Author Topic: Joe, I borrowed money. Now I have to pay it back.  (Read 9139 times)

Offline Dr. Martin Gooter Bling

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Joe, I borrowed money. Now I have to pay it back.
« on: September 06, 2017, 01:05:41 pm »
http://m.independent.ie/irish-news/taxi-man-in-arrears-could-lose-his-home-36104666.html

A Dublin taxi driver has said that he is facing repossession of his home due to crippling interest rates after taking out a loan from a sub-prime lender more than a decade ago.

Sean Duffy (60), from Walkinstown, said he had re-mortgaged his home in 2005 in order to consolidate outstanding debts of around €80,000.

He used his home - which was then valued at around €250,000 - as collateral.

But due to his poor credit rating, he could not get a loan from a bank or credit union.

Mr Duffy said that he had no choice but to turn to a now-defunct sub-prime lender, which loaned him €80,000 at a annual interest rate of 6.35pc.

But 12 years later, after the company was taken over by another financial company, due to penalties and compound interest, he still owes €77,000 on the principal.

Complain

He is now faced with having his home - now worth about €325,000 - being repossessed by the company that took over the original lender's debts.

"I was able to pay off the mortgage, but not the arrears," he said.

"It's just the interest building up and up."

Mr Duffy called up RTÉ's Liveline programme yesterday to complain that the company which later took over the sub-prime lender was now ringing him some six times a month looking for payment.

"They won't budge on the interest rate," he said.

"But I'm no further ahead after 12 years."


Offline Shallowhal

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Re: Joe, I borrowed money. Now I have to pay it back.
« Reply #1 on: September 06, 2017, 01:38:14 pm »
Consolidate your loans....best thing to do....said no one...ever!!

Offline mercenary for hire

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Re: Joe, I borrowed money. Now I have to pay it back.
« Reply #2 on: September 06, 2017, 02:43:39 pm »
6.3% isn't too bad.There must be more to the story.

Offline Shallowhal

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Re: Joe, I borrowed money. Now I have to pay it back.
« Reply #3 on: September 06, 2017, 02:52:28 pm »
6.3% isn't too bad.There must be more to the story.

Ye wha? 6.3%,on that amount over x amount of years...that's double our current variable rate....and i think we're being hard done by!!

Offline mercenary for hire

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Re: Joe, I borrowed money. Now I have to pay it back.
« Reply #4 on: September 06, 2017, 02:58:12 pm »
I just left bank of Ireland who are charging 4.5% right now on the variable rate.Interest rates are shit here but 80k at 6.3 wouldn't be that much for a taxi driver.He probably wasn't paying enough off and misunderstood how the interest works..No reason why interest rates wouldn't go back higher in the future.

I think at one stage Ulster bank were charging 6% about ten years ago.It's not that unusual.But still robbery.
« Last Edit: September 06, 2017, 03:06:07 pm by mercenary for hire »

Offline Shallowhal

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Re: Joe, I borrowed money. Now I have to pay it back.
« Reply #5 on: September 06, 2017, 03:06:31 pm »
There's stirrins that the ECB are goin to increase their rate so no doubt our banks will only be fondling themselves if that happens,our banks are already one of the highest for interest rates in the eurozone.

Offline mercenary for hire

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Re: Joe, I borrowed money. Now I have to pay it back.
« Reply #6 on: September 06, 2017, 03:12:14 pm »
The only way to beat them is to pay lumps off the principal when ya can.Easier said than done.Hoping to clear mine by 50.Then I can start wasting me money on other things.

Offline mercenary for hire

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Re: Joe, I borrowed money. Now I have to pay it back.
« Reply #7 on: September 06, 2017, 03:22:23 pm »
80k at 6.3% is about 900 a month over ten years.I know some drivers who were paying over 2k a month during the shit years.

Offline Shallowhal

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Re: Joe, I borrowed money. Now I have to pay it back.
« Reply #8 on: September 06, 2017, 04:23:38 pm »
I'd love to be in a position(like John m and his nearly free gaff from the corpo) to pay lumps off our mortgage,we'll be finished in 2024...or maybe somebody will drop 40k in my lap!!
I was thinking of starting a crowdfunding...all i need is a euro off 40 thousand people,should be doable,might even get ermy on board for advice...cos he has a degree in economics from The Finches.

Offline mercenary for hire

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Re: Joe, I borrowed money. Now I have to pay it back.
« Reply #9 on: September 06, 2017, 04:29:03 pm »

Offline Shallowhal

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Re: Joe, I borrowed money. Now I have to pay it back.
« Reply #10 on: September 06, 2017, 04:41:25 pm »
We're with BOI....not out of choice but because they bought our mortgage from IBRC(we were an Irish Nationwide customer) but we're not worth a wa nk to them cos we owe fukall,they don't even want to entertain us with a fixed rate @ 3%, our mortgage hasn't changed in yrs,i think we're in the "just leave them alone" pile!!

Offline Rat Catcher

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Re: Joe, I borrowed money. Now I have to pay it back.
« Reply #11 on: September 07, 2017, 02:17:24 pm »
The only way to beat them is to pay lumps off the principal when ya can.Easier said than done.Hoping to clear mine by 50.Then I can start wasting me money on other things.

Agreed, budgeting to pay the monthly interest on top of the minimum payment is a good approach. Work hard and pay more while you're young. Past generations could rely on inflation to reduce their payments in real terms, those days are gone.

The Liffey Lip

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Re: Joe, I borrowed money. Now I have to pay it back.
« Reply #12 on: September 07, 2017, 02:38:15 pm »
A wise owl once told me to stay in debt for as long as possible. Paying things off earlier only benefits those in your wake. Poor accountant ended up in serious bother himself.

Offline mercenary for hire

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Re: Joe, I borrowed money. Now I have to pay it back.
« Reply #13 on: September 07, 2017, 02:42:30 pm »
Dunno...if you borrow 250k and let it run the full term your paying back 500k.Debt is good for certain things but the term is the ball breaker.

The Liffey Lip

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Re: Joe, I borrowed money. Now I have to pay it back.
« Reply #14 on: September 07, 2017, 02:47:20 pm »
True. Was referring to smaller amounts. I always ensure I owe more than 5k to the credit union. Thought most banks penalised people if they went about lumping money against a mortgage? Anyway, shortly, the days of Mick and Concepta getting their own gaff will be a pipedream.

 


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