Short-term financing needed - what options have I?

[CJConnolly]

Hi,

I've a fairly complicated financial situation - at the moment it looks pretty awful, but is likely to improve a lot in the next few months.

I will get a share of the family home which is currently up for sale, there is currently an offer on it, but we'll wait a little longer. We will accept the offer if no further bids come in. My share, based on that offer, and less fees, would be around E150,000.

I am also planning on selling my own home and moving to another small home I own in the west. I would also stand to make around E150,000 on that sale. No guarantees, of course, but based on sales around me recently, I think mine should sell relatively easily.

So, within six months, maximum, I would expect to gain by around E300,000.

My problem is my current position. I owe around E20k on credit cards and also have a tax payment of around E5k to pay soon. I earn E3,800 a month, but between everything, it's all very tight.

(Re the credit card debt: until a year ago I cleared my CC cards debt every month, but I used them to complete the finance of the purchase of my home-to-be in the west, knowing that I could clear them in the months ahead. Not sensible, I know, but it was the only option at the time).

Ideally I would love to be able to get some kind of loan to clear my CC debt, a loan I could repay in full in a few months. Because of that debt, though, I doubt very much that I would be approved for a loan.

Would anyone have any suggestions on what options - if any - I might have at the moment? As I said, things are very tight right now, so it would be great to get some relief until I am in that stronger position.

I had considered applying for a payment holiday on my mortgage, or a mortgage top-up, but I'm with Ulster Bank and as far as I know they're only available to people on variable rates - mine is fixed.

Any advice would be hugely appreciated, thank you.

 

[dub_nerd]

In the worst case, you could make the minimum payments on the credit card debt and take the interest hit. It'll probably cost you €2k+ over six months (20% x €20k x 0.5 years), but then you can pay it off. Similar with Revenue -- talk to them about a repayment plan, you will probably get hit with 10% late payment penalties.

 

[dave2015]

What about trying to get a new credit card and getting a deal on balance transfers? Might not be able to shift all but may help. Revenue are generally good if you approach them and have a proposal in mind but they will need some monthly payments I suspect. That being said I missed months on my schedule and never chased me. They just have an end date and once they see it cleared by end of 6/12 month window they probably will let slide especially given small amount in relative terms.

 

[peemac]

Your position is not bad at all - just needs a little rearranging.

Short-term finance is expensive anyway.

Credit card as above, pay minimum until house proceeds come in.

Revenue - explain the situation, show them some evidence and you'll find they will be very accomodating (they're human too!)

Mortagge - payment holiday can be possible in all situations. Or a deferred payment. Talk to them.

 

[demoivre]

Have a chat with the local bank manager about your likely deposit of €300k in a few months , and see what they can offer you regarding your short term funding requirements. If all came to all I wouldn't be too worried about running up short term arrears and a shot credit record, knowing I'd have 300k in the bank in the near future.