1st advice please?

adamfernadam

Hi there this is my 1st post so really sorry if its in the wrong place

Over the last 2 years me and my partner were in alot of debt (approx 13k) and my father in law came to the rescue paying off all of the debt and now we just pay him back each month between 250 and 300 with about 8k left to pay. On top of that we have 4k credit card debt and our mortgage with about 92k left. We want to do further improvements on the house.equity alredy increased bout 40k. We are realy hoping somebody can tell us what we could do..do we borrow more against the morgage for just the improvements? or get extra and pay of loans and/or cards? or could we use a new loan? we have a 40k year joint income and would love to try extra cah ideas stoozing etc and making most of isa's etc on top of increasing house value!! any advice or ideas would be great guys thanks all in advance just need headed on the right track :beer:

UK007BullDog

the right track for you to be on it to concentrate to pay off the debts you have. Once that is paid off look at remortgage to release some equity to pay for the refurbishment of property.

Alternatively remortgage now and use some of the money to pay back all your debts. However to be able to do that your income has to fit plus take in account the affordability. You might not have enough income to cover it all.

Is the loan by father-in-law interest free? if it is I would keep it as it is.

Pinklepurr

If I was your FIL I would be pretty cross if I'd bailed you out and then you taken on more debt/higher mortgage. By my calculations you won't have paid back FIL for another 2 years, plus 4k of cc debt, that's quite a lot too. I would wait until both these debts paid back before you consider borrowing more.

homer_j_3

To me, you are displaying signs that say that you have not learnt from your mistakes.

You get in debt - are bailed out by generous FIL. You then accrue a credit card debt again on top of this and now need to borrow to pay this off. There could be very good reasons for accumalating CC debt like this but if its just a case of your lifestyle does not fit your income, I would think very hard about doing what you are doing.

If you consolidate then you will be paying this debt off for an awful long time. I would focus on trying to get rid of your cc debt first and see if you can save for the home improvements that you need.

Sure you may be able to borrow against your house and clear everything and have a lower monthly payment - thats the bliss great marketing people provide you with on the TV. The reality of the situation is that you are at a point where you can alter your attitude to debt and ensure you do not end up in a position where you are so miserable due to your debt and lifestyle catching up with you.