Personal debt, money issues

LegacyUser

Like a lot in Ireland I spent a fair while unemployed and I've fallen into debt

I had a credit card for several years which I paid 100% of every month.
Never ever missed a payment

But I had no income and while I was trying hard for a job I started doing cash advances off the credit card.

I pre-paid my rent and other things for a few months in advance so actually I don't have rent or UPC to pay for the next while

I owe about 6k

And I did a stupid thing, I never told the bank my circumstances. I could have made made minimum payments I think but I just left it at 100% so my current account is now in debit. (is debit the right word? Overdrawn I suppose)

So my balance say about 3.5k owed on the credit card and 2.5k in debit on the current account.

I have about 70 euro cash in my hand

You'll call me a fool for putting my head in the sand and not making contact with the bank, sorry but it's just what I did and many do, not wanting to face problems.

I've gotten no letters or phonecalls from the bank but I need to contact them now.

The good news, I started a job this month, good money on 34k

I get paid on the 20th of this month, it'll make a large dent in the current account but I'll have little enough to eat or spend

There is casual Friday in the office and last two weeks I still wear my slacks and shirt as tbh, I can't spent money on clothes.
I just told the teammates I forgot and that was fine

Should I ask the bank for a loan to clear this and I'll work hard to put it behind me? Is that the best option? I think I can clear it all in about 6-9 months.

I'm not a layabout or looking for a write off, I owe the money and it'll be paid eventually but I just need advice on the best step.
I was stupid to not be upfront with the bank but I admit I couldn't face the problems at the time

Thanks for reading

tony81

You're on good money and prepaid your rent so chill. If your overdraft is authorised then pay the minimum on your credit card with the overdraft. Borrow casual clothes from a friend.

If your overdraft is unauthorised you may need to contact the bank before they reel in the overdraft and put a big black mark against your credit rating.

Honey-ec

Talk to the bank. They're well used to people in this kind of situation these days and 6k isn't all *that* much in the grand scheme of things. Explain exactly what your situation is and they will more than likely be happy to arrange a repayment agreement with you.

And cut the credit card in half, right now.

LegacyUser

Congrats on the new job.
I would speak to the bank about getting a loan to pay off your present overdraft and credit card debit. If the bank won't give you the money to pay off the credit card I would start to make a payment of €100 pm on the credit card. I would then open a credit union account. I would ask them how much would have to save and for how long as you would like to get a loan in the next few months.
Before you get the credit union loan I would ring the credit card company and ask them for a settlement figure to pay off your credit card. I would then tell them that you making a settlement figure and that you have been a good customer to date. If you chat to them and don't accept the 1st figure they offer you they should be willing to offer you a lower settlement figure.
Your credit card interest could be 25% plus and a credit union loan would be less than 10%.
With the credit union you could take a loan over 12 months but could pay it off quicker.
You could set up a standing order from your bank account to pay off the loan each month & also put a small amount each month into your savings. This will help you build up your savings and also give the ability to borrow money at a later date when your 1st loan is paid off.
I would look up the nca.ie website and use the budget calculator which can help you work out your expenses, how much to pay off what you owe and what you can save each month. Congrats and the best of luck with the new job.

LegacyUser

Thanks for advice

There are two problems and here are figures

Credit Card: -2.5kish
Current account -3.5k ish

The reason for the current account being minus is I put my head in the sand for the last two months, the credit card tried to do 100% as usual and it failed of course

Rang the credit card crowd, extremely helpful, noted everything I said and I need to pay 3% by the end of the month.

However.....I can't make 3%.

I'll get paid this week, we'll say conservatively 2k but that just reduces my current account

And then I have 70 euro cash to last me for bus fare and food for the next 40 days lol, I'm going to be slim lol


I need a loan tbh, I'll talk to that team tomorrow

I'm not in dire straits or anything, I can clear this up in a few months, probably before Christmas.


Moral of the story from what I've learned:
Don't ignore your problems!!
The banks are very happy when you call them when there is a problem and they'll work with you on it.
Well of course they'll work with you, they have an interest in getting paid back but the point anyway is to talk to them.
They know the score and no matter what the problem, they've seen it before.

dellas1979

Well yes, if you get paid 2k into the current account, will still leave 1.5k in that respect. So next time you get paid, will leave you with e500.

Yes, immediately talk to your bank and explain the situation. They may offer some solution, i.e. 500 to pay off arrears in current account (or more if you can), 3% on credit card (or more if you can), and rest on living (fairly modestly I imagine for a few months).

I would also bring your first pay slip and your (new) contract with you when talking to the bank, even if its just to arrange an interview for getting a loan.

Alternative is to open another account and get your wages put in there, and divide up the money yourself. But as its the 18th, and you get paid on 20th, I doubt this is possible now. Youre going in the right direction, just remember that.

puredaft

Best advice you can get

http://www.mabs.ie/#

Do it yourself here
http://www.mabs.ie/self-help-guide/

Forget about a consolidation loan

Wacker The Attacker

Get the overdraft cleared asap.

Pay the absolute minimum on the cc for the first month or two (2 or 5 percent)

once youve got back on your feet start paying off far greater chunks of the cc bill

Dubhlinner

get your company payroll to pay you into a different bank account. pay the overdrawn balance over a few months

Ickle Magoo

Folks, this thread hadn't been posted on in over a month.

Can posters please ensure they are responding to recent threads rather than searching for specific topics of interest and bumping older threads.

Many thanks.

If you haven't already done so, please read the Forum Charter