# whats the chances of getting a loan



## sunnywalk (6 Jun 2012)

Hi

I have just finished off paying a 5 year carloan!! it was nearly €400 a month.
I have considerable credit card debt that I am very anxious to clear and each month I am paying the minimum,
Mbna I approx 7800 balance I pay ave E175 each month
mbna 2 approx 3500 balance I pay E100 of this each month
UB approx 5000 balance and min payment ave E150 each month
halifax loan ( from closed CC) 1350 balance and  paying E93 each month.

I was paying all that and the carloan up to last month! as I was paying back so much I had very little disposable income.
I would now like to consolidate all of the debt to a loan for about 3 years to completely clear it. I do not use the credit cards and would close them completely after I had cleared them with loan.

I have been with my bank for many years and I know my credit rating would be fine to get a loan,but I am wondering what my chances are as it would be for paying off debt? 
I don't  want to get turned down for that reason, I hate telling porkies but would I be better of saying the loan would be for home improvements etc ? I know with the high credit card debt that could affect what loan they would give me!.. or would I be better off coming clean and saying is for paying off my rotten credit cards? could anyone in a similar position best advise me?


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## sunnywalk (6 Jun 2012)

just noticed my thread title!! its meant to say loan not load !!

I tried editing but had no way of editing title? any mod out there could you alter for me?

thanks


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## Guns N Roses (6 Jun 2012)

Hi Sunnywalk,

There is no chance of any Bank giving you an unsecured loan of €17,650 to pay off your Credit Cards. You can't hide your exceesive CC debt even if you tell fibs. It will show up in credit history searches.

Your best bet is to take your extra €400 and start putting it into the CC with the highest interest rate and work your way down the list of cards.

For example if you started with your 2nd MBNA CC you should clear it in 7-9 months depending on the interest rate.


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## alexandra123 (6 Jun 2012)

I am not sure how willing the banks would be to give an 18k unsecured loan. They have nothing to secure it against. 

Looking at  PTSB personal loans you will be paying just over 2,000 in interest.

Over 3 years your total repayment would be around around 20,000 which works out at around 555@month

Your current repayments is 518 excluding the car loan, so you are not saving much. You might be better off sticking as you are.


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## sunnywalk (6 Jun 2012)

> our best bet is to take your extra €400 and start putting it into the CC with the highest interest rate and work your way down the list of cards.
> 
> For example if you started with your 2nd MBNA CC you should clear it in 7-9 months depending on the interest rate.



interest rates on mbna cards is around 15%, UB is 17% and halifax 11%
I have been quoted ( not approved)online as being able to get a  loan with my bank at the following
Total amount of borrowing:	 €	 17,000.00
Term:	 3 Years    0 Months
Type of borrowing:	 PERSONAL LOAN
Fixed Interest payable (APR):	 8.7 %
Total monthly repayment:	 €	 535.64
Total payable:	 €	 19,283.04
Total cost of credit:	 €	 2,283.04


 I did consider putting the 400 to the other credit card as I know its very hard to get a loan these days. however I am paying a lot of interest on the balances and as you can see if I was successful I could save a lot on interest over next 3 years. 
A few months ago I did call one of the irish banks (who I dont have an account with) and tentatively asked about a loan to consolidate debt. they were very definitive that they dont loan to clear debt!!

I decided to wait then until my current loan was totally clear. ( this was 20K over five years)and now I am thinking of approaching my , I own bank, i am worried they will say flat no because of consolidating and thats why i wanted to know my chances..

I have a mortgage with same bank and have never being in arrears and my job is secure and pays well. 

thanks for you comments so far..


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## drs (7 Jun 2012)

Your average interest rate is ~15.2% that would be corresponding to monthly repayments of €610 to clear in 3 years, at the €535pm you'd be clear in less than 4 years, so while the consolidation sounds great, the reality is managing this carefully the CC rate only takes an extra 8-9 months to sort out...

Not the end of the world if you cannot consolidate... though does mean you need to control where you spread the €400 to bring the greatest effect.


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## chairmanmeow (7 Jun 2012)

Well I was able to do this five years ago, consolidating 20k of unsecured debt with Ulster Bank. I doubt very much that they would let you do it now though, they have tightened up the rules considerably! It worked out fine for me though, all paid off, and won't make that mistake again!


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## Woodie (7 Jun 2012)

In my calculations you can do this in just over three years anyway by continuing as you are with your payments as is now and apply a portion of the amount you previously put to the car loan to writing down this debt.  Start with the highest interest cc loans and work your way down.  Don't put all the money you have to the task ie. 400 but say 300-350 and save the balance, you will get a boost from feeling you are building something as well as taking down a barrier to you moving on.
Well done for taking this in hand, it's hard but it can be done.  Don't make the mistake of using the cards again though.  Cut them up or put them where you can't get at them, it's easy to be seduced.


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## sunnywalk (7 Jun 2012)

thanks for your comments 

I know I can do it myself using my old loan payment to top up my current repayments. I had very little disposable income while i was paying loan and servicing CC so i was hoping if I got a loan it would ease the pressure a bit as I would have one monthly payment and thats it. It would also mean I would get a bit of a life back as my primary focus each month after the mortgage is paying this debt! 

I know ulster bank lending criteria would have changed in the current climate!! long gone are the days that whenever I set foot inside the bank for any reason they would tell me that there was a pre approved 20K loan just waiting for me to take whenever I wanted it!!, i was told that every visit,I used to think that was mad.. didnt even consider taking it until I needed a Car 5 years ago 
Still times change.  I think I will apply for the 15K loan anyway and I will come clean and tell them its to consolidate debt and CC, I know if I dont get it I can still manage the debt, it will just take a bit longer..
Thanks for your comments and advice.. I will let you know if I am successful getting the loan


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