How much? €16,500?I'm thinking of adding to my mortgage over a three year term
How much is the house worth? How much is outstanding on the loan? What do you earn? Have you sounded the lender out on such a top-up? What have they said?Mortgage is 10 months old, most of the debt has come from the cost of moving in, (Fees, appliances, decoration Etc)
Only if you don't switch to another more seaworthy vessel - e.g. address the budgeting/spending patterns that lead to the debt in the first place and learn to live within (or below) your means. This may involve getting rid of the cards and sticking strictly to a propery income/expenditure budget. Consolidating debts onto a mortgage to switch higher cost unsecured debt into lower cost secured debt especially over a few years rather than the full term of the mortgage (as outlined above) is no harm if it is part of an ideally once off measure to regain control of your finances and save money on reduced interest costs. I don't agree that mortgage consolidations should be discouraged in such a seemingly blanket manner as above but do agree that they should only be done after due consideration, number crunching and rectification of the spending/budgeting patterns that gave rise to the situation being addressed in the first place.As someone much wiser than me said, moving your debt from one location to another is like rearranging the desk chairs on the Titanic...
It is when, as so many people seem to do these days, one attempts to fit the whole house out in one go rather than doing it room by room within one's budget.Moving into a new place can be a very expensive business.
Totally agree with this and the idea of accelerating the repayment of the topup if possible.The only thing I would warn against is paying off the debt only to quickly accumulate another one!!
Current Debt;
€7,500 in C.Cards (One month left @ 0%)
€9,000 balance on Personal loan (7.5%, 2 years left)
This sounds like a quick solution and it would be ok, but before you re-mortgage to clear debts check what borrowings you are likely to need in the next 5v years, car loan, home improvements, holidays, educational costs if you have children and could you afford to support this expense with the additional re-payment? Be careful where your home is concerned.
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