£12960 to pay off in a year or add it to mortgage....

Kirri

Hi all, I'm constantly thinking through my debts - have changed a lot in the last few years and it's all well under control and I have no desire to spend or get into debt ever again...

However, I still have to pay off my past mistakes. So I know it's not ideal but I was thinking of paying off the last of my debts when I remortgage next year. Currently owe £16,600, and am paying off about £300 a month, so by the time I remortgage I will still owe £12960. Part of this debt is a loan linked to the mortgage so it will need to be paid up in some way when remortgaging.

My budget is fairly tight although I constantly look for new ways to save and amend my house bills. I don't think I could do a second job as my main job tires me out! I've ebayed and Amazoned virtually most of my possessions so although I maybe have a potential bit more cash to raise, the majority has already been sold. I've joined Pigsback.

So not sure anyone can really help but I am posting in the offchance someone has some ideas of how I could raise money over the next year to avoid me putting my debt on top of the mortgage but I know it's a virtual impossibility to raise an extra £1080 a month! :eek:

Kirri

Tustastic wrote: »

Hi Kirri, well done for posting.
Why not call the loan provider and see how much they might take 'in full and final settlement' of the loan next year? That could give you a sum to aim for.
Can you make overpayments on the loan? If so, how much could you afford each month? Look at www.whatsthecost.com to see how 'snowballing' the debt like this could bring your debt-free date closer.
How about joining the Make £10 a Day Challenge on this board?
If a second job is out of the question, how about doing online surveys in your spare time? Most reward you in high street vouchers - a handy way to budget for Xmas and birthday presents. My current favourite is http://www.onepoll.com/ - daft little surveys that only take a minute or two to complete and you can cash out at £40. Look at the Freebies board for details of more online survey sites.
HTH and do keep posting.

I'd not thought about finding out the settlement figure - that could make a lot of difference, I'll ring them tomorrow.

I could overpay on at least one of the two debts - if I can raise some extra cash, I don't really have any in my current budget unfortunately.. I'll try the snowball calculator for motivation! I guess even an extra £10 a month will help though.

I'll have a read through of the £10 challenge as anything I could raise could go off the loans - I need new ideas!

Have just joined up to that survey site, thanks for that! Have done one survey already

Kirri

Just an update after looking into it a bit more.

I can overpay on both loans (assuming I can raise more cash!). I've found the early settlement details on the fixed loan.

Shocking with the snowball calculator - if I put the debts on the mortgage for 25 years it will cost 13,770 in interest :eek: compared to 3,500 paying it off as it stands on the two loans...

Also, just by upping the payments by £50 a month on the current loans, I will pay it off 14 months quicker and save about £1000 in interest - that's a MASSIVE incentive to find some extra cash!

Loan 1 is @ 6.70% and Loan 2 is @ 7.44%. Although I've not wanted to go back to credit cards, I'm now thinking maybe it's worth trying to get some 0% cards to shift some of the balance onto them instead as well as trying to up the monthly payments - views??

skint_spice

0% sounds like a good idea to me Kirri - you sound like you're determined to pay it off and get rid of the debt. if you do that at least if you do have to add it to the mortgage the sum will be smaller.