Natwest Joint Account and Loan advice

evilpikachu2000

Hi,

My partner and I will be getting married next January and we are wanting to open a joint bank account. Between us we earn £50,000 per year and are both in secure jobs.

However, with all these things there is a but. Our combined debt is £24000 (with the majority of £20,000 in CC and an Egg loan from me).

We were thinking that we could get a £24,000 loan from Natwest to pay off our debt, consolidate into a monthly payment over 4 years (£600 a month according to their website, though i'm sure this will change) and a joint account. At the same time we would be able to save extra cash for our wedding, whilst also but around £500 a month into a high interest ISA (over the 4 years as well) and have a healthy amount of savings once the debt has paid off.

With this plan with us we will be happily meeting the bank manager at the local Natwest on Saturday. I would very much appreciate it if anyone could let me know the chances of this actually working out for us?

Both of us have good credit ratings, though I have been rejected for a £5000 perosnal loan this week (I was going to get this to consolidate my CC debt and I think I was rejected just due to my number of CC and the large Egg Loan I have).

Appreciate any advice.

Beast

Fairly slim unfortunately. You'll be asking to take out £50,000 of debt commitment against a joint salary of £50,000.

evilpikachu2000

Thaniks for the reply, why would it be £50,000 worth of debt commitment? The loan would only be £24,000. The £500 a month into an ISA is a hypothetical thing we could do with the extra combined salary every month. Apologies if it wasn't clear.

Kavanne

Your rate in a branch will be higher than the online rate. Just saying.

Do either of you have a natwest current account already?

Beast

Because you're asking for £24k on top of your current £24k debts.

Ritchie74

evilpikachu2000 wrote: »

Thaniks for the reply, why would it be £50,000 worth of debt commitment?.

because you already have £24k of debt, so by getting a further £24k you could potentially max out to £48k. The banK has no way of knowing how you would use the new loan, even if you tell them it's to pay off the original debt, you are not legally obliged to. Also you could use the new loan to pay off the old, then rack up debt again on the CCs

evilpikachu2000

Thanks for clarifying. I currently have a Natwest account.

So, what would you say our options are?

jonesMUFCforever

Learn to budget a hell of a lot better!
Pay off what you owe before taking on any more debt.

Beast

The only realistic option is to identify ways to cut back to pay off your credit card debt faster.

stainedeye

if you call natwest ask for an adviser they can look at a screen called PAL which gives them an idication of if the loan would go though, it changes each month on the first and you may pre approve for a loan from time to time. use to work for rbsg

vaporate

As others have said, you have to pay the debt back. Getting other loans will not fix the issue.

I can't see any other way. There are no quick fix, unless you win the lottery or get an inheritance.