J
The idea of borrowing to fund living expenses is not a good one; in fact it’s a really bad one.
My current mortgage is 250K and my home is worth about twice that. Unfortunately I have already asked my mortgage provider to top-up this mortgage by 30K (to pay off my car loan and credit union loan), but they will not entertain the idea until my wife returns to work. The manager in my branch says that he has strongly recommended it but the mortgage section are not budging.You may be able to remortgage your home to fund you through the next year. What size is your mortgage and what value is your home?
I currently have 3 loans (credit union, car loan and one other) which cost 850 euro per month in total.an overspend of €1500 a month is far too much to cope with
I don't agree that in this case the debt that will accrue over a 13 month period (€1'500x13 = €19'500) is a good idea given that the equity in the rental property is low and not likely to increase in the short to medium term and the yield seems to be low as well. Allowing for a slight increase in living costs when James's wife returns to work there will still be very little excess income to pay off the €19'500, and that's after other current loans for non-capital items have been rolled into the mortgage in their PPR.I would agree with this as a general rule, but not in this case. It if perfectly good financial planning to borrow money for living expenses during a period of especially high living expenses or during a period of low income. You have made a family friendly decision for your wife to take a career break. As it's just for a few years, then borrowing to fund that is a good idea.
Or use spread sheet from the Banking, Borrowing, Budgeting and Credit Cards forum.One thing that you haven't looked at is can you reduce your monthly spending, is there anyway you can say not go on holidays, give small gifts for Chrismas, go out only once a month just for one year to bring down your monthly spending? I would recommend getting out a piece of paper and writing down exactly what ye spend the money on to get an idea where cuts can be made.
Take your profit and scram!
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?