Consolidation Advice Required

A

AustinClarke

Guest
I have a salary of €23,00
I have the following debts:

Personal loan with Bank of Ireland -outstanding balance €14,237
Credit card -Bank of Ireland -outstanding balance €2,000
Credit card -MBNA -outstanding balance €6,000

I make the following payments per month

Personal loan with Bank of Ireland -€366.12
Credit card -Bank of Ireland -€60
Credit card -€100
This is the maximum I can afford to pay each month

I would like to consolidate the loan & credit card so I have just 1 monthly payment.
Do you think it will be possible to get a personal loan for €22,000 with my income? I do not want to apply to lots of banks for a loan as this might affect my credit rating. Which bank is most likely to give me the loan?
 
Austin, I don't work in a bank (used to) but I'd imagine it's unlikely that you will be given a loan that is equal to your gross salary. How much do you take home each month? That would give a better indication of what you can afford to pay back. A €22k loan over 5 years (usually the longest term for a personal loan) would still be in the region of €440 by my calculations and your post seems to indicate that would be a bit of a stretch for you.

Are you a member of a credit union?
 
Thanks for the reply.
As I currently pay €526.12 per month (& have been doing so for past 12 months) I think that I could definately afford the repayments on the loan of €22,000. Infact I would be better of doing so whch is one of the reasons I want to do it.
My take home pay is 1800 per month & I have few expenses just €400 rent.Unfortunatley I am not a member of a credit union, I want to get all my debts paid off before I start saving.
Any furher advice would be greatly appreciated
 
AustinClarke said:
Thanks for the reply.
As I currently pay €526.12 per month (& have been doing so for past 12 months) I think that I could definately afford the repayments on the loan
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Does this include the reduction in net pay arising from the increase in the levies ?
 

I just thought that maybe you didn't always pay off the €60 & €100 on the credit cards each month & that the €440 might be a little tight. It's still 1/4 of your income that'll be eaten up by this new loan - it's a hefty amount but only you know what you are comfortable with.

Check out this site: [broken link removed]

You can enter the loan amount & term and see what rates are available. Get the lowest rate you can & remember that if you want to pay off extra (maybe if you got a lump sum or part-time work) you cannot do that if you have a fixed rate loan.
 
I have considered the impact of the levies on my ability to pay.
They will not significantly affect my budget to the extent that I cannot afford to pay €526.12 per month.
Any further helpful advise would be greatly appreciated
 
Thank moneyhoney. I will check out this site.
Hopefully the bank I apply to will see that I am able to pay
 
I think it will be difficult to get a personal unsecured loan for 22k especially in present lending climate. I dont think shopping around with various banks will in any way affect your credit rating. Frankly i feel your best route is to approach your present bank and if they are not favourably disposed it indicates it will be difficult. Sorry if i appear negative.
 
Not being negative.......but being realistic. I know some one who earns 110k per year, with a relatively average mortgage (200k), good LTV, good credit history...etc etc.

He got refused a 25K unsecured loan. I don't think you will get what you need, but there is no harm in asking. They can only say no.
 
Austin - another option might be to try & transfer the cc balances to a new 0% card, get a second job & pay off as much as you can in the 6 months, or however long the 0% lasts.

This will save you money on interest & therefore help you get the balances down a bit.

e.g. If you managed to transfer the €8k to a 0% card, could you manage to pay off €500/month if you got some additional income? That's knock €3k off what you owe.

Not ideal I know but getting the €22k loan could be tough.
 
debt consolidation is the worst solution to a financial problem believe me! SNOWBALL your debts...that's my advise...that's what i'm doing now...i'll never succumb myself to debt consolidation ever ...check out this site

http://www.daveramsey.com/the_truth_about/debt_consolidation_3035.html.cfm - about debt consolidation

http://www.daveramsey.com/etc/cms/index.cfm?intContentID=4055 - about debt snowball

How do debt consolidation companies make money?

pls. click this link

http://www.daveramsey.com/etc/cms/index.cfm?intContentID=4111


ausitnclarke please think 100 times , don't get yourself in more debt.... i owe money more than you
I have 5 credit cards all maxed out...now i've managed to pay three of them ( got rid of them because you will still pay stamp duty yearly by holding on to them and probably get tempted to use them so cut them quick) by snowballing and a little sacrifice(you know give up those luxuries) now when i'm finished with the last 2...i'll start snowballing my car loan, debt consolidation loan (my biggest mistake), personal loan with ulster bank etc. etc ...my husband was jobless for a long time and i was able to manage...and of course with loads of prayers...God bless...peace.
 
Thanks Moneyhoney, I will definately look into changing my credit card & paying off as much as i can with Zero interest

Thanks Ritubada, you have given me some hope.

I feel I have a clearer outlook now on my finances
 
AustinClarke said:
Thanks Moneyhoney, I will definately look into changing my credit card & paying off as much as i can with Zero interest

Thanks Ritubada, you have given me some hope.

I feel I have a clearer outlook now on my finances
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You're very welcome....we can be debt free!!!!
 
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