Can't get any loan - any suggestion?

S

santu

Guest
hi,
i need your suggestion/view to find way out from debt. i have 10k loan from mbna, 2 credit card debt worth of 10k and overdraft of 1.5k. i change my job to high pay. i tried to get loan from diff bank/agency but couldnt get approved. i need to get around 5k to put in my wifes education so she can start work and give me hand to clear debt. i need your suggestion/view to find a way out.

i dont know what to do? please be advice!

regards
Santu
 
Re: Can't Get any Loan? Any Suggestion!

I would suggest that borrowing your way out of debt is not a very bright idea. If you now have higher pay concentrate on repaying existing debts and then sort out the education requirements for your wife. Are there any alternatives to the 5K such as in-service training?

Diziet
 
Re: Can't Get any Loan? Any Suggestion!

€21.5K in debt already and you want to incur a further €5K? You need to get your existing debts/finances under control, address the spending issues that lead to this situation and make sure that they don't happen again. There are several useful budgeting/debt management resources in the key topics threads pinned at the top of this forum that might be of help. In particular try MABS.
 
Re: Can't Get any Loan? Any Suggestion!

thanks for reply. i am controlling very much on my spendings. but end of month, i dont left anything with me. i have to pay in lump sum amount for my wife education. her study can be finish in 6 month if i put her in good institute/collage. she can get job easy once her study finish. so i think putting 5k in her study will be helpful to get her start working and clear out debts. so any advice!

regards
Santu
 
Re: Can't Get any Loan? Any Suggestion!

santu said:
thanks for reply. i am controlling very much on my spendings. but end of month, i dont left anything with me. i have to pay in lump sum amount for my wife education. her study can be finish in 6 month if i put her in good institute/collage. she can get job easy once her study finish. so i think putting 5k in her study will be helpful to get her start working and clear out debts. so any advice!

regards
Santu
Click to expand...

Is your wife working now? If not, she should, and put some of her earnings towards her education and some towards clearing debts.

Do you have a budget? Have you ever kept a spending diary?

If you spend all you get, then either you are in too much debt, in which case the bank will quite rightly not lend you more or you are not in control of your budget. If you are not controlling your budget now, then this is something that you need to address before you get into more debt.
 
Re: Can't Get any Loan? Any Suggestion!

santu said:
i am controlling very much on my spendings. but end of month, i dont left anything with me.
Click to expand...

Errrr... if so how would the bank/lender feel that you could make the payments on a 5k loan?
The potential future earnings of your wife will not come into play as nobody (you or the bank) can have an accurate idea of where/when she will working or how much she may earn. Lenders aren't in the habit of forecasting, they lend on what you can prove you can repay.

Given the current situation with spending vs. income it will be tough. As suggested on many threads you should look at transferring your credit card debts to an interest free account. This will help slow the flow of money from your pocket.
You could then look at getting a loan to consolodate the debt (using a sum of this to pay off the higher apr CC debts when the interest free period is up - you could be gaining 3.xx% on the CC debt ammount in a Deposit Account while the interest is at 0%, but do ensure to clear the debt so try and not touch that capitol sum).

Producing a detailed budget should let you know exactly how much you could put towards the new loan and therefore over what period you'd need to be paying back the loan (longer period = less outgoings each month but costs (FAR) more in the long run).

There's no guarantee you'll be able to find a lender who will accept the loan ammount you require and the period you think you'd need to repay this, but it may help from getting into another debt you may not be able to manage. I think taking advantage of something like MABS to help get a grip on your finances would be the first step though. Your struggling to break even as it is so the additional pressure of just another loan could be crippling.
 
Re: Can't Get any Loan? Any Suggestion!

Hi Santu,

Firstly, re. your wifes education, have you considered postponing for 1 year? I'm assuming that your wife isn't earning a salary at the moment, based on your wanting her to get trained so she can earn...
My own instinct is that while education is good, debt free is better.
If she is working at the moment, has she considered taking out a loan on her own, outside of your debt?
Have you considered both taking 2nd jobs, generating extra income, and using every cent from this to either clear your debts or to generate an education fund. Its not the easy option, but a few months of effort can make a huge financial difference.
As one of the other posters has suggested, keep a note of every cent that is spent, its tiring, annoying but highly enlightening... Get a small notebook, and mark in every cent as soon as you spend it - not later that day, immediately (its easy to forget a paper / coffee / magazine / bus fare, etc). After a week you may find that you are buying non-essentials that could better be used towards you financial goal... many books call this the 'latte' money for the way people now buy expensive coffees on the way to work rather than at home / in the office!
My own personal suggestion is pay off try and pay off your smallest debt first (over draft), because there is a nice sense of accomplishment when you make that last payment (keeping paying all the debts each month), then the following month put the repayments for this towards the next smallest debt.
have you checked out that you have all the correct tax allowances, that you are receiving all possible welfare payments you are entitled to? Some of these may only be worth a couple of Euro a month, but that is a couple of Euro towards freedom from debt.
Good luck,
 
Re: Can't Get any Loan? Any Suggestion!

hi,

thanks for reply on my post.

i check with mabs, but no help! i newly open ac with credit union. so they are not in position to give me any loan. that could change in 6 month time. but i want to you this 6 month to put for wife education. she is nurse by profession. so she will get job easy with good pay. but as i cant predict right month for her getting start work. that could extend upto 6-8 months. i check with big loan provider to rearrange loan for 5 years but that didnt go thru well and at end they refuse to rearrange as it is fixed loan. only i can save mony by not paying any high APR CC and get loan.
i cant go to tesco loan as per thier terms to qualify loan because 3 months back one direct debit was refuse because of insufficient funds in ac. my current situation is like this, i am paying everyone and end of day i have 100/150 save toward my wife education. another problem comes as i have to pay for my mother health around 1500 euro. i dont know how i am going to get it arrange. this debt are getting hard and harder.
any suggestion will be helpful.
thanks and regards
Santu
 
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