Maximum Unsecured Debt Allowed

LAH1

I would appreciate some help....

I currently have an unsecured loan of £4k and credit cards totalling £13k. I would like to consolidate everything into one loan, as the credit cards' interest rates have rocketed recently, and I'd also like to pay off the loan as I was duped into payment protection that's costing an arm and a leg.

The problem is, I have been told that you cannot have more than £20k in unsecured finance at any one time. I would immediately clear the old loan and credit card balances, but I guess how can the new loan company know this?

Is there a way around the problem or do I have to wait until my debt is only £10k when I can then apply for a further £10k to clear?

Thanks

jonesMUFCforever

Maximum loan under CCA is £25000.
Some banks/lenders may have their own lower limit.

I would first go to debt free wannabe board which is free and will help you budget better to get rid of some of your debt.

One last thing - work out why the debt has accrued - there is no point in consolidating if you spend more than you earn.

~Brock~

jonesMUFCforever wrote: »

Maximum loan under CCA is £25000.
.

That was abolished last year.

Unless the loan is to a business, or a statement of high net worth has been signed (not worth the effort in most cases) then all unsecured lending, and most secured lending, comes under the CCA.

There is no legal limit to the amount of unsecured debt allowed, however most lenders will have their own maximum and it will vary depending on their assessment of the risk attached to the borrower.

LAH1

Thanks. So basically what I expected is true, i.e. I should wait until I have cleared a bit more of the debt i.e. paid off the loan (only 8 months to go) before trying to get a loan to cover the credit cards?

Thanks

PS, I don't need to worry about why I got into debt thanks - I was made redundant and had to re-train. Credit cards were a means to an end and now I am reaping the rewards with a well paid job. I can quite happily pay them off, just would rather get a lower interest rate!

CLAPTON

if you have a decent income and a decent credit record why not try for 0% BT CCs and transfer as much as possible... it's not all or nothing, a little piecemeal approach might be successful and significantly reduce your interest payments.