HI All,
In buying my first property i have a car loan at present… arond 16k left on it. Becuase i have no equity behind me… should i expect the finance company whoever they may be… let me consolodate my car loan into the mortgage? it would make my life so much easier if they could! my financier… has told me they wont do it… however i want a second opinion…
Cheers and regards,
Joel
Don't do it.
If you pay off the car over 25 years it will prove to be a very expensive car indeed.
Get the home loan on Interest Only then use your cashflow to kill any bad debt.
Make a personal promise never to have consumer debt again (other than a PPOR loan) – you will be amazed at the difference it will make to your life. I did this myself about 20 years ago and I have never looked back!
I can email you an article I wrote about bad debt and how to kill it fast which some people have found useful. Drop me an email.
Cheers,
I have never heard of a finace company not accepting a cheque to pay out a car loan if you present one to them.
Read your finance contract about early pay-out of the loan.Even try ringing the finance company (should be listed on the contract) and asking their policy on early repayment.
hey. the loan is in the application process currently. i do have their contact details… hwoever i was on hold for 15 minutes
hehe. so gave up.thanks so much for your responses !
Joel
Marc I think Joel is hoping to consolidate dept on a mortgage that is maxed out eg taking on a mortgage with little or no deposit and wanting to consolidate is this correct ? if so no it cannot be done, and as Simon mentioned you would be better to keep the car loan seperate anyway.
Joel you have to have equity in the property to start with this is achieved through capital growth and or paying of the loan, without equity you cannot consolidate.
And, when you do have or get equity in the property, if you choose a decent loan, no one says you have to pay the car loan off over 25 years. You get a loan 'split' (free on a good loan) and take the ca loan (or card/personal whatever) over it's original term – ie maybe $10k over 5 years in the split, but @ homeloan rates! And pay it off as quick as you can.
Simon Macks sent me an article last year.I found it to be spot on.Unfortunately I had already learned the lesson the hard way around.But I kept my copy as he gave me permission to forward it to others who could do with some advice.
'The leader cannot afford to be a good communicator. They must be a great
communicator.' Richard Denny.
"Learn from the mistakes of others, you won't live long enough to make them all yourself" Richard Denny.
hehe. so gave up.
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