Key Post: Consolidating loans

Hi,

I am currently paying off two loans, one with BOI and the other with my credit union. I would like to consolidate these loans so I have only one monthly repayment over a longer period of time. Total amount of two loans is €7K.

Anyone know how I would go about this, who to contact, best rates?

Thanks for your help

Consolidate two loans

The best buys contains some information about mortgage and other loan rates which might be of interest:

www.askaboutmoney.com/clu...stBuys.htm

Your CU may also offer good value but may note quote APRs allowing you to compare their rates with others' in a meaningful fashion:



Note that extending the term of a loan will mean that it will cost you more in the long run. You should also check if there are any penalties for redeeming one or other or both of the loans early when consolidating them elsewhere.

Consolidating existing loans onto a mortgage (preferably with the a similar term to the original for the consolidated amount rather than stretching it over the full 20 years of whatever) is often a prudent way to tackle a preferably ONCE OFF debt restructuring.

One way or another loan consolidation/rescheduling should only be done if the costs are clear and acceptable and if it is not simply going to allow you to incur further debt.

*** Changed "Should Not", to Should Only***

Consolidate two loans

> *** Changed "Should Not", to Should Only***
> Edited by: daltonr at: 21/7/04 3:43 pm

Thanks for that!

"Member in charge"

Provided you are not in arrears on either loan this should not be a problem. You may have been asked at the time when taking out your second loan to give details of other loans. Did you remember to mention your first loan.?
If you don't have a mortgage then bring along a copy of your payslip or current p60 to show your lender what your salary is. Outgoings such as rent, utility bills etc will also help create a picture of your finances.
Quite often if you maintain a current account the bank will have access to your cheques. They can see at a glance where you are spending your money.

I remember a young lady who was constantly forcing credit and looking for additional loans. A quick glance at her cheques showed that she was big in to the cosmetics counter in Brown Thomas and liked a drink or two as well. Remember your cheques and direct debits can tell a tale or two.

"Member in charge"

Yes - if the query actually relates to an underlying problem with debt then the following links might also be of interest: