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Debt consolidation

  • 03-01-2019 9:13pm
    #1
    dubdev
    Closed Accounts Posts: 167 ✭✭


    Hi there


    Looking for advice regarding debt restructuring. I have a number of loans whose repayments are causing me serious financial stress.

    I've heard about services which can help you arrange debt to be restructured or consolidated to ease cashflow problems but don't know anything about them or how useful they are.

    I contacted MABS but they seem more equipped to deal with people in arrears. I'm up to date with all my debt and I'm not looking for a writedown, I just would like a way to reduce or merge the repayments each month and extend the term of the loans. I'm also conscious of doing it in a way that doesn't destroy my credit rating if possible.

    Cheers!


Comments

  • #2
    [Deleted User]
    Posts: 5,121 ✭✭✭ [Deleted User]


    What are the natures of the debt? Business, personal, credit card, car?

    The companies which advertise this in the UK are generally high cost loan providers.

    Your local credit union might be able to offer a new loan to clear all existing debt.


  • #3
    dubdev
    Closed Accounts Posts: 167 ✭✭dubdev


    [Deleted User] wrote: »
    What are the natures of the debt? Business, personal, credit card, car?

    The companies which advertise this in the UK are generally high cost loan providers.

    Your local credit union might be able to offer a new loan to clear all existing debt.

    Mostly personal loans and some store credit too. I suppose what I'm asking is if I should use an intermediary or deal directly with the lenders ?


  • #4
    [Deleted User]
    Posts: 5,121 ✭✭✭ [Deleted User]


    I doubt you need an intermediary for that.

    Tot up what you owe, look for someone to lend it to you.

    If you are happy with the rate they offer then take the loan and pay off the other debts and don't borrow anymore.

    Are there any penalties to paying off early?
    I don't know how it would impact your credit rating.

    What are the terms of the personal loans now that you are struggling to keep up? What term are you looking for?


  • #5
    dubdev
    Closed Accounts Posts: 167 ✭✭dubdev


    [Deleted User] wrote: »
    I doubt you need an intermediary for that.

    Tot up what you owe, look for someone to lend it to you.

    If you are happy with the rate they offer then take the loan and pay off the other debts and don't borrow anymore.

    Are there any penalties to paying off early?
    I don't know how it would impact your credit rating.

    What are the terms of the personal loans now that you are struggling to keep up? What term are you looking for?

    Thanks. They're all variable rate loans and there isn't any penalty for paying off early.

    I guess one way would be to approach each lender and see if I can restructure my other debt into that which I've borrowed from them. I think the benefit of using an intermediary is that they are more equipped to negotiation on your behalf than you are.

    My (possibly incorrect) understanding is that restructuring doesn't negatively affect your credit rating in the long run as the borrower is demonstrating a willingness to engage with the lender. When you get into debt writedown or forgiveness territory, that's when it gets murky but I'm not an expert.


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