remortgage over 30 years. This will reduce our loan and mortgage repayments from 2325 to approx 1645 thus freeing up approx 680 per month. Add to this the reduction in childcare costs (220) from September and I can safely say that we should be able to begin enjoying life again!
All work and no play etc.....


Thanks for all the advice
 

Quest

Registered User
Messages
75
From previous personal your particular lender do personal loans at home loan rates, unsecured, over a term of 1-5 years, this may reduce you outgoings on short-term debt...
 

pc7

Registered User
Messages
593
glad things are looking up but clear your loans with your extra cash and throw a few bob in savings!! don't go blowing it ;)
 
Top