I just have a couple of quick questions that someone here might be able to help with. It isn’t directly related to property though, but if you could point me to a great finance discussion forum then that would be cool bananas too.
My brother is trying to obtain a personal loan for debt consolidation to a value of $12k. He has a discretional income of $1k a month but has no large assets (no car or property). Due to his lifestyle though he does have around $20k in assests. He applied for a NAB unsecured p.loan but they have said only things like a car would count towards your assets and was declined.
Are their any possibilites out there to get his cards onto the one loan to prevent the high interest rates once they are out of their interest free period without something like a car to secure it? It isn’t really debt consolidation if you aren’t in debt in the first place.
would it be an option if I applied for a loan and claimed his cards as my own debt seeing as though I own a car with a resale value of $20k and only about $2k in store card debt?
Any tips would be much appreciated.
Unless he has sound asset base and good monthly suplus he is unlikely to get a unsecured loan of that sort of amount.
One consideration would be to look at rolling over his credit card to a Nil interest on balance card for say 6/9 months which are available.
He would have to a really good brother for me to want to apply for a loan against my credit rating and then use the funds to repay his debts. Remember other than the risk of not making payments and you be liable for the loan the loan will also effect your future borrowings and adverse conduct will have a long term effect for you.
He should concentrate repay the higher interest card or loan and seeing if he can extend the term on the lower one to allow him to divert as much of his income to the higher rated debt before attacking the lower.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi plyplema
THis is not a nice situation to be in. I agree with Richard that paying of the one with the highest interest rate first then working on the others is probably the mosr effective way oof dealing with this. The interest rates on these cards if not paid off quickly can be killers.
In the meantime, I hope your brother STOPS using the card. Works out a Budget and sticks to it.
Oh and one other thing. Take a metal container with a lid on it, fill it with water and put the credit cards in the container. Put the container in the freezer. That should help with the temptation to continue using them if that is what he is doing.
I found a useful calc on the web that might help in working out how long it will take to pay this amount off have a look at http://www.bankrate.com/brm/calc/creditcardpay.asp
As you can see working out a plan and then sticking to it, is probably the most effective way of clearing the debt.
Regards
SueMIT | Owen Real Estate
Email MeThanks guys
He isn’t going to go ahead with it, i think he scared himself haha. I’ve got his cards now and like the idea of the ‘frozen funds’ :p
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