advice?

aquariusjen

Hi
First post so go easy!
I am permantly employed but in huge debt and want to move banks in order to consolidate.
I earn 44,000 before tax and owe 35,000.
Would any bank take me on?

foxy06

Are you a homeowner?

aquariusjen

hi foxy
thanks for reply, no im not a homeowner i am renting and paying 425 pcm.

homer911

I doubt if any bank would take you on in the current climate

You owe probably than one years net pay - equivalent to 1/3 of a residential mortgage if you assume a 3x multiple, yet you have no apparent assets to use as collateral against the debt??

How secure is your current employment?

If the lending was against a motor vehicle or something, then fair enough, but you would then not be able to move the debt to another lender.

aquariusjen

Yes I kind of assumed that would be the situation in todays climate but I just needed to ask...
My employment is very secure its a full time perm. position with the HSE (yep, paycut coming this month)
I built up the debt by pretty much just being your typical "credit card kid" new car, fancy holidays etc etc but Im fast approaching 30 and im freaking out.
Iv actually already paid off about 20k in the last 2 years but its killing me now and I cant continue that rate of repayments to the various places
Any ideas are welcome!

stepbar

Are you telling me that at one point you owed 55k? How in the love of god were you allowed run up that amount of debt? Who are your debtors?

aquariusjen

It has all mounted up since college, I kept topping up loans, I bought my car on garage finance but then ended up paying interest when I took a bank loan to pay for it. I needed major dental work after a fall and got that from credit union. I did extra exams and paid for those also...Among other things obviously. All my debtors are financial institutions bank credit union but also my brother(500) and my partner(2000). In relation to the bank and credit union I have not missed a repayment thats why I think they kept handing out the money I so foolishly asked for.

Toots

Is there one institution to whom you owe more money? If there is, it might be worth a shot getting in touch with them and seeing would they be willing to look at a restructure of all your loans. Odds are on they will probably say no, but it's worth a try. They might be able to offer you some advice on budgeting etc, so you can repay your debts and make the most of the income you have left over. What are your current repayments like per month? If you got one loan of €35k over 5 years you're looking at about €740 per month, depending on your rate.

You have a history with a credit union. That is probably your best bet.

aquariusjen

thanks for comments going to try speaking with my bank and renegotiate the repayment amount. Thanks again.

foxy06

As another poster said the Credit Union will be your best bet