Q – Where is the best place to borrow to clear off some debts – I have a credit card balance of €13,000 and an overdraft of € 7,000. I am thinking of going to my local credit union ? Pat – Cork
A – Thanks Pat for the question but the real question is have you got your finances under control now ? If you have good credit history ( check with the Irish Credit Bureau Clonskeagh D 14 – www.icb.ie ) you could transfer the credit card debt to one of three credit card companies – Permanent TSB, KBC Bank and TESCO Clubcard – who allow the transfer at 0% for the first 6 months. This gives you breathing space and ideally if you were able, clear the debt over that period at € 2,166.66 per month – a tall order ! The overdraft technically has to be in credit for 30 days every year and obviously you may be under pressure by your bank to adhere to those terms and conditions. Before seeking that new lender, have you considered your immediate expenditure and made allowances for it ? Christmas is only 35 days away – planned your spending ? Once you have rearranged your finances, the new repayment has to be factored into your monthly budget and cash flow. Best lender ? Your local credit union would be both the most flexible and probably cheapest. A € 20,000 loan over 5 years ( you have to eat too …) at 9.5% would cost you € 420.04 per month, over 7 years it would cost € 326.88 per month. I recommend you seek professional advice.