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Consolidation when in arrears?

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  • 31-12-2008 4:19pm
    #1
    MagicMarker
    Banned (with Prison Access) Posts: 32,865 ✭✭✭✭


    Long story short...

    I lived out of Ireland for most of the year, lack of money meant I missed a couple of payments on my bank loan. I've had loans for years and this is the first time I'd fallen behind.

    Got back in September, eventually found a job in November, called Bank and arranged repayments on loan to include arrears. Now back in the swing of things and able to meet my payments.

    Now, I have a few thousand on my credit card to pay, I'm meeting minimum payments but it's a nightmare with the interest rate.

    I'm wondering, would a bank (BOI) consolidate my bank loan and credit card (CC with same bank) even when I'm in arrears? Obviously, if I were asking for money for anything else, it'd be a definite no. But I'm not so sure with a credit card?


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    #2
    IsThatSo?
    Closed Accounts Posts: 988 ✭✭✭IsThatSo?


    It is something that can be done, but the only way to find out if they will do it in your case is to ask them. You would probably have a better chance if the CC was BOI also, doubt they will want to take on another banks debt when you have arrears in your recent credit history. Don't be surprised if they just don't want to know though.


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    #3
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,919 Admin ✭✭✭✭✭Toots


    Make an appointment to see the lender in your local branch and put up an application. I work in a BOI branch, and if a customer has a creditcard they can't pay off, we'd often recommend that they try and consolidate it with a loan. If your loan is back on track and you can meet the higher repayments for a bigger loan to consolidate, then I can't see why they wouldn't be able to do something for you.

    Seeing as the loan and the card are both with BOI, you're in a better position than you would be if the card was from another provider. There may be conditions to a restructure though, they will probably want to lower your credit limit, or you might have to get rid of the card altogether.


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    #4
    MagicMarker
    Banned (with Prison Access) Posts: 32,865 ✭✭✭✭MagicMarker


    Toots85 wrote: »
    Make an appointment to see the lender in your local branch and put up an application. I work in a BOI branch, and if a customer has a creditcard they can't pay off, we'd often recommend that they try and consolidate it with a loan. If your loan is back on track and you can meet the higher repayments for a bigger loan to consolidate, then I can't see why they wouldn't be able to do something for you.

    Seeing as the loan and the card are both with BOI, you're in a better position than you would be if the card was from another provider. There may be conditions to a restructure though, they will probably want to lower your credit limit, or you might have to get rid of the card altogether.
    That was going to be my next question, whether to call or try and see someone in person. I'm sure someone in a call centre just has a computer make the decision, which probably wouldn't work in my favour.

    As for the credit, I'd have absolutely no problem giving up the card or lowering the limit substantially.


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    #5
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,919 Admin ✭✭✭✭✭Toots


    I'd recommend going in to see someone in person, it's a lot easier to discuss things like this face to face than with some randomer in a call centre. The lending officer is likely to be qualified as a financial advisor, so they'll be able to give you good advice on what your best bet is, whereas someone in a call centre may not have this qualification. Also you can make sure they get all the details you want to put in the application, cos when an underwriter looks at it, the more information given means they can make a quicker decision!! Best of luck with it! :)


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