Would really appreciate advice of the Pros!!

rivendale0506

Hi

I have lurked on here long enough... I think sometimes your debts and mortgage seem so insurmountable that you just keep putting off doing anything constructive - but not anymore!

So, here is my SOA - I would love to pay off my mortgage, but I have debts I need to get rid of too. My mortgage is up for renewal in Aug so one of my questions is do I increase my mortgage to clear up my debts?

Mtge - £158000 (house value appro £250,000)
Loan - 16k
cards - £10k


Income currently 41k per year - (2,250 per month take home)

Mtge - £920
Loan - £355
Cards - £350
Bills - 185.00 (phone, broadband, gas, elec)
C Tax - £195
Food £100
Am ashamed to say I don't know how much my water bills etc are - they are paid out by DD every month and I never check!

I do smoke 20 a day and I KNOW I need to give this up... (at a cost of £5.50 a pack!)

I don't have car running expenses or mobile phone expenses at present as these are part of my package at work.

I live on my own so can exist on a small food budget.

Needless to say I don't have a lot of money left over each month to reduce either my debts or my mortgage so any advice would be truly gratefully accepted.

Many thanks in anticipation

Riv

Lotta_Littlies

I think you should post this on the Debt Free Wannabe board as you'll get lots of help, advice and support there - http://forums.moneysavingexpert.com/forumdisplay.html?f=76

Good luck with whatever you decide.

Lotta

nelly_2

as a general rule pay off the highest interest debt first, cos that's what's costing you the most

firesidemaid

your amount for gas/elec/phones etc seems high - i'm sure that could be a lot less.

eg. gas/elec £70 per month, tv/phone/bband £26 a month incl. sky! there is a sticky at the top of the phones board re. cheaper phone calls.

again, if you move this to the DFW board they can help you with the snowball calculator - or do a search on the forum. put in all your debts and your aprs and it shows you how long things will take to pay off.

what are the loan amounts, rates etc? can you switch any to better deals/lower rates?

what about money in your budget for emergencies/going-out/haircuts/clothes/christmas etc ?

try to pay off all debts before tackling your mortgage. get the best deal you can on your mortgage - visit the mortgage board for advice - what is your current rate? do you have any savings? you can probably start looking for that rate now and lock in before they go up any more.

firesidemaid

do you live on your own or do you have a spare bedroom you can rent out tax-free for up to £4000+ a month?

has the spending that created your debts now stopped? good luck

woostoon

Ive just consolidated my loan (unsecured £30k) onto my mortgage and have saved £250/month.Im using the £250 to overpay