All Topics / Help Needed! / HELP…PLEASE

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of mitsinkamitsinka
    Member
    @mitsinka
    Join Date: 2005
    Post Count: 1

    Am in a quandry..
    1. To refinance and clear outstanding debts (mortage $160k and other debts $90k) or
    2. To borrow against equity and buy an investment property. Property valued by Bank @ $340k.
    Our combined income is between $95k – $110k. Fortnightly mortgage is $615. Struggling to pay all other debts – main obstacle being partner refuses to admit we have a problem. Mortage under my name. All other debts, my parners..

    Profile photo of jozzajozza
    Member
    @jozza
    Join Date: 2005
    Post Count: 3

    mitsinka,
    How is buying an investment property going to help you get your current debts under control? If you are already struggling to pay the other debts, the investment property is just going to be an extra burden. Refinancing and consolidating your other debts may be the way to go. That way you may be able to take advantage of a lower interest rate. The key then is to budget so that you do not fall into debt (other than your mortgage) again.

    Cheers,
    Jacob

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913

    Hi Mitsinka,
    I agree with jacob, If you are struggling to meet your current commitments I would strongly suggest you consolidate your current debts before you embark on any further lending/debt. Cheers.

    Regards
    Steven
    Mortgage Broker

    Mobile Mortgage Market
    Ph: 0402 483 216
    [email protected]
    http://www.mobilemortgagemarket.com.au

    PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    Consolidating is not always the optimum solution.

    It is sometimes a case of pushing a 3 year debt out to a 25 year timeframe resulting with you paying many times the interest you would be normally paying.

    One strategy is to focus on the smallest debt and pay the minimum off the others. Pay out the smallest as fast as possible then choose the next smallest with now an extra repayment to go towards it. Continue in this fashion until you are back under control.

    Of course along with this is the need to revaluate the behaviour that resulted in this problem in the first plce. I have seen too many peope who consolidated, cut up the credit cards then got a new one and maxed it out too resulting in double the liability!

    All the best,

    Simon Macks
    Finance Broker
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of DazzlingDazzling
    Member
    @dazzling
    Join Date: 2005
    Post Count: 1,150

    Mitsinka,

    If you believe the behaviour described by Simon is the root cause of the accumulation of the non productive debt, and yet your partner refuses to admit there is a problem…you are indeed in a quandry.

    I’d suggest forget about consolidating, and do the following;
    1. Find a quite moment with your partner
    2. Take the phone off the hook
    3. Make your partner a cup of tea
    4. Sit down with a pen, paper and a calculator
    5. Agree on actions that sole the root cause of the non-productive spending

    If you can’t get past step 5, consolidation is useless at best and headed for worse things if the behaviour continues.

    Of course, if your partner doesn’t drink tea, you won’t even make it to step 4 !! [biggrin]

    Cheers,

    Dazzling

    “Go hard or go home”

    Profile photo of Don NicolussiDon Nicolussi
    Participant
    @don
    Join Date: 2005
    Post Count: 1,086

    Sorry about the plug but maybe you guys need to get on the same page financially. Playing the cashflow board game is a good way to find out what each party knows and challenges your assumptions. Work on getting rid of that 90k as part of an organised strategy. You will have heaps of fun too.
    .
    Good Luck.
    .

    Don Nicolussi | Property Fan
    Email Me | Phone Me

    Learning, having fun and doing it!

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913

    Hi Mitsinka,
    Take a look at this multi loan calculator on the ASIC web site.
    http://www.fido.gov.au/fido/fido.nsf/byheadline/Multi-loan+calculator?openDocument

    Regards
    Steven
    Mortgage Broker

    Mobile Mortgage Market
    Ph: 0402 483 216
    [email protected]
    http://www.mobilemortgagemarket.com.au

    PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.

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