Need a loan but have bad credit

teagan

I need a loan of €5000 to clear off my credit card and a few other bills. I've missed a few direct debits and standing orders on my current account, so am finding it impossible to get a loan form any lenders I've tried as they need clear bank statements for the last three months. Does anyone know of any lenders, with low interest rates that will give me a loan??

Gillo

To be honest it's gonna be hard, your best bet is to try your own bank as at least they'll have a record of money going into the account. Be honest with them and explain why you need it, at least if you go in and admit you've fuc*ed up but are trying to sort it out, then you may have some more leeway. It might also be helpful to settle for a loan of a smaller amount.

Contact they credit card company, and explain you are having trouble paying back the balance, they may be able to come to some arrangement, afterall recieving a smaller payment on a regular basis is better than nothing at all.

Dub13

Sounds like you need a Credit Union loan.If all else fails you could contact Money Advice & Budgeting Service

Ruu_Old

If you save in the credit union maybe they might be able to help you out, good luck sorting out the credit.

edit: snap, Dub13.

Dub13

Great minds...etc etc

teagan

I'd have to be saving a few months with the credit union is the only prob there and I'm trying to get this sorted as soon as possible

Dub13

Get onto the Money Advice & Budgeting Service,they can/will talk to your creditors and try and work something out.In the mean time start saving with the credit union asap.

teagan

will give it a go, thx

shoegirl

From my own experience of having poor credit I can tell you that unless you own property you can use as security, its pretty much impossible to get a loan with poor credit, unless your borrowings are very low, and arrears are a couple of years in the past. In my case this was made worse by incomplete information on my ICB record which made it look like I hadn't paid off 1700 of a loan that was in fact paid off in full 3 years previously.

I'm wondering why you "need" a loan to clear off existing loans and bills. The last thing a person in debt needs is another loan which will further reduce their ability to pay off what they are obviously already struggling to pay. It might be a better idea to see where you can make cutbacks or change the way in which you are currently paying off your borrowings.

On the other hand, if its was for an essential - like your car has just been declared unroadworthy or something, and without it you cannot get to work - then a chat with the credit union will help.

If things are difficult then its really important not to borrow for anything that isn't essential. A lot of people in the debt collection departments in banks etc will suggest getting a loan to you, as they seem to be the most clueless monkeys on the earth. One thing you won't be able to do is borrow until you've sorted things out!

What I suggest is making very harsh temporary changes to your lifestyle that enable you to pay your arrears and bills over the next few months. It might take longer - I had to live on about 75 euro a week for a year! It was tough, but in the end I cleared about 85% of what I owed in about a year, and it made the next few years a lot easier. You might find this daunting, but people have to do it all the time.

Hitchhiker's Guide to...

1. Credit union would be best. Credit union loans are not linked to your past credit history, but are instead related to how you save with the actual credit union. E.g. regular weekly deposits of savings would mean a no problem loan. Obviously, this doesn't sort out your immediate need of a loan, but you would be able to get one in a year through this process.

2. Unsecured loans for people with bad credit, are usually phenomenally expensive, and will end up costing you even more in the long-run.

3. Know this third suggestion is not the most practical, but you could work for an extra two nights a week (in a bar at weekends for example), and put that money aside as savings.

jaggeh

shoegirl wrote:

I'm wondering why you "need" a loan to clear off existing loans and bills. The last thing a person in debt needs is another loan which will further reduce their ability to pay off what they are obviously already struggling to pay. It might be a better idea to see where you can make cutbacks or change the way in which you are currently paying off your borrowings.

A consolidation loan can be very useful for someone who is having trouble with a lot of creditors.

Dub13

jaggeh wrote:

A consolidation loan can be very useful for someone who is having trouble with a lot of creditors.

Sure it can be for some people but IMO it should be a last option you should explore other avenues first.