Useful information about financial products and debt management
- http://www.consumerhelp.ie - On Competition and Consumer Protection commission's (CCPC) website you can find useful information about consumer rights, personal finance and make complaints to business or financial service providers.
- http://www.consumerhelp.ie/money-saving-tips - here you can find useful money saving tips that can help you avoid borrowing money.
- http://www.consumerhelp.ie/loans-and-credit - here you can find useful information about personal loans.
- http://www.consumerhelp.ie/budgeting-calculators - To better manage your money and achieve your financial goals, here you can find many tools and calculators such as budget planner, spending calculator, loan calculator and other useful tools that can help you manage your finances.
- http://backontrack.ie/ - this website is provided by the Insolvency Service of Ireland (ISI) . Here you can find practical and useful information on debt solution.
Before you borrow:
Before you borrow money you should ask yourself whether you really need to spend the money and whether you can afford to pay back the money you're planning to borrow. Before borrowing ask yourself:
- - Can the purchase wait until I can afford it without taking a loan?
- - If the purchase is urgent is there another way I can get it? For example, ask employer for money advance, borrowing from family or friends.
- - If the purchase is not urgent can I save up money?
- - Will I be able to repay the loan if I lose my job or my working hours are reduced?
You should never take a loan if:
- - you want to take a loan to pay off other loans;
- - you already have one or more loans;
- - you already have other outstanding debts and/or missed payments;
- - if you are not sure of your capability to pay the loan back on time.
If you still feel the need to take a loan you should pay attention to:
Look at your income and outgoings and think if you'll be able to pay all your bills and debts. Calculate how much you can afford to repay each month. If your budget shows that you'll have no money for extra payments then it means you can't afford to take a loan.
Factors lender considers when you apply for a loan:
- - Your income - it's very common that lender asks for a proof of your employment and bank statement of your income;
- - Your credit history - when you fill out a loan application form lender usually checks your credit history. Note that if you have a bad credit history the lender may not give you the loan even though you have enough money to repay the loan;
- - Other loans - you may be refused a loan if you have other active loans;
- - The security of your job - this is important factor that indicates your capability of repaying the loan;
- - The amount of savings you have - this can help you look better and more trustworthy in the eyes of the lender.
APR – Annual Percentage Rate represents an annual cost (in %) of borrowing. The APR takes factors such as interest rate and certain other fees and charges into account. In order to make it easier for you to compare one loan to other similar loans, lenders are required to tell you their APR before you sign an agreement.
If you have chosen variable interest rate, note that the Bank may increase or decrease the interest rate on the loan at any time.
Borrowing costs and fees:
- - Loan administration, set up or documentation fee: Some lenders may charge this fee in order to set up your loan. This fee can be up to 75 €.
- - Fixed rate break fee: most lenders can charge this fee is you have a fixed-rate loan and you decide to repay your loan early.
- - Late payment fees: if you miss a payment you usually have to pay late payment fee, so make sure you never miss a payment to avoid extra charges, also please note that this can also affect your credit score, which can make it harder to borrow money in the future.
Don't accept first loan you're offered, compare various lenders to make sure you get the best possible loan offer.
If you're not able to pay back loan on time:
- - Loan extension: If you realize that you will not be able to repay the loan on time, there is a service of loan repayment period extension, which is offered by many companies for an additional cost. Every credit company sets the fee for the service of extending repayment period itself.
- - Credit holidays: the delay of loan payments for a certain amount of time is called credit holidays. Credit holidays are available in some cases, such as a temporary loss of working ability or loss of job. In most cases credit holidays are granted for a period from one month to one year. This is common for longer-term loans.
- - Seek for help: if you can't find a solution with your lender, you can seek help by contacting the Money Advice and Budgeting Service. They will give you free and independent advice have to solve your money problems.
Check that the money lender is regulated:
All lenders must be registered with Central Bank of Ireland. Before borrowing make sure that your lender is regulated to avoid illegal money lenders.
MoneyGuru24 is not a bank, lender, broker or product issuer. MoneyGuru24 is not owned by a financial institution but is an independent company owned by private shareholders. All information provided on MoneyGuru24 has general and informative nature. Although MoneyGuru24 covers wide range of loan products and providers, keep in mind that those are not the only options available in the market and may not be the best fit for you. We do not consider your personal circumstances and financial situation and we are not recommending any particular products. If you choose to apply for a loan product through MoneyGuru24 website you will be dealing directly with the loan provider not with MoneyGuru24. It is recommended for you to read all relevant documentation given by the loan provider before accepting any financial product offer.