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kimcam
22-02-2008, 16:29
Hi Andie,

Back in January I asked about refinancing and adding the credit cards onto our existing home loan. Well I went to bank (ANZ) and asked if we could put the credit cards onto the mortgage. We filled in an application form and I returned it to the bank on Monday. Unfortunately the bank will not lend us an extra $6000 as they said we did not have enough equity. Our house is valued at approx 240,000 and we have a split loan with 80% fixed and 20% on the standard variable. We owe approx 66069 on the variable and about 160000 on the fixed.

My DH credit card is over the limit by $900 and mine is just under the limit I think about $2800 and my DH is $2900. By the time we pay the mortgage each week of $355, fares $50, petrol $40, Shopping $150 including nappies. Then we have monthly expenses such as telephone/internet $110 and then Melaleuca $120 per month. As well as paying approx $100 on my DH credit card and the bare minimum on mine we are not getting anywhere. We also need a new car as we have an oil leak and a power steering fluid leak as well which will cost approx $2000 to repair.

My question how are we going to get ahead? What can we do. I can probably change my credit card over to a Bankwest which has 0% for 6 months. Any advice would be much appreciated. The bank also tried to get a personal loan but that was declined as well.

Kim

andie_pandie
25-02-2008, 23:48
Hi Kim

The bank normally with debt consolidation will only take the debt level up to between 90-95% including both the mortgage and the incoming debt.

Based off the figure given you are sitting at 95% without the additional debt hence possible for the decline.

Did they ask you what you thought the value of the property would be or is it a relatively new purchase hence the equity might not be there yet?

Well done for trying, also with the personal loan, it may also be a servicability issue.

You mentioned a lower interest credit card, this could be a option for you but please remember the interest free period does not last forever.

I am not allowed to give advise on which is the best option for you, just look into your options carefully before jumping into anything.