Refused a consolidating loan-what are my options?

  • Thread starter cornholio88
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cornholio88

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Here is my problem. I have a credit card debt of €8400. I also have montly repayments of €290 on a car loan and €220 on a personal loan. In order to try and clear my credit card debt I applied to my bank for a loan to consolidate the entie ammount. The total ammount of borrowing was roughly €23000 and paying back over 5 years the repayments were roughly €510 PM. The bank I deal with refused me the sonsolidating loan weven though I have checked MY ICB rating and there are no issue with it, I take home €2300 PM and I have €16000 worth of shares which are due to mature next year.

I am in need of some advice as I really want to get my finances in order as to date I have been at best flippant when it comes to my personal finances and that is why I find myself in the mess I am in now. As I applied for my loan through the telephoning banking would it be more feasible for me to go to my local branch and reapply in person as maybe my local branch could try and get the loan put through for me? Or are there some other alternatives out there for me as I look on the catastrophe that is my personal finances I just want to get things right once and for all. Any advice at all will be greatly appreciated.
 
Lots of people get in debt and pay it off.

The simple answer is reduce your expenditure and be patient.
 
You could certainly do worse than go along to your local bank (if you are known to them) and explain the situation, maybe bring proof that you own shares through a plan that will allow you to clear a significant portion of the loan next year?

Having said that, most approvals are dealt with centrally, so visiting the branch may not be much use.

Are your credit card and loan(s) with the same bank?

Have you tried other lenders?
 
Yes all my borrowing are with the one bank. Without sounding too stupid how would I go about approaching other lenders that are not my bank??
 
If i was to go with another lender would I be required to transfer all my banking?
 
Probably not.

You may want to talk to MABS to see if they can help negotiate a payment plan with your lender, or just general advice.
 
Your main problem would seem to be just the Credit Card debt, so first see what you can do about that. Check with your Credit Card company to see if your account qualifies for any reduced discounts - there could well be a very low offer applicable to your account, but you won't hear about it from them unless you specifically ask about it.
If you fail to get any joy with your CC company, why not switch and get a 0% on the credit balance offer? If you can do it a couple of times, your €16,000 will have matured and you can get out of that particular hole - which is really your main problem.
If that solution can't or doesn't work for you, what about bunging in a few quid into your local Credit Union and getting enough to clear the Credit Card amount? The Credit Union will let you pay off your loan early wihout charging any penalties, and you get back up to 25% of whatever interest you pay them.
As regards the personal and car loan, there isn't really that much you can do about them. If you pay them off early, via consolidating loan or however, you won't be saving much in the way of interest at all, and indeed may end up paying extra on them.
 
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