Small debt problem

D

Danielle24

Registered User
Messages
209
Hi,

This isn't really a major problem, but it could be if I don't pull up my socks. I cleared a loan I had but because I have my loan account set up on my online banking profile I am able to take money out of it which I have done. Obviously doing this every now and again and having to pay it back every month has a snowball effect and I have to pay out more each month, stupid I know. Well I took a small loan out of the credit union with the intention of clearing my littlewoods account, getting the bank to close off the loan account altogether and keeping a couple of hundred to tide me over the month. I currently pay around €30.00 a month off my Littlewoods account and the credit union would be €95.00 so don't think its the best idea. I haven't cashed the CU cheque yet as I don't want to end up straddled with more debt. Any advice on what to do.

Here's the figures and status at the moment

Bank - 00

Loan - Currently owe €339.69, owed €80 of this by someone which i'll get next week

Littlewoods - €319. Paid small amount off it today

Credit Union cheque - €550

It's another 3 weeks until I get paid and I don't want to run up a load more debt on this loan and don't want to use all the credit union money if possible. Whats the best thing to do??
 
FYI

The annual percentage rate (APR) for this agreement is variable and is currently 39.9%. We may vary the interest rate at our discretion at any time, and will notify you of the variation, but will not increase it above a maximum of 43.7% APR. The current annual flat rate of interest is 34.01191%. Interest is charged on the daily current balance for the period covered by your statement at the simple daily variable rate of 0.09318% and is applied on each statement date.
 
work out what you have - what you need for rest of month.... do you have any spare?

is it a bank loan or an overdraft?
 
Its a bank loan, i'm basically living off this until I get paid again. Due 80e this week and going to make that stretch.
 
Danielle24 said:
FYI

The annual percentage rate (APR) for this agreement is variable and is currently 39.9%. We may vary the interest rate at our discretion at any time, and will notify you of the variation, but will not increase it above a maximum of 43.7% APR. The current annual flat rate of interest is 34.01191%. Interest is charged on the daily current balance for the period covered by your statement at the simple daily variable rate of 0.09318% and is applied on each statement date.
Click to expand...

They do make it very complicated for people don't they. But this doesn't take away from the fact that the interest rate is still penal at 39.9% APR and not an organisation that one should have any dealings with if one cannot pay off each month.

Can we clarify, you have a loan of 339 Euro, from where? What has the 80 Euro go to do with this.

Now you've borrowed 550 Euro from the credit union?

And you owe Littlewoods 319 Euro at a 40% interest rate

Do you know the interest rates on all your loans. It would seem the best to immediately pay off Littlewoods and close your account with them.
 
The loan is 439e from AIB. The 80e is money i'm getting that will tide me over so it means I won't have to take any more money out of this loan at the moment. My priority is getting this AIB loan closed off as its too easy to just take money out of it.

I haven't cashed the cheque for the credit union yet.

The cost of the credit union loan if I were to use it is €20.
 
You would be better off using the AIB Loan to clear littlewoods immediately assuming that AIB is the more favourable rate
 
Now that's plain silly ! You want to close the cheapest loan source whilst keeping the rip-off one open ? !
Do as Bronte and Windup suggest and clear Littlewoods. Today.
 
+1. You need to control your own expenditure habits. Unless you can do this you will always have financial problems.
 
44brendan said:
+1. You need to control your own expenditure habits. Unless you can do this you will always have financial problems.
Click to expand...

I know this. That's why I am seeking advice to pull the reins in on this. I am the first to admit I am not the best at budgeting. I just thought that if I didn't have the credit available to me i'd have to pull my socks up
 
Yes - so get out of the mire in the cheapest way you can -which means getting rid of rip-off loans first - and then address the (much) cheaper bank ones later.
 
Danielle it's not the first time you've been on here, I'm not going to re read the posts but you need to tackle a few issues. So I'm going to again (sorry) give you some hard facts but also some solutions, but more solutions will depend on your replies

1.You love credit, you seem to think nothing of running up credit from all sorts of places and unfortunatley you always seem to get credit, to be fair to you you do pay them back, but this has a cost, it reduces the amount you have to spend and spirals out of control

2. You are not able to keep to a budget,

3. You do not seem to know what interest rate you are paying. Yesterday you were sure the credit union was less (a lot less) than the unbelievable rate of Littlewoods

4. You seem to think you are doing ok when you are not, you're not the worst mind.

Solutions

1. Cancel Littlewoods, never ever shop via this type of method again, there is no need when we have Penneys.

2. Stop thinking that credit is a good thing

3. Learn to save before you buy impulsively

4. Learn to budget

5. Take a few months to get back on track and from then on you need to live within your means

6. Once you're within budget you need to save for the annual items of life, like a repair, car insurance etc.

7. After that you need to begin to be a saver for long term goals (house/car)

Some questions

If it's 3 weeks to payday what are you going to live on?

Did you take 80 Euro out of the AIB loan account and loan to someone else?

If your intention was to pay off Littlewoods and the AIB loan with the 550 cheque from the CU, and in addition have a couple of hundred euro, well how does that add up? 339 + 319 = 658.

What is the interest rate on your AIB loan. The CU cheque that you must have just recently negotiated, what is the interest rate on that?

What is the actual repayments for the CU, you mentioned 95 euro and then 20 Euro.
 
Last edited:
Bronte said:
Danielle it's not the first time you've been on here, I'm not going to re read the posts but you need to tackle a few issues. So I'm going to again (sorry) give you some hard facts but also some solutions, but more solutions will depend on your replies

1.You love credit, you seem to think nothing of running up credit from all sorts of places and unfortunatley you always seem to get credit, to be fair to you you do pay them back, but this has a cost, it reduces the amount you have to spend and spirals out of control

2. You are not able to keep to a budget,

3. You do not seem to know what interest rate you are paying. Yesterday you were sure the credit union was less (a lot less) than the unbelievable rate of Littlewoods

4. You seem to think you are doing ok when you are not, you're not the worst mind.

Solutions

1. Cancel Littlewoods, never ever shop via this type of method again, there is no need when we have Penneys.

2. Stop thinking that credit is a good thing

3. Learn to save before you buy impulsively

4. Learn to budget

5. Take a few months to get back on track and from then on you need to live within your means

6. Once you're within budget you need to save for the annual items of life, like a repair, car insurance etc.

7. After that you need to begin to be a saver

Some questions

If it's 3 weeks to payday what are you going to live on?

Did you take 80 Euro out of the AIB loan account and loan to someone else?

If your intention was to pay off Littlewoods and the AIB loan with the 550 cheque from the CU, and in addition have a couple of hundred euro, well how does that add up? 339 + 319 = 658.

What is the interest rate on your AIB loan. The CU cheque that you must have just recently negotiated, what is the interest rate on that?

What is the actual repayments for the CU, you mentioned 95 euro and then 20 Euro.
Click to expand...


The cost of the credit union loan, ie interest is €20, repayments would be €95. So it would be less than littlewoods. I have €1300 in my savings in the Credit Union and about €750 in a work scheme.

Regarding paying off Littlewoods and AIB, your right it won't work out now, at the time I thought i'd get by on less for the month.

I actually hate running up debts, to be fair i've got my debt down from 21k so I think that comment is a bit unfair but I see where your coming from. I don't think credit is a good thing.

It's just over 2 weeks until I get paid and that's the problem I cleared the AIB loan last time I got paid but left myself broke so have been dipping into it. The €80 is money I lent someone out of the AIB loan which I got today.
 
You borrowed 550 from the Credit Union even though you have savings of 1300 there and not only that you've 750 savings in a work scheme.

Please explain to me why you take out 3 types of credit when you've savings?

Why don't you cancel the CU cheque. Take out enough 'savings' to pay off Littlewoods and the AIB loan. Then write down a budget for the next 2/3 weeks until payday and take this amount out weekly.

Before next payday, do out a monthly budget, including savings (the 2 types - annual and long term) and start from scratch.
 
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