Rejected by Tesco & Bank - advice please!

stclair

Was this done in branch or over the telephone?

I would try and get your overdraft down and apply again in 6 months.

If you need the funds now i would possibly try a sub prime lender you may have more success with them.

You could also try and appeal the natwest rejection?

kenh11

Stephanie:

Overdraft - £2000 which I am pretty much all the way into, have been for a year or two.

Graduate loan - roughly £2500 left to pay

Car finance - roughly £3500 left to pay, however paying £1100 will take me to roughly half at which point I can return the car with no problems.

So Im looking at about 5 - 6k, and the remainder was to be used to buy another car outright.

Overdraft is now charging me around £30 a month interest, graduate loan is £140 a month direct debit, finance is £120 a month direct debit.

The graduate loan I can manage to keep paying as is but if I am planning on "wiping them all out" I may as well do the same with this one.

I want to get out of the overdraft for obvious reasons and have struggled to do so just by saving.

The car finance is the biggest problem - currently the cars value has pretty much vanished, down to around £1000, so it makes sense to try to pay half of that off before 1 it breaks down and 2 loses any more value. Im basically in negative equity with the car (I think thats the correct term) and Im paying for not researching this more at the time.

Anyhow, after tax and so on my yearly take-home at the minute is around £12000.

Pretty shocking considering last year I was on £22k, but relocated as my partner got herself a job up North, and a transfer within the original company wasn't available.

kenh11

stclair wrote: »

Was this done in branch or over the telephone?

I would try and get your overdraft down and apply again in 6 months.

If you need the funds now i would possibly try a sub prime lender you may have more success with them.

You could also try and appeal the natwest rejection?

In branch.

I realise what you are saying re the overdraft makes sense, but Ive not been able to do that in about 2 or 3 years, and as much as I want and need to save I cant see it happening.

A sub prime lender is something a previous poster mentioned - who are the best 'sub prime' lenders to try?

If I appeal the Natwest rejection and get rejected again, will that affect my credit scoring?

stephane_2

Given the figures you have there about £8,000 of debt which is a debt to income ratio of about 80% or not far from it. This is the reason, first the fact that you are using your overdraft regularly shows that you are not in control of your finances and you are not going to like what am about to say but no half decent organisation will lend you some money until you clear your overdraft. You may find a sub prime lender but the interest rate will be so extortionate that you'll be better off paying the interest on the overdraft.
You need to look at every out-going and put whatever you can towards the overdraft and as soon as you can reduce it, ask your bank to reduce the available overdraft at the same time so you can avoid using it. Unfortunately there are no miracle solution here.

stephane_2

The only other option you could try would be to apply to a credit card which allows what we call "Super Balance Transfer" which basically offer you the possibility to transfer fund from your available credit to your current account. Only a very few providers offer that option (mbna/Egg/Post office), you could try them. But and there is a big but, you have not had any credit card in the past so you may find it very difficult to get one but at the end of the day it might be worst a try.

WTTM

May as well stop the natter.

OP knocked back because he is skint. Can't afford to pay back an overdraft so how can he make loan repayments.


MOMENT

andys15

If your own bank have said no, I think you will get a no from everyone. I have banked with Natwest for the last 10 years, and they have helped me out greatly. Givin me loans when I couldnt go anywhere else. They throw money a me, so if they refuse you I am afraid you have no chance. Natwest base it on affordability.
I dont understand why you want to pay of your graduate loan, surely it it on a great interest rate. I think you need to up your income my friend, and post a SOA.

Beast

I have to agree with other posts here - there's no way a reputable lending organisation is going to lend to you right now.

Rather than diving into a big messy hold of high interest sub prime lending you'd be better off looking at ways to cut back and pay off your debts faster.

Morty_007

WTTM go annoy someone else unless you have something helpful to say - MORTY:D (I see why you do that grin thing, it REALLY makes you less annoying and offensive :j)

OP I can't help more than the above posters have but wanted to say I empathise with your situation. DH has exactly the same problemat the moment and I know it isn't a matter of not being able to pay the debt, its a matter of the debt being all over the place with no end in sight. My DH wants to consolidate his debts into one loan so that he can improve the interest rates and have one monthly payment which will end in 5 years rather than payments going on into the never never and feeling like there is no end in sight. Consolidation is going to mean the same amount of money going out, just in a more purposful manner.
There is definately a psychological aspect to getting out of debt, not just a practical one! You have to FEEL like you are getting somewhere.

Good luck OP
Morty

kenh11

stephane wrote: »

Given the figures you have there about £8,000 of debt which is a debt to income ratio of about 80% or not far from it. This is the reason, first the fact that you are using your overdraft regularly shows that you are not in control of your finances and you are not going to like what am about to say but no half decent organisation will lend you some money until you clear your overdraft. You may find a sub prime lender but the interest rate will be so extortionate that you'll be better off paying the interest on the overdraft.
You need to look at every out-going and put whatever you can towards the overdraft and as soon as you can reduce it, ask your bank to reduce the available overdraft at the same time so you can avoid using it. Unfortunately there are no miracle solution here.

I think the problem Im having is that I changed jobs to move with the OH. If Id have stuck where I was earning double what I do now I may have had a better chance. Thanks for the advice though, makes sense.

stephane wrote: »

The only other option you could try would be to apply to a credit card which allows what we call "Super Balance Transfer" which basically offer you the possibility to transfer fund from your available credit to your current account. Only a very few providers offer that option (mbna/Egg/Post office), you could try them. But and there is a big but, you have not had any credit card in the past so you may find it very difficult to get one but at the end of the day it might be worst a try.

Thats not something Id ever do. Credit Cards is not the route Im going to go down if I can help it.

WTTM wrote: »

May as well stop the natter.

OP knocked back because he is skint. Can't afford to pay back an overdraft so how can he make loan repayments.

MOMENT

You didnt read the first post again there, naughty naughty.

I may be well into my overdraft but I said Ive never missed a payment on all of my outgoings.

The reason Im looking to get a loan is that sooner rather than later the charges for being into my overdraft will start mounting up, the car will start to die and depreciate any more, and the money is running out.

Consolidation.

Morty_007 wrote: »

WTTM go annoy someone else unless you have something helpful to say - MORTY:D (I see why you do that grin thing, it REALLY makes you less annoying and offensive :j)

OP I can't help more than the above posters have but wanted to say I empathise with your situation. DH has exactly the same problemat the moment and I know it isn't a matter of not being able to pay the debt, its a matter of the debt being all over the place with no end in sight. My DH wants to consolidate his debts into one loan so that he can improve the interest rates and have one monthly payment which will end in 5 years rather than payments going on into the never never and feeling like there is no end in sight. Consolidation is going to mean the same amount of money going out, just in a more purposful manner.
There is definately a psychological aspect to getting out of debt, not just a practical one! You have to FEEL like you are getting somewhere.

Good luck OP
Morty

Exactly, I just want to consolidate them as you say so it will all end in 5 years rather than being all over the place and losing money on this and being charged interest on that over and over and over.