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Jack05
| 02-05-2007 09:09 PM |
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Joined: 02 May 2007 Posts: 2 | Hi, After realising recently that I have quiet high out goings, I started to consider extending my mortgage to take in a large personal loan and my Amex. In terms of repayment, the new one would be £185 pm in comparison to £495 pm now. I am not sure what I have got to lose. Any advice would be dandy. Thanks Jack |
| DW George | 02-05-2007 10:52 PM |
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Joined: 01 May 2007 Posts: 494 My Profile | Jack Firstly you need to check the terms of your personal loan. Normally, these types of loans are taken over a specific time period eg 5 years. This generally means that you cannot cancel the agreement without a financial penalty. Get an Early Settlement figure from the lender and see if it's worth your while paying off your debts any earlier. Secondly, it would a good idea to contact Amex saying that you'll take your debt elsewhere if they don't give you a better deal. Try it works. If not, take your debt elsewhere!! Finally read some of our articles on how to deal with debt. More information here Hope this helps George |
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Jack05
| 08-05-2007 09:29 AM |
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Joined: 02 May 2007 Posts: 2 | Hi George, Thanks for coming back to me. I did as you suggested and contacted AMEX. They weren't very forth coming inhelping me out, so I guess they aren't too bothered if I move the debt away. On the subject of the morgage, I have looked a tracker. This would only be for the sum of about 25k. Would you say this is a good option for a small morgage amount that I am hoping to pay off before it ends? Jack |
| DW George | 08-05-2007 12:46 PM |
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Joined: 01 May 2007 Posts: 494 My Profile | Jack before extending your mortgage, check to see if it's worth paying off your personal loan earlier with another loan, get that early resettlement figure! Personal loan companies want to make a certain amount of profit from you over the contracted period. Paying 1 year earlier on a five year term does not mean you will be saving one year of interest payments. My guess is that it will better for you to concentrate your efforts on lowering your balance on the Amex asap rather than paying the penalties involved in an early settlement. Try reducing your out-goings and look to save money by using comparison website eg uSwitch and use the money you have saved to reduce your Amex balance. Let us know all your savings by posting here. Note If you can't reduce your monthly out-goings then your debt problem will just get worse and worse. |
| MALLORCASPAIN | 28-05-2007 10:19 PM |
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Joined: 28 May 2007 Posts: 10 My Profile | Jack05 watch the tracker mortgage it tracks the BofE rate which is about to go up again which would increase your monthly payment, get a fixed rate at least you know where you are each month. Also make sure you can pay lump sums of the amount as you will have extra cash each month makes sense to pay a bit extra if you can afford it. |
| fred333 | 06-03-2008 05:10 PM |
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Joined: 05 Mar 2008 Posts: 10 My Profile | I would keep them separate. Makes life more manageable. |
