# Will Bank give me personal Loan to clear other debt



## oreilly21 (21 Sep 2011)

Hi, 

i was wondering does anyone know if a bank will give me a personal loan over 2 years to clear existing loans ie credit cards and other personal loans, basically at the moment i am haemoragging money in interest and i would like to consolidate all my loan to one payment, AIB already told me where to go and i was wondering if i would be better off telling them its for home improvements or something?? 

any advice would be helpful


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## castleforbes (21 Sep 2011)

So if the bank says no, you are going to lie to them.  

Answer is no.  They are not doing this type of loan anymore, why would they give a loan to clear credit cards.  If the number if loans provided for hol's , cars etc has dropped, they are not going to provide loans for debt.


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## ClubMan (21 Sep 2011)

Maybe post some more detailed info about your overall financial situation so people can comment? Maybe in the _Money Makeover _forum?


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## 44brendan (21 Sep 2011)

Home Improvements option is not realistic as it would only be considered by your original mortgage holder. While I note that I am not fully aware of your circumstances or the amount required I am a banker and would not see this as being a realistic proposal for any financial institution where you have no existing relationship. Depending on the level of your financial condition you will need to examine your income/outgoings and assess a reasonable maximum amount that you can afford to pay. Approach all of the creditors with these figures and if you are open and honest with them a deal can be reached.


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## marksa (21 Sep 2011)

oreilly21 said:


> Hi,
> 
> i was wondering does anyone know if a bank will give me a personal loan over 2 years to clear existing loans ie credit cards and other personal loans, basically at the moment i am haemoragging money in interest and i would like to consolidate all my loan to one payment, AIB already told me where to go and i was wondering if i would be better off telling them its for home improvements or something??
> 
> any advice would be helpful


 
that's shocking bad credit management by AIB. If you have hardcore credit card debt and other unsecured loans, it is in their interest to put you on a more stable financial footing and do what is known as "terming out" the debt. I suggest you go to MABS and look for the best way to present your case. Once you outline your reasons for looking to restructure your loans and repay their debt then I don't see why the should not. Indeed I notice you are looking for only 2 years, so the amounts must be relatively small (less than 10k?) and you are really just wanting to fix up your finances which is admirable.


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## marksa (21 Sep 2011)

castleforbes said:


> So if the bank says no, you are going to lie to them.
> 
> Answer is no. They are not doing this type of loan anymore, why would they give a loan to clear credit cards. If the number if loans provided for hol's , cars etc has dropped, they are not going to provide loans for debt.


 
I believe you are confusing debt consolidation where people in the past used it as a means of leverage  - to take on more debt by reducing payments. Indeed that kind of activity is I suspect almost non-existent. Consolidating unsecured short-term debt for financially distressed customers on the other hand is quite common across the banks (except perhaps AIB!)


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## Bronte (22 Sep 2011)

marksa said:


> that's shocking bad credit management by AIB. .


 
Not necessarily, banks consolidating in the past lead to many people going mad again on their credit cards etc and coming back for more consolidation.  

OP has given no facts and figures, no details of why he has so much debt, no income nothing.  So until he does the money makeover or gives more details all advice is pointless.


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## ANORAKPHOBIA (22 Sep 2011)

castleforbes said:


> So if the bank says no, you are going to lie to them.
> 
> .


 
I suppose the banks would never lie!


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## marfsmal (22 Sep 2011)

OP,

I have some good news for you that just might help/inspire you to go back to your bank, but it must be your own branch to have any chance. It will probably depend on how much you are looking for however.

I have posted here recently on my personal debt woes (which were mostly due to career change/study). I only have credit card debts now having just paid off my car loan (it was a 5k loan- will not be changing my car for years so it was a long term investment and paid off now).

So even though this car loan is now paid off I still have the hangover of credit cards, the main one of the two is (well was!) 5.5k owing on my credit card to AIB.

Since I had just finished paying off my car loan (credit union) I was in a stronger position financially and so I went into my branch and spoke with a deputy manager and told her with total honesty what my situation was. As I have a graduate account the interest on a personal loan would be 8.7% compared with the 17.odd % on the 5.5k on my credit card and I told her I was making no inroads on my credit card balance despite paying in 180 per month due to interest and charges (I was a couple of months in arrears so was being charged with late payment fees also). 

I told her honestly what my income is and that I could pay the 180 a month and she had initially said that you normally have to apply through the graduate loans centre so there was some resistance there, but I told her I had done so over a year and a half ago when I was in a better position and even then had been refused so I said I knew from that my only option was to speak directly to her/or the bank manager. She said she would speak to the manager for me and ring me later that day or the next day with the outcome.

So, I got word that same day that my loan was approved. They are transferring the money themselves to my credit card account and my new limit will be 500euro, rather than 5.5k but that suits me just fine as I am eradicating my debts slowly but surely, am almost finished my studies and ready for my new profession, and I will never get into credit card debt again.

So OP it is possible. Meet the bank manager/deputy manager, be humble and don't be afraid to show you're in distress because of the debts and be honest about your income and what you can afford to pay monthly. 

This of course will depend on how much of a loan you need and you didn't say how much was involved. But hopefully this may help others in similar situation.


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## wbbs (22 Sep 2011)

This has a better chance of working if all the debts including credit card are with the same bank, as most banks will not give loans to finance another banks debt.  If yours are all with the same bank then I would try again.  As for speaking to manager/deputy managers/assistant managers, don't think it makes any difference anymore with some of the banks as the managers have no input in the lending processing or decision making, you may just have go with however deals with the lending.


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## oreilly21 (22 Sep 2011)

Hi Again, 

thanks for all the replies. the main point of most of them was that i did not give you enough information. 
so here it goes, im not going into details about how we ran up the debt etc

BOI credit card: 6000 
MBNA credit card:5500 
PTSB credit card: 600
Personal loan AIB: 2600 (385pm)
Personal loan BOI:2500 (350pm)
also have mortgage repayments: 1290pm
and all the other usual stuff (bills, insurance, management company fee's etc)....  

i earn about 1900 a month after all deductions and my partner about 2000pm

at the moment we are paying over 700 per month on top of our mortgage on personal loans and really what i wanted to do was to take out a medium term loan and clear all other debt to this one payment. it is manageable at the moment and we have never missed a payment but we just cant seem to clear our credit card, any advice is appreciated. 

thanks


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## Crea (24 Sep 2011)

We had  the same problem with AIB. We wanted a loan to clear AIB cc and BoI credit card. They would only give the loan for the AIB cc as (and I quote) "the bank isn't taking on any new debt". We were told directly by the person dealing with us at the bank that we could have gotten the loan if we had stated home improvements as our mortgage was with them so I can see why you'd be tempted to lie. Maybe you could go to AIB and BoI and ask for a top up on existing loans to get rid of those CC's.


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## frostie (26 Sep 2011)

oreilly21 said:


> at the moment we are paying over 700 per month on top of our mortgage on personal loans and really what i wanted to do was to take out a medium term loan and clear all other debt to this one payment. it is manageable at the moment and we have never missed a payment but we just cant seem to clear our credit card, any advice is appreciated.



Because your debts are across a number of lenders, the banks are reluctant to consolidate another lenders debt. If it was all with the one bank, they probably would work with you. Credit Union may be an option to borrow the money or have you tried to come to an arrangement with the loan and card companies to see if they will freeze charges and accept a lower minimum payment? If you are having difficulties repaying the full amounts on all of your loans, you would have to restructure all of these debts equally, otherwise you would be giving priority to one lender over another. Not declaring a debt to any of the companies would be unwise, as MBNA for example will run a credit check, to see if you have declared everything. Do an income and expenditure to see what you can afford to repay in total every month, and work from there.

www.frost.ie


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