Sparky, what about trying to get extra money in, renting a room or getting part time hours somewhere else.
I didn't realise it was a specific consolidation company you were going with and would not have advised that so.
Good luck with cu, let us know how you get on.
Annual gross income from employment or profession: 19000
Rough estimate of value of home: €215,000
Amount outstanding on your mortgage: €200,000
Other borrowings – car loans/personal loans etc:
CU: €7500
CC: €6000
This is just a suggestion sparky and I know there are cons to it but if the value of your home is higher than your mortgage and you think you would get a buyer at 215k for the home (not sure how you came up with rough estimate) then you could sell, pay off the mortgage and pay your CU and CC off (with some cash left for selling costs). You would then be debt free, able to rent and lucky not to be in negative equity. I know it's your home and only you can decide if owning it is worth all the stress of repayments or if it would be good to clear all the loans and be debt free.
Thanks for the suggestion, its somethin I had thought about, (got rough estimate from looking at neighbours houses on daft and in papers) but I don't think I'd be up for the hassel of selling it. Plus I've put so much money into making the house my own, decorating, furnishing, etc. (hence the big CU loan...) So I'm just not ready to part with it. Yet!
Sparky,
You've a mortgage worth over ten times your earnings?
I would sell that house as quick as you can for what you can, take the hit and then rent.
You will be absolutely crucifed when interest rates rise.
Get the hell out as quick as you can.
Stay at your own peril.
I would go with a moratorium of 4 months and at the same time reduce your repayments to the cu to 100 a month. use the money to clear your cc then switch your mortgage to intrest only and use all your money to clear the cu
Sell your car and use public transport.
Pay off some loans with that money.
Buy a cheap car in a year or so.
The key is to reduce your loans and the interest payments on them.
Talk to your bank about your mortgage. Maybe you can get the length of it extended, maybe you could move to interest only payment, something like that.
Hiya sparky
We have a cu loan of 26k and we are only paying back 75p.w.
We spoke to the cu and got it moved (with a lot of persuasion!)from 5 years to ten years. I know we will be paying back a huge amount in interest initially but hopefully when things improve we will go back to paying 150 p.w again, and we can reduce the term. 100 p.w seems like an awful lot for a relatively small loan.
Or you could ask to pay interest only on your loan until you go back working full time. Same thing could be done on your mortgage maybe.
I'm with niceoneted about the 0% CC balance transfer. I did it myself back in Feb now everything I pay them goes straight off the balance and nothing on interest.
Hope you work it out
Sparky,
You've a mortgage worth over ten times your earnings?
I would sell that house as quick as you can for what you can, take the hit and then rent.
You will be absolutely crucifed when interest rates rise.
Get the hell out as quick as you can.
Stay at your own peril.
I agree! Wht makes you think you will be earning enough to ever pay it back? If you are earning €19000 on 3 day week you musy have still only been earning around €32000 on the 5 day week. Still a modest income for this level of debt. I would sell in your situation unless you have the option of trebling your current salary at the least!
I agree too. For God's sake don't go near one of those debt agencies. I'd sell the house (if you can). It's only brick and mortar. You can still make that lovely home in a rented place. Check out all the charity shops - the clothes are great, lovely, and cheap and you can get real bargains. Do your shopping in the late evenings when things are reduced.
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