debt/mortgages - any ideas

jodie123_2

I have been living with my partner for 5yrs, I am now a trainee solicitor but unfortunately we both also have alarge amount of credit card debt. We are living in my father in laws house at the moment, we have inherited 90,000 worth of its value but now need to buy out my partners brother at 60,000. However we have been unable to get a mortgage as our credit card repayments are so high it appears we would not be able to keep the mortgage repayments up. We looked into getting a larger mortgage to pay off these debts but have been unsuccessful, i think this is because we kept applying for loans to pay off the credit cards but were refused and this has been lowered our credit score.

I take home approx net £1300 per month and my partner receives about £1100 per month. Our biggest expenditure are my partners credit card - hsbc £8000 (minimum payment £250 per month) and mint £9100 (minimum payment £230 per month). Clearly if we could pay these cards off this would free up sufficient income to pay a mortgage! Any ideas?

mountainofdebt

I think you're right about applying for loans affecting your credit rating so the first thing to do would be to stop.....as they say time is a great healer!

Next thing you need to do is to list all your outgoings.....as far as the debt is concerned, I would list your aprs, balances and limits for each card.

Sometimes if you can't get new cards the best thing to do is to shuffle the debt around so that you are paying the least amount of interest.

The other trick to lower the debt quicker is to snowball your debts....this means throwing every spare penny at the debt with the highest debt and once that has cleared every penny is thrown at the debt with the next highest debt....a useful calculator can be found at https://www.whatsthecost.com/snowballing.

Do you have to buy your partner's brother out within a set period of time? Would it be an idea to say give me the £60,000 in installments (getting receipts of course!) until you could get a mortgage?