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Money to go travelling

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  • 08-07-2010 5:11pm
    #1
    number11
    Registered Users Posts: 5 ✭


    Hi,

    i am 26 years old and i really want to go travelling around Canada next year. The thing is i have quite a few loans to my name.
    I have a Credit union loan which amounts to 12K, Bank Loan 2K, Credit Card 2K. And a car loan 4.5k which i'm trying to sell at the moment to clear that loan. I have to admit that i got carried away when i was younger during the boom when banks and credit unions were handing out loans to everyone. something i really regret now.
    My take home pay at the moment is €415 per week but there is quite a chunk of that going into my loan repayments. i have savings of about 1k.
    Does anyone know if you can suspend your Credit union or bank loans for a year and just pay the interest?
    I really need to escape out of this country next year and i am fortunate enough that my job would be held for me.
    Any advice would be greatfully appreciated.


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    #2
    feefeetrixie
    Registered Users Posts: 10 ✭feefeetrixie


    Hi im 21 wouldnt be in as much debt as you but still am in debt to credit union and loans credit cards that I got... have always wanted to go travelling but never had the money still would do anything to get out of this country for a year to go travelling but am working full time and earn roughly the same as you but I cant save for anything yet am trying to get rid of all these debts before I go spending anything!!

    It is hard I find it difficult but I know I have to repay them all or get them down a good bit before I do anything else and as soon as I do I wont be gettign anymore loans for a long time!!

    So I think your best bet would be try do your best to sort your debts out first before you do anything else... Try sell your car on gumtree its worked for me :) and Ive also gotten a part time job now to so working two jobs to get rid of the debt!! Would work a third if I could...

    All the best


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    #3
    dlambirl
    Registered Users Posts: 2,062 ✭✭✭dlambirl


    I think you would be better paying off your debts before you go off travelling.


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    #4
    jd83
    Registered Users Posts: 1,445 ✭✭✭jd83


    Get rid of the debt then travel. I dont know about you but i wouldnt enjoy my holidays or travel knowing i have a load of debt to go back to.


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    #5
    bills
    Registered Users Posts: 952 ✭✭✭bills


    TBH you cant afford to go. You would also need money to go travelling which you dont have. As far as i know, you cant suspend credit union repayments, maybe reduce but not suspend. Plus, i imagine most financial institutions wouldnt look too favourably an an application to suspend payments so you can go travelling!!


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    #6
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    your credit union may be a bit flexible but the banks wont be onboard with the idea. Even interest only on the CU loan do you think you can afford it while travelling.

    Dont forget where will you get the money to actually travel. The €1k savings wont go far on travelling from my travel experiences.

    I personally took out a loan specifically for travel and my CU understood this and let me go interest only as had work when i returned. It was only €5k and i had no other debt and still dont. I paid interest only while away and now its going down ok.


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    #7
    cson
    Registered Users Posts: 14,464 ✭✭✭✭cson


    Out of interest do any banks do travel specific loans?

    What would be the chances of getting a loan be if you had a parent/guardian act as guarantor and you had a training contract to come back to? [Zero debt too]


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    #8
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    cson wrote: »
    Out of interest do any banks do travel specific loans?

    What would be the chances of getting a loan be if you had a parent/guardian act as guarantor and you had a training contract to come back to? [Zero debt too]

    the banks will run a mile if you are travelling as so many people emigrating they may be worried they may never see you again.

    The Credit unions may be more helpful. Mine was as i build up some savings and had guarantor who is long term member there so was no issue. Also had job guaranteed when i got back so they saw proof of that so had no problems.

    Its always easier to get with a guarantor as it represents less risk to the lender.


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    #9
    number11
    Registered Users Posts: 5 ✭number11


    thanks guys! Well i've been woking a 2nd job lately so my debts are getting reduced all the time. should have the bank loan and c card payed off soon enough. Hopefully, even if i have to live like a hermit for the next 12 months, i could get a chunk of the credit union loan payed off and maybe improve the savings a bit...
    hopefully the credit union might be some bit fair with me seen as part of my loan repayments were going into a savings account too and i would also have proof of a job to return to.


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    #10
    daveyboy_1ie
    Closed Accounts Posts: 1,352 ✭✭✭daveyboy_1ie


    Concentrate on the highest interest debts first, the first debt to go is the Credit Card, without a doubt. you don't get rewarded for paying off bank loans quicker, but you certainly save interest payments by clearing Credit Card debts and seeing as its one of the smaller debts it will look even better as you only own 3 loans rather than 4. Thats my advice anyways.


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