# Moneylender for the first time=what's the procedure



## kiara (18 Aug 2009)

Can someone tell me what the procedure with a moneylender is? I have found the names of a few on the financial regulators website.

Can I just call to the office? Do I need to make an appointment? How quickly will they give someone money? 

I need €300, maybe slightly less pretty urgently to renew car insurance. I can repay it in around 2-3 weeks. Is this possible? I don't need to pay €5 a week over 26 weeks as advertised by Provident.

I don't want friends/family to know how short of cash I am so won't ask for help. 

I have never considered this moneylender option before as I previously had no problem borrowing from the bank. I only have accounts in one bank (Bank of Ireland). They have refused to do anything to help me even temporarily and I can't open a new account somewhere else and apply for a loan on the same day.


In January I restructured a loan to consolidate debt. This loan is for €4000 and I have never missed a payment ever on any loan. (I've had a few over the years) I no longer have an overdraft or laser card. I have a credit card with a limit of only €250. I have an excellent credit rating and I own my home with no mortgage. I do contract work and was unemployed at the time I restructured the loan. Bank of Ireland attached a condition to the restructure that I could not have any further borrowing for 18 months. I wasn't impressed with this but had no plans to borrow again so went along with it.

This month I paid some college fees which I couldn't really afford but I hoped the money would come from somewhere but it hasn't so now I'm stuck for the money for car expenses. This has been my most expensive month in years. 

I applied to MNBA for a credit card which I think they will approve and this would suit me better than the moneylender option but I'm not sure it'll arrive fast enough. I had to request an up to date bank statement which delayed the application.

I'm working only part-time and studying for a different job, hence the college fees. I'm really good at living on a tight budget normally, but this month there are too many bills.

I'm also looking for a new bank. Recommendations welcome, my loyalty to Bank of Ireland is over. I'm thinking of property developers who owe millions and yet they are letting a loyal long time customer go search for a moneylender over €300.

Thanks do much if anyone can advise because I'm really stressed over what are relatively tiny amounts of money.


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## niceoneted (18 Aug 2009)

It sounds like you just have a slight cash flow problem at the moment. Can you not just say this to a family member and borrow the few hundred you need. Say your waiting on money to come in - which it's sounds like from your post. 
I would try to avoid the money lender if you can.


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## Bronte (18 Aug 2009)

Do not go to a moneylender. As previous poster said ask your family for some help or you could ask your employer to pay you in advance as it's an 'emergency', or you could use your credit card?  You also need to learn to budget so that a small amount like 300 doesn't send you to a moneylender.


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## QED (18 Aug 2009)

Most Insurance Companies can offer a facility to spread the payment over a number of months and pay by direct debit - Is this an option?


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## kiara (18 Aug 2009)

Bronte said:


> or you could use your credit card? You also need to learn to budget so that a small amount like 300 doesn't send you to a moneylender.


 
I know, I'll start an emergency fund as soon as I can. If I hadn't paid the college fee I would have had much more than €300 available to me but I didn't want to postpone the course.



QED said:


> Most Insurance Companies can offer a facility to spread the payment over a number of months and pay by direct debit - Is this an option?


 
That's what I use but they require 30% upfront. Is there any way around this? I'm using 123.ie. Would they extend my existing cover for a week if I paid less than the full amount? Unlikely I expect.




niceoneted said:


> I would try to avoid the money lender if you can.


 
I am trying to, it really is a last option. That's why I was applying for the MNBA credit card and almost begging the Bank of Ireland to increase my credit card limit.

My current credit card limit is only €250 with a balance of €150 so there is only €100 available. Is there any way I could use the card anyway and go way over the authorised limit but pay it back in a few weeks? Wouldn't the card be rejeceted if there wasn't enough available balance. I've read many posts here about credit cards where the limit is €4000 but the balance is closer to €5000.


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## stephnyc (18 Aug 2009)

> I have a credit card with a limit of only €250

Would you be able to talk to your credit card provider about a temporary increase? If you have a good credit record you should be able to get the €300


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## kiara (18 Aug 2009)

I did. When I restructured a loan in January they imposed a strict "no further lending for 18 months" condition on me. I can't understand this at all because my credit rating is perfect. When I questioned them about it which I did again last week I just got told repeatedly "Those are the terms and conditions of your loan". At the time they tried to remove the credit card altogether but I argued a lot about that and kept it with the really low limit. I'm so annoyed with them now that I'm looking for a new bank.

I'm wondering if I return the paperwork for the insurance would I still be covered for an extra 2 days? It expires on Friday. I need the car at the weekend. Then I could leave it parked in the drive until the following weekend by which time I would have paid for it. That would save me approaching a moneylender. There is no way I would drive the car without insurance. I rang the insurance company, waiting for someone to get back to me.


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## moneyhoney (18 Aug 2009)

Kiara I know AIB car insurance allows you to stagger payments over 12 months - and charge no interest for doing so. I pay my car insurance this way & as it's only 32/month it's really good for budgeting etc.


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## csirl (18 Aug 2009)

> That's what I use but they require 30% upfront.


 
30% of €300 is only €90. You say you have €100 available on your credit card?


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## rgfuller (18 Aug 2009)

csirl said:


> 30% of €300 is only €90. You say you have €100 available on your credit card?


 
The insurance is probably more like €1000 for a student aged person so the 30% being €300 makes more sense.


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## kiara (18 Aug 2009)

csirl said:


> 30% of €300 is only €90. You say you have €100 available on your credit card?


 
The full amount of the insurance is €700.


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## moneyhoney (18 Aug 2009)

30% of €700 is €210 - could you use €100 from your visa & borrow the other €110 from someone? Better than a moneylender.

seriously I know you say you'd pay if off straight away but loans (from whatever source) can become a habit. And moneylenders will aloways offer you more, and more, and when you're only paying off 25 quid a week it all seems great.


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## kiara (18 Aug 2009)

moneyhoney said:


> 30% of €700 is €210 - could you use €100 from your visa & borrow the other €110 from someone? Better than a moneylender.
> 
> seriously I know you say you'd pay if off straight away but loans (from whatever source) can become a habit. And moneylenders will aloways offer you more, and more, and when you're only paying off 25 quid a week it all seems great.


 
+ the €40 administration charge.

Tried to get an AIB quote, online system wouldn't give me one. I'm also not an AIB customer but I'll ring them for a quote. The 12 payments instead of 10 could resolve this maybe. 

Thanks to everyone who's replying, it realy is helping me.


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## Chocks away (18 Aug 2009)

Stay well away from these people. Can you not do without the car for the three weeks? Can you not put it in a dd? That would leave you needing a lot less for your first instalment (if you change your insurance company). Although dearer in the long run it would get you out of your present situation.


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## so-crates (18 Aug 2009)

kiara, pride is expensive. While I know it wouldn't be comfortable to ask family/friends, they should be your first port of call in this storm not the moneylender, if you choose to borrow that is. I assume you have shopped around for the best deals for insurance? Have you checked with each potential insurer about their policy for instalment payments? And do you really and truly need the car for the next couple of weeks?


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## kiara (18 Aug 2009)

OK problem resolved without the moneylender option. I've just renewed the insurance with the same company (Zurich via 123.ie). The guy on the phone used something called a rollover payment as I am an existing customer so I don't have to pay 30% deposit. The cost will be spread evenly over 9 months. It would have been a little cheaper to transfer to the other company but I would have needed the 30% for that. This way I still have insurance and don't have to pay until September.



moneyhoney said:


> Kiara I know AIB car insurance allows you to stagger payments over 12 months - and charge no interest for doing so. I pay my car insurance this way & as it's only 32/month it's really good for budgeting etc.


 
I rang them, it was €400 more than the original quote so much too expensive for me.



Chocks away said:


> Stay well away from these people. Can you not do without the car for the three weeks? Can you not put it in a dd? That would leave you needing a lot less for your first instalment (if you change your insurance company). Although dearer in the long run it would get you out of your present situation.


 


so-crates said:


> kiara, pride is expensive. While I know it wouldn't be comfortable to ask family/friends, they should be your first port of call in this storm not the moneylender, if you choose to borrow that is. I assume you have shopped around for the best deals for insurance? Have you checked with each potential insurer about their policy for instalment payments? And do you really and truly need the car for the next couple of weeks?


 

Yes I shopped around, good price for comprerhensive insurance considering I have a provisional licence. I have very few family members nearby who could help.


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## so-crates (18 Aug 2009)

Nice one kiara. Well done on managing it in so level-headed a way.


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## Chocks away (19 Aug 2009)

Hi kiara. Lesson learnt. Good luck in the future


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## lolly270480 (20 Aug 2009)

Just another option to consider - have you applied for all your tax credits over the last 4 years etc? I never realised I could do this until recently and had dental, medical bills etc that I had paid for and never claimed tax back on.  When I applied for this online I got a nice sum of almost €1,000.  If you have anything like this that you havn't claimed for, then I'd advise you to do that.  It was money I didn't expect and it helped me out.  Take a look at revenue.ie and register.  The whole process should take about a week.


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## Blackberry (2 Sep 2009)

Simple advise when it comes to moneylenders - DON'T

Crazy APR rates


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## D8Lady (2 Sep 2009)

Talk to your local credit union as well, even if you don't have an account with them. They are used to dealing with borderline cases and money lenders. 

Well done on sorting it out though.


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