If I was in your situation . . I wouldn't get a loan. I'd be ambitious in tackling the debt. I would draw up a financial plan for 2009 which saw me cut my spending by €400/month. I would clear the overdraft in January 2009 and clear the credit cards over the rest of the year . . maybe I'd look to do a credit transfer of both to a new UB card with 9 months interest free . . I'd keep the card thereafter, just wouldn't use it. In 2010 I'd ramp up payments on the other loan.Should i apply for the loan and close both credit cards? that way I will have more money each month and will have both my loans paid of in four years? Any advice appreciated thanks!
The mobile phone bill looks pretty high, maybe its time for you to revisit the plan you are on, assuming you are not still under contract, you shoudl check out www.callcosts.ie. Take your last 3-4 bills and compare what meteor charge with the other people in the market.
I'd also suggest cutting back on the calls, basically you are spending €2 a day to talk - how many are essential calls, and how many are just blah-blah-blah while you walk / drive along (be honest, how many are 'where are you' calls as you are out and about)! I'm not sure about meteor, but O2 and vodafone have 300 free texts a month online to subscribers, so if its all texts check if there is a free alternative.
As you had a problem before how do you know you will not do the same again, adding the 5K to your 16K, then start with the credit cards again. Is this where the 16K loan comes from. What have you got of value that equals the amount of your loan. I agree with the consolidation if you are sure you will not go deeper into debt. Another idea would be to switch to a 0% interest rate card for few months to try and tackle this debt and reduce your credit card limits as you pay down the debt. 21K debt currently on an income of 28K is excessive unless you have something to show for it.I did have a problem before with controlling my spending and have recently gotten it in order so once I pay of the credit cards I will be closing them and not getting another one.
If I was in your situation . . I wouldn't get a loan. I'd be ambitious in tackling the debt. I would draw up a financial plan for 2009 which saw me cut my spending by €400/month. I would clear the overdraft in January 2009 and clear the credit cards over the rest of the year . . maybe I'd look to do a credit transfer of both to a new UB card with 9 months interest free . . I'd keep the card there after, just wouldn't use it. In 2010 I'd ramp up payments on the other loan.
The 16k Loan is a car loan. I need the car so I can't sell it. A condition of the loan as its consolidation would to be close both credit cards. I have decided against it as i'm going pay as much to credit cards as possible and get the limit reduced each month. As suggested i have done a financial buget for 2009 and have no holidays planned or big events to ensure i clear this debt.
I know that 21k debt is excessive (even with car) when i'm on 28k and thats why i'm trying to sort it out and get hold of it.
Thansk for all advice.
The 16k Loan is a car loan. I need the car so I can't sell it.
I know that 21k debt is excessive (even with car) when i'm on 28k and thats why i'm trying to sort it out and get hold of it.
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