Consolidate loans

me4many

Any ideas on this please.

€11000 remaining on cu loan (18 mts left to pay ) (€690 p/m )
€14000 remaining on mortgage (40 mts left to pay ) (€425 p/m includes €40 ins )
Above figures are rounded off.

Would it be a good idea to get a cu loan for the lot (€25000) over say 40 mts. or maybe a bit less.
Would this free up some money each month or would the cost of the new loan be high.
Opinions please

dobsdave

me4many wrote: »

Any ideas on this please.

€11000 remaining on cu loan (18 mts left to pay ) (€690 p/m )
€14000 remaining on mortgage (40 mts left to pay ) (€425 p/m includes €40 ins )
Above figures are rounded off.

Would it be a good idea to get a cu loan for the lot (€25000) over say 40 mts. or maybe a bit less.
Would this free up some money each month or would the cost of the new loan be high.
Opinions please

Think you may have it the wrong way around, or am i missing something?

me4many

It seems ok but which bit do you think is the wrong way round.

Formal shorts

me4many wrote: »

Any ideas on this please.

€11000 remaining on cu loan (18 mts left to pay ) (€690 p/m )
€14000 remaining on mortgage (40 mts left to pay ) (€425 p/m includes €40 ins )
Above figures are rounded off.

Would it be a good idea to get a cu loan for the lot (€25000) over say 40 mts. or maybe a bit less.
Would this free up some money each month or would the cost of the new loan be high.
Opinions please

It's difficult to calculate without knowing what rates you're on/whether that €690 includes any amounts going to savings/type of insurance.

Using some basic figures...

25k at 10% over 40 months works out as €738 per month, with a total cost of €29500.

690 x 18 = 12420.

425 x 40 = 17000

Total €29420.

However, to be paying 690 for another 18 months on an 11k loan would mean an interest rate of 17%. This is highly unlikely

More info needed on the CU loan to get accurate figures.

me4many

Thanks for reply.

The c u repayment €690 is just for the loan. The loan was over 60 months for
€30k + ( not sure actual amount... not my loan).

Thanks for info

dobsdave

me4many wrote: »

It seems ok but which bit do you think is the wrong way round.

Its just that you were asking about borrowing money at approx 8% (ball park guess at cu rate) to pay a mortgage of say 3% (again ball park mortgage rate).

A better way to consolidate would be to top up the mortage to pay off the cu.
Then over pay the mortgage as appropriate or shorten the term.

me4many

That looks like something to look at. Is there a minimum term and amount for mortgage top up.

coylemj

Without going into the numbers, one thing to watch out for is that you should not stretch loans out beyond the life of the item the loan was taken out to purchase.

What I mean by this is that, for example, if one of your loans was to buy a car, you should not bundle that loan on top of your mortgage because you could end up paying interest on that (car) loan far beyond the lifetime of the car. Then when you need to buy a new car you will end up adding another layer of debt and before you know where you are you could effectively be paying interest on several car loans stacked one on top of the other which would be a recipe for a never-ending cycle of debt.

Consolidating loans can make sense but not if you end up paying interest for far longer than the useful life of the item the loan was used to pay for.

me4many

The new loan would be for less time than the remaining 40 months.
Its just a matter of knowing the right way to go about it to free up money without overpaying for the loan.
It would be good to get the repayments below the current €1100 + per month.
Tks

me4many

Hello. Just wondering if there are any more ideas please.
Tks