Cannot pay for mortgage and car loan..any advice?

D

Dualtha

Registered User
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30
Hi guys,

This is my situation and I would appreciate any one with a bit of advise for me. Its to relay information to a family member.
My younger sister bought and new '07 car lat year, well a small jeep. She has since secured a house with the shared ownership scheme so she has tried off loading the car and surprise, surprise this is not possible as no one even the garages are interested. So now she has a substantial car loan to repay and a mortgage soon and these combined will cripple her with bills etc.
She moved the car loan from finance to personal loan in anticipation of selling it, why she done this I do not know.
So now she needs options on how to get rid of this loan. I have suggested that she surrender the car the bank? Is this now possible since she moved the loan from finance or is it even possible at all?
Anyone out there share any advice apart from the obvious!
Thanks,
 
One basic thing is that once she moves into the house she should try to take a lodger if possible at least until the car gets sold.

Also, has she tried this place - http://www.cashforcars.ie/

She should also save every penny she can until she has the house, to give her a fund to help tide her over, because otherwise she will be in real trouble very quickly.
 
Dualtha said:
I have suggested that she surrender the car the bank? Is this now possible since she moved the loan from finance or is it even possible at all?
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I doubt that the bank want the car. Even if they do take it I would imagine that they will still charge her something for the privilege. Check the T&Cs of the loan agreement or just ask them.
Anyone out there share any advice apart from the obvious!
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What's "the obvious"?! :confused:
 
Dualtha said:
I have suggested that she surrender the car the bank? Is this now possible since she moved the loan from finance or is it even possible at all?
Click to expand...

Do this and I doubt she'll be getting a mortgage anytime soon.

Even without the mortgage I doubt the bank will want it - if she can't offload it they hardly could, even if they wanted to - and they won't want to. Plus the personal loan is now probably unsecured, so the car is entirely irrelevant to the bank.
 
Thanks for all your replies. I have suggested she contact the car sales company posted here. She is renting out the rooms once she moves in.
 
She really needs to make an appointment to talk to someone.

First, the Citizens Advice Bureau
She can Lo Call 1890 777 121, or make an appointment to see them face to face - http://findaddress.citizensinformation.ie/service_finder/

Then, I'd say she'll need to make an appointment to see her bank manager, and also talk to the crowd that she got the car loan from.

If you cannot repay, these people will make out a payment plan until you set yourself up. They'd rather recieve so much a week than a person not paying a penny back, and having to be chased.

Above all, tell her not to bury her head in the sand, this is how repossessions and serious debts occur.

Get her to call the phone number listed above today, and get the ball rolling.
 
Sorry for all the questions but...what stage is she at with the 'shared ownership scheme' - has she applied for a mortgage? Has she approval in principal or 'full approval'? Does the mortgage provided know about the loan? Do they think she can service both this and the mortgage?

If things are as bad as you say she shouldn't be proceeding with the purchase.
 
The mortgage has been approved and she is moving into house int he immediate future. The issue is not her been unable to pay the bills, she can afford to pay them but it means she is squeezed financially. She has never missed any repayments and just wanted to free up the debt to get some freedom especially taking on a mortgage albeit a small one.
She is not considering halting the car repayments at all. I am just trying to help her get rid of the debt. She is speaking with the bank manager this evening about extending the term loan on the car and hopefully maybe get rid of it in the near future.
 
Dualtha said:
The mortgage has been approved and she is moving into house int he immediate future. The issue is not her been unable to pay the bills, she can afford to pay them but it means she is squeezed financially. She has never missed any repayments and just wanted to free up the debt to get some freedom especially taking on a mortgage albeit a small one.
She is not considering halting the car repayments at all. I am just trying to help her get rid of the debt. She is speaking with the bank manager this evening about extending the term loan on the car and hopefully maybe get rid of it in the near future.
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Okay, I misinterpreted the 'cripple her with bills'.
 
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