Purpose of your loan!?

climaxer

Whats the weirdest, funniest fib you've told to get a loan?

We were in my local pub at the weekend and the subject came to credit union loans. One of the locals said he's had around 5 extensions, 6 cars, 4 holidays and his daughter has made her communion twice (most which isn't true)!! Also a friend of mine works in the credit union and says this man is always getting top-up loans for his dentist bills yet he has lots of teeth missing and they are still the same in all the years she's worked there!

Me - I only once told a lie and said I was going on holiday when I needed the money for a few different things and didn't want to go into detail. The following week the girl asked me if I enjoyed my holiday and I nearly died

The Sweeper

Yeah 'home improvement' used to be a good one for me... I suppose it's embarassing to just say "coz I'm broke"!!

Dunno what they even use that information for, unless it's statistical purposes...

fletch

Minesajackdaniels wrote:

Yeah 'home improvement' used to be a good one for me... I suppose it's embarassing to just say "coz I'm broke"!!

Dunno what they even use that information for, unless it's statistical purposes...

Told them we needed a loan for new windows in our house when really we were buying a boat. We had only put new windows in about 3months previous

BaZmO*

Although you have to be quite careful of the reason that you give.
I was refused a loan before. The reason being, I said that it was for a holiday and I was told that they only gave out up to a certain amount for holidays!

Sleepy

That old gem: "debt consolidation"...

ToxicPaddy

Ive heard all sorts of stories..

A guy I know said he wanted the loan to redecorate his living room in the
house and wanted to buy a nice new leather sofa he and his wife had seen
but didnt want to go the finance route with the furniture store as they can
be an awful rip off but he was actually going to the Las Vegas on a stag
week...

Sleepy wrote:

That old gem: "debt consolidation"...

Going a bit off topic here, but went to do that with a certain well known irish
bank, consolidate 2 loans into one and it meant a fairly substantial reduction
in the amount I pay in loan replayments.. the conditions of the loan was as as
follows even though Id have more money in my account at the end of it all:

- Cancellation of overdraft facility which I rarely use
- Cancellation of credit card, again which I rarely use..

Didnt really make much sense, both of my debts in total add up to less than
€5k, I only did it because they were charging me a fortune in bank charges
for very little and it all seemed to be from loan repayments. I dont own money
on my car, dont have any other outstanding loans and rarely go into the red
with my bank overdraft... can anyone explain this one?

I said, id leave it as I want my credit card just in case i ever need it and the
overdraft is handy to have.. and they bloody have increased the limit on it
4 times in the last 2 years..!!!!!

Kinda stumped me to be honest.. :rolleyes:

Tox

climaxer

ToxicPaddy wrote:

overdraft facility which I rarely use

My bank manager would love you. I'm always overdrawn! In saying that my limit is only €650 which is just as well as I don't have a lot of control especially at xmas time

Sleepy

Actually Climaxer, Bank Manager's prefer you to be overdrawn most of the time, just breaking back into the black on payday. That way, their money is safe and they're gettin loads of interest from you. Trust me, they LOVE me!

ToxicPaddy

climaxer wrote:

My bank manager would love you. I'm always overdrawn! In saying that my limit is only €650 which is just as well as I don't have a lot of control especially at xmas time

yeah mine is the same and its only around xmas and those really long january
months that i actually go into it that much but sure by the next payday its well
covered..

really pissed me off so im think of closing my accounts and moving my business
elsewhere as a result..

Tox

DerekD Goldfish

According to myth Brian Kerr once remorgaged his house for an "extention" and used to money to bail out St. Pats who were in financial trouble at the time oh how times change or in this case dont.

impr0v

So, taking all loans and savings into account is everyone generally in the red? Obviously anyone that has a mortgage is going to be in the red if the asset value is disregarded, but ignoring the mortgage are people living from paycheque to paycheque?

climaxer

impr0v wrote:

So, taking all loans and savings into account is everyone generally in the red? Obviously anyone that has a mortgage is going to be in the red if the asset value is disregarded, but ignoring the mortgage are people living from paycheque to paycheque?

More or less at the moment yes I'm living from payday to payday. I have a very good salary but quite a high mortgage and also two kids which pretty much is where most of my disposable income goes! Also you have esb, gas, ntl dig, credit union, 2nd loan that I needed to take out to buy my house (long story!).... Luckily though I am going for a remortgage soon enough to get some renovation work done and to consolidate my loans. Im also very lucky that my house is worth around €80,000 more than when I bought it and hopefully will be up around €150 pw when its all sorted. The cost of living at the moment is so high it makes me :mad: but I guess we just have to get on with it and I do realise how lucky I am to have my own house in an area I love. I find it has gotten a lot worse since the €'s came in. I mean €50 would barely fill a little shopping basket. It cost me a small fortune to get my 11yr old back to school this year too. I could go on and on but won't bore you......

Sleepy

Yeah, you could say that. Once a month my account gets out of the red then after credit card repayments, loans, rent etc, I'm back into the red...

Life's a bastard when you're clinging on to the bottom rung of a carreer ladder...

ToxicPaddy

Yeah I used to be like that, living from paycheque to paycheque.. but have
started a habit of doing the odd nixer here and there and putting the money
I get aside for a rainy day.. in the end it all added up and I was able to clear
one debt, then 2 and start building up my savings..

Now its got to the stage where I have a little put aside for a rainy day, not a
lot but enough to cover any little emergencies that might pop up here or
there and thats fine for me..

Apart from that, even though my income has increased considerably in the
last few years compared to what I initially started on, my lifestyle hasnt really
changed that much. I still cook a loot of my own food, dont eat a lot of take
aways or junk food.. prefer water most times to minerals.. not a big drinker..
maybe once a week and dont smoke so all in all thats helped...

In saying that though, I havent travelled as much as Id like to have so Id say
any spare income I get will be blown on the odd trip I get here and there
and intend to make the most of what cash I do have to spare..

Tox

Moriarty

Minesajackdaniels wrote:

Dunno what they even use that information for, unless it's statistical purposes...

Tax purposes afaik. It's against the law to, for instance, top up your mortgage to pay for a new car/boat/etc. No doubt similar restrictions are placed on other types of loans.

tba

cant say I like the idea of loans, I havnt taken any out as of yet and would prefer to only do so in the case of a mortage

impr0v

tba wrote:

cant say I like the idea of loans, I havnt taken any out as of yet and would prefer to only do so in the case of a mortage

Unfortunately for us, and fortunately for the banks, i think they are an unavoidable pitfall of modern life, for the majority anyway. Used correctly they are safe methods of getting your purchasing rocks off now, and paying later. Used improperly they can be dangerous.

tba

I agree, but I try to save for what I want then get it.

Most of the stuff I want, I can probably do without

Sleepy

tba wrote:

I agree, but I try to save for what I want then get it.

Most of the stuff I want, I can probably do without

That's not really viable a lot of the time. Suppose you need a car for a new job? How are you gonna save up to buy it when you don't have the job yet?

silverside

don't think it's tax purposes. they want to make see that the debt makes sense. for example, for an annual holiday, you should have it paid off in 6-12 months; a car could be spread over 3-5 years; home improvements up to 5-10 years.
if you take more than that you could be building up debt problems.

of course if you tell them 'drink and loose women' you have a problem.

seamus

I have a substantial loan (well substantial compared to what I've had before) for my bike, to pay off over three years. In the last month I managed to stretch my credit card to its limit (in fact, I had the limit temporarily extended for an unrelated purpose, but that extension came in handy when I needed it). Then when I got paid and threw in enough to bring it back under again, the bank went and doubled the limit on my card. Before that I was consistently floating between 0 and a few hundred, as I bought stuff online. They wouldn't increase my limit then of course. Go figure.

ToxicPaddy

tba wrote:

cant say I like the idea of loans, I havnt taken any out as of yet and would prefer to only do so in the case of a mortage

To be honest, a loan or 2 over a few years will actually help your credit rating
especially if you are going for car finance or a mortgage. Doesnt have to be
a major loan, a few hundred quid for a holiday or something like that and pay
it off over 12 months or even arrange it for 12 months and pay it back over
6 months.

Sometimes it can be bad not to have a credit rating at all.

Tox

BaZmO*

Yeah the banks always increase your limit as soon as you either get close to or max your limit. It's there way of keeping you in debt!

B.

ToxicPaddy

Well my bank keeps increasing the limit on my credit card and I barely use
the bloody thing. Last time I used it was about 3 months ago.. its sitting at
home in a drawer.. :rolleyes:

I try not to carry it around with me as it would only encourage me to use it
and I only want it there just in case.

seamus

ToxicPaddy wrote:

Sometimes it can be bad not to have a credit rating at all.

Tox

Indeed. I had a couple of small loans in college, pretty much just a case of needing a chunk of cash asap, and they were paid off without hassle and promptly. Rang up about a motorloan, gave them my account number, and they pre-approved me up to €15,000 without asking for any more info.