Monday,help!

Hi there would really appreciate some financial advice. Have managed to build up some serious debt as i will outline below! Just about managing at the moment to keep up the payments. I am on better money now(approx.50,000 euro) than in the last few years but still finding it hard to make any headway.I would love to think about buying my own place in the next year or two but any bank who sees my situation will probably run a mile!WillI need to clear off the debt before I can even attempt to get a mortgage? My parents have land/property which they have said I may be able to use as collateral for a mortgage in the future but they are not aware of my debts. Please advise,thanks.

All figures in euro!!
Credit cards 15,000
Overdraft 1,500
Car loan 10,000
Credit union 3,000
Bank personal loans 6,000

I pay rent of 450 per month.

Thanks again in advance for advice if anyone can get their head around it!

If you don't mind me asking what rate of interest are you paying on :

Credit cards 15,000
Overdraft 1,500
Car loan 10,000
Credit union 3,000
Bank personal loans 6,000

Why not put all your loans into one and payoff at a lower rate ?

Hi thanks for reply. Dont have all details to hand but will post them when I do.

My parents have land/property which they have said I may be able to use as collateral for a mortgage in the future but they are not aware of my debts.

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For God's sake, come clean with them! (maybe after you've put the house in order via a consolidated loan, as Clubman suggests..?) I shudder to think what accumulated interest-upon-interest you might be paying on that 15K credit card debt..!

happy1 - I was in a similar situation (owed about €20k). Like you I was trying to keep it a secret. Then about 2 years ago I came clean to my parents and they really helped me sort myslef out. They guaranteed a loan for me. I used this to clear alll my debts. I now pay 350 a month and in 4 years will be debt free. It is a great feeling. Like you my salary has really increased over the last couple of years but now I can do with it what I want. I'm saving a deposit for a house and finally can see a light at the end of the tunnel. Telling my parents was the best thing I ever did.

Thanks novice. Very unsure what to do at the moment! One step at a time i guess. Just not sure if any financial institution would give me a loan to cover all of the above but I guess its worth a try.

I couldn't get the loan on my own because of my oustanding debts. If your parents are willing to offer their property/land as security for a motgage I'd imagine that they will be in a position to help you. best of luck anyway.

Check out the advice on debt management on the MABS web site: [broken link removed]

If you make sure the relevant lender knows the reason you want a loan is to clear/consolidate your existing debts there shouldn't necessarily be a problem with getting one amount to cover everything.

You should see if you can get a 0% credit card balance transfer.
Check what interest your paying.

Check out this site, it's an english site but it will give you a good idea what to do. Check out snowballing your debt.
www.fool.co.uk
Go to the disscussion boards and under managing your finances go into dealing with debt.

This topic might contain some relevant info. There are also some useful debt management resources here.

thanks very much.Weighing up the options and having sleepless nights! Re consolidating the debt,would anyone have advice on whether credit union or my own bank would be the best option?

banks can be fairly cheap for large personal loans, I would expect 7%-7.5% rates in your case given its size.

one problem is that they will not let you swap an overdraft into personal loan as they lose money . credit unions tie up a lot of money before they give you any.

maybe ago to another bank first , if your parents guarantee that , and once you clear everyting anc chuck the credit cards for about 2 years...for your own good may I add, you can approach your own bank for a loan and pay off the one guaranteed by your parents with that.

you also release some cash from the credit union I would say to reduce the initial loan

the above hinges on your not having missed payments or rolled over payments into debt ( ie miss by a full month) on your myriad debt in the past few years .

if you have not it is all very doable , if you have your options are constrained .