Paying off outstanding debts!

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jake108

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Hi Jason - No offence, but I think you need to give up any thoughts about taking out a car loan until your other loans have been cleared. You really can't afford to take on any further debts. You need to focus on clearing yoru highest interest loans first. I don't know if there is any interest being charged on the loan to the family member - but your credit card is probably your highest interest loan, so you need to get this cleared.

Can you stop the €40 per month going into CU savings & redirect this to your credit card? Can you withdraw the €1500 in CU savings and put this against your credit card straight away? You could then think about topping up your CU loan to get the credit card cleared. I presume you've already cut up the card - right?

Forget about the 'great new flexible' GE loan until you've checked out the APR rates.
 
Forget about taking out another loan to pay off a loan it doesn't work, you only end up paying more interest. Concontrate on the highest interest loan first. Stop putting money into savings and pay it off your loan. Theres not point getting say 3 percent on savings and
paying 10.5 percent on a loan.

Also start planning when to pay back the family member as if they were good enough to lend it to you, you should be good enough to pay them back. If there's one thing you need in life it's your family.
 
Hey, i for one would definitely look at the ge money flexible loan. The apr is from as little as 8.2% which is quite competetive when you analyse the flexible options available to you.

Currently your average monthly net income is €2,100 and your loan payments excluding your mortgage are approx €310. However this only just covers the credit union loan and the % PORTION OF THE CREDIT CARD plus it DOES NOT COVER THE FAMILY MEMBER.

I would recommend you get a ge money loan for €18,000 and split it as follows:

Credit Union Approx €12,000 (Used €1,000 of your savings)
Credit Card € 4,000
Family member € 2,000
Total € 18,000

This will then leave you with €500 savings in the credit union and with a manageable debt with ge.

You can either get the ge money over 4 years which is €439 per month or 5 years which is €364 per month.

As stated above your paying €310 and that does not even cover €6,000 worth of your debt (AND MOST WORRINGLY DUE TO THE HIGH INTEREST RATE THE CREDIT CARD).

Based on your salary of €2,100 less mortgage €300 the ge loan payment would be within your budget and would leave you enough for utilities etc.

* If you don't like the ge money option you could always transfer your credit card balance to a provider that will give x months interest free. This will give you time to reassess your financial options.

Finally it might be worth going to see somebody in mabs and get some independent professional financial budgetary advice. YOur going ok but you should just learn to keep and control things a little better MABS may help here.

Best of luck,

Johnnybegood
 
Ps. Tesco do offer very competetive apr as low as 7.5% at the moment but there loan is fixed hence no flexibible options as outlined on [broken link removed] if you intend to see out the loan to its completeion and are not interested in paying it "off as quick as possible" then tesco would be a good option for you.
 
jake108 said:
I've always owed very, very small amounts of money but since I've had a credit card that have become a lot worse. They're great if you have self control but a nightmare if you haven't!!
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If you consolidate, please make sure that you cut up the credit card, otherwise you will run the debts up again and be back at square 1, only far worse off. This is why consolidation looks good on paper but is rearely so in practice. If you can do a low cost balance transfer, cut up the old credit card and throw all the money at reducing the debt you will be better off. Do crunch the SSIA numbers thoug, you may be better off keeping that on.

cheers,
Diziet
 
jake108 said:
PS One of my ideas was to transfer the 4000 to a 0% cc for 6 months. Do you think it would be better to do that or just borrow the money now and be done with it?
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Well, you can't do better than 0%! I would do that and throw all your money towards reducing the debt. As youa re not paying interest, it will go down much faster.
 

I would agree with ClubMan, but it's probably too late! PP is a great money spinner for banks, and they rarely pay out (look at their Terms with great attention to detail!). Also, the cost is added to the loan, then you pay interest on it! I would personally avoid it at all costs.

Do try to overpay as much as you can; why pay all that interest?

cheers,
Diziet
 
I didn't mean to come across too hard on the family loan bit.
First try and get a credit card balance transfer for 9 months and put any extra money you have off your loans. If you don't want to do that.
Why don't you go to the credit union and see if you can top up your loan as you will only be paying 9.5% on the loan. GE money will charge you 10.5%.
You could either look for the top up for both the credit card and family loan or just the credit card and pay what you can every week to the family member.
Also cancel the pp on the credit union loan this will save you a small fortune. Best of luck.
 
see this link from Motley Fool site, for info on debt elimination

[broken link removed]
 
There are some useful dealing with debt and budgeting resources in the key topics threads pinned at the top of this forum.
 
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