New Loan

dottilotti

Hiya,

I would be really grateful for some peoples help. I am not badly in debt but i AM in debt and it is getting me down and it is all my own fault but I really want and need to get it sorted. I will list everything I have got below and my rough amounts outstanding:

Littlewoods - £60
Next - £350
Barclays Overdraft - £760 (nearly always overdrawn and getting robbed via Barclays with the stupid reserve fee).
Barclays Loan - £1500
Barclaycard - £1900.00 (currently £80 over limit )

I really want to get a loan to pay most or majority of this debt off and to be honest I wouldn't think it would be that hard but I applied for a loan a couple of months ago and I was turned down. So i really don't know what to do.

I am more than capable of paying the minimum amount of a new loan say for £3500 - 4000 each month once everything is paid off. I just wish you could explain this to the companies and go look i want this loan to pay off all outstanding debts then I won't be getting in to financial trouble and i will have plently of money available to pay the minimum amount on the new loan. I even have employment insurance so that would pay for the loan if I lost my job.

My debt so to speak isn't getting me in to trouble it is my overdraft i am over all the time and can never seem to get back on my feet cos the minute I think I am ok Barclays take like £60 of reserve fees out my account and i am back to square one.

My question is does anyone know if it worth applying for a loan again and if so are there any good companies out there that would understand my situation?

Thanks for listening

Fonz_2

Lenders will look at a loan as an addition to your available credit as they have no guarantee that you're going to pay off the existing debt with it.

So in their eyes, you're actually asking to be considered for £9,000 total credit to your name rather than the £4,500 which common sense suggests.

With this in mind, if you're earning say £20,000 a year they will see that you're going to be dedicating almost 50% of your gross income to just keeping your debts serviced.

Given you have such a small amount of debt its well worth posting up a statement of your income and outgoings every month for people to try and spot areas where you could cut down or save money to repay your existing debt faster.

Joeler

How much do you earn?
What are you other monthly outgoings?

Best bet is to see if you can reduce what you spend on a monthly basis and use the difference to:

a) Get back inside your credit limits for overdraft and credit card - this will not only save you money but improve your chances of getting credit in the future by showing you can be responsible with it.

b) Start paying off overdraft to reduce fees. Even look at reducing this on a monthly basis to stop you spending it again.

If you get out a loan to pay it off you will just be paying interest on top of interest you have already paid and in the long run it's likley to cost you more.

Loads of good info on here on how to reduce outgoings and also improve chances of being accepted for credit so you are not alone!

Best of luck
Joeler