Consolidation Loan required

cooky43

Hi I currently have a loan and 2 credit card debts that I wish to consolidate into 1 loan. My current monthly costs are 610.00 per month. i have looked at loan rates and a consolidation to cover all this would work out at 428 over 7 years but i have applied to 2 building societies and been turned down - I have always paid my bills on time and never defaulted, does anyone have any suggestions of where I could get a decent consolidation loan.

jennihen

Can you guarantee your circumstances for the next 7 years?

CLAPTON

how much do you owe
how much do you want to borrow
how much do you earn
what does your credit record say

cooky43

Yes and I will pm the other details

CLAPTON

cooky43 wrote: »

Yes and I will pm the other details

it's a public forum

no-one knows or frankly cares who you are in real life.
you only need to post up broad brush figures and not any personal details that might identify you

cooky43

7400 loan
5100 c card
5200 c card

17500 required

15150 per annum

very good credit rating

Simon11

My advice for consolidation loan is not to do it!

You might think its easier and very handy to only have to look after one loan, however in the long term you'll end up paying more!

Unless you can't afford it, my advise is to try to pay off the loans ASAP, not trying to extend the deadline so it seems that your'll saving yourself X every month- In the long term your paying more ££££

There is NO easy way out of debt. Just work dam hard to increase your income and reduce expenses and put the money towards paying off the debt

CLAPTON

basically, any lender will 'see' your potential debts as 17,700 + 17,500 = 35,200... although you know you intend to pay off the other debts there is no legal requirement for you to do so.

on a salary of 15,000 there is in reality no possibility of anyone lending that

BLT_2

cooky43 wrote: »

7400 loan
5100 c card
5200 c card

17500 required

15150 per annum

very good credit rating

Some confusion here. You state that a loan of 428 per month over 7 years would cover your debts. This equates to a loan repayment of circa 36k against a requirement for 17500.

Brushing this aside the news is not good. Firstly you have made a couple of applications, which has decreased your credit score. Secondly you are after borrowing 17500 on top of the 17500 you already owe. In essence increasing your debt to 35k against an income of 15k. Whilst you state that the loan is for consolidation the loan company has no way of confirming that the funds will be used for this and hence could consider it as an additional debt.

Any loan company worth it salt is going to look at your net income (approx 1050 per month if my calculations are correct) and your outgoings (600 per month on loans and credit cards alone) and then wonder where you are going to find the additional 428 pounds per month to pay them.

I would suggest that you need to rethink your strategy and look at 0% CCs or alternatively discuss the issue with your bank manager. However having read the rest of the board I note that at the first inkling of financial problems many of the companies seem to withdraw their offer of credit and hike their interest rates