10k Loan Refused... Advice on Debt Consolisation please

dannyv21

hi all,

first time post here so hoping someone out there can advise/help.

i have:
1. a mortgage for 90k
2. a loan for 10k
3. credit cards totalling 6k
4. 2 bank accounts overdrawn totalling 2k

i wanted to get a loan for 10k (for 4 or 5 yrs) to clear my credit card bills and overdraft (a some left over for the house) to stop the interest and just pay the debt.

i have not defaulted on any payments ever so assume my credit is good (or at least not bad?) but on the loan applications i made i was refused. i was also refused additional credit card's (i was looking to do a balance transfer).

is there a way i can get a loan? is there a company (NOT debt consolidation!) that will give me a loan for 10k? have these credit card / loan apps effected my credit rating so my chances are now evening smaller?!

please help, i'm in a hole, losing sleep and not sure what to do!!!

many thanks...
dan

PNPSUKNET

is you income more than 28k?

podperson

Credit reference agencies tend to look at a ratio of your earnings to how much you currently owe so since you have a lot of credit at the moment you might struggle to get another loan for that high an amount.
Consolation doesn't have to be the answer, if fact most people on here would advise against borrowing more money to get out to debt, try posting an soa and people will be able to advise better.

Mrs_Jojo

An SOA is the way to go, clever people will find all sorts of ways for you to save and pay things off :-)

Fang_3

More debt is not the answer. Fill in this - http://www.makesenseofcards.com/soacalc.html and then post it here and the experts here will be able to help you get rid of this debt asap.

DarkConvict

Limit yourself to applying for 1 financial products every 3 months, 2 at most. keeping the number of applications down keeps your score high. If they see you applied for alot of credit, then either you got refused or they got accepted and you have alot of available credit/new debt.

Wait atleast 3 months before applying again for more credit.

it is true, consolidation is not the answer.

DarkConvict wrote: »

Generally loans are front loaded, so here is an example.

£10,000 of credit card debt at @ 25%, paying back £500 a month
It will take you 26 months to pay off these debts. During that time, you'll pay £2,732.00 in interest.

£10,000 loan to consolidate at @ 15%, you will be asked to pay back at 5 years. So 5x12 = 60 months. £10,000 at 15% over 5 years is roughly £17,500 to repay.
Making monthly repayment to be £292

This shows a consolidation loan takes longer to pay back, you pay more in interest, and worse of all it bring down repayments. Lower repayments is bad for a big reason if you are in debt to the point of wanting another loan, if you have more money per month than when making the min payments on cards you end up spending again. But that £206 just isn't enough so you get a credit card, end up making min payments and then bang 12-24 months later you need another loan and have a whack load more debt.
Mentally consolidation looks good but it really just turns you over and gets you from behind much harder... is one way to put it.
Avoid at all costs!

Consolidation on words on very high APR loans, i.e. Payday loans. problem is if your down to payday loans many people can't afford a consolidation loan to clear them anyway.

You could always ask the bank to lower the interest on the credit card given you have kept up payments, but wait a bit before asking.

ethan1066

you are right credit card debts should be the one paid first because of their higher interest rates.....also payday loan is not a bad option for you...but in that case you need to give more interests so try to find out any othere alternate...