Debt consolidation

Hello,

I would like some advice on the following situation please with regard to debt consolidation.

Married wife not working
Salary: €80,000 per annum
Mortgage: BOI approx €255,000 outstanding (tracker) (€1090 p/m)
Car loan: BOI approx €26,000 outstanding (€750 p/m)
Credit Card: BOI €4000 outstanding
Overdraft: BOI €2700

In terms of consolidating this debt to get best rate and monthly repament combination what would people recommend?

Thanks in advance.

I presume you are considering remortgaging, how much equity do you estimate you have in your house?

it's not clear to me on the exact amount of equity - given the decline in house prices in recent times not much - possibly none at all.

If you have no equity in your property I'm struggling to see how you would be able to restructure

Your mortgage rate (as a tracker) is as good as you'll get anywhere

you should review your credit card to ensure you are getting the best deal possible

if you are struggling financially you could consider downsizing your car.

First thing I would do is switch cc balance to a provider with a 0% switching rate & get it paid off within the 0% period. Usually about 6 months.

Second thing - that car loan is mental - 750p/m? Could you sell the car - I know you'd probably make a big loss, but having a cheaper car & a bit of a loan left to repay is better than paying out €750 a month for a car.

Overdraft - I wouldn't worry about that until cc & car loan taken car of - but that's just my opinion.

Other options - approach lender about going interest only for a while, so you can put all spare cash into paying off car loan & credit card - might make things a bit easier in the short term.

mpsox - can you explain how releasing equity in a property works?

mickaxe said:

mpsox - can you explain how releasing equity in a property works?

Click to expand...

Basically you're talking a top up mortgage. The value of the house would still need to cover the overall value of the outstanding mortgage and in a time of declining property prices, the bank expect that the overall value is still significantly less then the value of your property

I'm no expert in this area, sure other posters can go into more detail on this

Hi mickaxe, do you have any idea what the value of your house is? If there is no equity in the property it wouldn't be possible to do a debt consolidation re-mortgage and a lot of the lenders have a max on how much short term debt they will refinance. If the value of your house is near enough to the same as the loan, you'll find it v.difficult to get a remortgage..sorry!!