Worth taking a loan? after defaults - who will lend?

syfodyas

Hello all - bit of a dialemma

My partner and I have accumilated the following debts


£1300 arrears on council tax
£550 arrears on electricity bill
£500 Capital One Mastercard
£400 Capital One Visa
£700 Natwest Mastercard
£200 Capital One Visa
£500 Egg Card
£55 Additions Storecard
£980 Natwest Overdraft (mine)
£250 Natwest Overdraft (Partners)
£730 Natwest Overdraft (joint)
around £300 arrears on childcare costs

I earn £1153 every four weeks after tax, and my partner £900

Obviousy we have a mortgage but the above debts are the one we would like to clear. Interest rates on the bank accounts and the credit cards are high, so I was thinking of taking a loan for £6000 to consolidate the debts or perhaps a £10,000 loan, putting the remaining money towards getting married.

Problem is... on my credit file I still have a default showing for T Mobile, it expires in 2007 but is marked as satisified. I have a second default showing for an old HSBC graduate account (overdraft woes!), I paid the final installment of this four weeks ago and the account is closed - however my credit file does not mark it as satisified and still shows an incorrect balance of £135. I contacted experian about this and they are on the case.

What loan options do you think I have? Obviously I want to go unsecure, but are there any specific lenders with decent rates you could reccomend considering my circumstances?

Do you even agree that a loan is a good idea?


Thank you in advance for any help you may provide..

grumbler

syfodyas wrote:

Do you even agree that a loan is a good idea?..

Only if:
1. You cancel all cards after this
2. Loan is not more than your debt - £6500.

You can't cope with your current debt and are thinking about increasing it .

Magentasue

syfodyas wrote:

so I was thinking of taking a loan for £6000 to consolidate the debts or perhaps a £10,000 loan, putting the remaining money towards getting married.

Do you even agree that a loan is a good idea?


Thank you in advance for any help you may provide..

£4,000 towards getting married? I think you need to address your spending - head over to Debt Free Wannabe for links to CAB, CCCS and National Debtline.

syfodyas

I found CCCS to be rather useless. I told them how much I was spending on sky tv / mobile and they insisted I simply reduce the costs. easier said than done considering that mobile is UNDER CONTRACT for the tariff we are on for at least 6 months and sky tv, if i reduce from £39 package to basic, I am forced to pay £10 a month for sky plus which pretty much brings it back to the same amount. again im under contract for sky.

I know the wedding sounds OTT but I figure we will do it soon. If I get a loan for debts only and in the future we need a bit of extra money for the wedding, my options will be greatly reduced considering I would have already had a loan.

So do you all at least agree I should get a loan for the debts? can ANYONE reccomend who would lend in my situation (on paper what I owe isnt a huge amount..)

rchddap1

Just be very careful. There are a lot of people on these boards who at one point thought like you..."its not aht much".....but a little way down the road they turn up on these boards asking for help on how to handle / manage / reduce their debts.

Personally I wouldn't borrow for a wedding. Its the people that count...not how much free food and booze you can shuv down people's throats.

grumbler

So do you all at least agree I should get a loan for the debts?

Yes, only for the debts.

Personal Loans: how to get the UK's cheapest Martin's article.

Magentasue

Well you and your partner earn just over £2000 a month, how much can you cut your outgoings so that you can repay your debts (get the council tax straight first) and get your credit rating back on track.

Can you cancel your Sky package and just pay £10 for Sky+ until the contract runs out? Having the basic package plus Sky+ will still save at least £10 a month. CCCS were trying to maximise the amount of money you have available to repay your debts. With Sky and contract mobiles you are living beyond your means and incurring more debt and more interest.

I don't mean to sound critical because I've been there and I'm still digging out - I just think that consolidating and continuing overspending isn't the answer to your problems - just a way of making the worse.

syfodyas

can anyone suggest who would be a good lender for a loan considering I have satisified defaults on my record?
I NEED to clear these overdrafts and creit cards (I WILL be cutting them up)