Unemployed - credit union loan with elderly parent as guarantor

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petegabittas

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Hi there,

I am under a lot of financial pressure at the moment - my wife and i are both 30, no kids, renting, unemployed but both studying to improve job prospects (her phd, me finishing an undergrad) - our income has mostly been from social welfare and some part-time work over the past 2 years. We both owe around 10k to AIB and having been paying 50 interest per month for the past year or so. We also have a couple of small loans with credit union, 100 each per month, and credit card minimum payment per month 80 - total debt with these 4100.
We have no money, we struggle to pay our bills (but we do) and only had a couple of grand tucked away for an emergency. Well that emergency has occurred as my wife had a mental breakdown and has been in hospital for the past few weeks. I need to get my hands on some money and to sort out our finances a bit better. I'm thinking if I could get my hands on a 10k loan from the credit union but that's unlikely as I recently topped up my loan by 1000 as I was finishing my degree and needed a little help over the line. Even getting that amount was a struggle because of debt, unemployment etc however this time I would have my father as a guarantor. I'd ideally like a have a 10k loan, paying back 200 or so per month, and to clear the 4100 debt, leaving me with 6k to breath a little as I feel I am close to a serious breakdown myself (i need to buy a small basic car out of this as well).
I'm already spending 280 a month on debt and going nowhere so this seems sensible to me especially now with my wife's illness. Would a credit union consider topping me up again so quickly with a considerably larger amount, especially since my dad has said he will be guarantor? Even with that my dad is 75, owns his own house, has money (not a huge amount but comfortable) - would he even be considered to act as a guarantor at his age? I was thinking if the credit union say no that I might ask my dad to take a loan in his own name and I'll pay it back but would they even consider him for a loan?...I have never willingly taken money from my parents because of shame, they have even offered to send me money now directly but I can't just take cash from them at their age. A loan would be best and also to be honest I can make it work if it's a thing that I can consolidate debt and also have a little bit of breathing space. Whatever else has happened in the past couple of years I know we were on the right path with upskilling and making ourselves more employable. I feel now that I just need a bit of luck or a helping hand to push us over the bump. Anyways sorry for the rambling nature of this e-mail and thank you for any advice.
 
If your parents are willing to loan you the cash ... accept it as a loan.

Put your pride in your pocket and accept their help.

This, to me, is better than asking your father to go guarantor on a CU loan.
 
Can you park the full time stuides for a couple of years and get a full time job? A year of working would give you the financial security to finish your studies at your leisure and not be living in an impossible situation.
 
There should be no shame whatsoever in two students borrowing money to complete their education. It happens all the time.

It would be better for your parents to give you a loan of the money directly rather than to guarantee a CU loan.

Brendan
 
It appears your parents are happy to give you a loan so as Brendan says accept. As a parent I would be very upset if my children felt they could not approach me or accept any help I could give. This could be life saving to you and bring you to a stage where you would be returning the favour to them in their older years.

Very few people get through life without a major crisis at some stage. This is when families rally round
 
I'm really sorry to read of your wife's breakdown. The advice here is good. It is likely that you would, in due course, inherit that money and perhaps more from your parents, so it should make it easier to accept a gift or loan from them now. The most important thing is to ease the pressure on your wife and yourself and get back on your feet. Best of luck. S
 
Thanks very much for the replies. Lots of good advice. I have contacted the credit union and they are going to give me a top of 1600 so that will clear the credit card debt which hadn't been going anywhere. I'm also grudgingly going to accept a bit of help from my dad (god why is it so painful to accept money from someone :) ).

Thanks again.
 
Don't feel too proud to accept help from your father. I'm sure he would rather help you and your wife than see you both struggling. Hope your wife feels better soon. All the best.
 
In your circumstances I think it's best to accept the help from you dad. He wouldn't offer it if he couldn't afford it, the pain he must be suffering seeing your wife so ill, and now maybe you too. You're a good son, and fully intend to pay it back so take his help. It's not a mega amount. Best of luck to you and your wife. (tear up the credit card, don't have, can't use, can't spend, can't get into debt ) Hope the education works out, I have a relation in his 50's who retrained, did a really ****ty job for the last few years and just got a job in his new profession - it can be done.
 
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