Just been refused a consolidation loan

Dozmonster

CLAPTON wrote: »

I'm a little confused... to be paying 370 in interest on debts of 11,000 your average APR must be over 40% .. is that really the case?

Sorry forgot the loan is part of that so that needs to come off the total

Remember when you apply for a 11k of loan they 'see' you as having 11,000 + 11,000 i.e. 22,000 in total debt. (you may be intending to repay the CC debts but you're not obliged too.)

Just a thought, but does any company accept people and do the transfers in order to ensure that peeps dont just rack up the loan on top of what they already owe?

If you're only paying the minimum each month then that's seen as very high risk

yep, minimums all the way

Are you snowballing your current debts ..i.e. paying the minimum on each debt except the one with the highest APR and on that one pay as much as possible.

no but will start doing so

If Yourshire don't come up with a loan maybe trying for low life of balance CC or 0% BT cards will help reduce the interest so allowing you to repay much faster.

should I stay clear of any new applications for now or is the 0% market different to the personal loan market?

Thanks again to all that have given constructive advice.

StuTheDon

Doz,

I am not aware of any lenders that will pay your creditors directly. I think your best course of action is to snowball the debt (i.e. pay minimums on all balances excpet the one with the highest APR) to get them paid off.

The best place to go for help is the Debt Free Wanabee board - post a statement of affairs and those guys will be able to give you great advice.

FCRangers

When applying for a loan does age matter? I'm 24 now but 25 next wednesday thinking of applying for a 5.5k loan to sort a few things out. should i wait

TBeckett100

a friend came to me as a man of finance and asked me to help her get a loan.

She owes 13k on cards and loans and banks with HSBC.

I told her to apply to Zopa where she was declined due to underwriting and then to try Halifax, where she was declined. Both times it was down to exsiting commitments, despite wanting a consolidation loan.

Anyway, she tried her bank HSBC and she told them it was for a new car and she was approved for another 10k.

It is a weird world of credit.