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  • FIRST POST
    • _simon1_
    • By _simon1_ 5th Oct 17, 7:13 PM
    • 7Posts
    • 0Thanks
    _simon1_
    Some advice would be brilliant.
    • #1
    • 5th Oct 17, 7:13 PM
    Some advice would be brilliant. 5th Oct 17 at 7:13 PM
    I need some advice guys. I currently own my own home outright which is worth in and around £90k I have some debt that I want to consolidate as my monthly outgoings is pretty high. My current credit score on Experian is sitting at 491 poor I know Iíve been silly over the years with credit cards etc. I want to borrow money against my home as I know I canít get credit any other way but I have no clue where to turn to and where to go. I wouldnít imagine my bank would lend to me with my score being so low. Any advice you guys could give me would be great.
Page 1
    • zx81
    • By zx81 5th Oct 17, 7:27 PM
    • 14,410 Posts
    • 15,208 Thanks
    zx81
    • #2
    • 5th Oct 17, 7:27 PM
    • #2
    • 5th Oct 17, 7:27 PM
    Start by ignoring your score. It's fictional.

    What appears on your three credit files?
    What is your income?
    How much do you owe? At what rates?
    • _simon1_
    • By _simon1_ 5th Oct 17, 7:29 PM
    • 7 Posts
    • 0 Thanks
    _simon1_
    • #3
    • 5th Oct 17, 7:29 PM
    • #3
    • 5th Oct 17, 7:29 PM
    23k a year from my main job plus I have a second job that gives me an extra £100 per week. I owe out in total about £25k I would love to get that all clear and just have one monthly bill.
    • Ebe Scrooge
    • By Ebe Scrooge 5th Oct 17, 7:35 PM
    • 4,016 Posts
    • 3,436 Thanks
    Ebe Scrooge
    • #4
    • 5th Oct 17, 7:35 PM
    • #4
    • 5th Oct 17, 7:35 PM
    Your score is irrelevant - lenders can't see it.

    What they see is your credit file - your history of repayments, together with your current debts, and any defaults.

    What are your debts, what is the APR on those, what is your income ? You may be better off heading over to the Debt-Free-Wannabe board and posting an SOA.

    Consolidation loans rarely work out well - especially if you're considering turning unsecured debts into secured debts. Sure, the APR may look attractive, but how much will you pay over the term of the loan ? And what happens if you fail to repay ? With an unsecured debt they can chase you through the courts etc., and may or may not get anywhere - if it's secured on your home, they can take the roof from over your head.

    Really, you need to tackle the root cause of your debts - and the good folk over on the DFW board are best placed to help you.

    I'd think VERY hard before taking out a secured loan against your home.
    I may not know much about art, but I know what I like.
    • DCFC79
    • By DCFC79 5th Oct 17, 7:35 PM
    • 30,444 Posts
    • 19,243 Thanks
    DCFC79
    • #5
    • 5th Oct 17, 7:35 PM
    • #5
    • 5th Oct 17, 7:35 PM
    23k a year from my main job plus I have a second job that gives me an extra £100 per week. I owe out in total about £25k I would love to get that all clear and just have one monthly bill.
    Originally posted by _simon1_
    You might find it hard to find a loan that would help when you owe close to what you earn yearly. From a lenders view its extra debt you would be taking on.

    I don't see a loan as the way out, a dmp may be the only option.

    Either you increase your income, stop the unnecessary spending or sell the house to pay the debts off and buy a new house.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • _simon1_
    • By _simon1_ 5th Oct 17, 8:01 PM
    • 7 Posts
    • 0 Thanks
    _simon1_
    • #6
    • 5th Oct 17, 8:01 PM
    • #6
    • 5th Oct 17, 8:01 PM
    Going into a program is a no go for me at the moment. My other debt I have I actually had to get a guarantor for my loans I have a long with amigo and there is 5k left on that and another loan with the credit union which I owe them £15k and both guarantors loans.
    • DCFC79
    • By DCFC79 5th Oct 17, 8:29 PM
    • 30,444 Posts
    • 19,243 Thanks
    DCFC79
    • #7
    • 5th Oct 17, 8:29 PM
    • #7
    • 5th Oct 17, 8:29 PM
    Going into a program is a no go for me at the moment. My other debt I have I actually had to get a guarantor for my loans I have a long with amigo and there is 5k left on that and another loan with the credit union which I owe them £15k and both guarantors loans.
    Originally posted by _simon1_
    Well then you either cut back your spending to the bare bones, get rid of the expensive contract, get rid of Sky or Cable so you have extra money pm to pay the debts or sell up wipe the debts and start a clean slate.

    What was the debt for ?

    Will the debt reoccur ?

    Could you get a 0% credit card to shift some of the debt too and pay it off ?

    What was the outcome of the thread from 2014 ?
    Last edited by DCFC79; 05-10-2017 at 9:10 PM.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • enthusiasticsaver
    • By enthusiasticsaver 5th Oct 17, 9:30 PM
    • 4,870 Posts
    • 9,195 Thanks
    enthusiasticsaver
    • #8
    • 5th Oct 17, 9:30 PM
    • #8
    • 5th Oct 17, 9:30 PM
    My advice would be do not consolidate. It hardly ever helps and usually makes things worse. Post an soa on the DFW board.

    You are unlikely to get a loan at a favourable rate if you have needed guarantor loans and a high rate loan would be a massive drain on your monthly budget. Cut as many costs as you can and start by repaying the highest charging debt.
    3 days to go until early retirement. 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
    • zippygeorgeandben
    • By zippygeorgeandben 5th Oct 17, 10:04 PM
    • 724 Posts
    • 912 Thanks
    zippygeorgeandben
    • #9
    • 5th Oct 17, 10:04 PM
    • #9
    • 5th Oct 17, 10:04 PM
    I think OP that you need to head over to the DFW board.
    The 'alarm ringing in my head' words/phrases you have used so far;
    consolidation, monthly outgoings high, guarantor, amigo, silly credit cards
    You need to sit down and ask yourself how did I exactly allow this to happen? I wouldn't get a loan against your home.
    End Sep 2016 End Nov 2017
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £2470.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £933.36 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £3403.40 Original DFD May 2019.
    • Tarambor
    • By Tarambor 6th Oct 17, 8:18 AM
    • 1,769 Posts
    • 1,213 Thanks
    Tarambor
    If you've got guarantor loans and especially an Amigo loan or any pay day lenders in the last half decade you can pretty much forget any mortgage or mainstream lending.

    The living beyond your means kicking the can down the road and borrowing from your future self bill is now due as it becomes due to eventually pretty much everyone who lives a life they can't afford on credit. Time to cut spending to the absolute bare essentials, not plan on changing your car any time in the next half decade other than if you can sell it, get some money enough to buy a cheaper car and pay back some of the debt.

    You're mortgage free, your housing costs nothing. Excluding debt repayments you should be able to live on under £500 a month as a single person. 18 months of barebones living and you'll be debt free.
    Last edited by Tarambor; 06-10-2017 at 8:22 AM.
    • Pixie5740
    • By Pixie5740 6th Oct 17, 8:54 AM
    • 11,202 Posts
    • 15,655 Thanks
    Pixie5740
    You’ve been asking the same thing since 2014 Only now you’ve dragged some poor sucker into your financial mess. If you had to resort to using an Amigo loan then I doubt any main stream lenders will touch you with a 10’ barge pole.

    How have you gone from owing £5k in 2014 to owing £25k in 2017?

    Did you approach a mortgage broker as was suggested to you last year?
    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.
    • StopIt
    • By StopIt 6th Oct 17, 9:12 AM
    • 1,449 Posts
    • 1,239 Thanks
    StopIt
    Going into a program is a no go for me at the moment. My other debt I have I actually had to get a guarantor for my loans I have a long with amigo and there is 5k left on that and another loan with the credit union which I owe them £15k and both guarantors loans.
    Originally posted by _simon1_

    You've already borrowed at 49.9% APR, and now you want to borrow again.


    And yet you say that anything other than more debt isn't the answer?


    You're heading into insolvency, and no lender is going to touch you without charging an extraordinary APR, or using your house as security.


    Both are lunacy. It's your choice, but you either speak to a debt charity TODAY, or you carry on trying to borrow your way out of debt.


    If you choose the latter, we will see you in the Bankruptcy board. I hope to see you in the DFW board with a full SOA instead.
    • badmemory
    • By badmemory 6th Oct 17, 9:26 AM
    • 1,071 Posts
    • 1,140 Thanks
    badmemory
    If you can't afford to live without increasing your debt when you have a free roof over your head how are you going to manage when you have to pay rent?
    • zippygeorgeandben
    • By zippygeorgeandben 6th Oct 17, 11:27 PM
    • 724 Posts
    • 912 Thanks
    zippygeorgeandben
    I'm sure that it's everyone else's fault and not the OPs when they head to the Bankruptcy board...
    End Sep 2016 End Nov 2017
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £2470.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £933.36 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £3403.40 Original DFD May 2019.
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