# Need advice on loans please



## croarky (12 Feb 2008)

Hi there,

Want to get a loan to as partner and I are getting married in Spetember although need to sort out my finances first.

Credit Card Bill- €3000 paying 200 per month
Credit Union - 16000 paying 420 per month
Car loan bal -16000 paying 400 Per Month
Mortage- 1250 per month

House value? €380,000 mortage bal €250,000

Monthly income: 2700
Travel Expenses: 250
partner's income: 2600 

Would like to borrow €15,000 for wedding.

Would I be better off getting all the loans under one or remortage the house???

Thanks


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## legallady (13 Feb 2008)

maybe consider a small modest wedding as you cant afford a big one?


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## pc7 (13 Feb 2008)

If you remortgage you'll need 35,000 for loans above, 15,000 for the wedding so you need to work out what 50,000 will cost you for repayments.  But it means you are paying for car/wedding etc for 30+ years which is madness imho. 
You need to look at how you've gotten into this position in the first place, there are many threads on dealing with cash only, budgeting, clearing high interest loans first, perhaps putting the wedding off a year so that you are in a healthier position financially.


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## pc7 (13 Feb 2008)

just looking at numbers you are taking in 5500 a month, when you pay loans/mortgage leaves 3280 to live on.  This is a large amount of cash to have a month even if you take off food/bills where is the rest of it going? First stop this month and next clear the credit card and cut it up!


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## demoivre (13 Feb 2008)

pc7 said:


> If you remortgage you'll need 35,000 for loans above, 15,000 for the wedding so you need to work out what 50,000 will cost you for repayments.  But it means you are paying for car/wedding etc for 30+ years which is madness imho.



I'm not condoning borrowing for a wedding but a remortgage/top up can be structured such that  the car loan  can be paid over 3 years, the wedding loan over 5 years, the cu loan over 4 years etc, but all borrowed at, typically, lower mortgage rates. As I said I'm not encouraging this course of action, there may be legal/valuation costs involved, insurance/assurance implications and ultimately the op would be converting what are probably unsecured loans to secured ones but if that's the route the op wants to take .......


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## croarky (13 Feb 2008)

thanks for all advice,

how we got into this mess?? Having too many holidays and generally living beyond out means..
Have changed over for 0% credit card and should have this paid off in a few months I hope, I don't intend ever using it.As for the loan I am thinking of Borrowing €40,000 from Halifax at 6.4% interest and pay it over 5 years repayments will be around €780 per month, the €40,000 will pay off credit union and car loan which will then leave €8,000 for wedding which we will have to be enough! We are planning a small modest wedding anyway.   

Hope this makes sense.


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## Darando (18 Feb 2008)

Is your CU rate not lower than your car loan rate??? If it is then can you change the amount you pay into each i.e at the moment you pay more to the CU than the car loan, could you switch it so the car loan gets more? (you might have to check with the car loan provider if you can pay off early without penalties)..

As for getting all the loans under one - depends on interest rates and if paying off other loans have penalties. A bit of maths will be required!


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## Flax (19 Feb 2008)

croarky said:


> Hope this makes sense.


 
TBH it doesn't really.

You couldn't afford all the holidays etc. and that's how you got into debt.

You can't afford the wedding either; you're just creating more debt.

It sounds like you haven't solved the overspending problem so in a few months after taking out the large loan your credit cards will be back maxed again.


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