Fast Answer required please

trademark

for a colleague :

total debt £12k

wage £22k

to various credit cards and loan companies .

3 defaults and overall bad credit rating .

no ccj's ...

he's 20 and does not have any assets eg house

turned down by , nationwide , liverpool victoria , halifax , lloyds for a 6k loan

now needs a consolidation loan for 6k ..... could someone please advise of a possible loan company with a decent rate of interest (wont expect too much)

a web page or phone number would be most appreciated .

file_wizzard

Quick answer......


Dont bother with another loan!!


contact the CCCS / Payplan, dont even consider further credit, just repay what he owes in a structured and affordable manner

with the Defaults, his age, and the lack of any security he will find it more or less impossible to obtain further credit anyway, apart from some at a ridiculous interest level which will just drive him further into unmanageable debt.

Best advice is, deal with what he has now, and dont put himself into a situation which will prolong the problem

Sorry to sound harsh, but that’s the way it is !


However if he dose decided to try for a further loan, Black Horse Finance ( lloyds TSB sub prime lender) may consider him for a lower value, doubt they would go for the whole 6k, and defiantly not if the existing defaults are unsatisfied

Jen_Jen_5

a consolidation loan is never a good idea unless the reason for the debt is addressed.

does your friend overspend what his/her wage is, 12K debt by 20 years old?

how is a 6K loan going to help?

perhaps your friend should start looking at debt and how to manage debt, ie debt managment plan where he repays all the debt off at a rate he can afford and interest normally frozen by the creditors.

with a poor credit rating your friend is not likley to get a loan at a good rate.

Bestthingsinlifearefree

Hi Trademark,

The consolidation loan is not the cure but a symptom of his problems.

You need to advise him to get here on the debt forum and post his out goings and incomings and see with his fairly decent wage he can cut his spending and throw the spare money to reduce his 12K debt (or at least amend his ways to stop running up more debt)

By applying left right and centre for loans he is probably ruining his credit record and even if he did get a consolidation loan it would probably be at a rip off interest rate.

Probably not the advice he wants to hear but probably very good advice for him.

trademark

THANKYOU everyone ... hes going to post his debts tonight as he cant remember his username .... so any further help would be appreciated

Jen_Jen_5

okay, pen and paper time, he needs to spend this afternoon writing down all his incomings and outgoings, to think about all the "little" bits of money that are spent eg buying a mag, going for a beer, lunch at work.

the best way to do this is start with the essentials, travel, rent, gas, food etc and then the non-essentials
he also needs to write down all his debts (possibly more than 12K when written down) all the APR's hes paying, the amount of minimum payments and total outstanding.

basically a debt management plan will look at income take away essential outgoings and any left over money will go to creditors, that is why its very important to think carefully about all spending.

not a fun way to pass the day but essential for MSE's to provide good advice.