Feeling a bit pants!

[Deleted User]

saving for a holiday is absurd when you have large debt

Larac

Deleted User wrote: »

saving for a holiday is absurd when you have large debt

I don't know what the OPs debt is or what the plan is to pay it off but most people on any form of debt payment plan need some form of break especially if in for the long haul. Whilst paying off my debts under a plan personally I do additional contract work on top of my FT role to cover this as there are no allowances for holidays.

Anoneemoose

Larac wrote: »

I don't know what the OPs debt is or what the plan is to pay it off but most people on any form of debt payment plan need some form of break especially if in for the long haul. Whilst paying off my debts under a plan personally I do additional contract work on top of my FT role to cover this as there are no allowances for holidays.

Thanks.

Our debt is £8000 interest free with us being able to pay currently £360 per month off it. We also get 2 half yearly bonuses which would go towards it. According to the snowball calculator it would take approx just less than 2 yrs even without the bonuses. My point is if we tweaked our budget so we didn't have as much 'spends', cheaper tv package and maybe not a hol next year, then we could throw £500 a month at it ( or more if we went extreme) and we would be debt free by christmas '14 (or earlier).

Now I think we're going to go down the remortgage route so the above may be irrelevent but that was my thinking and DH was not receptive to the ideas!!

xyellowx

op if your in debt i doubt bank will let you remortgage to pay it off maybe 5 years ago but not now

also were most people slip up on this is they then add the debt back on over next couple of years over spending

take virgin out dont go on hols for a year you will clear 25% of the debt on them two alone over 12 months

Anoneemoose

xyellowx wrote: »

op if your in debt i doubt bank will let you remortgage to pay it off maybe 5 years ago but not now

also were most people slip up on this is they then add the debt back on over next couple of years over spending

take virgin out dont go on hols for a year you will clear 25% of the debt on them two alone over 12 months

Mortgage company have already said it is ok affordibility wise and they have certain criteria for debt consolidation with LTVs etc. We advised that the debt was mainly built because of home improvements (which is true). It is all go subject to credit check (which won't show anything bad or anymore than the cc's we have told them about) and they pay the cards straight off for us.

I totally get what you're saying but like I said, before the move, we always lived within our budget and we did up our old house too.

xyellowx

be sure to check the fees and %change, find out how much it will cost you total (it wont be a cheap way of paying it off)

Johnnybegood

Anoneemoose wrote: »

Mortgage company have already said it is ok affordibility wise and they have certain criteria for debt consolidation with LTVs etc. We advised that the debt was mainly built because of home improvements (which is true). It is all go subject to credit check (which won't show anything bad or anymore than the cc's we have told them about) and they pay the cards straight off for us.

I totally get what you're saying but like I said, before the move, we always lived within our budget and we did up our old house too.

Think really hard about adding this unsecured debt to your mortgage. You won't find one single debt adviser (including Martin) that thinks this is a good idea in 99% of situations.

The overall costs are likely to be much, much higher. That is, you may well pay a less each month but, since mortgages are long term debts, you are likely to end up paying a lot more interest than you would on a short term debt product.

The debt will last a lot longer. If you pay off existing debts by adding them to your mortgage, they will stay with you for the life of the mortgage (say 20 years), when most unsecured debts can be paid off far sooner, if you have the money available to make the payments each month.