Hi everyone,
Here is my dilemma - would bve grateful for any advice.
I have been given 2 options by my bank:
1. Top up to €190k - either over 20/25 years. That would clear €18k loan, pay off €7k of my cc debt (leaving mye with €3k) Repayments would be €1,073/month but worried about the fact that I would be eating away at remaining equity.
2. Go interest only for 2 years, reducing my mortgage to €452 month. I would then use the difference & some more belt-tightening to do the following:
Pay €1000/month from credit card - would be cleared in 10 months.
Then, start eating away at the loan which would be down to about 14k after 10 months, pay €1k a month into that, which would take about 14 months.
Plan would be to be debt free in 24 months (apart from mortgage) which would stay at €165k.
Not sure what best option is. My tax-home pay after tax will be €3,400 (after pension levy kicks in). Next increment due in October but will be minimal affect.
I'm worried that the €1k a month for the credit card plus my loan repayments will be too much, even with the interest only mortgage but I HAVE to get debt free in 24 months if I go interest only.......
Is the top up a better idea & throw extra money into the mortgage? Or by reducing term to 20 years, is that saving me money?
VERY confused.
Here is my dilemma - would bve grateful for any advice.
- I have a mortgage with €165k outstanding - property valued at €230k. Tracker rate 3.25% APR. 25 years left.
- Also €18k car/home improvement loan with APR of 7.9%. Repay €492/month.
- I also have debts of €10k on credit card - due to ex bf who was authorised user (lesson learned) and we have since broken up not least to his taking me to the cleaners - 16.9% APR. Repay as much as I can every month but usually no more than a few hundred.
I have been given 2 options by my bank:
1. Top up to €190k - either over 20/25 years. That would clear €18k loan, pay off €7k of my cc debt (leaving mye with €3k) Repayments would be €1,073/month but worried about the fact that I would be eating away at remaining equity.
2. Go interest only for 2 years, reducing my mortgage to €452 month. I would then use the difference & some more belt-tightening to do the following:
Pay €1000/month from credit card - would be cleared in 10 months.
Then, start eating away at the loan which would be down to about 14k after 10 months, pay €1k a month into that, which would take about 14 months.
Plan would be to be debt free in 24 months (apart from mortgage) which would stay at €165k.
Not sure what best option is. My tax-home pay after tax will be €3,400 (after pension levy kicks in). Next increment due in October but will be minimal affect.
I'm worried that the €1k a month for the credit card plus my loan repayments will be too much, even with the interest only mortgage but I HAVE to get debt free in 24 months if I go interest only.......
Is the top up a better idea & throw extra money into the mortgage? Or by reducing term to 20 years, is that saving me money?
VERY confused.