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  • FIRST POST
    • Slure
    • By Slure 11th Sep 17, 2:12 PM
    • 9Posts
    • 5Thanks
    Slure
    Consolidation Help
    • #1
    • 11th Sep 17, 2:12 PM
    Consolidation Help 11th Sep 17 at 2:12 PM
    Hi,

    I recently got a pay rise at work to £32,750 per annum. I also get a bonus of £400 a month on average. This means my take-home pay will be £2,250 after tax.

    My current outgoings are:

    £200 RBS (£6,000 left, was £10,000)
    £270 RBS (£5,000 left, was £12,000)
    £250 George Banco (£6,091 to settle, was £6,000 been paying it for 6 months)
    £172 Santander (£4,000 left, was £10,000)
    £750 Rent
    £46 EE Contract

    This leaves about £600 per month remaining, but food/travel/general living expenses come out of this.

    I also have a loan of £2,000 with a less-than-favourable lender shall we say, and I wish to consolidate the George Banco (£250 p/m) one plus that one in to a lower repayment, albeit over a longer period of time.I know my salary will rise to £33,750, then £34,750, then £35,750 each February until 2020.

    The Santander and £270 p/m RBS loan ends in December 2019 which is still some time away.

    I have seen loans of £8,500 for £150 p/m over 5 years which would free up some more capital and allow me to overpay the others, thus freeing up more cash as my salary increase. Eventually I will be able to save £1,000 per month when all these god damn debts are cleared.

    My problem is I can't get a loan anywhere (0% on Experian credit checker for every single loan) and my Mum/Step Dad won't help me despite having a 999 credit rating. I was in tears and they said 'don't worry we will sort it' but have done precisely nothing since that day in July.

    Where do I go from here!?

    Thanks in advance.
Page 1
    • zx81
    • By zx81 11th Sep 17, 2:16 PM
    • 14,085 Posts
    • 14,773 Thanks
    zx81
    • #2
    • 11th Sep 17, 2:16 PM
    • #2
    • 11th Sep 17, 2:16 PM
    You're unlikely to get a further loan, given how endebted you currently are.

    You may be able to get a money transfer card, but given you already have at least one high rate loan, I think that's unlikely.

    It's not your parents' job to pay off your debts. You'll need to do this the old fashioned way - pay back what you owe.

    Visit the DFW boards for advice on how to cut costs. Then put all spare cash to the highest rate debt, while paying minimums on everything else.
    • Slure
    • By Slure 11th Sep 17, 2:20 PM
    • 9 Posts
    • 5 Thanks
    Slure
    • #3
    • 11th Sep 17, 2:20 PM
    • #3
    • 11th Sep 17, 2:20 PM
    Look - I have no problem paying back what I owe and I have never missed a payment.

    My issue here is when someone says they will help, then completely blanks you, it's a bit disheartening - especially when the APR is 49.9% and they know full well they can get a loan at 3-4%, costing them nothing and allowing me to overpay on everything else.

    I'm sure one day they will need a favour, perhaps in their old age, and I will surely help them out as I try to help people wherever I can. It's mentally quite tough to know I am paying a ludicrous amount of interest when I needn't, but my own bank and everybody else seems content to let it grow gradually worse.

    Also, they aren't going to be paying a penny are they, simply getting the money on my behalf to allow me to make inroads in to my debt without a crippling APR. It's logical.

    Appreciate the response though and I'm not having a go, but i'm at breaking point.
    • zx81
    • By zx81 11th Sep 17, 2:31 PM
    • 14,085 Posts
    • 14,773 Thanks
    zx81
    • #4
    • 11th Sep 17, 2:31 PM
    • #4
    • 11th Sep 17, 2:31 PM
    they know full well they can get a loan at 3-4%, costing them nothing and allowing me to overpay on everything else.
    Originally posted by Slure
    Perhaps they can't. Their 999 credit rating means absolutely nothing. Or perhaps they have other borrowing requirements in mind.

    Also, they aren't going to be paying a penny are they, simply getting the money on my behalf to allow me to make inroads in to my debt without a crippling APR.
    Originally posted by Slure
    They'll pay more than a penny if you don't pay them back. These boards are littered with people who lent to family members and never saw a penny back.

    Do a budget. Cut your costs.

    You need to take control of your own destiny. If your parents decide to help you, then great. If not, at least you'll have a plan.
    • Slure
    • By Slure 11th Sep 17, 2:38 PM
    • 9 Posts
    • 5 Thanks
    Slure
    • #5
    • 11th Sep 17, 2:38 PM
    • #5
    • 11th Sep 17, 2:38 PM
    I have a plan already, and it's slowly bearing fruit - I want to make the most of my salary increase by reducing my repayments, that's all. I know I can pay it quicker if the APR was at least reasonable.

    I'm not asking them to pay anything on my behalf, and I am not the type of person to borrow money off someone and not pay it back, so that 'board littered with people' comment doesn't apply to me.

    Whilst I can appreciate a 999 credit rating means nothing, I know from speaking to them that they have no other borrowing - the only thing stopping them from making an application (to at least TRY and help me) is the fact they think 'it's not my problem'. So the 999 credit rating is better than my 760 credit rating. I'm waiting for £8,000 I paid off to drop off my report also, which may boost my chances a little.
    • StopIt
    • By StopIt 11th Sep 17, 2:56 PM
    • 1,391 Posts
    • 1,182 Thanks
    StopIt
    • #6
    • 11th Sep 17, 2:56 PM
    • #6
    • 11th Sep 17, 2:56 PM
    I have a plan already, and it's slowly bearing fruit - I want to make the most of my salary increase by reducing my repayments, that's all. I know I can pay it quicker if the APR was at least reasonable.

    I'm not asking them to pay anything on my behalf, and I am not the type of person to borrow money off someone and not pay it back, so that 'board littered with people' comment doesn't apply to me.

    Whilst I can appreciate a 999 credit rating means nothing, I know from speaking to them that they have no other borrowing - the only thing stopping them from making an application (to at least TRY and help me) is the fact they think 'it's not my problem'. So the 999 credit rating is better than my 760 credit rating. I'm waiting for £8,000 I paid off to drop off my report also, which may boost my chances a little.
    Originally posted by Slure

    Did anyone else get you into debt?


    No?


    Then get to the DFW boards.


    It's a hard lesson, but you need to be financially independent for your own benefit. Use all the extra you have earned via your pay rise to snowball your debts, and then you can look at refinancing down the line when your debt to income ratio improves.
    • Slure
    • By Slure 11th Sep 17, 3:11 PM
    • 9 Posts
    • 5 Thanks
    Slure
    • #7
    • 11th Sep 17, 3:11 PM
    • #7
    • 11th Sep 17, 3:11 PM
    Did I say anybody else got me into debt?

    No.

    Doesn't really matter which board I'm on either, the post would be exactly the same. I've read a lot of material on there as well and it's all proven quite useful, unlike your comment. I am aiming to snowball them, I just want to be able to make a real difference each month and at 49.9% APR it's like one step forward and two steps back.
    • StopIt
    • By StopIt 11th Sep 17, 3:19 PM
    • 1,391 Posts
    • 1,182 Thanks
    StopIt
    • #8
    • 11th Sep 17, 3:19 PM
    • #8
    • 11th Sep 17, 3:19 PM
    Did I say anybody else got me into debt?

    No.

    Doesn't really matter which board I'm on either, the post would be exactly the same. I've read a lot of material on there as well and it's all proven quite useful, unlike your comment. I am aiming to snowball them, I just want to be able to make a real difference each month and at 49.9% APR it's like one step forward and two steps back.
    Originally posted by Slure

    If you read the DFW boards, you'll find materials, and examples of people in situations like yours.


    You'd also be encouraged to post a full SOA where people there will advise on ways to balance your books better and make inroads into your debt.


    People here are not fans of consolidation loans, guarantor loans etc, but are fans of helping people willing to face up to the fact that more borrowing is not your way out of debt, and never will be.
    • thriftylass
    • By thriftylass 11th Sep 17, 3:29 PM
    • 3,093 Posts
    • 25,585 Thanks
    thriftylass
    • #9
    • 11th Sep 17, 3:29 PM
    • #9
    • 11th Sep 17, 3:29 PM
    This leaves about £600 per month remaining, but food/travel/general living expenses come out of this.
    Originally posted by Slure
    Do you live on your own? £750 for rent is a lot, can you take a lodger or up your income any other way? Have you got anything to show for those loans, anything to sell? What do you need to pay from that £600. Do an SOA and I'm sure people can help you cut down more and chuck it all at the highest interest first. Just pay minimum where you can and throw it all at the highest interest as not to let that one get worse. I know it's disheartening but you signed on the dotted line knowing the interest. Once this one is gone it will feel a lot easier.

    Good luck

    BTW with a debt of over 50k to an income of 32 k I don't think anyone will loan you more as they can't guarantee you consolidate.
    • Caz3121
    • By Caz3121 11th Sep 17, 3:34 PM
    • 10,847 Posts
    • 7,075 Thanks
    Caz3121
    My issue here is when someone says they will help, then completely blanks you, it's a bit disheartening - especially when the APR is 49.9% and they know full well they can get a loan at 3-4%, costing them nothing and allowing me to overpay on everything else.
    Originally posted by Slure
    Is that a guarantor loan? who is the guarantor? If your mum, the time for discussion about alternate loans would have been before this was taken out
    If you post up your soa on the debt free wannabe board you will likely get some help with your budget allowing you to focus on paying down the high interest debt first
    • dresdendave
    • By dresdendave 11th Sep 17, 4:55 PM
    • 657 Posts
    • 770 Thanks
    dresdendave
    I have a plan already, and it's slowly bearing fruit - I want to make the most of my salary increase by reducing my repayments, that's all. I know I can pay it quicker if the APR was at least reasonable.

    Originally posted by Slure

    Surely a more positive use of a salary increase would be to increase repayments.
    • sourcrates
    • By sourcrates 11th Sep 17, 5:27 PM
    • 12,455 Posts
    • 11,853 Thanks
    sourcrates
    Also, they aren't going to be paying a penny are they, simply getting the money on my behalf to allow me to make inroads in to my debt without a crippling APR. It's logical.
    Originally posted by Slure
    I think your parents are most likely reluctant to sign up as guarantors to a loan they might one day have to pay.

    These type of loans are notorious for debtors defaulting on them, this forum has seen many "siblings" unable to pay back there guarantor loan, and the poor parents, who simply don't have the money either, have been pursued for the balance.

    I think it shows a total lack of understanding of what your asking them to do, you have got in a mess with money once, further borrowing is just a rinse and repeat job and usually only ends one way.

    Stop borrowing your way out of debt, it does not work, start looking at debt solutions instead, you have to know where to draw the line.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

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    • Gambler101
    • By Gambler101 11th Sep 17, 5:39 PM
    • 528 Posts
    • 1,292 Thanks
    Gambler101
    OP just use any salary increase to overpay the highest interest loan by as much as you possibly can.

    And look at any other ways to save money.

    Do not ask anyone to be your guarantor or borrow money off friends or family, that is morally wrong and selfish. There are many reasons why you may not be able to repay them such as ill health, loss of job etc
    The instructions on the box said 'Requires Windows 7 or better'. So I installed LINUX
    • Pixie5740
    • By Pixie5740 11th Sep 17, 5:45 PM
    • 11,103 Posts
    • 15,377 Thanks
    Pixie5740
    Your mother and step-farther don't think your debt is their problem because it's not their problem it's your issue to deal with. You got yourself into debt because you are a gambling addict. Is it any wonder they don't want to borrow money to give to you when you have an addiction like that?

    You're not going to be able to consolidate so forget that idea. Focus on snowballing your debts and then perhaps in time you'll be able to shift your debts to better rates.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • BrassicWoman
    • By BrassicWoman 11th Sep 17, 6:01 PM
    • 1,361 Posts
    • 5,734 Thanks
    BrassicWoman
    George Banco gives loans to people with poorer credit. That looks to be your most recent loan; so whatever your credit score says, you are close to the bottom of the barrel. Your debt is £20k? so well over half your income, an informal "max" for many lenders; guessing that is why your most recent loan was non mainstream.

    Get a room to rent, not a flat, and pay the extra £300 a month to your debts.

    £600 month after rent is a huge amount. Old style board can help it go further, as can DFW,

    Have you paid off the extra loans you had in July when you total were...

    RBS Loan x 2 = £470 p/m (£11,000 owed)
    Santander Loan = £172 p/m (£4,000 owed)
    George Banco Loan = £245 p/m (£6,000 owed)
    Bamboo Loan = £250 p/m (£5,000 owed)
    MBNA Credit Card = £80 p/m (£1,500 owed)
    MyJar Loan = £288 p/m (£1,700 owed)
    Satsuma Loan = £200 p/m (£1,200 owed)
    H&T Pawnbrokers = £145 p/m (£1,000 owed)
    Downsized and mortgage free
    Nov17 grocery challenge £133.10/£150
    • Gambler101
    • By Gambler101 11th Sep 17, 6:09 PM
    • 528 Posts
    • 1,292 Thanks
    Gambler101
    Your mother and step-farther don't think your debt is their problem because it's not their problem it's your issue to deal with. You got yourself into debt because you are a gambling addict. Is it any wonder they don't want to borrow money to give to you when you have an addiction like that?

    You're not going to be able to consolidate so forget that idea. Focus on snowballing your debts and then perhaps in time you'll be able to shift your debts to better rates.
    Originally posted by Pixie5740
    Again OP dont want to be rude but if you've built up your debts by gambling losses, your parents would be insane to even think about lending you money.

    Addictions are horrible and you need to get proper professional help to never gamble again, and work hard on repaying your debts as quickly as you possibly can.

    If you manage to do that then in a few short years you and your finances will be in such a better place and I wish you the best in succeeding.
    The instructions on the box said 'Requires Windows 7 or better'. So I installed LINUX
    • BrassicWoman
    • By BrassicWoman 11th Sep 17, 6:15 PM
    • 1,361 Posts
    • 5,734 Thanks
    BrassicWoman
    This post, on your other thread, looks really helpful to me. Maybe look again?

    http://forums.moneysavingexpert.com/showpost.php?p=72917578&postcount=17
    Downsized and mortgage free
    Nov17 grocery challenge £133.10/£150
    • enthusiasticsaver
    • By enthusiasticsaver 11th Sep 17, 7:38 PM
    • 4,661 Posts
    • 8,820 Thanks
    enthusiasticsaver
    As others have said you are heavily overcommitted. Maybe if you have shown poor money management in the past your parents have had second thoughts about signing up to a loan for you.

    I would suggest you up your payments to the most expensive debts to clear them quicker. Eventually as the debt reduces better deals will become available
    4 weeks to go until early retirement in December . Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Kidder81
    • By Kidder81 14th Sep 17, 11:37 AM
    • 60 Posts
    • 59 Thanks
    Kidder81
    The most constructive advice I can come up with us this:

    Forget about loans of any type. Loans appear to have been your answer to money issues before and it appears to have got you into a mess.

    Sell anything you have of value which you don't NEED. Live like a pauper for a couple of years and pay as much off your loans as possible.

    You need to get yourself out of this debt/loan cycle you're in. Only overhauling your spending and behaviour completely will do this.
    • Butch1985
    • By Butch1985 14th Sep 17, 2:13 PM
    • 11 Posts
    • 4 Thanks
    Butch1985
    You need to get help with your gambling addiction first and foremost. The debts you have are yours to sort out. Your parents are just right for not bailing you out, there is no garantee they will get the money back despite all your best intentions. Have a look at your management of finances and be honest - would you lend to someone with that track record? This forum is littered with stories of family lending family money and not receiving it all, if any back.


    As I said get real life help with your gambling addiction. Gamlers Anonymous (GA) would be a great start. As for your finances there is no quick fix - bite the bullet and pay it back yourself even if it takes 10 years regardless if you think the interest is unfair, after all you agreed to the interest rates when asking for the money!
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