Help!

modu

Hi Folks!

Does anyone know the ratio of salary to debt lenders are willing to lend at ? I am quite certain I read something about this a while ago.

The reason I ask is because I want to close down all my credit card debts (£7,700). The monthly repayments are killing me, I fear I may default. My monthly outgoing have increased due to paying for an expensive college training course.

£10,844 car Loan held for a year with B.O.S. I earn £20.000, I have never missed a payment, I am a tenant at my current address, and on the voters register for last 2 years.

Will any lender consider me ? Thanks for all advise and help !

Mercuryrising

Have you considered transferring your balance to low APR permanent credit cards - American Express and Intelligence finance do 4.9%. Morgan Stanley and Sainsburys do 5.9%. That will be far cheaper than any loan you might realistically get.

I think Amex are introducing Balance Transfer fees of 2%, Morgan Stanley helpfully say they 'may' have a fee but Sainsburys clearly say that no there is no fee. However, any fee paid would normally pay for itself within a few months if the APR is significantly lower.

I would not recommend getting a loan to pay all of these off - if only that so many people think that a consolidation loan is an answer to all their problems then they start spending on their cards. I deeply regret doing it.

Old_iron_balls

Mercuryrising wrote:

I would not recommend getting a loan to pay all of these off - if only that so many people think that a consolidation loan is an answer to all their problems then they start spending on their cards. I deeply regret doing it.

indeed. try a search under 'consolidation loan' and have a good read.

It looks a great idea - one low monthly payney etc etc but more than often, in the long run you end up paying a fortune in interest over a longer period.
also as Mercuryrising said there is also the chance you may re-spent on your cards again.
we all say we wont - but we do :rolleyes:

maybe post your SOA on the debt-free wanabee board ?

good luck :beer:

modu

Thanks to Mecuryrising and Old Iron Balls

The fear I have is that because the balance on my cards are at their limit I am afraid no other card provider will be willing to agree a balance transfer.

I am trying to do my best to avoid a wasted credit search, this happened 2 months ago when I applied to G.E Money for a consolidated loan.

Thats why I have waited 2 months , and I'm trying to re-apply now !

modu

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modu
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Thanks to Mecuryrising and Old Iron Balls

The fear I have is that because the balance on my cards are at their limit I am afraid no other card provider will be willing to agree a balance transfer.

I am trying to do my best to avoid a wasted credit search, this happened 2 months ago when I applied to G.E Money for a consolidated loan.

Thats why I have waited 2 months , and I'm trying to re-apply now !

Mercuryrising

But they can also reject loans as well you know. And I have NEVER been rejected for a credit card in my life despite being in debt due to these godawful consolidation loans.

However, to answer your question - you can pretty get any amount loaned to you up to £25, 000. If you do decide to go down that route (which I STRONGLY disagree with) at least make sure about the following 3 conditions.

1 - Do not buy PPI (Payment Protection Insurance) - it is the biggest waste of money ever. If you are worried about your health, employment etc then a loan is probably not for you - contact the CCCS or any other good debt charity.

2 - Make sure that the loan is FLEXIBLE - ie - you can overpay whenever you want. That means if your finances improve you can save yourself ££££ of interest. Egg do it as do TSB - if you're not sure just ask on here.

3 - The APR. If it's anything above 8% don't take it (or at least get good advice).

EagleGreen

One thing to note as well .. if you are going to follow the cheap Credit Card interest route, make sure you realise that Amex minimum payment is 3% each month, not 2% like most providers.

That can make a difference to your monthly outgoings which seems to be what you are concerned about.