ADVICE NEEDED SO BADLY

financial_wreck

Ok long story short.

For 8yrs i spent and spent without any thought of the repercussions. I have in total 3 loans with different financial institutes to the amount of about 20k which i'm paying out over 1100euro a month.

I decided to try and apply for personal loan with my existing bank who rejected it on the grounds that i'm financially strung as it is. However on explanation to the person on the phone after the 6th call to see if it was approved or not that infact the loan was to be used to amalgamate all loans into one simple repayment over 4 yrs i was told that normally they dont issue loans to repay debts from another institute.

Right now i'm f**ked. I cant keep these repayments up with my day to day expenses as i've about 40euro thats flexible every month and i havent socialised with friends in 6 months because i've been in denial about my financial situation. i'm so stressed now that i cant sleep or function properly because its now one hell of a disaster., I was very stupid but now i need to do something about it.

Can anyone tell me if the bank can refuse a loan based on the fact that their loan will be used to pay off other debts?

stepbar

financial_wreck wrote: »

Ok long story short.

For 8yrs i spent and spent without any thought of the repercussions. I have in total 3 loans with different financial institutes to the amount of about 20k which i'm paying out over 1100euro a month.

I decided to try and apply for personal loan with my existing bank who rejected it on the grounds that i'm financially strung as it is. However on explanation to the person on the phone after the 6th call to see if it was approved or not that infact the loan was to be used to amalgamate all loans into one simple repayment over 4 yrs i was told that normally they dont issue loans to repay debts from another institute.

Right now i'm f**ked. I cant keep these repayments up with my day to day expenses as i've about 40euro thats flexible every month and i havent socialised with friends in 6 months because i've been in denial about my financial situation. i'm so stressed now that i cant sleep or function properly because its now one hell of a disaster., I was very stupid but now i need to do something about it.

Can anyone tell me if the bank can refuse a loan based on the fact that their loan will be used to pay off other debts?

Yes, they can and they are well in their rights to do so. I think the credit untion should be your next port of call. Collect together your statements and do up a cash flow of your incomings and out goings. TBH if you continued to repay 1100 p.m you'd have the loans gone in under 2 years, so maybe a 3 year loan would be better. Any longer and you're are just prolonging the party and not really illustrating that you want to "really" deal with the problem. If the credit union refuse then I would be off to MABS.

Toots

Banks can refuse a loan for whatever reason they like. There are few, if any, institutions who will take on another banks loans at the moment. Their only concern is that you're paying back the money you owe them, they don't care about other institutions. You could try contacting each of these institutions individually and see will the renegotiate each loan to a longer term to make the payments lower (with repayments that size it sounds like you're paying them over a short term, you could put them over 2 or 3 years if that'd help). I'd also suggest you get in touch with MABS. They're very busy these days, so talk to your banks yourself too, and see if any of them will be able to do anything for you.

edit: ya beat me to it Stepbar

Dodge

A friend recently contacted his bank (AIB) over extending the period of his loan. The bank were more than willing to accomodate him. He got the feeling that banks are very open to keeping customers happy, as long as they feel they'll get their money. His repayments dropped by about €200

Credit union generally won't give you a loan without having saved with them for a period of some months (I think 4), and even then the max loan amount is based on savings (roughly 4 times savings)

Good luck

BTW OP I think the fact you're paying it off instead of socialising shows you're far from in denial and you're tackling the problem head on

financial_wreck

Thanks Dodge 4 your comment but not socialising is doing my head in.

In regards to the bank saying no. i find it really hard to deal with as i've never missed a payment on any money i've owed to anyone. My credit rating is perfect as i've checked it. In 5 years of having a credit card i've never missed a payment. But i'll take everyone's advice and talk to each of the lenders and see what i can do. I'm just looking at it in case my wages are affected in the future. for now tho my income is stable but we never know whats around the corner and i need to have more flexibility.

stepbar

You're asking one bank to take on 20k of debt and double the repayment schedule. It's clear you have little or no savings. Do you not understand the problem here (regardless of how good your credit history)?

chasm

financial_wreck wrote: »

Ok long story short.

For 8yrs i spent and spent without any thought of the repercussions. I have in total 3 loans with different financial institutes to the amount of about 20k which i'm paying out over 1100euro a month.

I decided to try and apply for personal loan with my existing bank who rejected it on the grounds that i'm financially strung as it is. However on explanation to the person on the phone after the 6th call to see if it was approved or not that infact the loan was to be used to amalgamate all loans into one simple repayment over 4 yrs i was told that normally they dont issue loans to repay debts from another institute.

Right now i'm f**ked. I cant keep these repayments up with my day to day expenses as i've about 40euro thats flexible every month and i havent socialised with friends in 6 months because i've been in denial about my financial situation. i'm so stressed now that i cant sleep or function properly because its now one hell of a disaster., I was very stupid but now i need to do something about it.

Can anyone tell me if the bank can refuse a loan based on the fact that their loan will be used to pay off other debts?

If you dont have any luck with the banks etc you could always try this crowd: http://myvesta.ie/
I know of 2 people who were struggling with repayments and used myvesta. They both reckon they helped them a great deal.
Was my first time looking on their site but i noticed they have a FAQs page covering all sorts of questions.No harm in looking anyway.
Good luck mate and keep the chin up;)

Ogham

chasm wrote: »

If you dont have any luck with the banks etc you could always try this crowd: myvesta.ie
I know of 2 people who were struggling with repayments and used myvesta. They both reckon they helped them a great deal.
Was my first time looking on their site but i noticed they have a FAQs page covering all sorts of questions.No harm in looking anyway. Also they are free.
Good luck mate and keep the chin up;)

That company charge a monthly fee for their services. (49 or 15 euro they say) and an up front fee equal to one months worth of your debt repayment. Sounds like they could make things worse?
They can't even seem to control the large amount of spam on the forum on their website - so I would be wary of them . MABS will do a similar thing for you for free.

chasm

Ogham wrote: »

That company charge a monthly fee for their services. (49 or 15 euro they say) and an up front fee equal to one months worth of your debt repayment. Sounds like they could make things worse?
They can't even seem to control the large amount of spam on the forum on their website - so I would be wary of them . MABS will do a similar thing for you for free.

Sorry about that! Have corrected the post.

They state on their site:
The Myvesta Debt Repayment Plan has a fixed monthly fee for service of either €49 or €15 depending on the personal circumstances of our clients. Myvesta will also retain the first deposit made into the debt repayment scheme to assist towards the administration costs of setting up your personal debt management plan

January

I recently contacted MABS about a car loan that I have as I was out of work and struggling to make repayments. They have a waiting list that won't be cleared untill the end of September. I talked to the lender again and they sorted something for me. Make an appointment with MABS and in the meantime pester the lender with different scenarios as often as you can and if they don't budge by the time MABS come around then they'll help you.

stepbar

Look, at the end of the day the risk you take when you take a loan is that you loose your job. There's payment protection insurance available when you take out a loan but yet people think that because it's offered that the bank is trying to screw people for more money. It's there for a reason and yes obviously if you don't make a claim the bank makes a profit off same. However there are plenty who benefit from same and as such there's a cost involved in meeting ones repayments. If there's anything to come out of this recession is the hope that people will take a bigger responcibiliy for their finances and stop blaming the bank for all their woes.