large loan for paying off debts

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1stepatatime

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hi, this is my first time using this site so please excuse me if i get some things wrong..

i owe out a lot of money, and i need a outsiders view if im going about this the right way.

in total i owe 42000 in loans credit cards and overdrafts.....i had a gambling problem but i have taken steps and can say that i havent gambled in nearly 2 months.

my employeer is very understanding and i went to him to seek advise on how to get out of debt (he is an accountant,so i thought he would be the best person to turn to) he advised me to go to my bank and ask about debt consolidation...i went and applied for a loan (still waiting to hear from them)

will the bank give me an unsecured loan for 42000?

I earn 2500 per month

Loan (BOI) 22000 (4 years left)
Loan (BOI) 8000 (4 Years Left)
Credit card (MBNA) 4000
Credit card (BOI) 2800
overdraft 3500

My outgoings are:

Rent 200 pm

thats it!...any advice would be welcomed. thanks again
 
1stepatatime said:
will the bank give me an unsecured loan for 42000?

I earn 2500 per month
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Highly unlikely. Looking at your outgoings you are spending at less 1700 a month on repayments. They won't lend you such a huge amount in those circumstances. I'm afraid MABS are your only option here.

Main concern should be your overdraft, as the penalties are quite severe for being so much in the red.
 
Contact www.mabs.ie and see if they can be of assistance.

You will more than likely have to do some negotiating with your creditors.

Also, have a look at some of the previous threads on dealing with debt (search/browse)-they may be of interest.

I think you are kidding yourself when you say that your only outgoing is rent-what about eating, utilities etc?
 
Sorry to hear of your tough situation and congrats on facing up to your problems. I'm not clear on the purpose of consolidation - how is this going to help you?

Are you trying to reschedule your repayments over a longer period? Are you trying to reduce the interest rates you are paying? [What rates are you paying on your current debts?] How do you plan to ensure that you don't run up debts again?
 
I recon a meeting with your bank manager would be your best option. You are endebted to BOI to a tune of 30k as it stands. I would have thought it would make more sence in the long run for them to get you thru this difficult time. I would also suggest to cut up the credit cards. Best of luck mate.
 
RainyDay said:
Sorry to hear of your tough situation and congrats on facing up to your problems. I'm not clear on the purpose of consolidation - how is this going to help you?
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His ougoings are too high and he wants to reduce them and manage the debt.
 
The Punter said:
I recon a meeting with your bank manager would be your best option. You are endebted to BOI to a tune of 30k as it stands. I would have thought it would make more sence in the long run for them to get you thru this difficult time. I would also suggest to cut up the credit cards. Best of luck mate.
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I agree. The OP does not say who the overdraft is with but if its BOI as well then they are already very exposed to him and may be the best bet to get a decent rate on a consolidation loan. Otherwise he is looking at subprime lenders at probably very high rates if they will even consider him.

If something can be worked out with BOI at a reasonable rate even if only for the debts owed to them it might make more sense to do that and keep the MBNA credit card seperate and try as hard as possible to get it down than pay a higher rate on the whole package elsewhere (unless BOI can be convinced to take on the MBNA debt aswell)
 
thankyou all for replying so fast with useful information

hope i can answer your questions:

I live with my parents and when i told them about my situation, they told me that they would not charge me any rent ( i refused to pay nothing so i give them 200 a month) i have no traveling expenses as i can walk to work,dont drink smoke and give myself an allowance of 60.00 a week to live on.

my overdraft is with boi, and its up to the limit.. on the intrest rates its 9.8% on 8000 loan and 7.2% on large loan... credit cards is 14.9% (BOI) not sure about MBNA.. Im definitely going to take your advice and go to MABS and i can assure you the credit cards are destroyed..and ive installed software on my computer so i cannot rack up more debt

i want to thankyou all agian for the useful help that u have given me
 
I read in another thread, that if MABS actually acts on your behalf that it effects your credit rating. Given your situation this might be unavoidable.

Your parents would probably be more than willing to forego the 200 a month as long as you are really trying to get on your feet and make a new start. I know I would if you were my child. It's admirable that you insist on paying them but maybe you should consider putting the 200 towards your loans. You can always make it up to your folks at a later date. Giving up gambling probably means more to them than the money any day.

If I were you I would get rid of the most expensive debt first, while trying to pay the minimum on the others. This is probably your overdraught. When one is cleared, move onto the next. You've already tackled the biggest problem i.e. the gambling, and now you're tackling the debt. Things can only get better from here on in. The very best of luck. I hope everything works out well for you.
 
1stepatatime said:
I live with my parents and when i told them about my situation, they told me that they would not charge me any rent ( i refused to pay nothing so i give them 200 a month) i have no traveling expenses as i can walk to work,dont drink smoke and give myself an allowance of 60.00 a week to live on.
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If your parents are willing to forego the €200 per month, I would take them up on the offer-you can always make it up to them later-unless they would be in hardship without it.

You seem to have cut your overheads to the bone-fair play to you-accounting for your expenditure so that you can prioritise and reduce is often the first step to getting out of debt.

Any excess cash should generally go to the debt that is generating the highest interest on an APR basis.

For you, this would appear to be the OD and credit cards. If you are left with, say €2,000 cash per month (frugal living, and assuming the €2,500 is net), it would appear that you would take 5 months to clear both credit cards and the OD. This will only be possible if you can get BOI to give you a payment holiday (say 6 months) on the personal loans. I'm not sure if they will do this, but then they don't seem to have much choice. It may also be worth agreeing a lower interest rate with the CC providers. Again, it may not be possible, but it's worth trying. MABS should be able to help in this regard.

Best of luck-if you read other threads you should get a sense that it is possible. At the end of 6 months you will hopefully have your short term debt cleared and then you can look at tackling the €30,000 of medium term debt.
 
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