Advice Needed on Re-financing!!!

NaffWithMoney

We are currently struggling to manage our debts and seriously need some help with which direction to got to resolve them.

We currently have a mortgage or approx £148'000, which is on payment holiday until August. This was intended to help us resolve some of the other debts, by using the £850/month mortgage money to pay off the car loan. Surprise, surprise it hasn't worked and we are now in more debt than ever, going over our £2000 overdraft every month, with the added prospect of starting our mortgage payments again soon.

As well as the mortgage we have a £4000 car loan, £3000 personal loan, £1000 credit card, £7000 0% Credit Card and approx £4000 of overdrafts.

We need to sort out the overdraft urgently as it's costing us about £90 / month (min) in fees for going over our limit. So we are looking at taking out another loan to refinance.

We currently trying to decide what to do...

1) take out a loan for £12000 to pay off the loans and overdraft and just keep the 0% Credit Card (Tescos will only do this over 5years, so it will still be about £239/month plus the credit card repayment, which could be difficult when the mortgage comes back in.
2) Take out a loan for £15000 to pay of the loans and overdraft and half of the 0% Credit Card (this can go upto 7 years meaning the monthly repayments will be a fair bit lower, but we'll pay more in the long run)
3) Take out a loan for £19000 to pay off the lot with a monthly payment of £287, but end up paying over £24k in total.

At the moment, getting the monthly payments down seems to be the highest priority, but we've made so many mistakes with re-mortgaging and re-financing in the past, that we don't want to do anything without a bit of advice.

Any ideas on what to do? There's probably some other option that i haven't even thought of that would be better...I hope so!!!

We bring home about £2500/month, since the kids have come along, and it quickly disappears.

CLAPTON

you need to address the causes of why you are overspending so much and not just to shuffle the debt around.
If you are on a payment holiday of 850 and you are still overspending, a new loan may well not be the answer.

In any event there isn't enough details to give any advice.

I would suggest you go over to the debt free wanabe board.. Read the stickies there and post up a full SOA.. (details of income, all your spending and your full debt details(amount, aprs and minimum repayments)).

Scousebird_2

How about adding the debt to your mortgage if that's an option-therefore one monthly repayment to cover everything. I am not advising you do this, I am merely suggesting an option.

dannynixon

Scousebird wrote: »

How about adding the debt to your mortgage if that's an option-therefore one monthly repayment to cover everything. I am not advising you do this, I am merely suggesting an option.

This is maybe the route I would go too. You have a lot of other debts and on top of 850 p/m mortgage repayments, you cannot afford these. Would your mortgage lender let you borrow anymore money?

I also agree with Clapton too. You need to address the problem of your spending.

btw, if you do take the lot against your house, you will be paying much much more over the long run.

Godders

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