# Would I get a loan with my present outgoings?



## RiverSide (9 May 2012)

Hi I'm wondering if anyone here could give me some advice.

I am very lucky to be in a decent full time long term job.

I earn €646.00 per week into my bank.

I have the following loans/credit card/mortage.

BOI Loan: 2500 principle/2000 remainder/€27.00 per week. (2 yr term)
Credit Union: 4500 principle/4000 remainder/€80.00 per week. (1 yr term)
Credit Card:7000 limit/6700 remainder/€150 min a month. 
PTSB Mortage:265000 principle/242000 remainder/€1308 per month. (year 6 of 35)

So my monthly credit repayments are €1886 per month leaving a balance of €698 for everthing else including bills.

Bills (Elec,Gas,Health,TV Licence,Life Ins, Home Ins, Bins) €340.00.

Which leaves just €358 per month for food etc.

If I take out my mortage from my debt i have a debt €12700 total.
If I take my mortage repayment out monthly I am repaying €578.

I cant move home and I cant save as my outgoings are to high.

I want to carry out some work on my home which will make it much better suited for my young family as we will be staying for 10 ten or more years.

This work will cost €6000. I would dearly love to reduce my monthly payment by just a small amount. €110 euros a week versus € 144 per week, the credit card debt is just like a rock at the moment.

I dont smoke or drink. I have a wife, a little girl and one on the way.

Do you think any bank would offer me a loan of €18700 over a 4 year period?
How do I go about presenting this to a bank?
Am I just out of my mind?
Would the offer to switch current bank help?


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## dereko1969 (9 May 2012)

I would doubt any bank would give you a loan at all. You just don't have enough income compared to your outgoings. 

Are you claiming all the tax credits and social welfare payments/childrens allowance that you can?


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## ontour (9 May 2012)

Both your credit union and your BOI loans have 80%+ left to repay which makes addtional loan applications more difficult.  Are these in arrears now or have they ever been in arrears?
  How much do you have in savings?
  At min payment on the credit card the majority is probably paying interest with very little impact on the principal amount.

  Depending on your savings in the credit union, it may be possible to consolidate some of your debts there to reduce interest charges and potentially get additional funds to carry out the work you want to do.

  [FONT=&quot]At the end of the day increasing your debt burden with another child on the way is still likely to put a lot of pressure on budgeting.  Have you considered any opportunities to increase earnings to reduce debt or generate the funds for the work on the house?[/FONT]


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## RiverSide (9 May 2012)

Hiya, thank you for your replies. My ptsb mortage payment will be going down by about 70 a month. Great news there. I have no savings bar 1600 in the credit union,i spent all my savings when I bought my home 6 years ago I invested my 16000 into my house. my childerns allowance is for my child, we never spend that on our selves. I've never missed a payment and the biggest loan I've ever paid back was 19000 over 3 years.


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## ANORAKPHOBIA (9 May 2012)

"my childerns allowance is for my child, we never spend that on our selves"

This is an allowance paid to parents to help look after their children. There should be no issue or guilt associated with spending it on same.


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## RiverSide (9 May 2012)

Hiya Anorakphobia, thank you for your post, I may have struck the wrong tone with my reply above. I have paid taxes all my working life and I got my first part time job at 13 so I dont feel guilt about receiving it. But we just made the choice that we would use it only for things that my little one needs and wants such as clothes and her christmas and even weekend treats and the like. I know we could use it anyway we want but I feel better when it is for her enjoyment and care.
We often save it for large items such as her bike and her birthday.


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## wbbs (9 May 2012)

Brutal honesty here but there is not a hope of getting further borrowings, your percentage of net income already being spent on debt repayment is above any bank's criteria.


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## RiverSide (28 May 2012)

Many thanks to everyone who replied.


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