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  • FIRST POST
    • Vicande
    • By Vicande 6th Jan 18, 9:56 AM
    • 12Posts
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    Vicande
    Debt solution?
    • #1
    • 6th Jan 18, 9:56 AM
    Debt solution? 6th Jan 18 at 9:56 AM
    Hi all, I am struggling to find a solution to my problem with 2 loans so want to know if you have any ideas.
    My family went through a difficult 4-6 year period in which I basically sustained them all. My parents lost their house so donít have that now as a back up. My salary wasnít just enough for all of us and I think I got into too many stuff. Things are now ok but want to move forward and see how I can pay less monthly.
    I have 2 outstanding loans one I owe £ 15000 and the other around £25000. Between the 2 comes up to monthly payments near £1000. I have been managing this for over a year but would really want to reduce it.
    My salary is £43000 per year and was thinking in searching for a loan to cover both and the. Have only 1 monthly payment, I can easily afford a £600 monthly fee. I have no other debts, never missed payment or nothing like i. Not a home owner, rent with my partner.

    Any ideas would be appreciated,
    Thanks!!!!
Page 1
    • zx81
    • By zx81 6th Jan 18, 10:21 AM
    • 14,908 Posts
    • 15,740 Thanks
    zx81
    • #2
    • 6th Jan 18, 10:21 AM
    • #2
    • 6th Jan 18, 10:21 AM
    You won't get any significant further borrowing on that income.

    Look to overpay the most expensive debt and visit the DFW boards for advice on cutting costs.

    Try an eligibility checker to see if you have any chance of a money transfer card that you could could use to shift a small amount of the debt.
    • ViolaLass
    • By ViolaLass 6th Jan 18, 10:29 AM
    • 5,212 Posts
    • 7,231 Thanks
    ViolaLass
    • #3
    • 6th Jan 18, 10:29 AM
    • #3
    • 6th Jan 18, 10:29 AM
    What are the interest rates on the loans?

    Do you have any savings? Do you have anything you can sell? Can you earn more?
    • BrassicWoman
    • By BrassicWoman 6th Jan 18, 11:05 AM
    • 1,417 Posts
    • 6,090 Thanks
    BrassicWoman
    • #4
    • 6th Jan 18, 11:05 AM
    • #4
    • 6th Jan 18, 11:05 AM
    If I had £40k debt and could afford £600 a month and no serious assets, I'd go bankrupt and be done with it within a year.
    Jan 18 grocery challenge £105.13/ £150
    • Vicande
    • By Vicande 6th Jan 18, 11:25 AM
    • 12 Posts
    • 0 Thanks
    Vicande
    • #5
    • 6th Jan 18, 11:25 AM
    • #5
    • 6th Jan 18, 11:25 AM
    Have little saving not enough to cover any loan. Nothing to sell. I could make maybe 200-400 more a month but not much more
    • Vicande
    • By Vicande 6th Jan 18, 11:27 AM
    • 12 Posts
    • 0 Thanks
    Vicande
    • #6
    • 6th Jan 18, 11:27 AM
    • #6
    • 6th Jan 18, 11:27 AM
    So basically BrassiCWoman you think I will go bankrupt and that’s it?
    • enthusiasticsaver
    • By enthusiasticsaver 6th Jan 18, 11:54 AM
    • 5,163 Posts
    • 9,815 Thanks
    enthusiasticsaver
    • #7
    • 6th Jan 18, 11:54 AM
    • #7
    • 6th Jan 18, 11:54 AM
    There will be no advantage to you in consolidating unless you can get a significantly lower interest rate than you are paying. What rate are the loans?

    Are your parents not helping you repay the loans?
    Debt free and mortgage free and early retiree. Living the dream

    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
    • DCFC79
    • By DCFC79 6th Jan 18, 12:39 PM
    • 30,607 Posts
    • 19,355 Thanks
    DCFC79
    • #8
    • 6th Jan 18, 12:39 PM
    • #8
    • 6th Jan 18, 12:39 PM
    No way will you get another loan, it just wont happen. Not sure if making savings will help much, maybe bankruptcy is your best option, give 1 of the free debt charities a call and discuss it with them.
    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.
    • BrassicWoman
    • By BrassicWoman 6th Jan 18, 5:41 PM
    • 1,417 Posts
    • 6,090 Thanks
    BrassicWoman
    • #9
    • 6th Jan 18, 5:41 PM
    • #9
    • 6th Jan 18, 5:41 PM
    So basically BrassiCWoman you think I will go bankrupt and thatís it?
    Originally posted by Vicande
    It's never "it" but it's worth psting on the bankruptcy board to see if that is your best option.
    Jan 18 grocery challenge £105.13/ £150
    • Vicande
    • By Vicande 6th Jan 18, 6:19 PM
    • 12 Posts
    • 0 Thanks
    Vicande
    Do you have the details of the free debt charities?
    I am not sure how bankruptcy works either.
    My parents now sustain themselves but have no money extra or savings o anything to sale to pay the debts.
    • DCFC79
    • By DCFC79 6th Jan 18, 7:18 PM
    • 30,607 Posts
    • 19,355 Thanks
    DCFC79
    Do you have the details of the free debt charities?
    I am not sure how bankruptcy works either.
    My parents now sustain themselves but have no money extra or savings o anything to sale to pay the debts.
    Originally posted by Vicande
    step change is 1,

    Google free debt charities.
    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.
    • Vicande
    • By Vicande 7th Jan 18, 10:34 AM
    • 12 Posts
    • 0 Thanks
    Vicande
    Thanks for the advice. Been reading loads through step Change charity.
    I forgot to clarify that the smaller loan is not from a UK bank or loan lender, I had it before I came to the UK, so I guess it is not register anywhere here in the UK. I mean, I send the money to the account outside the UK to pay it but I guess here there is no register of where and for what I send that money.
    Does that change things?
    • BrassicWoman
    • By BrassicWoman 7th Jan 18, 10:39 AM
    • 1,417 Posts
    • 6,090 Thanks
    BrassicWoman
    Thanks for the advice. Been reading loads through step Change charity.
    I forgot to clarify that the smaller loan is not from a UK bank or loan lender, I had it before I came to the UK, so I guess it is not register anywhere here in the UK. I mean, I send the money to the account outside the UK to pay it but I guess here there is no register of where and for what I send that money.
    Does that change things?
    Originally posted by Vicande
    depends ...

    https://bankruptcy.co.uk/faqs/can-include-foreign-debt-bankruptcy/
    Jan 18 grocery challenge £105.13/ £150
    • Vicande
    • By Vicande 7th Jan 18, 10:46 AM
    • 12 Posts
    • 0 Thanks
    Vicande
    I will search more information about it but a loan from a EU it looks like it can.
    • BrassicWoman
    • By BrassicWoman 7th Jan 18, 10:51 AM
    • 1,417 Posts
    • 6,090 Thanks
    BrassicWoman
    I will search more information about it but a loan from a EU it looks like it can.
    Originally posted by Vicande
    While we are in the EU; so I would not hang about!
    Jan 18 grocery challenge £105.13/ £150
    • Vicande
    • By Vicande 7th Jan 18, 10:58 AM
    • 12 Posts
    • 0 Thanks
    Vicande
    If one of the loans is not in the UK and there is like no trace of it in my credit score or anywhere, won’t it make a difference if I then try for a second loan here?
    I mean, I have never missed any payment on anything, rent, bills, the UK loan, always paid on time. My credit score last time I checked was 886, and my bank offers me a loan for 20000 over 60 months, which I don’t take because it doesn’t solve my problem. What I need or would like is a way to instead of paying two monthly loans to pay one, but would really want to pay off my debt and not declare bankruptcy. Been reading about it and it has his good thing but it also has lots of consequences.
    Bit stuck I think
    • ViolaLass
    • By ViolaLass 7th Jan 18, 11:01 AM
    • 5,212 Posts
    • 7,231 Thanks
    ViolaLass
    I never understand why people are keen to consolidate just to reduce the number of monthly payments. It won't make any difference unless you reduce the interest rate and/or throw more money at the debt.
    • Vicande
    • By Vicande 7th Jan 18, 11:19 AM
    • 12 Posts
    • 0 Thanks
    Vicande
    I never understand why people are keen to consolidate just to reduce the number of monthly payments. It won't make any difference unless you reduce the interest rate and/or throw more money at the debt.
    Originally posted by ViolaLass
    I know that I will still be owing and having to pay for a long time, but is a way of affording better my debt. I will be able to pay without struggling and will pay off my debt eventually. Bankruptcy is much more radical option I think.
    I really donít see how declaring myself bankrupt which has lots of side effects will be better for me than trying an option that will let me breathe a bit but also pay off my debt.
    That is why I speak advice, cause I have no clue about these matters, why would bankruptcy will be a better option?
    Why trying to put everything down the same loan which I could comfortably pay is such a bad idea?
    • zx81
    • By zx81 7th Jan 18, 11:26 AM
    • 14,908 Posts
    • 15,740 Thanks
    zx81
    Because when it comes to consolidation loans, the 'one loan that you can comfortably pay' doesn't exist.

    It was a very effective marketing strapline popularised by Ocean Finance in the 90s.
    • DCFC79
    • By DCFC79 7th Jan 18, 11:27 AM
    • 30,607 Posts
    • 19,355 Thanks
    DCFC79
    I know that I will still be owing and having to pay for a long time, but is a way of affording better my debt. I will be able to pay without struggling and will pay off my debt eventually. Bankruptcy is much more radical option I think.
    I really don’t see how declaring myself bankrupt which has lots of side effects will be better for me than trying an option that will let me breathe a bit but also pay off my debt.
    That is why I speak advice, cause I have no clue about these matters, why would bankruptcy will be a better option?
    Why trying to put everything down the same loan which I could comfortably pay is such a bad idea?
    Originally posted by Vicande
    You owe 30k and you earn 43k, with all the other costs eg living costs could you pay the debt off, would take a while mind, bankruptcy just gets it gone but you have it on your credit file for a year I believe.

    Another loan (consolidation loans dont even exist) just wont happen, your already over stretching yourself as it is.

    What are the rates for the 2 loans ?
    Last edited by DCFC79; 07-01-2018 at 11:33 AM.
    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.
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