Don't want to adult anymore

[purple]

I'm 26, bf is 33. We are considering moving back in with my parents for a year because I currently see no other way to clear my debt (credit cards can be a bad idea).

I haven't talked to my parents about it yet. I know dad would day yes in a heartbeat but I don't know how mum would feel. Waiting to see if bf gets accepted into postgrad first.

It is kinda a little apartment under my parents house, bathroom, bedroom and lounge / kitchenette so it wouldn't feel as defeating but it is still moving home at 26.

The part that feels backwards is we would be adding 30-40k to our home loan to get all the renovations done so we could rent out our house we own now.

Argh, I'm climbing into a blanket fort with some crayons.

[Kagato]

Have you looked at talking to your bank and seeing about getting a Debt Consolidation loan to pull all of your debts into one central 'location' with a more reasonable interest rate? Even if they give you a higher starting rate like 17-18%, it is still better than the exorbitant rates of up to 25% that some credit card companies can charge (Q Card, Gem Visa, etc), plus the bank will hopefully work with you to work out what is within your capability (I have no idea what your current financial capacity is, but if you were to be approved for a NZD$7,400 loan over 2 years for example, even at 18-19%, you'd be looking at payments of around $83 a week to pay it off completely. Assuming your credit card is charging 25% interest, you're looking at a minimum of ). ANZ or ASB are good options to consider if you are already a customer with them, plus if your BF is studying and has a tertiary account, he can apply for a tertiary loan through ANZ, which will result in all the start-up fees being waived (Dunno if ASB or BNZ offers that particular loan package)

Lastly, if you take this path and are successful, CLOSE YOUR CREDIT CARD ACCOUNTS AND CUT UP YOUR CREDIT CARDS (though the bank may set a condition of funding the loan that the accounts once paid are closed completely and proof of closure be provided). Get a debit card that is linked to your checking or savings account and use that - if you don't have the cleared (available) funds, the transaction will bounce, unless you have an overdraft set on your account.

Disclaimer: I am not affiliated in any way with any banks or financial services and this post should not be construed as financial advice - I am simply speaking based on personal experience - seek advice from a professional before undertaking a loan or other service.

EDIT: You mentioned having a home loan - Perhaps talk to your bank and see about getting a top-up on your home loan for debt consolidation purposes - home loan interest rates tend to be FAR more reasonable than credit card rates, making the weekly/fortnightly/monthly payments FAR more manageable and palatable.

[smileyeagle1021]

EDIT: You mentioned having a home loan - Perhaps talk to your bank and see about getting a top-up on your home loan for debt consolidation purposes - home loan interest rates tend to be FAR more reasonable than credit card rates, making the weekly/fortnightly/monthly payments FAR more manageable and palatable.

Also, I will admit that I know nothing about New Zealand's tax laws, but at least up in the US, you can write the interest from a home loan payment off your taxes, so consolidating debt into a home loan could (if NZ has a similar provision in its tax code) give you double benefit, first reducing the interest rate, and also reducing your tax burden at the same time.

[Kagato]

The only way you can write off taxes here in NZ is as a business expense, leasing your house to your business AFAIK is a legal grey area - I know of a number of people that 'lease' their cars to their home businesses so they can write off fuel and repair taxes, but dunno about anyone that does it with their house ^^;

(disclaimer: I am not a lawyer, etc etc etc)

[purple]

I belive you can list 10% of your household expenses as business expenses if you have a home office.

I did look into consolation into my home loan but with the extra fees it would make minimal difference.

We are still looking into moving back in with my parents for a year, would be nice to have there support.

[TheSHAD0W]

As annoying as living with the 'rents can be, remember that prior to 1950 or so the "nuclear family" was the exception rather than the rule, and we seem to be reverting to older ways of living.