Hi fellow members,
Snorky needs to seek some advice. I currently have quite large cr debts and need this cleared. I have one IP if sold can clear these debts.
My IP generates enough income to look after itself. Only on some months I will need to fork out some $$ to pay the mortgage otherwise most months it looks after itself. Onsite managers deposits $ into account and bank will draw for the mortgage payments.
Unfortunately due to a business blow out, I losted alot of $$ at one time and needed to draw from cr for the expenses. [angry2]
Now my question is should I sell this and pay off all my debts or just leave it as is?
I generate enough income from my work to pay our residential aswell as IP loans. The sad thing is after all this we don’t have much to live off and I feel that this cr burden is taking its toll on the family.thanks in advance for your advices.
Hi snorky,
I was about to tell you to ‘Never Sell” and that selling is bad until I read the last few lines of your post. If the children are in jeopardy and that you do not have enough to provide for them, then you must sell – family and cildren alwyas come frst than any investment.
Generally, I would say not to sell and to look for other avenues of obtaining money. Personally what I like to do is keep my debts till the last minute and just pay them off before they accumulate interest. Try hard to sit down (with your wife perhaps) and write down on paper all your expenses and your incomes from work, rentals and others – work out a budget and try adjusting to this budget.
Kind Regards,
George“If You never never ask, you’ll never never know”
Hi Snorky,
Like Geo I would typically recommend not selling but……under the circumstances you have outlined it may be the best course of action provided you analyse what went wrong this time and take steps to avoid a repeat occurence.
Before taking the final step have you considered making your IP loan an interest only loan, have you made surplus repayments that allow a holiday period, can you renegotiate the loan and reduce repayments, are there areas in your household budget that could be reasonably curtailed, how long before the circumstance can/will get better – can you live ‘tough’ for this length of time, is the toll on the family only being felt by you and has your company accountant looked at your situation and given you a second opinion?
What ever course of action you take it is essential that you partner/s be involved so you have a greater chance of successfully addressing the matter at hand.
All the best with it.
derek
[email protected]Read my comments? Think I can help you? PM or email me.
Hey Snorky,
I work in home loan variations. Basically I deal with customer like yourself on a day to day basis. I am not a finacial advisor but. Have you considered varying your home loan and or investment (investment would be best if you have equity) and increasing that loan to consolidate your debts. You could increase and convert to intrest only. You will see massive savings with those CC gone and by going I/O only for a while it will give you some breathing room to get back on track again.
Call your lender and see what they can advise to help you out. Does the amount you owe in CC and your current home loan debt amount to more the 90% of the LVR? Again maybe you could spread the debt between the two if you do not have enough equity in one.
Hope it helps
Originally posted by AmandaDasha:
Again maybe you could spread the debt between the two if you do not have enough equity in one.Hi Amanda,
If I read this correcty you are suggesting snorky shift some debt from being deductible to non-deductible or vice versa.
If this is correct ( I am not an accountant or financial wiz) but I would say this is not a good idea as it will create a book keeping (and tax) nightmare.
Waiting for a second opinion [confused2]
Derek
[email protected]Read my comments? Think I can help you? PM or email me.
Thanks for the advice fellow members. I am at a stage of confusion at the moment. I really would like to offload the IP and settle the debts once and for all as this will take a huge burden off our backs but at the same time losing an IP and in future wanting to re-invest, I don’t think i can find another with these conditions [confused2].
I am currently paying approx $1k interest a mth on CR cards only…ouch!
I do have enough in equity and that’s all we got. No savings no nothing.
say on an existing loan of $100k (IP)….what would be the difference in savings between Interest only and I/principle?
losted and confused.
Hi snorky,
it would ultimately depend on the interest rate of your loan.
Kind Regards,
George.“If You never never ask, you’ll never never know”
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