Credit card debt

[danielz]

I stupidly took out an AIB credit card in my early 20s and ran it to its max (€4,800), have gone through a lot in the last few years and have only recently returned to full time employment. I’m currently making about €1000 a month after rent and bills. I got a credit union account recently but haven’t saved much so I don’t think they’d let me take out a loan to repay. What’s my best option here? An Post balance transfer is what I keep seeing but am I going to get screwed after the first 12 months of 0%? Will they even let me get one with such a terrible credit rating?

I am older now and would like to start building good credit so that I may have the option of getting a mortgage in the very distant future.
Any suggestions or advice welcome.
Please explain to me like I’m a five year old as I am very new to this.

 

[mrluther]

@danielz Talk to AIB about the credit card. They should provide some options/help on how to pay for this. Go in store and ask to speak to someone in person.

Secondly, Review your finances, make a budget and what repayment you can make. No point looking at an-post 0% offer if it going to take 2 years to fully repay and that's the same for any refinance loan offers. Need to know what you can pay back per week/biweekly/monthly

Talk to you credit union, explain what you need. They may be able to help.

Fourth, see if you can pick up some extra hours, side jobs or cash in hand job. This is give ya you a boost in cash flow and make a dent in your repayments.

 

[danielz]

@mrluther Thank you for the reply! Have already spoken to AIB and unfortunately they were not helpful at all and didn’t give me any other options.
Thank you I’m in the middle of making a budget and it’s not looking as bad as I thought.
Yes I think credit union will be my next step that seems to be the general consensus.
I’m in a small village in Kerry and picking up as many extra hours as I can, unfortunately cash in hand doesn’t seem to be offered anywhere near me.
If I were to find cash in hand can I lodge it and make payments to my debt? Does this look dodgy to revenue if there’s regular cash being lodged?

 

[mrluther]

@danielz Budget is always a great place to start.

When i referring to cash in hand jobs, I'm thinking family, neighbours, friends who give ya few quid to look after the farm, fix the tap, bring in bales, blah blah blah. It is not regular source of income but cash bonus.

This cash bonus will help towards paying for every day stuff and at end of month, the money you have saved in your account by using the cash bouns rather then your job salary, you can do a extra payment to the debt.

I dont think revenue would be looking to close. Its when you're making vast amount of cash deposit and it is a regular source on income for you. I