I have a mortgage of 180,000.I have a car loan of 10,000. Home loan of 10,000. I have credit cards amounting to about 2,000. Credit union loan of 7,000.We are one year into mortgage.house is worth 350,000.Car loan and home loan are over 4yrs.Two incomes coming in.managing to keep up all payments however not much left over.Have looked into consolidilating loans.Not sure what to do.If I wait a few years car loan and home will be paid off. Any other suggestions.
Should I consolidate debts/remortgage?
- Thread starter gailey
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Re: money managing
Why did you originally take out a c. €180K loan on a c. €350K valued house while maintaining higher cost debts in the meantime? What is the "home loan" for? What are the CC debts and CU loan for? Consolidating may be an option but ideally only as a once off measure and assuming that you address any spending/budgeting patterns that are putting you in debt repeatedly.
Why did you originally take out a c. €180K loan on a c. €350K valued house while maintaining higher cost debts in the meantime? What is the "home loan" for? What are the CC debts and CU loan for? Consolidating may be an option but ideally only as a once off measure and assuming that you address any spending/budgeting patterns that are putting you in debt repeatedly.
liteweight
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Re: money managing
I don't think it's a case for mabs if the person can afford the repayments. I'd definitely consolidate, go to your mortgage lender and ask for a top up, you can always organise to pay this off quickly if you have the finances. This appears to be the case. Any money borrowed to improve the home (not decorating) should IMO be in the form of a mortgage, which you are entitled to tax relief on.
I don't think it's a case for mabs if the person can afford the repayments. I'd definitely consolidate, go to your mortgage lender and ask for a top up, you can always organise to pay this off quickly if you have the finances. This appears to be the case. Any money borrowed to improve the home (not decorating) should IMO be in the form of a mortgage, which you are entitled to tax relief on.
Re: money managing
I say clear off your cc bills first then consider consolidating. Credit cards are poison and make no sense to me when there are such things as debit cards. Also, find other ways of making money if you can. Maybe consider downgrading your car.
I say clear off your cc bills first then consider consolidating. Credit cards are poison and make no sense to me when there are such things as debit cards. Also, find other ways of making money if you can. Maybe consider downgrading your car.
GeneralZod
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Re: money managing
Credit cards are useful when used correctly.
Within the free credit period (up to 57 days) they can be used to smooth out expenditure.
Over a two month period if most of the bills come in on a particular month the CC can be used to defer payment.
If you have sufficient money in your current account use the debit/laser card instead.
Always pay the full amount off each month and never let them charge you late fees.
Credit cards are useful when used correctly.
Within the free credit period (up to 57 days) they can be used to smooth out expenditure.
Over a two month period if most of the bills come in on a particular month the CC can be used to defer payment.
If you have sufficient money in your current account use the debit/laser card instead.
Always pay the full amount off each month and never let them charge you late fees.
Re: money managing
gailey - you might want to post some more detailed information about your montlhy incomings and outgoings so that people can comment and make suggestions. There are also many useful budgeting and debt management resources in the kep posts topic linked at the top of this forum.
Like GZ I disagree. A credit card is very useful for anybody who can manage their finances so that they rarely if ever incur CC interest charges - even after the €40 p.a. stamp duty is factored in. It's ridiculous to dismiss them in most or all situations. Of course there are some people who should not use them because they rack up debts with them. Ultimately a CC is a useful tool for cashflow management not for borrowing.
gailey - you might want to post some more detailed information about your montlhy incomings and outgoings so that people can comment and make suggestions. There are also many useful budgeting and debt management resources in the kep posts topic linked at the top of this forum.
The credit limit depends on the individual in question. €500 may be sufficient for some. Certainly not for me (flights, holidays etc. among other things). Each to their own on that score.
We can start a separate thread on what is an appropriate cc limit-lets try and offer assistance to the OP re. exisiting debts in this thread, i.e. it isn't really the cc limit that is the cause of the OP's problem, it's their spending and arrangement of debt. Even if they had a limit of €500, there is nothing to stop them having 4 more cards with a €500 limit on each, or an overdraft, or a higher level of CU/bank borrowings.
If they are finding it hard to meet repayments as things stand, they should certainly consider freezing their cc usage if possible and use cash/Laser wherever possible.
We can start a separate thread on what is an appropriate cc limit-lets try and offer assistance to the OP re. exisiting debts in this thread, i.e. it isn't really the cc limit that is the cause of the OP's problem, it's their spending and arrangement of debt. Even if they had a limit of €500, there is nothing to stop them having 4 more cards with a €500 limit on each, or an overdraft, or a higher level of CU/bank borrowings.
If they are finding it hard to meet repayments as things stand, they should certainly consider freezing their cc usage if possible and use cash/Laser wherever possible.
Re: money managing
Your 'poison' earns me a couple of hundred quid a year through the Amex Blue 1% cashback facility - Tell me again why this is 'poison'?
Your 'poison' earns me a couple of hundred quid a year through the Amex Blue 1% cashback facility - Tell me again why this is 'poison'?
Re: money managing
Because of lifestyle debt such as what the op currently has. Credit cards are poison because of how easily it is to abuse them. Sure, you can say its the holders own fault but consider how they are nearly forced onto people in desperate times. 14 percent is ridiculous. Its easy to say people need to control their own spending habits but often the unforeseeable happens and so credit cards are inevitably used. If they were controlled by banks better perhaps by proper credit checks instead of preapproving them then money problems wouldnt be so bad. Saying all that, if you can live within your means then credit cards arent that neccesary. If you need sa flight, pay by laser. If you dont have the cash until next month, wait, borrow from a friend/family member. But 2 grand limits are not good for the majority. Could I be right in saying that banks are now offering free banking because of the killing they make on credit card interest? Well done to the guys who manage to keep their finances in order with the use of credit cards but you dont know whats around the corner for you. You could lose your job, house, car whatever. Your credit card might be too much of a temptation.
Because of lifestyle debt such as what the op currently has. Credit cards are poison because of how easily it is to abuse them. Sure, you can say its the holders own fault but consider how they are nearly forced onto people in desperate times. 14 percent is ridiculous. Its easy to say people need to control their own spending habits but often the unforeseeable happens and so credit cards are inevitably used. If they were controlled by banks better perhaps by proper credit checks instead of preapproving them then money problems wouldnt be so bad. Saying all that, if you can live within your means then credit cards arent that neccesary. If you need sa flight, pay by laser. If you dont have the cash until next month, wait, borrow from a friend/family member. But 2 grand limits are not good for the majority. Could I be right in saying that banks are now offering free banking because of the killing they make on credit card interest? Well done to the guys who manage to keep their finances in order with the use of credit cards but you dont know whats around the corner for you. You could lose your job, house, car whatever. Your credit card might be too much of a temptation.
Re: money managing
I have often incurred a few grand's expenses on my personal CC while travelling (especially on business) which I expense and clear before interest accrues. This is one good reason for €2K+ credit limit CCs.
It's also relatively easy to use them "properly" - i.e. as a way of managing cashflow rather than borrowing longer term.
Enough Sanctimonious crap about how good you are with your finances, For the average Joe CC are very dangerous very handy yes but very painful definitely. They enable people to get into serious debt very quickly and then the banks come along and refinance the whole package for you with your mortgage so you can pay for that Jacket or Holiday over the next 25 years and at bargain interest rate.
" Rip it up and Start Again".
" Rip it up and Start Again".
Like I said, if people want to rant about cc limits, please start a separate thread.
Nobody has suggested refinancing existing debt over 25 years or anything like that-it is possible to refinance over a much shorter period if so desired.
It is also possible to refinance at 0% interest by doing a balance transfer.
Nobody has suggested refinancing existing debt over 25 years or anything like that-it is possible to refinance over a much shorter period if so desired.
It is also possible to refinance at 0% interest by doing a balance transfer.
G
Guest107
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Dunno what to say Gailey because all debt is relative .
If your income is €20k I suggest you go down to Mabs and consider declaring bankruptcy .
If €100k its no problem at all, a mere blip.
If your income is €20k I suggest you go down to Mabs and consider declaring bankruptcy .
If €100k its no problem at all, a mere blip.
I didn't think that personal bankruptcy was a practical solution, if it's an option at all, in Ireland unlike in some other jurisdictions.
liteweight
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2Pack..
Gailey states that they are managing to pay. The problem is that there is not much left over and presumably nothing in the kitty for emergencies. Why would bankruptcy even enter the equation??Gailey, I think you should consolidate these loans. You can arrange with your lender to pay this portion of the mortgage off as quickly as possible and probably at a lot less cost than your current situation.
Thanks for all replies Myself and hubby bought this house last year.The house was 245,000.We managed to get a mortgage for 185,000.The rest was the proceeds of our previous house we sold. we thought we wouldn't have to pay stamp duty.We did. It cost us 11,000 which we had to borrow.We also had to do some minor work which we got a credit union loan for. We were managing fine at first but lately we are using credit cards and overdraft to supplement our income.I have enquired about a top up with our bank.PTSB.They have suggested a home loan of 40,000 to pay everything off over 30 years with e199 a month interest rate at 4.34% ,which is considerably less than what we pay now. I now have the forms and strongly thinking of applying for it.
Am I mad?Is this the right thing to do? We will finally be able to save properly.
Am I mad?Is this the right thing to do? We will finally be able to save properly.