Loan declined,could my request for repayment of charges be partly to blame?

molevalley

I am currently paying out just over £900 a month to pay off two unsecured loans (one with Nationwide) and three creditcards, total owed just short of £20000.
I take home just under £1100 and am forever overdrawn, this month I went over my overdraught so obviously I will have charges to pay.
In June I recieved a letter from Nationwide offering to extend the existing loan, so thinking that I could consolidate all debts in to one monthly payment and make it more affordable I phoned my branch and booked an appointment to see them. Last week I went in and apart from a 30 minute delay everything started well enough, we went through my finances and decided to apply for a £20000 loan payable over 60 months and at just over £520 a month it was easily affordable and would bring me clearly in to the black and keep me there.
The advisor put all the details through the computer and I was declined, she was surprised and very kindly rung the authorisations department to see if she could get a reason. She told me that I was declined purely because my balance was always in the red, that the credit search was fine and that if I can get my balance in the black and keep it that way I would have a greater chance of being successful in six months time.
She was very apologetic, because she could see that that is not possible with out some form of restructuring my debts, ie. the purpose of the loan.
I have applied for a refund of past charges from Nationwide and that is, like a lot of people's claims on hold (since August 2008) and obviously they are still charging me for missed payments and overdraught charges, so is it possible that Nationwide declined the loan because it is more profittable for them to make money out of charges than from the interest on a new loan?
I feel really deflated after this as its a horrible black cloud over me that I can seem to do very little about.
Any advice would be greatly received.

Rafter

If your take home pay is £1100, your salary is less than £20,000 and you are trying to borrow that much.

Generally borrowing 50% of your salary is pushing it.

You need to fill out a statement of affairs and call CCCS or debtline to get some help. How are you paying rent, bills, food etc with only £200 left after your debt repayments?

R.

http://www.makesenseofcards.com/soacalc.html

PNPSUKNET

is this user id taking the mick?

molevalley

PNPSUKNET wrote: »

is this user id taking the mick?

Why do you ask?
I live within this area "m0IIevaIIey.g0v.c0.uk" and chose this as a user name, obviously I'm not using my real name just as you have'nt, are you just a silly child that thinks there's a link between molevalley and being gay?
Grow up for goodness sake!

Because I am a new user I am unable to post links so I have changed the spelling of the councils website, but it does exist

ILW

molevalley wrote: »

Why do you ask?
I live within this area "m0IIevaIIey.g0v.c0.uk" and chose this as a user name, obviously I'm not using my real name just as you have'nt, are you just a silly child that thinks there's a link between molevalley and being gay?
Grow up for goodness sake!

Because I am a new user I am unable to post links so I have changed the spelling of the councils website, but it does exist

??????????????????

~Brock~

I would imagine the fact that you continue to be charged for missed payments etc, as you say, is likely to be a big contribution to the reason.

You sound like you are bordering on needing to consider debt management as a way forward. Take the emotion out of it and ask yourself if you would lend £20k unsecured in those circumstances.

molevalley

~Brock~ wrote: »

You sound like you are bordering on needing to consider debt management as a way forward. Take the emotion out of it and ask yourself if you would lend £20k unsecured in those circumstances.

This is something that I have already started to look into with CCCS and I'm just waiting to hear back from Nationwide as I have been advised by their own staff to put in appeal (which I have now done), if I am unsuccessful then I will go down that route and I have already spoken to my employer about long term overtime as well as selling any items from home that I no longer use on ebay (Don't expect a lot but every little helps)
One of the problems with this sort of forum is that its difficult to put over the full facts, especially with regard as to how I got into this mess.
Put shortly, I used to have a reasonably paid job, had the oportunity to run my own small shop, successfully got a loan to help start it up, did well for a few years, had a national competitor open up a few hundred yards away from my location and kill the business literally next day, got a new job, fought against the tax man for three years for demands that were way over the top after closing my business initially on my own as my accountant ceased trading, worked hard, got promoted and then burntout and lost all confidence in myself, for three years I couldn't hold down a job, finally got my head out of the sand, sought medical advice and recieved incredibly good support for depression. Next mistake though was to take out a loan (surprised I got it!) two years ago, with hindsight I was persuaded to take out more than I required and paid for re-training to get a qualification and a skilled job, again was successful but because of lack of actual work experience in my new work area I've had to take a huge cut in my salary, hence the difficulties I now face (I've actually only missed a couple of payments in the last two months) but could see it never getting any easier.

However taking the emotion out of it and looking at the sum from a purely financial point of view then I would consider the fact that as I am in full time work in a field that is one of the least likely to be effected by the recession (fingers crossed), and I am now healthy and could very easily afford to pay back the payments that the loan quoted, then yes I would lend that sort of money, but then I am not a banker.

I do live in the real world and I only posted here for advice, not sympathy, but I have to say that I had my doubts about asking here for advice as I've noticed recently that a lot of comments are judgmental and have nothing to do with the OP's request (like a previous posters comments about my user name and the follow up with question marks, really helpful).

At least the last post was reasonably helpful, thank you for that.

~Brock~

molevalley wrote: »

This is something that I have already started to look into with CCCS and I'm just waiting to hear back from Nationwide as I have been advised by their own staff to put in appeal (which I have now done), if I am unsuccessful then I will go down that route and I have already spoken to my employer about long term overtime as well as selling any items from home that I no longer use on ebay (Don't expect a lot but every little helps)
One of the problems with this sort of forum is that its difficult to put over the full facts, especially with regard as to how I got into this mess.
Put shortly, I used to have a reasonably paid job, had the oportunity to run my own small shop, successfully got a loan to help start it up, did well for a few years, had a national competitor open up a few hundred yards away from my location and kill the business literally next day, got a new job, fought against the tax man for three years for demands that were way over the top after closing my business initially on my own as my accountant ceased trading, worked hard, got promoted and then burntout and lost all confidence in myself, for three years I couldn't hold down a job, finally got my head out of the sand, sought medical advice and recieved incredibly good support for depression. Next mistake though was to take out a loan (surprised I got it!) two years ago, with hindsight I was persuaded to take out more than I required and paid for re-training to get a qualification and a skilled job, again was successful but because of lack of actual work experience in my new work area I've had to take a huge cut in my salary, hence the difficulties I now face (I've actually only missed a couple of payments in the last two months) but could see it never getting any easier.

However taking the emotion out of it and looking at the sum from a purely financial point of view then I would consider the fact that as I am in full time work in a field that is one of the least likely to be effected by the recession (fingers crossed), and I am now healthy and could very easily afford to pay back the payments that the loan quoted, then yes I would lend that sort of money, but then I am not a banker.

I do live in the real world and I only posted here for advice, not sympathy, but I have to say that I had my doubts about asking here for advice as I've noticed recently that a lot of comments are judgmental and have nothing to do with the OP's request (like a previous posters comments about my user name and the follow up with question marks, really helpful).

At least the last post was reasonably helpful, thank you for that.

There was nothing judgemental in my reply - it was based on almost 30 years experience in the industry.

There is some truth in the old saying that if you want a loan, you need to be able to prove that you don't actually need it. Especially nowadays. 20 grand is a lot of money to lend on an unsecured basis by anybody's standards, and I would suspect that the lending criteria you have fallen foul of has taken this into account.

molevalley

~Brock~ wrote: »

There was nothing judgemental in my reply - it was based on almost 30 years experience in the industry.

There is some truth in the old saying that if you want a loan, you need to be able to prove that you don't actually need it. Especially nowadays. 20 grand is a lot of money to lend on an unsecured basis by anybody's standards, and I would suspect that the lending criteria you have fallen foul of has taken this into account.

I wasn't referring to you at all, I actually thanked you.

woody01

are you just a silly child that thinks there's a link between molevalley and being gay?

There is though.
A bloke told me in the pub that everyone from there is a shirt lifter.

---

Sorry but £11K is a low salary.....when you a £20K loan into the equation its ridiculous.

molevalley

woody01 wrote: »

There is though.
A bloke told me in the pub that everyone from there is a shirt lifter.

---

Sorry but £11K is a low salary.....when you a £20K loan into the equation its ridiculous.

Its ridiculous the standard of replies this forum gets, pretty poor, what with your first comment and then the next, if you are unable to do simple sums you shouldn't bother replying, I don't earn £11K and what equation are you "a"ing? considering you edited your own reply you'd think you would bother checking to see if what you are saying makes sense.
Just as I said earlier very rarely on these forums do you get a helpful reply.