More Out than In

Optik_2

this forum is great, thanks for all your tips keep them coming

As for putting the barclays loan on a credit card, it'll probably be them i apply from a cc with so not sure how they will see that, they want to make to most money out of me after all no matter how i am struggling (harsh but fair)

So i doubt I would be able to slap £9000 on a credit card and pay off the loan.. how would the bank see this, would they allow it?!?
If i can get rid of 1 that'll be great.

I tried to up my loan with Barclays to £10000 which gives me more options and a longer time to pay but I am not authorised for the extra £300.. why is this.
If i could pay over longer period (10years) it would lower my monthly outgoings.. BUT i would be paying SOOOOO much interest at 17%

HELP U GUYS..

so
1. get a consolodation loan
2. get a credit card and put one of my loans on to it.

Anything else I can do?!?
i have no savings nothing just -£800 in my bank and I only have £100 until i go over my overdraft limit (which barclays wont' increase)
Would a new account be advisable?

I would like to start saving some money per month (even £50 would be nice) but cannot do it if I am maxing out every month..

Jen_Jen_5

if you are going to incurr overdraft charges every month it might be worth opening a new account so that you remain within your budget and dont incurr charges. if youre not staying within your monthly income look at it again and cut back some more (easier said than done )

if you have money left over for saving you'd be better to pay off the debt more quickly because of the interest rate.

thaylock

Northern Rock will charge 6.5% over 10 years for a loan of £13,000. Look at: http://www.northernrock.co.uk/html/ploans/personal_loans.htm then select repayment calculator for a quote

ilovesooty

Thanks - I'm finding this very useful.

Optik_2

What about my bad credit rating (mostly by too many searches and electoral role)
Are Northern Rock ok if it is for consolidation?

so I am looking at £13,000 over 10 years.

I am worried incase I am declined..as this seems to be the only way to get out of my debt.

HELP !!!

Debt_Free_Chick

What about my bad credit rating (mostly by too many searches and electoral role)
Are Northern Rock ok if it is for consolidation?

so I am looking at £13,000 over 10 years.

I am worried incase I am declined..as this seems to be the only way to get out of my debt.

HELP !!!

It doesn't sound too hopeful. If you are accepted, NR are likely to offer you a higher APR if your credit record is poor. There's no such thing as a consolidation loan .. it's just a loan. So you would need to speak to them to explain that you want it to pay off all your other debts. Otherwise they'll think that you want this debt (the new loan) in addition to your existing debts - and that alone could result in a refusal, even if your credit record were perfect.

And this not a way of getting out of debt. You are just swapping one lot of debt for another!

The ONLY way to get out of debt is to tighten your belt and cut all your spending. It won't last forever, just until you're debt-free.

The other options are to increase your income e.g. get a part-time job and/or sell stuff on eBay.

Sorry, but there are no magic solutions. A loan is definitely not a solution.

Debt_Free_Chick

the barclays is quite new so approx £9000.

I am paying very high interest on the barclays one about 17% and only 7% on the direct line one.

hmmmm that's a high rate for a recent loan. From lenders like Barclays, loan rates have not been that high for some time.

I wonder if this reflects your credit rating? If it does, then I don't see any new debt being an option.

Sorry to be so gloomy, but I think you will need to talk to some of the more reputable lenders - NOT people like Debt Free Direct, Ocean Finance or the other shysters!

Debt_Free_Chick

Northern Rock will charge 6.5% over 10 years for a loan of £13,000.

What they actually say is

Our typical APR is 6.5% and loans are available from £1,000 to £25,000. Rates vary according to your circumstances and loan amount

And under the T&Cs (always, always read these first) they say

Customers who do not satisfy our normal credit scoring criteria may be offered a loan at a higher APR than shown or be declined.

All lenders do this. If you have a poor credit record, it's practically certain that you will NOT get the headline rate. That's just marketing hype to tempt you in!

Optik_2

There must be some way of lowering my loan payouts from over £450 per month.
It's way too much.
even if I half it it would be a great help

Is there any way of removing footprints from my credit rating as this was done to get credit when buying a new house.

Debt_Free_Chick

There must be some way of lowering my loan payouts from over £450 per month.
It's way too much.
even if I half it it would be a great help

Is there any way of removing footprints from my credit rating as this was done to get credit when buying a new house.

You can lower your repayments in two ways

reduce the interest rate
extend the term

But both of these require you to take out a new loan (new debt) and this depends on your credit record.

And extending the term might mean that you actually don't save any money - you pay less per month, but pay for more months.

Sorry - there is no magic solution.

And you cannot remove information from your credit record. Actually, it's not your record. It's a record of your debt trail - and that's precisely the information that a lender wants to see so they can decide whether to lend you money and if so at what rate. Barclays used it when they decided to charge you 17%.

If you really want to swap the Barclays loan, you'll have to run the risk of another search on your credit file. There's no guarantee of the interest rate you will be offered and you may get a refusal.

You actually have surplus income every month, yet you manage to go overdrawn. This suggests that you are spending unnecessarily or that you don't have a firm grip on your finances.

Have you looked at reducing your spending to create more surplus? You could then save this up and probably pay off the Direct Line loan early. Once you've done that, keep your spending down and then save the surplus income plus the amount you were paying to DL ... then look at paying the Barclays loan off.

You have few options, I'm afraid.