Cant get a Loan

thelostbeatle

Hi all,
i currently have 3 credit cards all in debit, adding up to £6,000, i also have a person loan that has a remending £2,000 which i pay back every month via direct debit, i currently hold 2 current account both with overdrafts or £500 and £700.

I have tried to get a loan to clear all balances and get a car however i have been refused, i was wondering does anyone have any suggestions as i dont want to apply for another loan as it will effect my credit rating even more.

I earn £21,000 a year and i rent a house, have had a few charges in the past to my current account but have made all credit card and loan payments,

if anyone has any ideas or advice much appreciated as my car is about to give in a nd thought if i took a loan and cleared the lot it would dramicaly help me,

thanks for reading

bouncydog1

Hi - you have £9,200 debt on an income of 21K so it is probably to do with your debt ratio to income why you cannot get another loan (people with more knowledge will obviously correct me if this is wrong).

You need to do a couple of things - up your income if possible to reduce your debt or if increasing your income by second job etc is not possible then you need to reduce your outgoings, again to enable you to pay more off of your existing debt.

Consolidation and additional debt is never a good solution - have a good look at the threads on the debt free board to see what happens in most cases!

Best thing to do is complete a statement of affairs (see link at the top of the debt free board) and post it on there for people to take and look and offer helpful advice as to how you can increase your repayments to reduce your existing debt. You will need amounts outstanding and apr's, together with all other details of income and expenditure.

Oh and nobody "needs" to buy another car - there is always an alternative - have you got a friend with car mechanic skills, local college, small local garage etc. Who has said your car is "about to give in" - is this proven or just your view?

I don't mean to be harsh but from your post I am assuming you are a youngish male and your car is your status symbol? A better status symbol is to be debt free and have money to live on that belongs to you and not to the bank!;)

thelostbeatle

Cheers bouncy dog, i dont think your harsh at all and thanks for the advice,
My car however is on its last legs i have a mechanic friend who does all the work to my car, fingers crossed i can keep it going for another few months,
thx