Assistance with Loan

Jamieds1984

Hello Everyone,

I've been in debt for several years now, since I was 18 and could get a Credit Card. I'm now 23 and after several new cards and card transfers I seem to be worse off and only being able to make the minimum payments means I'm not getting anywhere fast. I'm trying to think for the future, get this debt sorted and then try and save some money!

Currently I owe around £4000 on 3 seperate cards (not alot of money to some but to me it is) and £1000 for a Personal Borrowing from a Parent. I'm thinking about getting a Loan to try Consilidate everything into one place to reduce my monthly payments and hopefully get my finances into shape but to be honest I'm feeling a little confused.

Debt - £5000 total
Monthly Income - 500-600
Outgoings - 300 Rent & Bills etc
Cards - 100-150
This is a general good montly amount, sometimes its much worse off depending on the amount of hours I get at work, usually I end up with no Cash on my Debit and have to use a Credit Card to pay for things... nasty repeating circle...

Ideally I would like one that A) obviously doesn't require HUGE payments each month Can have extra paid off when I have free cash C) Something that I can actually get accepted for

I have applied for a few loans but no one seems to be accepting at the moment which is a shame because i think a loan would be the easiest way to get my debt sorted... Does anyone have any suggestions as to which/who I should speak to I seem to be stuck in this loop and it's no fun...

Appreciate any help given
Jamie

Rafter

Jamie,

Given your current debt, low and slightly eratic income and the current economy, I think you are very unlikely to get a loan.

In my view you should try 'snowballing' and putting your budget onto the 'debt free wannabe' board to see if anyone can see how to get your outgoings down.

You should also have a look at your job and income and see if you can find something that pays a bit more of find a second job.

Snowballing is prioritising your debts and paying off the highest interest one first. You should also aim to repay more and more of your debt each month as your minimum payments drop.

The issue for you is the length of time it will take to be debt free. Assuming you have 'surplus' income of only £50 it will take you 8 years to repay your current debt.

Your only other option is to default on your cards, declare yourself bankrupt or enter into a repayment plan with your current card providers.

That will prevent you being able to borrow in the future though and shouldn't be done lightly without talking to a debt charity.

If you haven't already done so, you should also claim back your credit card charges and bank charges for the last 6 years following the guidelines on this site. You won't get a payout straight away, but you might get a tidy sum to make a decent hole in your current debts.

Good luck

R.