# Bad credit-possible for loan consolidation



## mamsworld (14 Jul 2014)

Hi, I'd appreciate if anyone could give us some advise regarding consolidating loans which aren't with fixed financial centre. A bit of background, over the years we have managed to accumulate loans from our parents, credit card, credit union and mortgage arrears. This wasn't through being careless with money or living a lavish lifestyle-my husband was made redundant and like alot of people we fell behind with alot of bills, etc and ended up borrowing to keep our heads afloat! 

While we have paid back my husbands cu loan of €12k in full and continued to save €150 fortnightly in his account, I still owe €7k on mine. I pay €115 fortnightly back on that. Aswell as this, there is now a balance of €10k on credit cards (€200 paid back fortnightly) and €8k house deposit still owed to our parents! Currently we have a Capitalisation agreement with our mortgage provider whereby we are paying extra every month and from 1st Aug our arrears will be added to the end of our mortgage and our arrears will no longer be there. 

Ideally, we would love to get a loan somewhere for €30k in order to repay all outstanding loans and only have one monthly repayment for the loans combined. Currently we pay out approx €1kper month on loans. 

i have checked loan calculators on various websites and a €30k loan repayment is approx €20 more each fortnight then our current credit union repayment. Taking into account what we are already paying out it is well within our means to pay that additional money especially as we will be saving so much. The issue however is that because our mortgage shows arrears at present obviously our credit report is quite bad. I have applied for a loan via my bank however this was denied citing my credit report. 

Ideally we would like to contact our local credit union and see if it is possible to combine our accounts and apply for a loan for €30k (which will include the €7k I owe integrated into it), however I'm quite hesitant as I don't think they will agree with our credit history as bad as it is. Financially it makes sense for us to be able to do this, we have a good history with our credit union, all loans have always been paid back in full by direct debit and my husbands last loan was cleared early. 

However as they now run credit checks they will see the credit report and will look unfavourably. We are both in full time permanent secure employment with a monthly income of €4k. Apart from the above loans our only other outgoing is our mortgage of €890 per month and two growing children. 

Also, We don't go out, we don't smoke/drink, we don't go on holidays, our car is 15years old and also badly badly needs to be replaced as its falling apart and is vital for my husbands job. Any advise anyone can give would be very much appreciated on what the best solution may be to our current predicament.
Thank you so much


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## Branz (14 Jul 2014)

Any chance of editing this to break it up into paragraphs pls?


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## mamsworld (14 Jul 2014)

Is this any better? Thanks


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## Gerry Canning (15 Jul 2014)

Mamsworld; 


1. Do not use the word arrears as it sounds like you were trouble, use the words (problem for a time due to husbands redundancy.)
2. Twix you and hubby you have successfully had circa k17 from CU.
3. In spite of redundancy, you maintained all CU payments and now have surplus in husbands ac.
4. Tell Cu you are scrapping the credit card as it is a very dear K10 . 

From what you say :
Your ICB (credit bureau) will show ONLY, that you could  for a time NOT make payments when due, at no time have you seriously defaulted and have successfully managed to get Bank on track, notwithstanding redundancy

Suggest go to CU ; fully explain todays situation.
a. Show salary slips.
b. Show Bank now have capitalized arrears.
c. Show good repayment monhly capacity ie cc400+ Cu loan 230 + Cu saving 300 = 930 per month.
d. Tell them you are cutting Credit Card.

Means you can afford k30 @ 9% over 48 mths @ 747 permonth.
Means you can afford K30 @9% over  54 mths @ 678 per mth.

From what you say ,you can present a reasonable good case to Cu.
Even if declined first time , ask to have board review.
...........................
If not successful with Cu ,try to get Cu,s refusal in writing,then  get onto CC company and ask to suspend ac and suspend interest and agree to continue repaying 200 per mth to sort ac.Credit card debt is far too dear to keep.
...........
Keep (if possible) paying the 300 per mth into husbands ac , as you may need that buffer for a car ( it may well be Cu will in future give you a car loan even if declined for the k30)

Hope this view makes sense.


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## mamsworld (15 Jul 2014)

Thanks Gerry this is in line with what we had been thinking, I'm going to call in on my next day off and suggest this, hopefully something can be worked out.


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