Unsecured loans to consolodate

sweetstyle_2

Firstly - Hello to all that are reading this.

I have recently had my first baby and have had the pleasure of having 5 months full pay maternity leave, now that I am due to return to work I am concerned as I will be going back part time & have a salary drop as well as the added new cost of child care.

With this in mind I have been looking around to get an unsecured personal loan to consolodate my existing finances in order to live more comfortably when this all kicks in.

I have in the past had defaults (when I was 19 I got myself into a pickle) but now I am default free. My experian report states I have a good credit score (1 point off excellent in fact!!!) and everything looks hunky dorey!

Currently I am paying approx £500 a month on my car, credit card, a previous loan and over draft. I am looking at getting £12k over 7 years... I know its probably not the best thing to do but I dont want to be searching for every last penny at the end of the month.

So, I have applied with Tesco's through a comparison site who have turned me down, and then I applied through Co-Op via the experian "match my credit" service who again.... turned me down. I decided to write to the co-op to ask why they turned me down, I explained in my letter about my current debts and how much I am re-paying, and that I wish to consolidate this to one easier sum. The response I have received is - and I quote "As responsible lenders the Bank has to ensure we dont over commit ny customers and on review of your request I cant see the ability for you to afford this loan"

WHY NOT??? As I said - I am currently paying out £500 odd.... wanting to bring this down to £200..... How are you to consolidate if they wont lend.

So MSE people.... I ask for your help.... I have 1 more credit search until I have to wait another 6 months.... where do I go from here?

Mrs_Jojo

As I understand it, because they can't force you to pay off the existing debts, they are taken into account on affordability.... advice here would probably be to NOT consolidate, but to work on paying things off, hard thought that can be! The problem about consolidating is that there will be an empty credit card sitting there, and I think a lot of us know from experience that they can be very tempting....

Nottoobadyet

What is your income to debt ratio? A lot of people are being turned down on that basis at the moment.

sweetstyle_2

I know its not the best idea to consolidate, but as I mentioned in my first post with the up and coming cost of child care & my wage being lower than what I am taking home at the moment, I am going to find it hard to repay what I am already owing.... the last thing I want to then end up doing is defaulting because I couldnt afford to eat!

The temptation of the empty credit card is no problem for me as I have not spent on it since August for the fact that I am trying to clear it... only thing is I can only really do the minimum payment. It doesnt even sit in my wallet anymore to ensure its not there when I want to impulse buy! :A

sweetstyle_2

Nottoobadyet wrote: »

What is your income to debt ratio? A lot of people are being turned down on that basis at the moment.

My take home is 1400pm, my debts come to £455.87 per month then interest and overdraft fees from my bank (I pay for over draft protection.... not a bank fee for going over my overdraft)

Nottoobadyet

Your income to debt ratio is based on the totals - if thats your take home pay I guess you make about 21k, and if your debt is more than about 10k (which I suspect it is if your min payments are about 450 pm), banks may be reluctant to lend.

Maybe pop over to the loans board? they may know more.