Consolidation Loan

Chaz

Anyone have advice or info on the best places to approach to try and consolidate some debt?

My credit record is OK - I already have a Personal Loan with my bank - should I approach them to 'reset' this and increase it to kill some other debt? Trying to get more cash flow going so that we can buy a house.

Thoughts / ideas?

Thanks

narcissism

Have you spoken with your bank?
If I was you I'd go straight for the house if that is what you are looking for.
DONT WAIT everyone will tell you what you need to do, but at the end of the day the banks will take you on if you have a good credit rating.
Heres what I would do if I was in your situation:
-I'd ask my parents to take out a credit union loan for me in their name so that does not show in your name, but you make the repayments.
-Lodge that to your account.
-Go to mortgage broker and tell them you want to use the lump sum in your account for mortgage application and in the application say you want to consolidate all your loans into the mortgage.
-All they banks can say is no so it is so worth going straight for the house.
-Then if you only get approval for say 200000 and you need 250000 ask your parents to go gurarantor on 50000 and the banks will give it then.
-Once your mortgage is up and running for a year or so, you can remortgage and wipe out your credit union loan and your parents will no longer be guarantor and bobs your uncle!!


You need to have nice parents though ;-))

Chaz

Thanks, but the parents option is not an option for me unfortunately.

woody

Start and account with the CU, as they can give loans generally up to 40,000 Unsecured over 10 years...

The parents option methinks is the greedy, moronic option people think mammy and daddy will have to help you out, well no, your an adult and stand on your own 2 feet.

How much debt have you got if you dont mind me asking and where are you looking for a house if it is dublin, i would say forget it...

Trying moving out toward the northeast and house prices will be less and easier to get a mortgage but before that, start saving even a little and then possibly contemplate the dreaded 100% mortgage but only if you cant raise the cash for a deposit...

But first clear what you have or try and get a low rate personal loan, my CU will give an APR of 6.3% on personal loans over a certain amount and most others are...

Kill the credit cards, cut back on spending and regulate social life etc...

My ex Ran up 55,000 in credit card and personal loan debts on myself and then legged it to germany...

I was caught, had to knuckle down and pay it off and did so in 18 months of not going out, doing odd jobs,nixers and generally being a hermit, I am now debt free in total, own my house deeds and all and I am not on a lot of money but it is all about discipline and getting your goal... But the first thing is get rid of all influences that could cause you to spend again...

Give yourself 18 Months to 2 years and then go for gold and dont be worried by all this hype on houses at the market will hopefully blow and those greedy piglet investors will get what is coming to them

Chaz

I am in Dundalk too.

I have a CU account - been open for months now - perhaps nearly a year. Not much in the account.

My total debt excluding my car loan is around E23K. Not earth shattering. Pretty much up of a Personal Loan of around E9K, various Credit Cards and bits and pieces. The payments on those are around E1100 per month. I expect that I can cover that over 3 years with a payment of around E650.

This will hopefully free up enough to allow us to get 100% mortage. We were turned down on the basis that our monthly outgoings are too high and on the edge of risk even though we have good credit history thus far and been paying fairly high rent for 2-3 years. We have admittedly in the last 2-3 months had a few bumps - but should be sorted now.

woody

Okay well the cuhullan credit union gives up to 40K but to borrow that you need around 5k in savings.

But the dundalk credit union does not have a cap or limit on savings..

so it might be better to save for a few months with them and then consolidate all into one loan...

go in and talk to them and if you are here in Dundalk then, you could get a pretty go house for less than 200K if you look around, I have seen a few in the argus for 170K....

I would myself go into them discuss the in's and out's and they are very accomodation and most likely could could the outgoing by half...

Bascially if you say take the loan over 10 years have the intention to pay back in 3 to 5 and you will be sorted

woody

It might also be an idea to shop around for better rent as Dundalk is not that expensive

Chaz

Im with the Blackrock CU - suppose its all the same. Ill speak to them and my bank and see.

How keen are banks and such to give out consolidation loans? I had an offer from HFC crowd (HSBC) but the rates were robbery and turned that down flat.

woody

Okay HFC are dangerous...

There rates are up to 22% ster clear

Most Banks will only offer up to 25K and only up to 5 years...

Rates are generally between 7.xx% to 9.xx %

Again they wont go much higher than that

EBS will go 35K but this is underwritten by GE Money another dodgy firm...

My advice stay away from the likes of HFC etc as they are not regulated by the IFRSA but UK and european ones, I have found that they carry out a lot of illegal acts and flout the law so at all costs stay away...

I have a friend which is currently being screwed by HFC as his Direct Debit got mixed up for a 70 Euro payment and are now charging a fee of 60 euro penality... These people are the black and tans in suits.


Goto your credit union and discuss the options as they are both there as a financial institution and a community one aswell, you never know you might be surprised the outcome.

Sponge Bob

woody wrote:

Most Banks will only offer up to 25K and only up to 5 years...

Rates are generally between 7.xx% to 9.xx %

Again they wont go much higher than that

a big car loan at 8% interest maybe.

EBS will go 35K but this is underwritten by GE Money another dodgy firm...

quite dodgy , charge for documentation fees and stuff and do not include these charges in their rates, if they did the rates would be nearly same as banks.

My advice stay away from the likes of HFC etc as they are not regulated by the IFRSA but UK and european ones, I have found that they carry out a lot of illegal acts and flout the law so at all costs stay away...

I have a friend which is currently being screwed by HFC as his Direct Debit got mixed up for a 70 Euro payment and are now charging a fee of 60 euro penality... These people are the black and tans in suits.

and did IFSRA do nothing ???

narcissism

Woody - I'm sorry but I dont think I was being Moronic.
You seem to be being a little "I'm Great" about it all?

I stood on my own too feet a long time back - I stuck my kneck out in an impossible situation and I did exactly what I posted above.
Most people need a foot up on the ladder and I think you have to beat the system to get ahead and go for it. I dont believe Chaz should waste time waiting.

I did not rely on my parents but was lucky enough that they were willing to take out a CU loan on their account and help me out with deposit.
I never got 1 cent from them (pennies at the time) and paid the monthly loan repayments etc...
That was 5 years back.

Since then I re-mortgaged the original house and paid off the credit union loan and got rid of the guarantor aspect of the parents in the original mortgage and consolidated all my debts.
I then took out a loan for "Home improvements" and bought a site with it.
I then got planning and sold the original house, built the new one, and I am now living in my dream home that I designed on 3/4 acres and would not sell for any amount of money, and I have a very low mortgage. 3 times lower than the average mortgage today.

I was just passing on advise to show that you can get yourself out of a hole without the struggle you are portraying.
I believe you are leading Chaz with advise based off problems you've had in the past (ex's etc..).

Chaz - you said "We were turned down on the basis that our monthly outgoings are too high and on the edge of risk even though we have good credit history" I believe the case was not put to the institution on the basis that you would consolidate your loans into the mortgage? did you go through a good broker? they should do anything to get you a mortage. You may have given up on the first fence I believe!

Chaz is in a good situation being in good credit rating and I believe Chaz should plough ahead as opposed to slugging and saving as property prices rise and Chaz loses out (yes I know thats another debate!!).

Anyway- Chaz!
I still believe you will surprise yourself if you go for it!!
I know the parents option is not possible, but believe me - if you want a house you'll find a way now - What have you got to lose? all the financial institutions can say is no, and a broker will find you a way as they want the business!

Lifes too short to sit around and wait!
Good Luck!

Chaz

Thanks for the info - to all parties that replied.