Should I get a loan?

that equity cant be 'damaged' because it isnt really there, whatever money you would have if you sold the house is in effect reduced by 5k because thats what you owe elsewhere. You are deluding yourself if you think its better to have (say)100k in mortgage at 6% and 10k in loan at say 9%, rather than just 110k in mortgage at 6%. See, both ways it adds up to 110k you owe :-)

So extend or remortgage to pay off all cc loans, then pay off 10k quicker than the original mortgage by overpaying (pay at least at the rate you would have paid had you got the 10k loan), & then dont do it again :-) So make sure you get a mortgage where you can overpay.

Also check if you can get a cheaper overall mortgage...and again take advantage by overpaying.

In message , cl00less writes

Are you sure you've got those loan payments right? It's an APR of less than 2%. If so, then go for it now, its cheaper than the average consolidated APR of your existing debt.

In message , cl00less writes

Step 1 is to destroy all your credit cards and take out no more, (other than those suggested below).

You will not beat 3.9% for the life of the loan so, whatever you do, you should not replace this with a higher rate loan of any kind. Either pay this off over the 5 years as though it were an ordinary loan, (or do you have to pay a minimum of £150 per month). At £150, this should take just over 3 years to clear. At £100 per month, it should take about 5 years to clear.

What is the interest rate from August? Could you transfer it to another

Ditto

This would suggest an interest rate of around 7%, which seems about right, but you can get loans as low as 5.9% from some lenders..

If you were to borrow the £4,000 from the 2 cards over 5 years, you would be paying a total of around £230 per month for the 1st 3years or so, then only £80 for the balance.

It's certainly not wrong, as you should get rid of credit card, but dont debt as fast as you can, but dont include the £5500 @3.9%.

Not necessarily.

If you "play your cards right" you should concentrate first on shifting the

I would then aim to transfer as much of the 3.9% loan to 0% as well. You should be able to keep juggling your existing 9k at 0% by rotating your cards, and cancelling them when the 0% ends, so that you always have a choice of cards to apply for as a "new customer".

Ok, with ya...

That sounds like a plan. We've just recently (Nov04) moved to a Tracker with Abbey. I'll dig out all the papers and see if I can overpay...

Many thanks

But note the point the others made about the 3.9% card.......I had assumed that would also shortly expire, if its indefinite then move as much as you can to that as well before getting increased mortgage.

Are you sure, John? I make it ~ 6.5% APR.

"Doug Ramage" wrote

Agreed, just a shade over 6.5%.

Give those varifocals a wipe, JB, he said a hundred and NINETY-five, not a hundred and SEVENTY-five.

In message , Doug Ramage writes

Duh! You are right. Sorry! After all these years, how did I manage to come up with 2%? AAAARRRRRRRRRRRGGGGGGGGGGHHHHHHHHH!

In message , Tim writes

Yes, thats my way too. But I wont blame it on my calculator, I must have had a brainstorm there. Sorry.

In message , Ronald Raygun writes

Im going to send them back to SAGA.

No, it wasnt that, I just cocked up. Sorry.

See the references to snowballing on The Motley Fool Dealing with Debt board and have a holistic look at your situation . Links on my webpage.

Daytona

Am I missing something?

My back of the envelope quick calcs, ignoring the fact that as the debt reduces, the interest paid each month will be decrease, shows that you'll pay just over £197 / month over 5 years. When you allow for the interest element dropping each month, you'll very soon be paying less than £195 / month.

So why would you want to consolidate?

Rgds __ Richard Buttrey Grappenhall, Cheshire, UK __________________________

"Richard Buttrey" wrote in message news: snipped-for-privacy@4ax.com...

I missed the 'for life' bit of the 3.9% so the better option might be, if poss, xfer the bcard and hsbc to a 0% card, keep doing that as long as poss, pay off max on the 3.9%.