Applying for Personal Loan with a Terminal Illness

caidstech on 08/11/2021 - 15:35
Last edited 16/11/2021 - 01:43

Hi All,

I've had personal loans in the past and it all was relatively straight forward, but I will admit I am fairly green when it comes to knowing the ins and outs of getting a loan. That being said, our new circumstances push us into weird territory that I don't really have any experience in and I was hoping that someone on here may work in the industry and have some suggestions on how best to approach getting a loan with our circumstances. Done some googling but hasn't helped me a whole lot.

Key details:

  • My wife (27) has grade 4 brain cancer, which generally comes with significantly shortened life span (on average ~18 months)
  • Post treatment she is back at work for three half days a week ($1.6k p/m), income protection insurance (~$700 p/m) making up the gap and will do so until she is able to return to work full time.
  • From a loan perspective I'm not sure if the income protection insurance can factor in and I believe there is a max term length for income protection benefits of 5 years, awaiting call back from provider to confirm.
  • I'm currently back at work three full days a week ($3.5k p/m) and being a carer for the other two.
  • Wife's bucket list item was to have a decent car, which is what the loan will be for, currently looking at a Subaru Impreza @ ~$20k, mostly due to safety features.
  • Looking for loan for full amount, but if not realistic can offset and borrow $15k

My concern is that it will be nigh on impossible for her to get a loan given the circumstances, but with me also working shortened hours I'm not sure I'm going to be in a much better position.

Please ask any questions or for any info I may have left out that would be applicable, I will update the OP with details.

Thanks,
-Caids

EDIT:

Thanks everyone, pretty overwhelmed by all of the comments and appreciate all the kind words alongside the helpful suggestions. Some additional info/thoughts based on the comments:

  • She wants a decent car as she is still driving around the MY2000 Toyota Echo she got when she turned 18, window-winders and all. The car has issues and she is just after something reliable, relatively nice and with cruise control.
  • We are not fancy people and she's not after a sports car or anything. The dream was initially a Mini, however we've been to a tonne of different car dealerships and ultimately she like the Impreza the best, so thats the avenue we are currently pursuing
  • Crowdfunding - Mentioned in the comments that a friend had set a GoFundMe up for us and raised a significant amount, however majority of these funds went to medical and living expenses during her treatment and our subsequent time off around this time.
  • Driving - Luckily my wife didn't discover her condition via a seizure, which means that she only had to wait 6 months to drive post-op. If she had've discovered it after having a seizure she is deemed as a higher risk and would have had to wait 12 months prior to driving.
  • Renting/hiring - This is something we are looking into, however as mentioned she has her heart set on the Impreza at the moment.
  • Experiences - We have some savings that we have earmarked for experiences/trips, so having the loan shouldn't affect us being able to still do this sort of thing.

Some of you mentioned you would like to help, here is the link to the aforementioned GoFundMe: https://www.gofundme.com/f/sarah-and-caiden

Please don't feel obligated at all to donate, I just came here for a bit of a discussion about what options we may have available to us. Hard to know with this stuff sometimes, nobody really teaches you how to handle something like this.

As it stands we have applied for tax-free early release of a superannuation death benefit, just awaiting feedback from the insurance company.

Again, thanks everyone for all of the information and kind words. Honestly feeling the love from the community over here <3.

Cheers all,
-Caids

Financial Loan Personal Loan

Comments

    • caidstech on 16/11/2021 - 00:54

      Nah we don't unfortunately. We've sort of moved here and there a bit and hadn't quite got to buying a house yet. Thanks for the suggestion though.

  • Natt on 10/11/2021 - 14:12
    +3

    Definitely think about renting. An open top convertible, coastal road, picnic basket……

    Are you sure she is not fixed on this because it's a distraction and something you can control (theoretically)

    It sounds like she hasn't processed her prognosis. She needs to do what's right for her of course but aiming to return to work full time would only be something I would do if I loved my work.

    Otherwise I would be reducing hours. We tend to spend based on what we earn so you might not notice a 20% income drop for example. But you will miss time spent together.

    Whatever you both decide I hope it works out the best it can in a situation that truly sucks.

    • caidstech on 16/11/2021 - 01:01

      Yeah this is something we are discussing, just weighing up the options.

      "It sounds like she hasn't processed her prognosis. She needs to do what's right for her of course but aiming to return to work full time would only be something I would do if I loved my work."
      - Not sure where you got the above from, but she has certainly processed her prognosis and returning to full time work is definitely not the goal. Mentioned in OP as a side note re: income protection insurance, might have just been a mix-up from that statement.

      Yep, this is what we have done. I earn decent money and have reduced from 5 to 3 days a week so that we can spend more time together and I can continue to support us somewhat. As you mentioned from a day to day money perspective I haven't really noticed the change .

      Thanks for your feedback, much appreciated!

  • DiscoJango on 10/11/2021 - 14:37
    +2

    As someone who's owned many vehicles, the initial wow does wear off, no matter what the car.

    As others have suggested, take that $15,000 you would have spent on a car and rent some nice ones, use it towards other bucket list stuff.

    And i hate to say it, if she does pass away, youll be left in the situation of having to sell the car, which could make a difficult time even harder.

    • caidstech on 16/11/2021 - 01:02
      +1

      Appreciate the feedback mate, thanks. This is something we've discussed and I mentioned in some previous comments that we have some savings that we will be utilising for experiences as well.

  • ZenderBing on 10/11/2021 - 15:08
    +12

    Please please please don't get offended, that's not the intention.

    Is there any way I could contribute a small sum towards this goal?

    I'm not filthy rich, but I want to contribute in whatever capacity.

    It's not a charity, not a handout. I'm sorry if this isn't an Aussie way of doing things. I am fairly new to the country and covid didn't helped to mingle with people and understand local sensitivities.

    • chriise on 11/11/2021 - 20:15
      +1

      Welcome to Australia, mate :)

    • caidstech on 16/11/2021 - 01:10

      Not offended, thank you for the kind offer. For reference it's a lovely offer and being Australian I don't think something like this would offend anyone.

      I mentioned in a previous post that we had a GoFundMe set up for us by a friend around the time of diagnosis and treatment, however majority of that money was utilised while we were off work and during treatment, etc.

      I'll edit the OP and put it in, but please don't feel obligated at all to donate.

  • itbargainhunter on 10/11/2021 - 15:15
    +4

    I don't judge you and her choice for the bucket list. It may sound unrealistic to many but hey, it may have some emotional value here and I respect that.

    As a fellow OZBer I would suggest you to think outsider the loan (box). Have you consider Crowdfunding?

    https://www.gofundme.com/en-au/start/medical-fundraising

    Post it back here. I don't know about others but I will contribute and help with social media if it helps.

    • caidstech on 16/11/2021 - 01:14

      Thanks mate, appreciate the suggestion.

      I mentioned in a previous comment that we had a GoFundMe set up for us by a friend around the time of diagnosis and treatment, however majority of that money was utilised while we were off work and during treatment, etc.

      I'll edit the OP and put it in in case anyone would like to donate, but please if you read this do not feel obligated.

  • CheeseBeans on 10/11/2021 - 19:35

    Please consider a mid-long term rental instead. It should be easier to get, and you'll be able to get something different. Get a tesla, a little mx5 convertible, something silly like that…

    I'm sorry for your situation but I think you can definitely make your money go further with less stress

    • caidstech on 16/11/2021 - 01:14

      Thanks mate, definitely something we are discussing.

  • anotherbot on 10/11/2021 - 20:20

    Feel very sorry for you OP.
    I agree with the other guys suggesting a rental. That'd be way easier and you can change the cars you want and always have some spare case just in case you guys change your mind and want to go out to have a nice dinner.
    If you put all your money in buying the car then it'd hard to do anything else I imagine.

    • caidstech on 16/11/2021 - 01:15

      Thanks mate, definitely something we are discussing.

  • Oz em on 11/11/2021 - 00:22

    Could you lease a car? Or look at the long term car hire options? I saw Toyota has a long term hire option on their new cars and I know electric vehicles also do.

    • caidstech on 16/11/2021 - 01:16

      Thanks mate, definitely something we are discussing.

  • Zythyx on 11/11/2021 - 09:09

    I work at a small credit union. If you do want to get a full loan for a $20k car, go to the small guys in person (not the big banks or credit unions) and you'll find there are a lot of caring people who will want to go out of their way to help you. The Big banks and lenders tend to be quite emotionless and focused on one thing when it comes to lending.

    Alternatively, try a GoFundMe campaign. You might be pleasantly surprised, but go into it with low expectations.

    • caidstech on 16/11/2021 - 01:17

      Thanks so much for the advice and feedback, we are pursuing another option at the moment but will take this onboard.

  • toomuchdogfur on 11/11/2021 - 09:44

    I can't imagine what you are going through OP. I hope you and your wife are OK.

    I'm surprised that the Subaru Liberty you had isn't enough - IMO the Impreza isn't nicer in any appreciable way, even the newer ones (which are still in the same generation as your Liberty anyway). But it sounds like minds have been made up.

    Perhaps a loan with a balloon payment may work? That way you have lower monthly repayments in exchange for having a big (30 to 50% of car value) payment to make at the end of the loan - but you can just sell the car to make the final payment. For example, using loans.com.au, a $20k loan over 3y @ 3.99% will cost $433.22 p/m with a final payment of $6k. You would easily sell a 3y old Impreza for more than that, so you can bump the balloon to 40% if you want to pay less per month (or leave it and pocket the extra cash).

    • caidstech on 16/11/2021 - 01:23
      +1

      Thanks mate.

      I get where you are coming from. The Liberty is my car and I've offered it to her in lieu of a "new" car, however I don't think it really fits the bill for her in terms of a car of her own. I know its a technicality, but I get where she is coming from.

      I appreciate the suggestion of the balloon payment, we are pursuing other options but will keep this in mind.

  • CaptainNewspeak on 11/11/2021 - 10:46

    You may have access to a salary packaged novated lease plan through your hr? Might be a good option for your situation. Brand new car, and option to buy it at depreciated value at the end of the plan (or extend the lease).

    Wish you and your family the best, and hope your wife can eventually enjoy a new car

    • caidstech on 16/11/2021 - 01:24

      Thanks mate.

      Thanks for the suggestion. I have inquired but no go unfortunately.

  • Andrewskates on 11/11/2021 - 10:57
    +1

    Surely through OZB we can organise a fundraiser? Any mods able to do this from a more official POV?

    Bit left field; have you considered emailing exotic car rental companies / people in the auto industry / even people who work at Subaru Marketing/ Corporate?
    I bet someone on these forums has a contact at Subaru AUS who can help?

    Explain the situation, and see if they'd be interested in helping make this bucket list moment come true.

    All the best.

    • caidstech on 16/11/2021 - 01:27

      Thanks mate and appreciate the suggestions.

      Yeah I've been discussing contacting some companies with her, but obviously time is important here so we have to move relatively quickly to sort something. Great suggestion though.

      Also I was just looking for a bit of a discussion, but appreciate the thought for a fundraiser. Thank again.

  • ihbh on 11/11/2021 - 11:09

    Wife's bucket list item was to have a decent car

    It's not clear the why behind this.

    Perhaps in the short term hire one for a week and help her understand her why. This will help her understand the ongoing costs - e.g. petrol, insurance, etc. but most importantly the time cost - by working to pay off the loan, she loses time and forgoes the use of it.

    Then maybe she might change her mind and stop working/reduce hours (and you too) so that you can spend the time together and experience things that won't cost so much in terms of your time.

    Also, work backwards - e.g. if she had a month, 6 months, … what would be her priorities, and go from there.

    All the best.

    • Cyphar on 11/11/2021 - 15:32
      +1

      Probably means to have a decent car for both of them to enjoy. It's something he can continue using once she is gone and so it's still a part of her he keeps around every day

  • miicah on 11/11/2021 - 11:14
    +1

    An Impreza? Not a WRX? Seems a bit silly, but I guess if it's what she REALLY wants then yeah I'd just make it work.

    I'd personally just go and do those rally experience days, they even let you drive them.

  • mauricem on 11/11/2021 - 11:36
    +2

    28 degree card with price protection will cancel balance on death of card holder. Probably not possible to apply for new card as questions re health etc will no doubt preclude your eligibility. This may apply to other cards as well.
    My partner got diagnosed with stage 4 at start of covid so most of our bucket list trip options got cancelled, I'd be travelling the world as much as possible whilst you still can.

  • creesy on 11/11/2021 - 13:18
    +1

    Feel for you OP I know you aren't looking for handouts but start a go fund me and I'll be first in line.

    Thoughts are with you and your family.

  • citybargainhunter on 11/11/2021 - 13:21

    I wish there was a gofundme feature on OzBargain, I would chip in for the car.

  • Cyphar on 11/11/2021 - 15:31
    +1

    OP, your wife should be able to cash out her super with the terminal prognosis. Have you considered using that to buy the car?

    • [Deactivated] on 12/11/2021 - 09:51

      This is what I would consider looking into but it could also affect the beneficiaries and also payment of taxes for early asked release, I feel for OP not matter the financial situation and it doesn't make it any easier given what we all have been through.

      • Cyphar on 12/11/2021 - 10:39
        +2

        When releasing Super due to terminal reasons, it is withdrawn as a tax free payment as if you were accessing it when the account is at maturity.

        • [Deactivated] on 12/11/2021 - 10:41

          Well this is a good point for OP as money required now might be more beneficial for a more purposeful intent.

  • edy4eva on 11/11/2021 - 20:43

    So sorry about that. Why not lease a car with the model you’re after? Look at carnexrdoor or flexicar or hertz 24/7.

    Tough situation

  • freekay on 12/11/2021 - 11:38
    +1

    Hey, I'm sorry to hear about your situation. I used to work in the life claims department for a superannuation administrator, so I know most of the ins and outs. If you need any help with the process, feel free to PM me. I don't know if you guys are religious or not, but I sincerely pray that your wife is miraculously healed.

    • caidstech on 16/11/2021 - 01:48
      +1

      Thanks so much mate, will definitely reach out if we get loss. Appreciate the love also!

  • Hargen on 12/11/2021 - 14:48

    Hi op, sorry to hear about your situation.

    Now onto the technical part of your question.

    From a lender's point of view it would be impossible for your wife to get a loan, this is because the Australian credit law requires the lender to ensure you have sufficient income to service the loan until the end of the term. Due to the condition of your wife, it would be hard for any lender to put hand on heart and say that they are confident given the circumstance she is in that she will be able to service the loan until the end of the term.

    Now onto you, most lender will not recognise your wife's income because of the reason I have provided above for your wife's income, however they will need to treat you on a combined living expense (i.e. they will deduct the full $35k per year for living expense plus rent). So it would be very difficult once they deduct living expense for your income alone to get a loan.

    The best option is as what other posted have mentioned earlier.

    Also whether you end up buying or renting, make sure you disclose her condition as not disclosing would effectively rental any third party or comprehensive insurance you have unclaimable.

  • caidstech on 14/11/2021 - 00:38
    +1

    Thanks for all the messages, both support and advice. Been a bit overwhelmed by the response here to be honest! Will do some responding tomorrow.

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