Need suggestions on financing purchase of 20K parking slot

spamalot

In a nutshell, I've bought a property but have to pay 20K extra for the parking slot. Its definately worth it as it will increase rental value and re-sale of property so short term pain long term gain.

My situation is as follows, I earn 37K pa, I have the following debts:

8K cahoot loan at 6.5% (roughly)
7K loan from dad (interest free - hurrah!)
163K mortgage (which will be covered by the rental income - so not really a monthly outgoing)

I have no credit card debts or any other debts at all. I want to pay all of my debts outside the mortgage off as quickly as possible, does any one have any advice on:

a. most cost effective method of borrowing 20K given my exisiting debts

b. quickest way in which I could pay debts off

Any suggestions would be really gratefully received

Thanks :beer:

Rafter

Borrowing another £20k unsecured might be tricky given that your overall debt will be over £25k and greater than 50% of your salary.

Is there no way you can add this to your mortgage given it is intrinsicly linked to the property?

I'm sure you could raise it from say a combination of a £10k loan and two £5k 0% balance transfer offers but it will mean juggling things around every few months.

As for paying things off, you just need to budget and either increase income or reduce your outgoings. Do the simple stuff like check your electricity and gas supplier, switch phones/broadband etc and then be strict on yourself re nights out, new clothes etc. Not much fun, but the only way to create a surplus to repay debt each month I'm afraid.

R.