# need advice please - consolidation loan ?



## BBFL (25 Sep 2008)

Here's a brief summary - we've moved to one income for various reasons and there is no way really we can go back to 2 for at least 2 years.  I've tried to remortgage (enquired about moving with a well known broker) but have been told the income is too low for the amount we require (250k).  Basically I'm now looking for a consolidation loan of 50k over 10 years - does anyone know if this is possible ?  All seem to be over 5 years which is still too high for us.

Here's a summary:

*net income:* 3600pm (includes everything)
*mortgage:*     990pm (200k, 17 years left - just moved to interest only for 2 years)
*loan/ credit card repayments:* 1400pm approx.
*monthly bills:* 500pm approx.
*debts:* CCs 8k, loan 10k, CU loan 12k (net), car finance 18k.
*house value etc.:* 380k (current prices)
*dependants:* 1 + 1 on way
*savings:* approx. 6k

My current mortgage provider has said a top up of 25k is straight forward enough & while that would increase the mortgage by approx. 200pm it doesn't pay all our debts & therefore is a bit pointless.  I'm assuming if we've been turned town at a broker for a new mortgage we probably wouldn't get the 50k top up at our current provider either ?

Consolidation loans of 40k-50k would cost 800-1000pm over 5 years and I am wondering about getting one - would only leave us 800 approx. per month to live on - food, clothing, travel etc.  But at least it would be straightforward ?

Any advice gratefully received !


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## SarahMc (25 Sep 2008)

Anything you can do about car finance?  Trade down?


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## niceoneted (25 Sep 2008)

Can you switch to a 0% interest credit card and cut up the one you have. Then use the savings after that time to pay it off.If you cannot switch just use the savings to clear most of the 8k and cut up the card. 
I would agree with sarahmac about down grading on the car - have you two cars? I know it's probably important to have one decent family car but could you get rid of the second one if you have two or at least down grade? 
What is included in the 500 for bills - does this cover food, clothes etc on top of the likes of ESB, Gas, Phone etc.


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## BBFL (26 Sep 2008)

well we only have 1 car & it is decent but it's now 2 years old and I reckon we'd lose money selling/downgrading so no point.  

yes the 500 includes all bills more or less (some bimonthly etc.) clothing & food would have to come out of the 800 pm leftover if we consolidate.


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## Peadar (26 Sep 2008)

> well we only have 1 car & it is decent but it's now 2 years old and I reckon we'd lose money selling/downgrading so no point.


 
You will always lose money on a car, as soon as you drive it out of the showroom you lose money.

The suggestion is to sell your car to reduce your loan. Buy a cheaper car. Pay back what you got from your car sale off your loan, then your loan payments are much reduced.

What does it matter if your driving an 8 year old Saloon as opposed to a 2 year old saloon? Both do the same job.

Peadar


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