Loan Question

[Spoonhead]

Hi All,

I currently am in debt to the tune of €5000.00 on my Credit Card (Limit of €4300.00). I am overdrawn €2300.00 and I am paid €1890.00 monthly. On top of this, I have a reamininh loan of €5000.00 which I'm currently repaying at €200.00 per month. I am desperate to clear my CC balance but with my wages I'm struggling to live let alone pay debts.

Here's the question, can you advise anything firstly, and also, do you think the Bank would sanction a new loan to cover everything else, (ie (4300 + 2300 + 5000 ))? I recently had my loan realligned to suit my pay day, and I believe this counts as a 'new' loan

(I lost a well paid job about 12 months ago and was unemployed for 3 months, hence the debt)

Thanks in advance

D

 

[Jockey]

Hi Spoonhead,

I sympathise with you on your debt because i too owe over €2000 on my credit card which i am paying off month by month. You could always ask your bank to consolidate your loan into one but it is unlikely they will sanction it. Another option would be to optain a loan from the Credit Union who should be unaware of your situation with your bank debts. The first thing i would do is cut up the credit card as i have done myself that way you cant make your debt any worse. Hope it works out for you.

Regards,

Jockey

 

[CCOVICH]

Hi there.

If you use the search facility, you will find that there are many existing threads that deal with issues similar to your own and contain plenty of sound advice.

I would suggest that you draw up a budget and come up with a figure that you can afford to pay towards your debts monthly (after rent, food etc.). If your existing debt was consolidated, I reckon it would cost around €400 per month to repay over 3 years. Obviously, the shorter the term the better. Whether or not you actually get the loan is another matter.

You may benefit from talking to MABS (www.mabs.ie), a free service.

You should seriously consider cutting up your credit card until some or all of your existing debts are cleared.

Best of luck.