Hi,
This is my first post here, so first of all hello all and this site looks like it will become a permanent fixture for me in the months to come.
Basically I am in a situation due to circumstances a few years ago whereby I am in debt and I have been embarrassed at the extent, and have stuck my head in the sand about it. My current situation is much better - infact a complete turnaround - however I still have this debt and I need to work out the best way to rid it or consolidate it with a view ultimately to getting a mortgage for a family home.
I am totally unsure as to the best way to proceed and need the quickest way to rid these debts OR to manage them in such a way that I could still be mortgaged approved:
Debts owed between my partner and I:
Credit Union (16,000) 10.9 APR- paid out of my work salary and over 3 years.
Credit Card (£1,500) - standard APR rate
Credit Card (£3,000) - 0% APR - 8 months left at 0%
Credit Card (£2000) - standard APR rate
Loan (6,000) left out of original £7,5000 loan. Paid at £233 p.m.
Loan (4,000) paid at £200
we also have a car finance at £200 per month.
Our combined incomes are £58,000 per year.
At the present time we have zero disposable income to save for a mortgage deposit - every spare penny after normal outgoings is attacking the debts. I am paying more than minimum payments but cannot see any real hope for progress in years and that is a worrying thought.
We have moved in with a relatives and put our home on the rental market with a £500 p.m. additional income, this is also saving us £ on not paying household bills. (mortgage currently £300 p.m). We have outgrown this property due to having a young child and hence the need to move into a larger property as soon as we realistically can. I appreciate the help Im getting but need to stand on my own two feet as soon as possible. No chance of selling to pay the debts as Im in slightly negative equity!
The Credit Union will offer unsecured loans up to £25,000 over up to 8 years. I have thought about upping my current 16,000 to 25,000 and swallowing up the debts with highest APR and paying back over a longer period and hope the mortgage company understand this is a manageable debt?
I am hoping for a mortgage of around £150,000 - £165,000 (after deposit paid). The deposit will be thankfully assisted with family but I cannot/dont want to ask them to use this to pay of our debts. They will stand as guarantor though if needed?
Strangely I am shown as having good credit.
Any ideas on what to do? apologies for posting this in the debt free and mortgage forum as I am unsure as to where was most suitable.
I appreciate any honest advice and guidance and hope to be a regular member of the forum to offer advice in other areas.
Thank You
This is my first post here, so first of all hello all and this site looks like it will become a permanent fixture for me in the months to come.
Basically I am in a situation due to circumstances a few years ago whereby I am in debt and I have been embarrassed at the extent, and have stuck my head in the sand about it. My current situation is much better - infact a complete turnaround - however I still have this debt and I need to work out the best way to rid it or consolidate it with a view ultimately to getting a mortgage for a family home.
I am totally unsure as to the best way to proceed and need the quickest way to rid these debts OR to manage them in such a way that I could still be mortgaged approved:
Debts owed between my partner and I:
Credit Union (16,000) 10.9 APR- paid out of my work salary and over 3 years.
Credit Card (£1,500) - standard APR rate
Credit Card (£3,000) - 0% APR - 8 months left at 0%
Credit Card (£2000) - standard APR rate
Loan (6,000) left out of original £7,5000 loan. Paid at £233 p.m.
Loan (4,000) paid at £200
we also have a car finance at £200 per month.
Our combined incomes are £58,000 per year.
At the present time we have zero disposable income to save for a mortgage deposit - every spare penny after normal outgoings is attacking the debts. I am paying more than minimum payments but cannot see any real hope for progress in years and that is a worrying thought.
We have moved in with a relatives and put our home on the rental market with a £500 p.m. additional income, this is also saving us £ on not paying household bills. (mortgage currently £300 p.m). We have outgrown this property due to having a young child and hence the need to move into a larger property as soon as we realistically can. I appreciate the help Im getting but need to stand on my own two feet as soon as possible. No chance of selling to pay the debts as Im in slightly negative equity!
The Credit Union will offer unsecured loans up to £25,000 over up to 8 years. I have thought about upping my current 16,000 to 25,000 and swallowing up the debts with highest APR and paying back over a longer period and hope the mortgage company understand this is a manageable debt?
I am hoping for a mortgage of around £150,000 - £165,000 (after deposit paid). The deposit will be thankfully assisted with family but I cannot/dont want to ask them to use this to pay of our debts. They will stand as guarantor though if needed?
Strangely I am shown as having good credit.
Any ideas on what to do? apologies for posting this in the debt free and mortgage forum as I am unsure as to where was most suitable.
I appreciate any honest advice and guidance and hope to be a regular member of the forum to offer advice in other areas.
Thank You