Loan advice
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Hi , I am looking to lower my outgoings by getting a loan to consolidate my debts , I'm paying over 800 a month for 3 credit cards and a next bill. They are all in my wife's name so is it best we get a joint loan ? Can we even do that ? I was thinking about going into my bank Nat west to explain . I have a good credit score but only earn £25,000 a year. If we get a joint one would this improve our chances ? I done the eligibility check and Sainsbury's come up with a 50% chance just for me for £20,000 loan at around 3.3% paying back about £270 a month . If anyone has some advice it would be greatly appreciated .Many Thanks
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Comments
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The best advice is not to borrow money to repay existing debt.
Remember you "credit score" means nothing only you see this made up number.
You don't say how much your total debt is? or how much your OH earns?0 -
Hi , I am looking to lower my outgoings by getting a loan to consolidate my debts
Noooo........do not do it.
It’s another step on the road to insolvency.
What you need is debt and budgeting advice, not to borrow more money and get further in the quagmire.
Get over to the DFW board and ask for budgeting advice on how to lower your debt.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
£20,000 loan when you only earn 25,000 very unlikely.
Don!!!8217;t get a loan as for effectively doubling your debt. The lender will be assessing you on the ability to pay £40,000. They won!!!8217;t know you will pay off the debt you have.
Go on debt free wannabe to look at ways you can cut your spending to pay your debts.
Getting a loan won!!!8217;t address why you have racked up that debt.Mortgage free wannabe
Actual mortgage stating amount £75,150
Overpayment start date 1/3/23.
Starting balance £66,565.45
Current balance £63,787.160 -
A loan will rarely help as you will still have your current bills. Either cut your spending or you both get a second job.0
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I done the eligibility check and Sainsbury's come up with a 50% chance just for me for £20,000 loan at around 3.3% paying back about £270 a month . If anyone has some advice it would be greatly appreciated .Many Thanks
No lender is going to lend someone with £20k of debt £20k on a £25k income. You will fail the mandatory affordability test.
Lenders will still take into account your existing debt when applying for a consolidation loan and treat it as concurrent due to the high number of people who get consolidation loans and either don't clear all of their credit or do but rapidly build up balances on their credit cards again. Consolidation loans rarely work except for the most disciplined.0 -
As others have said consolidating debt would be a mistake.
Cut outgoings as far as possible and move debt to 0% cards if you are able to.
Post an soa on the DFW forum as a start http://www.stoozing.com/calculator/soa.phpI’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0 -
It's another vote for 'don't do it!'.
- Address the debt and reasons you have it.
- post a SOA and make cut backs to your outgoing
- increase your income and pay off as much as poss and as soon as poss.
(2nd job, selling stuff etc)I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
If you can't be the best -
Just be better than you were yesterday.0 -
Don't do it.Savings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS0
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