clear debt now or wait till ssia

[thaiaddict]

Hi folks, just got back from thailand and cambodia after 3months thnx to a nice tax return
and with the help of a boi cc. Am currently on dole looking for work gettin euro 165. My situation is
(apart from pining for thailand!!) i am 3000 overdrawn with boi, and almost 3000 maxd out
on cc paying minimam evry month. Hopefully starting new job soon where i may need a car,possibly spend about 3000
Boi have suggested an all in one loan variable covering evrything, but am not quite sure.They
tell me they are as competative as the credit union ie can up my payments and maybe clear with a lump sum.
I have a maturing ssia next april around 11000(have been depositing euro254 since
last year prev 100euro) with the cred union but no other
savings and no other major outgoings or loans.
Also my boi account has remained in student mode for years now!!, so the overdraft is not that
expensive around 9%. Have also been knocked back for 2 cc transfers
with tesco and bos.Any advice or suggestions would be appreciated.

 

[Satanta]

3000 overdrawn with boi = paying 9% on this

3000 maxd out cc paying minimam evry month = what is the rate your paying on this? (it'll help figure out if taking the loan would be a good option if you can't get a transfer) [from website, and the fact your still on student banking that its a student credit card, that its somewhere between 16.8 and 18.1%..... purchases/cash advance]

I'd suggest keep trying to organise a transfer to a six month(or nine month??) 0% card for this. Just because one or two say no doesn't mean you should stop trying. Have you tried MBNA, UB? Try everyone that you can, it'll cost nothing but time. If your sorted with a new job by then things will be a lot more managable. If not, you got 3k interest free on the loan you were considering anyway!

Hopefully starting new job soon where i may need a car,possibly spend about 3000 = Also possible to pick up very nice cars a lot cheaper than this. A friend was selling a beautiful 94 316coupe for €1200 the other day. (Think he still is if interested! )

Boi have suggested an all in one loan variable covering evrything, but am not quite sure. tell me they are as competative as the credit union ie can up my payments and maybe clear with a lump sum.= Well, they would say they were competitive. Do make sure you get a variable loan so you can clear it when the SSIA matures..... if you decide to get the loan. Be sure to investigate exactly what costs will be payable for early clearing of the loan (and make sure you will be able to cover the payments from now until April, even if the job situation does not improve). [I'm guessing from the website this would be approx 10.9% variable]


I have a maturing ssia next april around 11000(have been depositing euro254 since last year prev 100euro) = Worst case scenario, even if you don't pick up employment straight away, you'll be in the black come April. Do all you can to minimise interest until then and you'll be able to save as much of the SSIA as possible for yourself.

From a quick look/assumption of some of the figures, it looks like you should leave the overdraft as is and get the balance transfer on the CC (if possible!). If you can transfer the CC to get 0% this is obviously the best solution, if not, the loan for the CC amount looks better value for you. [The figures used are rough calculations using the web site and extrapulating from the info you gave. Do further checks yourself to be sure this is the case!]



Edit: In relation to the original thread title.... clear debt now or wait till ssia

Its usually not a good idea to leave money at CC rates. If you can get a 0% transfer, great - but only if you can afford to clear the transfer by the end of the 0% period (in your case you should be able given a) your job situation improves or b) can still get the loan but losing about 6/9 months interest. If no transfer is available then a personal loan will (*nearly always) prove financially sounder than leaving it on the card (*some cards do offer good rates which may be more appealing than a personal loan. looking at the BOI Student Card, this is not the case.)
Clear debt (high interest! - whether with a transfer or with the loan).

 

[CCOVICH]

You should certainly seriously consider consolidating your BOI CC and OD debts onto a single loan if they are giving you that option-and then repay with SSIA proceeds, as it doesn't make sense to finance short-term spending over the long term.

Cut up the credit card if possible and see if you can do without it until you have your other debts cleared.

 

[thaiaddict]

thanx 4 replies..ccovich, setanta.
Setanta..yeah your rite..16.8 on purchases and 17.1 on advances..which most was
so interest is huge. Will make more transfer attempts. Tried with AIB
and today recieved notice to send them bank statements for last 3 months
which wont seem healthy considering being in the red!! Also consider suggestions
on the car front, ultimatly they can be an expensive headache. Thanks for advice and
time, will consider all your points. Hopefully have as much debt cleard by next year so can have nice ssia lump for myself!!