Advice Needed!

NY_Girl

Hello everyone, was wondering if anyone could help.

Currently have quite a lot of debt from a wedding last year. We are chucking everything we can at it and we will have paid it off in just under 2 years.

We also have a mortgage on the SVR. We are currently making over payments and our total monthly payment is £1,083. My OH is thinking about stopping the overpayments and extending the term of the morgage from 25 to 35 years (temporarily). This will reduce the monthly payment to £770 (with a fee of £32 to change the term and another £32 if we want to put it back again) and then throw the extra £313 at the wedding debt to get this paid off a lot quicker. His argument is we could then start over paying on the mortgage again when we are debt free also using the money that we are currently using on debt repayments.

I am not sure if this is a good idea. We are anxious to pay off all our debt as quickly as possible but we are easily making all of the payments as they are.

What do you think?!

poorandindenial

Hi NY girl

You could try putting the various options into the snowball calculator at www.whatsthecost.co.uk and see what it says for the interest.

If you want to see what happens with different scenarios you can use the 'non flexible' flag.

What is the wedding debt on, if it is credit card then the cheapest thing would be to try to get a 0% card and transfer the balances onto them.

NY_Girl

Thanks for the reply I will definately check out the link, hopefully it will make things a bit clearer for me!

The debt is in the form of 3 loans, two of which and end within the next few months and the other larger one is with Black Horse Finance and we can make overpayments to it. I do not have the details of interest rates to hand but I know they are all in double figures (eekk!)

Thanks again for your help!

urg123

Hi NY Girl,

Two thoughts for you

The interest on the loans is likely to be higher than the interest on the SVR.

Secondly, why don't you post your SOA on this site. Maybe there are places where we can all help to shave a few pounds to help you to put more money towards your debt repayments. The link is with one of the stickies on the first page.

Good luck

urg x x