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  • Profile photo of BlackJackBlackJack
    Participant
    @blackjack
    Join Date: 2003
    Post Count: 111

    I’m looking to simplify my life a bit starting with my finances.

    I have a PPOR and 1 IP. On both I owe about the same with the PPOR slightly more in value.

    I also have a credit card debt, a personal loan and a couple of pretty hefty bills to pay.
    $10000 would cover the lot and I thought if I increased one of the home loans I could clear the lot.

    Any advice or suggestions would be greatly appreciated.

    Profile photo of MelanieMelanie
    Member
    @melanie
    Join Date: 2003
    Post Count: 382

    Hi BlackJack,

    Given you seem to have some equity available there are several ways to get you into a better position financially, and I’d be more than happy to help. [:)]

    It is very important to keep your credit rating intact and not to default on any bills or payments. Short-term reducing the interest rates you are paying on your debts can definitely ease the strain on income but it’s always good to do this in conjunction with a budget or spending check just to make sure it doesn’t transfer the problem from small repayment issues to big ones! [B)]

    [:)]
    Mel
    [email protected]

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

    Hi Blackjack,
    Need more info, but there are a number of options,
    For the sake of $10.000 A top up loan may be a more cost affective soulution, Or a refinace of current loan,
    Regards Steven

    [email protected]
    http://www.mobilemortgagemarket.com.au
    Ph: 0402483216

    Profile photo of BlackJackBlackJack
    Participant
    @blackjack
    Join Date: 2003
    Post Count: 111

    Melanie & Steven,

    Thank you both for your responses.

    Equity is no problem (about $200,000) and neither is a credit rating. I have also kept a record of every $ spent over the last 6 weeks to attempt a budget and cut out a few unnecessaries.

    The outstanding bills are more a seasonal problem ie. rego, car service/maintenance, new aircon for IP etc… and an accumulation of rates (yep… angry with myself about that one).

    I guess it’s time to do a bit less thinking, reading and asking – and do a bit more acting!!!

    Profile photo of EcclesEccles
    Member
    @eccles
    Join Date: 2003
    Post Count: 69

    I am not one for consolidation. I have a firm belief that if you do not tidy as you go you will just create the mess again.

    This is experience speaking.

    Take the most important debt ie your rates and phone te council and organise a payment scedule, and with any other outstanding bills you have.

    Reduce all other loan payments and credit payments to their minimum and pay the extra onto the rates (whichever bill is the most pressing) making sure you pay the minimum on all your others. You will be surprised at how many businesses will accept this if you keep up your minimum payments.

    Once you paid one do not divide the rate payment onto others select your next one and pay the ENTIRE amount onto the next one.

    Pay all your bills like this and then move onto your credit card or personal loan whichever has the highest interest rate.

    Always roll the entire amount onto the next bill never be tempted to divide it as it will in the long run lengthen the debt.

    I know it is tempting to put it into a loan but just think if you put it onto the home loan you will not just increase the loan by $10,000 payments will increase and you will pay alot more than $10,000 back over 25 years.

    I used to have a folder with labelled envelopes and each week I put so much in each one to cover rego, insurance and the like. Now with internet Bpay I drop it directly onto the bill. (taking an average of the bill and dividing it into weeks) I find that when the bill arrives I eitherpay minimal to make the difference or I do not have to pay. It can be hard to start this way so do it one bill at a time ie if your phone bill is $100.00 (average) a month then using phone or internet Bpay pop $25.00 onto it.

    Waffling again

    Bronwen

    If the good die young then I will live forever

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

    If you do then use the PPOR loan.

    Problem with doing this consolidation is that unless you are disciplined and pay extra into your homeloan you will pay these debts over the next 25 years. Long after the car or whatever you borrowed for is worthless!

    Cheers,

    Simon Macks
    Mortgage 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.

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