Cash-strapped - top up loan or what?

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POD_06

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Hello all. Just looking for some advice/opinions on whether or not I'm in a position to be less cash-strapped than I currently am?!

I'm one of those rare creatures lucky enough to be in a well-paid job of the permanent pensionable kind and can cover my monthly expenses without too much pain...but without having much left at the end of it, and certainly not enough to save.

My main monthly outgoings are my mortgage (1110), two personal loans (about 800 combined a month) and my credit card (on which 3000 is owed - I haven't used it in four months and won't until I clear that debt. So far I'm managing to pay over the minimum payment each month and am on target to have it cleared in 3 months max).

I accept those figures aren't pretty but I am genuinely able to cover them all each month, with enough left to get by.

I bought my house two and a half years ago for 300000 and it is now worth 425000 - does this give me any leverage in terms of a top up loan or a debt consolidation loan?

To be honest I know very little about these things and although I have studied the key threads on this site I still don't know what applies to my situation and what doesn't, if you know what I mean.

Should I just carry on as I am, clearing my debts month by month, or does the increase in the value of my home offer me other possibilities than might actually give me a few quid extra each month?

Any advice would be appreciated, thank you.
 
Personally i wouldn't touch the house,if you can afford the loans already. Check the rates on the loans,if they are exorbiant see if you can pay them off quicker,maybe move the credit card to a six months free offer and pay that off quicker.All depends what deals you can get,always best to pay off as quick as possible.
If you have a bit of a spending problem debt consolidation loans are a dangerous thing,a relation of mine is on her 3rd remortgage with all her equity being flittered away on current spending.Still thinks she smarter than everyone else !.
Remember short term pain = long term gain.
 
What is your take home pay? How much do you owe in bank loans excluding mortgage?

As the watcher says, it is possible to transer the credit card debt to one which charges no interest, thereby making it easier to pay off. Depending on your salary you may be able to get a top up on your mortgage to consolidate the loans. You can arrange with the lender to pay this off sooner than the current life of your mortgage. In this way you pay less interest i.e. shorter term. Personally, I think it's only a good idea if you intend to do this once so that you have more disposable income. Constantly topping up a mortgage, as thewatcher's friend does, to pay for lifestyle is financial suicide.
 
liteweight said:
What is your take home pay? How much do you owe in bank loans excluding mortgage?

As the watcher says, it is possible to transer the credit card debt to one which charges no interest, thereby making it easier to pay off. Depending on your salary you may be able to get a top up on your mortgage to consolidate the loans. You can arrange with the lender to pay this off sooner than the current life of your mortgage. In this way you pay less interest i.e. shorter term. Personally, I think it's only a good idea if you intend to do this once so that you have more disposable income. Constantly topping up a mortgage, as thewatcher's friend does, to pay for lifestyle is financial suicide.
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Thank you both for your replies, much appreciated. My salary is about 40,000 (after tax), it varies a bit month to month. A top up loan would definitely be a one off, all I want is to get back on an even keel and, more than anything, have a few quid to save each month. Do you think I would have a chance of being approved for that top up loan considering the circumstances (other debts, only 2-ish years in to the mortgage, etc)?

Thanks again.
 
I don't see why not. Other threads here suggest that it's possible to get a top up to consolidate loans. Why don't you see a mortgage broker....they're free and will be able to tell you exactly what can be arranged.
 
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