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..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,
JacobHi 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 BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
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 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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 spendingIf 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”
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.
.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?openDocumentRegards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
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