Advice on Moving Bank/ Restructuring Finance/ Moving Credit Card

D

dublingirl81

Guest
Hi all,

Im looking to see what anyones thoughts are on this..... Ive been with AIB for about 15 years and found them to be great overall. However I have a large overdraft, a credit card (Low enough balance but at the max of the card) and smallish loan. I dont want to have the large overdraft and want to get rid of the credit card, so I asked about refinancing all into the one loan. I was told I couldnt as I had topped up the loan in late November (and theres a 6 month period of payments before the next application can be made)

Basically I am wondering if anyone has any thoughts on whether i should do the following:
1. See about moving my current account and getting a loan with another bank, such as boi or ulster to clear the OD/ loan/ Credit Card. I will have no history with them at all and wonder would that affect me in the future (or even ability to get a loan with them to move)
2. I could move credit card to someone like MBNA or BOI who are offering a 0% bal transfer and get the card down that way : would have to make sure I dont make any transactions in the meantime? However this will still leave me with the large overdraft and loan.

Id love to stay with AIB and just get them all into one, given I have been with them for so long, but I really just want to get it all restructured so wonder what is the best to do....Option 3 I guess is waiting till May when the 6 months is up, but Id ideally like to do something about it in the short term

Any ideas/ thoughts would be appreciated!

Cheers :)
 
My comments on your proposals would be as follows;
1. Very difficult to move bank and obtain a new loan facility in a reasonably short period. They will be looking at your previous banking track record for a start & it is unlikely that you will be facilitated.
2. You could try this. However the new Credit Card company will look for previous card/banking track record before agreeing a facility. This may prove problematic for you.
3. A rfusal to restructure the OD balance sounds strange. (They won't want to restructure CC balance). However, I would advise you to write in formally to them advising them that you wish to have the OD limit cancelled and the amount restructured to a new TL. The objection appears to be towards a restructure of the existing TL. This is the best option both for you and the Bank.
 
Thanks 44brendan for that reply..

I would just say tho I have a perfect banking record, no missed payments on any credit cards, loans etc, plus no prior refusals. The refusal this time was solely on the basis of being less than 6 months since a prior facility amendment....

Ill try writing to them as you suggest and see..
 
dublingirl81 said:
The refusal this time was solely on the basis of being less than 6 months since a prior facility amendment....
Click to expand...

You have got to be kidding right? Banks are not consolidating anymore because people who consolidate and clear everything into one loan, then max out their credit card again and live on overdraft and never get out of debt. The bank is doing you a favour. What you need to do is learn to budget, not constantly look for a 'loan facility arrangement' and never actually pay down debt.

I love the term 'loan facility arrangement.' That's just a fancy word for someone who doesn't stick to the terms of their loan.

Why have you an overdraft, maxed out credit card and need of a new loan? You are doing something wrong and like many think the fact that you pay all your loans means you are ok financially when the opposite is true.

How much have you paid in the last year in interest on your credit card, loan and overdraft?
 
Bronte, you have a point regarding the Op examining her spending habits, but the OP mentioned that she was looking to reduce her OD and get rid of her credit card, which is a step in the right direction.
 
And that is called consolidating. Dublingirl has only very recently had a top up etc. That is an alarm bell. Very few people manage to do it (consolidating) successfully. Many end up in even more debt. The fact that she is contemplating moving banks because of the refusal is a second alarm bell. 3rd alarm bell is that the bank is refusing to accomodate her.

Sorry if this sounds harsh, it is not meant to be. But I'm too used to people thinking it's ok to continue with overdrafts for 10/20 years and to consolidate every so often, while never actually paying off their credit cards/loans etc. That's where a lot of posters on AAM started to go wrong in my experience.
 
Good point.
Borrowing to repay other borrowings is rarely a good idea. The only solution here is to term out the OD & cancel it. make sure that any purchases made on the Credit Card can be cleared when the bill comes in and budget monthly expenditure to allow for loan repayments and contingencies. This strategy will not be without some pain, but the alternative is to continue increasing borrowings to the point where there is no acceptable solution.
 
My personal opinion would be that you should pay down all of the debts you have at present including reduciing your overdraft using whatever income you have and maybe in 12mnths look at your situation again, from what you have posted if you were to restructure now I would forsee you in the same situation in 10 months time but with an extra loan to pay on top of your current ones, sorry
 
@Bronte - I understand - actually, I can think of one or two people in my circle of friends who are in this situation - and mostly its down to living beyond their means.

So what would be the advice to the OP - pay off credit card & cut it up, reduce overdraft until it is no longer needed, all the while paying off the loan?
 
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