Need a loan to clear credit card debts ASAP!

asp_84

Dear Money Saving Experts,

Myself and my partner would like to get an £8000 loan to clear our credit card debts and increase our bank balance.

We were originally planning on transfering the balances to other 0% interest cards, but when our Egg card's introductory offer was near to expiring, we tried and were declined.
Realising that the 0% credit cards weren't interested in us we then tried Capital One but they would only transfer £900.

We are now in the following credit card situation:

EGG - £2600 (Limit £3000)
MINT - £3300 (Limit £3350)
CAPITAL ONE - £900 (Limit £1000).

We are living in rented accommodation and have applied for all of the unsecured loans that are listed on the MSE website but have unfortunately been declined by all.

Please inform me of any loan companies that possibly would accept us. Even if the interest rate or the monthly repayments are high.

Thanks in advance! ;D

hilstep2000

You don't want to go for just anyone! Get in touch with the CAB or National Debt helpline, and don't whatever you do go to one of these companies who offer to sort it out for you, they charge a fortune! The CAB will do it all for free. You don't always need a new loan, sometimes it only takes someone not involved to look at things clearly, and point you at a solution that you'd not thought of.
Have you looked at your budget, and really seen what you spend? I was watching "Moneyspinners" on the BBC this morning, they took a woman to Tesco to do her weekly shop which was usually £150, they made her buy all the "value" range and no ready meals, and the bill came to £18.56!! So see if you can save somewhere (even a daily paper adds up) and put this towards paying off your debts. Cut any cards up that you have so you won't be tempted to use them. I did this, now I only use my bank debit card, and if I know it's not in the bank I don't buy it.
As it's coming up to Christmas, could you ask relatives who usually buy you something for some money instead? It may seem weird, but family will understand, then you can use that as well.
Sorry to be bore, but I've had to do all this since my husband left me four years ago with two kids and a mortgage! It's hard, but you get there in the end.

svmitche

I don't want to be negative here, but if you have been refused by several loan companies you are unlikely to be successful with another reputable company. Also, by madly applying for more loans you are further damaging your credit rating.

I support everything that hilstep said, and also would like to ask why you wish to consolidate this debt. Is it purely because of the card interest? Are you still able to manage the payments?

If so, are you able to negotiate with one of your cards for a better rate?

Which one has the highest interest?

How about:

1. Find out which card has the highest interest
2. Pay the maximum you can off of this card to make it go down quicker
3. Pay the minimum on the other two cards
4. When you have some breathing room on the highest interest card then see what sort of shuffling can be done.

I know that you would rather just get a loan and pay all this off, but since people seem unwilling to give you one, you may have to stomach the interest just now until you have some space to play with.

Have you read Martin's credit card shuffling articles? They are a great help.

westernpromise

We are now in the following credit card situation:

EGG - £2600 (Limit £3000)
MINT - £3300 (Limit £3350)
CAPITAL ONE - £900 (Limit £1000).

One of those cards, the Mint or the Egg, likely has a cheaper rate than the other. Transfer as much as possible to the cheaper card for starters. Then chuck everything you can at the more expensive one.

Check on what your bank overdaft rate is compared to the cards. If your overdraft rate is less than one of the cards, use overdraft money to pay off some of the balance. There is no need to pay 12% or whatever to Mint if you can pay 10% to your bank instead.

Definitely hold off applying for more credit for a while. too many searches look a bit iffy.