I need a debt consolidation loan (Experian rating - Poor)

Morrissey_2

At the moment i am paying out £180 a month on a £6,000 Natwest Loan APR 8.9%, £110 on a 2,500 Liverpool Victoria Loan APR 12.9% and have a CC balance of 1600 (19.9 APR) (never missed a payment in 2.5 years)
I have had to move location with work which has meant i dont have enough to live on (Well i have about £55 a month for food, socializing, clothes etc)
I would dearly love to get a £10,000, 10 year Northern Rock debt consolidation loan (APR 5.5) and get my outgoings down to £100 a month while my career picks up (Which it is doing, thank god)
However i have an experian rating of Poor, due to 2 defaults - 1 loan, 1 CC which were defaulted in 2001 and paid off in Jan 2004. Meaning Northern Rock is no no as would Moneyback Bank et al

So:

1) Will my defaults dissapear in Jan 2007 OR Jan 2010?
2) Will my Experian rating jump straight to Excellent in Jan 2007 (10) when my defaults disapear, due to my flawless credit in the previous 6 years
3) What is the lowest APR loan i can expect to get with a "poor score"? ( I know a lot of people dont reccomend them, but at the moment i need to get my debt repayments down to £100 £120/month, what exactly are the best "easy to get" loans?


Thanks for any help offered

oops_a_daisy

Hi Morrissey - welcome to DFWannabees. Before you do anything can you do a full Statement Of Affairs ( SOA ) on here and let some very experienced ( not me ) people look at it. There is a sticky thread at the top of DFW page entitled first time posters which will be a great help to you. Good luck.

mjh1977

Hi

I don't know much about credit scoring, but it strikes me the first point of call might be NatWest, for an extension to the 8.9% loan, since you've a good track record with them. I know it's not the 5.5% loan but it might be a start until you can get Northern Rock sorted, and it may be easier to persuade them (or anyone else) to transfer a single loan rather than directly request a 'consolidation' loan from a company you're new to. If you do this, just ensure you can close the loan early and it says so on your contract.

Good luck.

M

Morrissey_2

Thanks guys, do many companies allow for 10 year repayment terms for £10,000?


I was turned down by Natwest last year to extend my loan for some reason! They did extend it about 6 months prior to this, however

Cheers

lynzpower

I would say, consolidation loans are very rarely the answer ( been burned plenty of times before) If you have other loans, I suspect you have been too.

If you pop up your SOA, and see if we can help you make savings. Im off to bed now though, but theres bound to be someone here to help

Lynz
x

Me_Myself_2

Your defaults would be cleared 6 yrs after the default. E.g. default in say May 2001, clears in May 2007.

CLAPTON

post your SoA and people will be able to offer suggestions based on some facts:

for your loans it would be help to say the monthly payment and the number of months left to pay and the settlement figure if you repaid immediately:

your defaults will stay on your credit file for 6 years so if you defaulted in 2004 then the default will stay until 2010.

difficult to say what you would be offered on a loan but it would be high interest rate.

SoA format is here

http://forums.moneysavingexpert.com/showthread.html?t=107280&page=1

also add general information e.g. partner, children, value of property and mortgage any special circumstances

Morrissey_2

Monthly Incomings:

My salary - £1,500

Monthly Outgoings:

Mortgage/Rent - £675
Council Tax - £89
Gas - £20 (estimate)
Electric - £20 (estimate)
TV License - £10.99
Sky £45.99
Phone - £30
Gym - £25
Car Insurance - £40
Petrol - £120
Internet £25
Natwest £180 - 8.9APR - £6000 left
Liverpool Victoria £110 -12.9PR - £2500 left
Credit Card £50 1600 left £19.9apr
Total: £1440.98

If i can get £340 down to £100 - £120, obviously that would give me money over each month to invest in my career and also, you know, enjoy life a little(MSCE and CCNA training at £3000)

I just want to get my payments down to 100-120 for around 12-18 months while i get my certification sorted out to get my career in the 35k+ bracket, thjen look to get thge payments up to £400 over 2/3 yeas to get rid quick

moozie_2

Hello there Morrissey and welcome :wave:

Here are some quick suggestions. I am sure you will get a lot more later on today.

Morrissey wrote:

Monthly Incomings:

My salary - £1,500

Monthly Outgoings:

Mortgage/Rent - £675 Can this be reduced at all?
Council Tax - £89
Gas - £20 (estimate) The quicker you get an actual figure the better. You don't want any nasty surprises with these two.
Electric - £20 (estimate)
TV License - £10.99
Sky £45.99 This is way too high. Get rid or reduce.
Phone - £30 Same with this.
Gym - £25 Do you need/it use it? You could make better use of the £25 and go for walks/run
Car Insurance - £40 Is this the cheapest you can get? Links on left for insurance articles.
Petrol - £120 Can this be reduced at all? Selling the car might help you tooInternet £25 You can get deals for as low as £13.99. Worth researching.
Natwest £180 - 8.9APR - £6000 left
Liverpool Victoria £110 -12.9PR - £2500 left
Credit Card £50 1600 left £19.9apr
Total: £1440.98

If i can get £340 down to £100 - £120, obviously that would give me money over each month to invest in my career and also, you know, enjoy life a little(MSCE and CCNA training at £3000)

I just want to get my payments down to 100-120 for around 12-18 months while i get my certification sorted out to get my career in the 35k+ bracket, thjen look to get thge payments up to £400 over 2/3 yeas to get rid quick

There is no mention of food. I assume you eat - do you pay for it by CC?

I appreciate at the moment you see as the only solution reducing your monthly repayments but I suggest you spend some time reducing your monthly outgoings. You will find that very helpful in the longer term and it will give you the flexibility you are lacking at the moment in dealing with things like car maintenance/MOT/presents/unexpected costs of any kind.

As your credit rating is not brilliant at the moment, it would be best to avoid applying for credit for a little while. If you reduce your monthly outgoings, you will have more money left over every month and you will be able to pay more off your debt each month.

Best of luck.

odLott

Morrissey, Can I just say that paying £3000 for MCSE or CCNA is a lot. Frankly, there is no way I would pay that amount for certifications that are not that valuable. If you must do them, you could achieve them for much cheaper by self-studying.

Buy the books secondhand on Amazon or eBay and you're sorted. I did my MCSE and MCAD like that.

Morrissey_2

Sorry, typo its £2000 for the both of them, studying in Bangkok on a working holiday.
Alas certification holds a lot of sway in the area i wanna work in Contracting/Consultancy in Asia